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Old 10-31-2017, 04:56 PM
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simonbelmont simonbelmont is offline
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Default IUL Index Multipliers

Companies are using index performance multipliers on IUL products in order to illustrate higher cash values than using just the maximum illustrated rate allowed by AG49. How are companies skirting the following piece of the regulation:

"If an insurer engages in a hedging program for index-based interest, the assumed earned interest rate underlying the disciplined current scale shall not exceed 145% of the annual net investment earnings rate"

AG 49 limits the earned rate for the disciplined current scale to 145% of annual net investment earnings rate, if the insurer hedges. Companies like Pac Life are crediting policies up to 3x the maximum illustrated rate with their black box performance factors. How is this allowed under AG49?
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Old 10-31-2017, 07:41 PM
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