AdminUpdate: Nationwide Updates WA LTC Rider Application Process


Effective August 2, 2021, and through December 31, 2021, policies submitted in Washington state that include the Long-Term Care Rider on Indexed Universal Life or No-Lapse Guarantee Universal Life policies must use:

  • Electronic applications (no paper applications in Washington after August 2, 2021)
  • Intelligent Underwriting process
  • The digital interview

Applicable products

Policies being issued in Washington that elect the LTC Rider are subject to these requirements.

  • Indexed Universal Life products
  • No-Lapse Guarantee products

Products NOT impacted

  • Nationwide CareMatters® II
  • Survivorship Indexed Universal Life
  • Nationwide Variable Universal Life Accumulator
  • Nationwide Variable Universal Life Protector

No other states are impacted by this change.

NOTE: When selling through an intermediary, identifying them in the electronic application will help expedite processing.

Submission reminder

At Nationwide, we are here to help you place your life insurance and long-term care business. Nationwide can make no guarantees that policies submitted will be issued in time for individuals to meet the deadline set by Washington state. However, we believe that your best chance will be to submit applications by September 1, 2021.

Find out more about these changes from Nationwide…

ProdMod: Mutual of Omaha LTC Rider Minimum Face Increased in the State of WA


This action is being taken to prevent individuals from applying for a life insurance policy with LTC to avoid the Washington State’s Long-Term Care Trust Act payroll tax deduction with no intention of keeping the policy in force.  Mutual of Omaha has a responsibility to our policyholders and distribution partners to ensure our product offerings are used as designed, offering lasting life insurance and LTC protection to our valued customers.

Products Impacted

  • Income Advantage IUL
  • Life Protection IUL
  • Professional Advantage IUL

Transition Period

  • Applications signed before July 22, 2021 will be processed as applied for.
  • All pending in-house business will be processed as applied for.
  • Any applications signed July 22, 2021 or after with a face amount lower than $250,000 will be returned for a new application.

No exceptions will be made.

Thank you for your continued business, partnership, and commitment to Mutual of Omaha.

ProdMod: New York Life Launches Enhanced Cash Surrender Value Rider


The ECSV Rider provides an ECSV Benefit. The ECSV Benefit is available only during the ECSV Period, which is the first five policy years. When the ECSV Rider is active on the policy, the policyowner will be paid ECSV Benefit upon full surrender instead of the Total Cash Value (as defined in the policy). Upon full surrender, the ECSV Benefit provides an amount equal to the greater of a) and b), where:

a) Is equal to the ECSV Percentage multiplied by the cumulative premiums paid into the base policy and Dividend Option Term (DOT), if applicable, less any outstanding loans and accrued loan interest; and
b) Is the Cash Surrender Value which is equal to the Total Cash Value (as defined in the policy) less any outstanding policy loans and accrued loan interest. The ECSV Percentage used to determine the ECSV Benefit is 85%. The ECSV Percentage is guaranteed during the ECSV Period.

In order to be eligible to receive the ECSV Benefit, the following conditions must be satisfied:

  • The Base Policy must be in effect and not be in a Late Period
  • The Paid-Up Additional Insurance Dividend Option under the Base Policy must be in effect
  • The Base Policy Premium Payment Mode must not have been changed during the ECSV Period; and
  • The Paid-Up Additional Insurance under the Base Policy must not have been surrendered during the ECSV Period.

Find out more about these changes from New York Life…

ProdMod: Foresters SMART UL: Now 7702 Compliant


Foresters Financial is updating the SMART UL premium limits, effective July 18, 2021, to align them with changes made to Section 7702 of the Internal Revenue Code.

Ensure you requote any pending max funding scenarios!

Follow these steps on or after July 18th:

  1. Launch ForeSight. If using the desktop version, you will be prompted to update the software
  2. Load your client’s saved case file with SMART UL 2018
  3. Select Change Product and select SMART UL 2021
  4. Run the new illustration and save

Find out more about these changes from Foresters…

AdminUpdate: Principal Releases Life Strategic Review FAQ


This initial version of the FAQ addresses:

  • Product availability
  • The current definition of a “business case”
  • Term Conversions
  • Administration of the in-force block of business
There are a few additional items in the FAQ, making a review of the entire document well worth the investment of a few minutes of your time. AIN will distribute any and all future updates to the FAQ as soon as they are available.

Find out more about these changes from Principal…

ProdMod: Mutual of Omaha Releases Enhanced, 7702-Compliant Income Advantage IUL


Mutual of Omaha’s Income Advantage IUL product is now compliant with section 7702 as of July 8, 2021.  This change has dramatically increased our competitive position in the “Cash Accumulation/Income” IUL marketplace.  In addition, to our competitive position, the Income Advantage has some of the lowest internal costs in the industry.  When you combine the GRO rider, low cost structure, competitive income values and our no cost Chronic/Terminal Illness or available LTC rider, the Income Advantage IUL should be considered one of your top “go to” IUL products.

And the good news keeps coming!

For all new IUL applications signed July 8th, 2021 or later, we have increased the maximum benefit amount on our Guaranteed Refund Option (GRO) rider from 50% to 80% of the specified Death Benefit!  This rider is included at no additional cost on qualifying Income Advantage IUL as well as our Life Protection Advantage IUL products.   GRO allows clients to surrender their policy for a 100% refund of premium after years 20, 21, 22, 23, 24 and 25 (up to a maximum of 80% of the specified Death Benefit).  This rider provides the client with an extra “safety net” and peace of mind with their IUL policy.

While we are not making any additional changes to our life insurance products due to 7702, we will be allowing clients to add additional funds to Income Advantage IUL policies that are dated January 1, 2021 or later.

Find out more about these changes from Mutual of Omaha…

ProdMod: Major Changes to Lincoln’s New York Product Lineup


Recently, as part of a review of its electronic signature processes, Lincoln Life & Annuity Company of New York
(Lincoln) became aware that the application currently used for its life insurance products sold in New York, does not comply with New York’s requirements for use with electronic processes and platforms. Lincoln is committed to ensuring our products and processes are in compliance with state regulations and guidelines, therefore the following actions will be taking place until a new, electronic-compliant application and process can be implemented:

The following life insurance products currently sold in New York will be suspended after August 13, 2021:

  • Lincoln LifeElements Level Term (2019) – 07/15/19
  • Lincoln WealthAdvantage Indexed UL
  • Lincoln WealthPreserve IUL (2017) – 02/12/18

Submission and placement deadline

  • All New York applications for the life insurance products listed above must be received in-good order at Lincoln by August 13, 2021, and
  • All pipeline cases for the New York products listed above must be placed inforce, or 1035 exchange initiated by October 29, 2021
  • Any case not placed inforce or 1035 exchange initiated by October 29, 2021 will be cancelled

All electronic process solutions for products sold in New York, including Lincoln MoneyGuard and life insurance policy conversions, will be suspended after August 13, 2021, including:

  • eApp
  • eNIGO
  • ePolicy Delivery (through DocuSign or DocFast)
  • No electronic or digital signatures will be accepted

Note: The following products remain available for sale with paper processes only

  • Lincoln MoneyGuard II NY
  • For use with Group or Term Conversions only: Lincoln Conversion UL, Lincoln LifeElements 1-year Term, Lincoln LifeElements 10-year Term

Find out more about these changes from Lincoln Financial…

ProdMod: 7702 Compliance and Increased Par Rate coming to AIG’s Max Accumulator


Max Accumulator+ II IUL & 7702 Updates

We are pleased to announce that effective July 17th, 2021, Max Accumulator+ II IUL will be updated to meet the new 7702 requirements, including new CVAT Corridor Factor and Guideline/7-Pay Premium Test interest rates. As the result of the change, clients can now choose to pay more premium into the policy without creating a Modified Endowment Contract (MEC) violating life insurance tests, and therefore improve cash value accumulation and income distribution potential.

In addition to this 7702 update, we also made some changes and improved the ML Strategic Balanced Index Participation Rate from 110% to 115%. Max Accumulator+ II will continue to be a competitive cash accumulation IUL with innovative features.

Transition Rules

Paper Applications

  • New Max Accumulator+ II product is effective July 17, 2021.
  • Applications received on or after July 17, 2021 will receive the new product.
  • Starting 4:00 PM CDT on July 16, 2021 only the new product will be available in Winflex.
  • To receive the old product applications must be received on or before  July 16, 2021.
    • A new 7702 compliant illustration is required and must be requested from the Sales Support Desk (access code required). Please contact the Sales Support Desk to request a new 7702 compliant illustration.
    • Applications for the old product must be issued by September 16, 2021; otherwise, an illustration for the new product will be required.
    • For 1035 exchanges, funding must be received from the transferring carrier no later than September 16, 2021. Or alternatively, the insured may pay the minimum initial out-of pocket premium by September 16, 2021 to continue toward issuance of the prior version of the Max Accumulator+ II product. Otherwise, an illustration for the new product will be required.
  • For applications received prior to July 17, 2021, the new Max Accumulator+ II product can be requested with a new product illustration provided.
  • Reissue requests will not be honored.

Please see the formal transition rules for additional details regarding cases submitted via Quick Ticket and iGo.

Other products affected by the 7702 change:

Value+ Protector II, Protection Extend IUL (conversion only IUL) and Secure Lifetime GUL 3 will also use new 7-Pay and Guideline Premium Test calculations in the illustration software and administrative Systems effective July 17th

Value+ Protector II, Protection Extend IUL and Secure Lifetime GUL 3 Transition Rules

  • New IRC 7702 rates are effective July 17, 2021.
  • Starting 4:00 PM CDT on July 16, 2021 the new 7702 compliant illustration will be available in Winflex.
  • Applications received but not issued and with an effective date on or after July 17, 2021 will require a new 7702 compliant illustration prior to issue.
    • A new 7702 compliant illustration can be rerun on Winflex after 4PM on 7/16/2021.
    • Please submit the revised illustration to the Home Office.
  • Applications pending with a prior version of the illustration and an effective date prior to July 17, 2021 must be issued by September 16, 2021.
  • If not issued by September 16, 2021 a new 7702 compliant illustration will be required with a new effective date on or after July 17, 2021.
  • Reissue requests will not be honored

Find out more about these changes from AIG…

AdminUpdate: OneAmerica Eases COVID Underwriting Restrictions


At OneAmerica® we exist to be there for our customers when they need us most. For so many, the COVID-19 pandemic has been an especially critical time of need, and we are honored to have been able to provide our policyholders with products that offer protection, security and flexibility – even in such challenging times.

As we begin to emerge from the pandemic and continue to see conditions improve, we’re pleased to lift some of the COVID restrictions implemented in 2020. These updated limits for Asset Care are effective today, July 1, 2021:

  • Age 69 and younger
    • No restrictions
  • Age 70 and older
    • All products now available, bringing Asset Care Recurring Premium Whole Life, Asset Care with Return of Premium and Asset-Care IV (CA) back for active sales to these ages
    • Rated cases will still not be accepted
    • Annuity Care: All products remain available

Find out more about these changes from OneAmerica…

Do You have a Marketing Content Problem?


July’s Trimester focus is on Executive Bonus Arrangements. Attracting and retaining quality employees is a critical part of a client’s business. We’ve provided executive bonus strategies that can help accomplish this goal.

Check out what’s new!

Playbook Pointers

Our Playbook pointers are a go-to approach for getting things done. The categories are organized to follow the end-to-end sales process. See the Prudential Advantage for additional details. This month’s materials describe the types of Executive Bonus Arrangements that exist and the role life insurance plays.

  • Education: Small Business eBook – a comprehensive guide for supporting business owners in all stages of their business, including succession planning.
  • Client Identification: Executive Bonus Producer Presentation – this presentation lays out why the concept can help, how it works, and how it can be customized for a businesses’ need.
  • Point of Sale: Executive Bonus Arrangements Consumer Flyer – this consumer approved flyer explains how an Executive Bonus Arrangement works.
  • Completing the Sale: Get on Board with PruFast Track – learn more about our accelerated underwriting process.
  • Post-Sale Support: Life Insight Guide – this guide provides an overview of LifeInsight, our patented, interactive policy management tool.


NEW! Watch Past Webinars On DemandIf you can’t attend our monthly Trimester webinars, no problem, you can now watch them On Demand at your convenience. Current and past webinars are located on the home page of the Trimester Marketing Resource Site on the upper right.

Find out more about these resources from Prudential…