Universal Life - NAIC - Regulators

1980s

  • ... which falls into this category is a derivative of the Universal Life Policy first described by James C. H. Anderson...

1980-1, NAIC Proc. 

  • The completely flexible life insurance plans are sometimes called "universal life insurance plans.

1980-2, NAIC Proc.

  • ... (sometimes referred to as "Total Life Plans" or "Universal Life Plans")

1981-1, NAIC Proc.

  • ... rate of return cost disclosure system and the new product "universal life " creates new problems.

-- Richard Minck, ACLI

1981-2, NAIC Proc. 

  • ... Actuaries subcommittee to study the topic "Completely Flexible Life Plans (Universal Life Insurance Plans)."
    • For additional information on these related topics, please ...

1981-2, NAIC Proc. 

  • The American Council of Life Insurance (ACLI) presented a paper on cost disclosure for universal life products - 4p
    • ....Further, the policy summary should include a statement on the point at which the policy will expire based on the policy guarantees and the anticipated premiums shown in summary.
  • Basically, it summarized that universal life should be treated as a life insurance plan with a nonguaranteed cost element for cost disclosure purposes.

1982-1, NAIC Proc.

  • John Montgomery (CA) mentioned that the matching of assets and liabilities was important for universal life and that the draft bulletin contained some reporting requirements.  (p376)

1982-2, NAIC Proceedings

  • Funded Plans -  III. FUNDED PLANS OF LIFE INSURANCE (UNIVERSAL LIFE) AND ANNUITIES (LATER CHANGED TO UNIVERSAL LIFE AND RELATED PLANS OF LIFE INSURANCE AND ANNUITIES)     

1982-4, NAIC Proc.

  • John Montgomery (CA) commented on the flexible premium universal life policy and the fact that it is not really a whole life policy, but a term policy until the premium is actually paid.

1988-2, NAIC Proc.

  • Unlike adjustable life, where a current plan is defined, but is subject to change, a universal life policy at any time has only a "minimum" and a "maximum' plan....
  • The adoption in 1983 of the Model Regulation for Universal Life provided recognition that these policies could be configured as whole life policies.

1989-1, NAIC Proc.

1990s / 2000s

2010s

  • Universal life is permanent insurance combining term insurance with a cash account earning tax-deferred interest.
    • Under most contracts, premiums and/or death benefits can fluctuate (within the contract’s bounds) with policyholder preference.
    • The policy stays in effect as long as the cash value is sufficient to cover premiums.
    • Additionally, the insurer usually guarantees the cash value will not fall below a minimum value.
    • The cash value of the policy can also be used to pay the term insurance portion of the policy. (p17)

2013 - NAIC / CIPR - State of the Life Insurance Industry: Implications of Industry Trends - 220p

2020s

  • 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.
    • A universal life insurance policy may provide for other credits and charges, such as charges for cost of benefits provided by rider. (p01-21)

2021 - NAIC - Valuation Manual - 330p