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North American

ProdMod: North American to Increase Cap & Par Rates, PDA Interest Rate

FROM NORTH AMERICAN…
We are excited to announce that we will be raising cap and participation rates for several index options on new business and inforce policies for Builder Plus IUL 3, as well as many of our previously marketed indexed universal life (IUL) insurance products.

Additionally, effective November 1, 2022, the interest rate on the Premium Deposit Agreement in the Premium Deposit Account will change from 2.00% to 2.50%. This applies to new premium deposits paid into an existing Premium Deposit Agreement and new Premium Deposit Agreements established at policy issue.

Which Products will Receive Increased Cap & Par Rates?

  • Builder Plus IUL 3, Builder Plus 2, Builder Plus
  • Rapid Builder 4, Rapid Builder 3, Rapid Builder 2
  • Builder 8, Builder 7

Effective for index periods that start on/after November 1, 2022.

Click here to view specifics on what rate clients will receive.

PDA Transition Details

  • Policies that are issued with a Premium Deposit Agreement on October 31, 2022 or prior that are not placed inforce by October 31, 2022, will need to be reissued to reflect the new interest rate. This reissue of a full policy (either paper or eDelivery, will match how it was issued originally) will take place the week of October 31, 2022.
    • New Business and/or Policy Change will notify you if you have a case that needs to be reissued.
  • Applications that are still pending or not yet issued will automatically get the new rate as long as they are issued on or after November 1, 2022.
    • Between October 20, 2022 and October 31, 2022, New Business and Policy Change will ensure all cases with a Premium Deposit Agreement are only issued per instruction from the agent, otherwise they will be held up from issue until November 1, 2022 so the new interest rate will be received.

Click here for more details on the PDA rate change.

Find out more about these changes from North American…

AdminUpdate: North American Increased Premium Limits on Multiple Products

FROM NORTH AMERICAN…

Our enduring strength and stability allows us to continuously evaluate new opportunities to improve value for our customers and distribution partners. As a result, we are excited to announce that we have increased our premium limits on the following products:

  • Custom Guarantee Universal Life 9 (CGUL9)
  • Protection Builder IUL
  • Smart Builder IUL 2
  • Builder Plus IUL 3

Below are the updates to our premium limits, which apply to lump sums, 1035 exchanges, ongoing premiums, and multiple pending applications on the same client. Please be aware that there may be additional requirements for inforce policies that receive unplanned premium and are in CVAT corridor.

CGUL9

  • Old = $250,000
  • New = $500,000

Protection Builder IUL w/ Premium Guarantee Rider (PGR)

  • Old = $250,000
  • New = $500,000

Protection Builder IUL w/out PGR

  • Old = $1,000,000
  • New = $2,000,000

Smart Builder IUL 2

  • Old = $1,000,000
  • New = $2,000,000

Builder Plus IUL 3

  • Old = $1,000,000
  • New = $2,000,000

Premium limits are reviewed on an ongoing basis and are subject to change.

Starting September 24, 2022, all applications started and/or submitted using SimpleSubmit e-app, along with iPipeline web illustrations software, will be updated with the new annual premium limits. WinFlex will begin reflecting the new premium limits on September 26, 2022.

Find out more about these changes from North American…

ProdMod: North American Adds Fidelity Index to Select Inforce IUL Products

FROM NORTH AMERICAN…

North American Company for Life and Health Insurance is excited to announce the addition of the proprietary Fidelity Multifactor Yield Index 5% ER to select inforce indexed universal life (IUL) insurance products.

Beginning May 23, 2022, policyowners of the following inforce IUL products may begin allocating funds to the Fidelity index:

  • Builder IUL 8: 110% Participation Rate
  • Builder Plus IUL: 100% Participation Rate
  • Guarantee Builder IUL 4: 100% Participation Rate
  • Rapid Builder IUL 4: 100% Participation Rate

In addition to the new index, allocations to the Fidelity index will have a 0.0% asset-based charge, based on current company practice.

About the Fidelity Index:

  • A rules-based index that blends six equity factor indices with U.S. Treasuries, and uses a dynamic allocation approach that seeks to reduce volatility to deliver more consistent returns over time.
  • The allocation between equity allocations and fixed allocations are adjusted daily with a goal to meet a 5% volatility target.

Availability and Effective Dates:

The new Fidelity index is available in all states where North American conducts business. Funds can be allocated to the new Fidelity index beginning May 23, 2022. Policies that are eligible to elect the new Fidelity index will include an endorsement outlining the details of the index.

An inforce mailing will take place in the near future where the endorsement and an updated Schedule of Policy Benefits page will be sent to policyowners of eligible in-force IUL products that are written in a state where the Fidelity index is available. This mailing will alert the client of the availability of the Fidelity index.

Requesting an Inforce Illustration:

To request an illustration for an inforce policy, use the form located on NorthAmericanCompany.com under Inforce Business Access. A form will need to be submitted for each option illustrated. Illustrations will be delivered through the inforce correspondence section of the website.

Click for more information on the Fidelity Index Added to Inforce IUL Products.

Index Transfers on Inforce Illustrations:

Beginning May 23, 2022, you will be able to request an inforce illustration showing index transfers on all inforce indexed universal life insurance policies. Within the illustration, the applicable illustrated rate will be applied to the transferred funds. Illustrated transfers will move all existing money to new allocations and will occur over the first year of the illustration as existing index segments reach the end of their index periods.

Click for more information on Index Transfers on Inforce Illustrations.

Policy Date Guidelines:

There are no restrictions with the policy date when the new Fidelity index is selected.

ProdMod: Conversion Privilege Changes Coming to North American Term Products

FROM NORTH AMERICAN…

North American is updating the conversion privileges for new sales of ADDvantage® Term. These changes put us in line with industry standards while also ensuring our products are aligned with the long-term focus you have come to expect from North American.

Please note the following changes to term conversion privileges, effective April 23, 2022.

  • 10-year:
    • Current: Earlier of 10 years or age 75
    • New: Earlier of 7 years or age 70
  • 15-year:
    • Current: Earlier of 15 years or age 75
    • New: Earlier of 12 years or age 70
  • 20-year:
    • Current: Earlier of 20 years or age 75
    • New: Earlier of 15 years or age 70
  • 30-year:
    • Current: Earlier of 30 years or age 70
    • New: Earlier of 20 years or age 70
New Business Deadlines

To receive the current conversion periods, applications will need to be signed by April 22, 2022, and received by April 30, 2022. Note: if a new application is required for any reason (for example: due to contracting), the conversion period received will be based on the application signed date of the final application received. Inforce ADDvantage Term policies Inforce ADDvantage Term policies will have no change to their conversion period.

Find out more about these changes from North American…

ProdMod: North American to Reduce Cap Rates Effective April 1st

FROM NORTH AMERICAN…

Updated: Cap, participation, spread, and illustrated rates for indexed universal life products

Please be advised that we are making changes to the cap, participation, illustrated, and spread rates (if applicable) for the following currently marketed products: Builder Plus IUL® 3, Protection Builder IUL®, and Smart Builder® IUL 2.

For these products to receive the current rates, ALL monies must be placed into the index accounts with an effective date ON OR BEFORE March 31, 2022. All monies with an effective date ON OR AFTER April 1, 2022, will receive the new rates.

Transition Rules

The following criteria must be met for monies to be placed into the index accounts with an effective date on or before March 31, 2022:

  • For applications in New Business:
    • Policy Anniversary Date of 3/28/22 or earlier
    • Money received and applied by 3/30/22
    • All requirements received in good order by 3/30/22
    • Policy placed in force by 3/30/22
  • For applications in Policy Change:
    • Policy Anniversary Date of 3/28/22 or earlier
    • Money received and applied by 3/29/22
    • All requirements received in good order by 3/29/22
    • Policy placed in force by 3/29/22

Find out more about these changes from North American…

AdminUpdate: North American Announces Expanded WriteAway Limit

FROM NORTH AMERICAN…

WriteAway Expansion for Ages 51-60

North American is excited to announce that more cases can now qualify for WriteAway, our accelerated underwriting program. The maximum face amount for ages 51-60 is doubling from $500,000 to $1 million! The maximum face amount for ages 18-50 will remain at $2 million. WriteAway can offer your healthiest clients the ability to secure death benefit protection without an exam or lab in as little as six calendar days.

Availability

The new WriteAway criteria will automatically take effect for the following applications:

  • eApplications locked on February 26, 2022, and after
  • Paper applications coded February 28, 2022, and after

Find out more about these changes from North American…

ProdMod: North American Introduces Smart Builder IUL 2

FROM NORTH AMERICAN…

North American is pleased to announce a new Indexed Universal Life (IUL) insurance product available November 22, 2021. Smart Builder 2 is designed for death benefit protection and the potential for strong early cash surrender values through a 0% premium load and optional Waiver of Surrender Charge (WOSC) Option Rider.

Smart Builder 2 highlights:

  • Death benefit protection
  • Includes new 7702 and 7702A calculations for Guideline Premium Test, Cash Value Accumulation Test, and what qualifies as a Modified Endowment Contract
  • 0% premium load
  • 0% surrender charge when the WOSC Option Rider is selected*
  • Surrender charge period is 10 years
  • Strong early cash value performance
  • Accelerated death benefit endorsement for critical, chronic, and terminal illness1
  • Variable interest rate policy loans allowed in policy year one2
  • 10% of the surrender value is available for a penalty free withdrawal beginning in policy year two

Transition Rules

Electronic Applications

  • As of December 15, 2021, the previous version of Smart Builder will no longer be available in SimpleSubmit®.
  • Electronic applications for the previous version of Smart Builder must be signed by all parties and submitted by December 14, 2021.

Paper Applications

  • To receive the previous version of Smart Builder, the application must clearly indicate that product, be signed by December 14, 2021, AND received by December 27, 2021.
  • Paper applications signed November 22, 2021, and after that do not specify which series is wanted, will automatically receive Smart Builder 2.
  • All applications received December 28, 2021, and after will automatically receive Smart Builder 2, regardless of what is requested on the application.

Current pending business

  • Existing applications that are currently being processed in New Business or Policy Change but have not yet been placed inforce can be changed to Smart Builder 2.
  • To change an existing case to Smart Builder 2, a new fully completed application that is dated November 22, 2021, or later, will be required.

Find out more about these changes from North American…

AdminUpdate: North American’s Online Part B Now Available for California Cases

FROM NORTH AMERICAN…

Introducing Online Part 2 & Tele-Interview in California

North American is excited to introduce an enhancement to the WriteAway® accelerated underwriting program in California. Beginning November 6, 2021, electronic applications in California will utilize the Online Part 2 to obtain your client’s personal and medical history. This new tool gives your clients the ability to complete the Part 2 medical questionnaire confidentially on an advanced platform, with the convenience of being able to complete the process independently, even from the privacy of their own home. We will also be offering a tele-interview option for your clients that are unable to complete the part 2 online due to a technical limitation, disability, or if they do not speak English.

Find out more about these changes from North American…

ProdMod: North American Announces Sunset of Classic Term

FROM NORTH AMERICAN…

Effective November 20, 2021, Classic Term will be removed from North American’s product portfolio. Although this product will no longer be available, we encourage you to review North American’s ADDvantage® Term to meet your client’s term life insurance needs.

Important Dates: Electronic Applications (Classic Term submission is only available via e-app)

As of November 20, 2021, Classic Term will no longer be available in SimpleSubmit® e-app or Web-Based Illustrations. Electronic applications for the Classic Term must be locked, submitted, and signed by all parties by November 19, 2021.

If an e-app for Classic Term is signed and/or received November 20, 2021, or after, it will not be coded. The MGA will be notified of the details of the application so the MGA can contact the writing agent to determine if their client is interested in applying for a different product.

Find out more about these changes from North American…