Multitrack

Multitrack

Multitrack Policies. For policies which allow a policyowner to change or convert the policy from one plan or .amount to another, the Policy Summary:

1) Shall display all indexes and other data assuming that the option is not exercised; and
2) May display all indexes and other data using a stated assumption about the exercise of the option.

COMMENT: An example of the type of policy subject to this subsection is adjustable life .

Model Regulation Service • January 1993
LIFE INSURANCE DISCLOSURE MODEL REGULATION 6. Multi-track plans: These policies allow the insured the option to
increase or decrease the amount of insurance and to change or convert the
plan of insurance.
For these plans, I would calculate cost indexes based upon the assumption
that the automatic option is exercised. However, I might make additional
displays of cost indexes on other options provided I stated the assumptions
that pertain to the exercise of the options. WILLIAM T. TOZER

1981, INDIVIDUAL LIFE INSURANCE COST DISCLOSURE ISSUES, Society of Actuaries