1989-1

1989-1

4a Special Plans – Universal Life – Review Regulators Problems with Model Adopted (Product Development Task Force) (On hold)

Universal Life
The advent of universal life brought with it many nonforfeiture concerns. 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, based on
the current cash value, and minimum and maximum allowable premiums. Which plan should be used for demonstrating
compliance with SNFL? How should the deductions from the cash value for benefit charges be regulated?