On June 4, after long deliberation and extensive consultation with issuers of indexed universal life (IUL) insurance policies and other interested parties by the Life Actuarial (A) Task Force (LATF), the National Association of Insurance Commissioners’ Life Insurance and Annuities (A) Committee adopted new Actuarial Guideline 49 governing IUL illustrations.

The new Actuarial Guideline establishes a uniform methodology that must be followed in determining the maximum annual rate of index-based interest that can be used to calculate policy values in IUL illustrations (the draft guideline). That methodology includes a maximum interest crediting rate — based on the historical performance of the S&P 500 Index — that may be used in IUL illustrations under the illustrated scale.

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