Equity Index Insurance Products
- 1999 - SOA - The Next Generation Universal Life, Society of Actuaries --- [BonkNote] --- 30p
- Deanne Osgood: I would be remiss if I didn’t mention equity-indexed universal life insurance
(EIUL), because this is a fairly recent innovation that has focused on providing
a more attractive accumulation vehicle. Whereas, the secondary guarantee
period and the maturity age extension have really focused on the guarantees
and some of the difficulties in providing an attractive accumulation vehicle in the
fixed interest rate environment that we’re currently in. EIUL does somewhat
attack the issue of how we can make this an attractive accumulation vehicle.
EIUL products have been available for about two-and-a-half years and have
been quite successful for a few companies. However, the volatility of the equity
markets combined with the low-interest-rate environment that we’re in has
made it difficult to price, market, and sell these products for most companies.
There are about eight companies that have introduced 10 products into the
marketplace and, typically, the base policy designed for EIUL tends to mirror
their traditional fixed counterparts with the exception of the method used to
determine the excess interest for the contract. Riders that exist on traditional
UL typically are available on EIUL as well. The policy mechanics are virtually
identical for a company that offers both types of products. It’s just in how that
excess interest is determined that differs.
- 2004 - GAO - - Better Information Sharing Among Financial Services Regulators Could Improve Protections for Consumers - gao.gov/assets/gao-04-882r.pdf
- Oversight of Hybrid Products and the Regulatory Systems Used to Track Complaints Vary
- 4 Figure 1 highlights differences in how these three types of hybrid products are generally regulated.
- 2008 - SEC - File Number S7-14-08—Comments on the SEC’s Proposed Rule That Would Subject Certain Equity-Indexed Annuities to Regulation Under the Federal Securities Laws