Advisors Blog

GBS News: AG49-A - What You Need to Know | Symposium with Condoleezza Rice | Product Updates | and more

Published on November 23, 2020



AG49-A: What You Need to Know

The National Association of Insurance Commissioners (NAIC) recently enacted revisions to the AG49 regulation that governs IUL products. The new version of the regulation, called AG49-A, will further limit how carriers illustrate their IUL products and provide more transparency. All Life Insurance carriers must be in compliance with Actuarial Guideline 49-A (AG49-A) for IUL illustrations by November 25th, 2020. For a list of carrier memos on product and illustration changes and deadlines, check out our blog. For more details on what to expect after AG49-A goes into effect, click below.


Exclusive Symposium with 66th U.S. Secretary of State, Condoleezza Rice

Listen in on a fireside chat with former Secretary of State, Dr. Condoleezza Rice and Prudential’s own Salene Hitchcock-Gear, President, Individual Life Insurance and Prudential Advisors.

They'll discuss:

  • The economic outlook for the U.S. and advice to rebuild it in a post-pandemic world.
  • U.S. foreign policy and the current state of U.S. relations around the world.
  • How we can continue driving toward greater diversity and inclusion.

Plus, a post-election overview focusing on the new political landscape, its likely impact on tax legislation, and where the opportunities will emerge in the life insurance industry.

Tuesday, November 24 / 2pm - 5pm EST


AIG Non-Medical Underwriting Expanding to $1 Million

Effective November 21, 2020, AIG's non-medical underwriting will be expanded to include eligible cases with face amounts up to $1 million on Max Accumulator+ II and Platinum Choice VUL 2. To improve underwriting efficiency, guidelines for underwriting classes and Part B submission methods will also be revised. Click below for more details.


Updated IUL and SIUL Products

Effective November 7th, Nationwide launched an update to their Nationwide IUL Accumulator II, Nationwide IUL Protector II and Nationwide Survivorship IUL products. Click below to view to transition guidelines.

What changed:

  • Removing all multipliers.
  • Keeping five of the indexed interest strategies and increasing the cap rate on two of them; lowering the cap rate on two; and increasing the spread rate on one.
  • Increasing the maximum illustrated rate for core strategies.
  • Lowering the maximum illustrated spread on IUL alternative loans to 0.50%. 

Two IUL Policy Options: LTC Rider or Chronic Illness Riders

When your clients purchase an Income Advantage or Life Protection Advantage Indexed Universal Life insurance (IUL) policy, they have two options that allow them to take all or a portion of their death benefit early if they become chronically ill:

  • A Long-Term Care Rider
  • OR
  • A Chronic Illness Rider

The information provided in the Chronic Illness Rider or LTC Rider: Which is Right for Your Client? flyer will help you understand how each rider works, and arm you with the information you need to help your clients choose the option that best suits their needs. It will also provide you with case studies showing the costs and benefits of each of the two riders.


Reliance Standard Earns "A++" Upgrade from AM Best

On November 11th, Reliance Standard Life Insurance Company (Reliance Standard), a leading insurance carrier specializing in employee benefits solutions and both fixed and fixed index annuity products, has earned an “A++ (Superior)” Financial Strength Rating from AM Best, upgraded from “A+ (Superior).” According to AM Best, its financial strength ratings are, “an independent opinion of an insurer’s financial strength and ability to meet its ongoing insurance policy and contract obligations.” To view AM Best's press release, please click below.




We at GBS Insurance thank you again for your business. For more information or insurance quote requests, please contact your brokerage manager or give us a call at (800) 473-5966

For agent use only - not for use with the general public.

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21820 Burbank Blvd., Suite 301

Woodland Hills, CA 91367

Phone: (800) 473-5966

GBS Insurance and Financial Services, Inc. do not provide investment, tax, or legal advice. The information presented here is not specific to any individual’s personal circumstances. To the extent that this material concerns tax matters, it is not intended or written to be used, and cannot be used, by a taxpayer for the purpose of avoiding penalties that may be imposed by law. Each taxpayer should seek independent advice from a tax professional based on his or her individual circumstances.

These materials are provided for general information and educational purposes based upon publicly available information from sources believed to be reliable—we cannot assure the accuracy or completeness of these materials. The information in these materials may change at any time and without notice.

© 2020 Arthur J. Gallagher & Co. 




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