Study Notes and Published References - Note SN 8I-105-03 - NAIC UNIVERSAL LIFE INSURANCE MODEL REGULATION

Section 2 - Purpose

supplement existing regs to accomodate UL

Section 3 - Definitions
Section 6 - Nonforfeiture

Minimum CSV for Flex Prem UL
- accumulations of
  - + prems paid
  - - benefit charges
  - - avged admin expense charges for first policy year and any ins increase years
  - - actual admin expense charges for other years
  - - initial and add'l expense charges (subject to limits)
  - - deduction for partial w/d
  - - service charges actually made
  - - unamortized unused initial and additional expense allowance
- admin expense charges include charges per prem payment, per $ prem paid, periodic charges per $1m insurance, periodic per policy charges and other contractual charges
- averaged admin expense charges - charge rates based on avg or rates policy states will be imposed in years 2-20
- initial acq expense - excess of non service expense charges actually made in first policy year over adg'd admin expense charges for year
- add'l acq expense charge similar to initial acq expense but made in ins increase year
- ins increase year - PO initiated increase
- initial expense allowance - same as SNFL for fixed face/prem endowment of same intial DB
- unamortized unused initial expense allowance = unused intial expense allowance * adue(x+t) / adue(x)
Min CSV for Fixed Prem UL
- min CSV = A - B - C - D
  - A = PVFB
  - B = PV future adj prems - calced from SNFL
  - C - PV NFF from post-issue guarantees
  - D - sum of (B) like items from post-issue structural changes
- future guaranteed benefits determined by
  - projecting policy value taking into account future prems and using guarantees of int, mot, expense dedcutinos, etc
  - taking into account any guaranteed benefits which do not depend on policy value
Minimum Paid Up Nonf Benefits

Copyright © 2004 Steve Welander.
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