Adjustable Life – Descriptions

  • Adjustable Life Insurance: a type of insurance that allows the policyholder to change the plan of insurance, raise or lower the face amount of the policy, increase or decrease the premium, and lengthen or shorten the protection period. (p109/G1)

2002 – IAIS/World Bank – Supervision of Insurance Operations – 140p

  • *Adjustable Life Insurance
    • A form of life insurance that allows policy owners to vary the type of coverage provided by their policies as their insurance needs change.  (p79)

2010 – III – Insurance Handbook A Guide to Insurance: What It Does and How It Works – 205p

  • Adjustable life insurance products provide a guaranteed benefit in return for the payment of a fixed premium and allow the policyholder to set the coverage period, premium and face amount combination. (p12)

2018 – Annual Report – Principal Financial Group – 249p

  • Adjustable Life insurance policies are essentially whole life policies that within limits have the premium and death benefit flexibilities of UL.
    • Unlike UL, these policies are not “transparent” and contain non-forfeiture values.
    • Policy premiums and death benefits can be adjusted along a continuum ranging from limited pay policies on a guaranteed basis to term insurance for limited durations. 
    • These policies have had a rather limited distribution, as they were only sold by a small number of insurance companies.

Date-? – Charity-Owned Life Insurance: An Objective Primer for Planned Giving Officers, by Richard M. Weber and Randy A. Fox – 84p

Universal Life Descriptions - NAIC

  • A proposal to draft a universal life model bill was set forth by the advisory committee to the (A5) Universal Life Insurance Task Force.
  • The advisory committee chairman, James Jackson of Transamerica Occidental Life, indicated that the drafting of such a model bill would be contingent on the ability of the advisory committee to adopt a "workable, acceptable" definition of universal life.  (p7)

1983 02 - SOA - (A5) Task Force Considers Universal Life Model Bill, NAIC Report by Bill Hager, The Actuarial Update, Feb1983-AU - Society of Actuaries - 8p

  • InsureU
  • LIBG - Different Versions
  • CIPR - Permanent made up of Term
  • LIIIWG - Permanent / Term
  • Old
    • Special Plans
    • Completely Flexible
    • Funded
  • NAIC - Accounting Practices and Procedures Manual, SSAP No. 50- Classifications of Insurance or Managed Care Contracts:
    • Universal life and variable life contracts include those contracts which have terms that are not fixed and guaranteed relative to premium amounts, expense assessments, or benefits accruing to the policyholder.
  • The term "universal life insurance policy" means a life insurance policy where separately identified interest credits (other than in connection with dividend accumulations, premium deposit funds or other supplementary accounts) and mortality and expense charges are made to the policy. (p27)

2021 - NAIC Valuation Manual - 299p

Universal Life Insurance Descriptions

  • This creature called universal life has evolved from a combination of term insurance and a flexible premium annuity to a range of differing products with various design features.

1983 - UNIVERSAL LIFE VALUATION AND NONFORFEITURE: A GENERALIZED MODEL, Shane A. Chalke and Michael F. Davlin, Society of Actuaries - [PDF-72p]

  • 1.26 Universal life and similar contracts are contracts with terms that are not fixed or guaranteed relative to premium amounts, expense assessments, or benefits accruing to the contract holder.

2011 - AICPA - Checklists Life and health insurance entities, with conforming changes as of May 1, 2011; Audit and accounting guide American Institute of Certified Public Accountants. Life Insurance Audit Guide Task Force - 619p - https://egrove.olemiss.edu/aicpa_indev/1204/

Universal Life – International Descriptions

  • 2 Universal life is a combination flexible premium, adjustable life insurance policy.
    • The policyholder may select the amount of premium he or she can pay and the policy benefits are those which the premium will purchase.
    • Or, the premium payer may change the amount of insurance and pay premium accordingly.
    • 26. Universal life policy: is a combination flexible premium, adjustable life insurance policy.

    • The policyholder may select the amount of premium to pay and the policy benefits are those which the premium will purchase.

    • If the policyholder may choose to pay a premium that is greater than that required to support the chosen benefit, the excess accumulates as an investment.

2006 10 – IAIS – ISSUES PAPER ON ASSET-LIABILITY MANAGEMENT – [PDF-20p]

  • Universal Life Insurance:
    • …a flexible premium life insurance policy under which the policyholder may change the death benefit from time to time (with satisfactory evidence of insurability for increases) and vary the premium payments.
    • Premiums (less expense charges) are credited to a policy account from which mortality charges are deducted and to which interest is credited at rates which may change from time to time. (p138/G30)
  • Adjustable Life Insurance: 
    • a type of insurance that allows the policyholder to change the plan of insurance, raise or lower the face amount of the policy, increase or decrease the premium, and lengthen or shorten the protection period. (p109/G1)

2002 – IAIS / United Nation – Supervision of Insurance Operations – 140p

Universal Life - Company Descriptions

  • In fact, it is accurate to describe Universal Life as a generalized version of the actuarial formulas underlying traditional life insurance products.

In other words, it is possible to produce any traditional plan of insurance from the generalized formulas underlying universal life.

--   Alan Richards, president and chief executive officer of E. F. Hutton Life Insurance Co.

  1983 0510, 0511 and 0728 – GOV (House) – Tax Treatment of Life Insurance, Pete Stark (D-CA)  —  [BonkNote]  ---   page 448.

  • Universal Life – permanent coverage for life with the potential to accumulate policy cash value
    •  Our universal life policies offer flexibility in how much and when the policyholder pays premiums and the potential to accumulate cash value in an account that earns interest based on a crediting rate determined by the Company subject to contractual minimums.

2018 – Prudential – 10k

Universal Life Insurance – Government Descriptions

  • Universal life insurance
    • A form of permanent insurance designed to provide flexibility in premium payments and death benefit protection.
      • The policyholder can pay maximum premiums and maintain a high cash surrender value.
      • Alternatively, the policyholder can make minimal payments in an amount only large enough to cover mortality and other expense charges. (p1388)

2020 – Federal Reserve (FRB) – Bank Holding Company Supervision Manual – 1764p

—  Federal Reserve (FRB) – Commercial Bank Examination Manual

2016 11 – FIO – Report on Protection of Insurance Consumers and Access to Insurance – 58p

  • Universal Life – A form of permanent insurance designed to provide flexibility in premium payments and death benefit protection.
    • The policyholder can pay maximum premiums and maintain a very high CSV.
    • Alternatively, the policyholder can make minimal payments in an amount just large enough to cover mortality and other insurance charges. (p22)

2004 – OCC, FRB, FDIC, OTS – Interagency Statement On The Purchase And Risk Management Of Life Insurance – 28p

  • Universal Life
  • This coverage has overshadowed the traditional whole life policy because the latter offers limited interest rates in its savings component.
    • Universal life has a pure insurance component and a professionally managed investment component.
    • This form of coverage is extremely flexible and complex, and demands a well-trained sales staff.

1994 01 – OTS – Office of Thrift Supervision – Examination Handbook – Section 720 (Other Activities) – 22p

  • I’m excited to have the opportunity to welcome you to a new edition of USA.gov’s Consumer Action Handbook, your guide to being an informed consumer.

—  Marietta Jelks – Editor-in-Chief, Consumer Action Handbook

  • Whole (or universal) life insurance policies are considered permanent.
  • As long as you pay the premium, the policy is in effect.  (p32)

2015 Version – Consumer Action Handbook, published by USAGov, part of the U.S. General Services Administration’s (GSA) Office of Citizen Services and Innovative Technologies – 146p