As of January 1, 2020, all life insurance plans available for sale must be priced based on the 2017 Commissioners’ Standard Ordinary mortality table (2017 CSO) and be subject to Principle Based Reserving (PBR). Because of these requirements, insurance companies will be revising their most popular plans and retiring the balance. Any pending application for a plan that has not been revised to meet the new standards or is being retired must be placed inforce prior to January 1, 2020. There will be no exceptions. The Brokers Network will keep you updated on announced company guidelines and your affected pending life insurance business. | current guidelines
To make sure Americans are reminded of the need to include life insurance in their financial plans, the nonprofit organization Life Happens coordinates Life Insurance Awareness Month. Each September Life Happens is joined in this educational initiative by more than 100 of the nation’s leading insurance companies and industry groups. Throughout September, The Brokers Network will be highlighting various life insurance products and the benefits they offer your clients.
The Prudential Rate Reduction program allows certain Table A and B rated applications to be moved to Standard. This underwriting advantage is available to all fully underwritten proposed insureds ages 20-70 applying for $100,000 to $5,000,000 of death benefit coverage. Covering term, universal life and variable life, this program is not a table shave program and only applies to certain ratable impairments where underwriting experience allows for an improved offer. As such, not all cases eligible for the program will see a rating reduction (even if the impairment appears on the eligible list). The program does cover some non-medical risks such as private aviation and recreational scuba diving. | more