North American

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…

• Formal Announcement from North American

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…

• Formal Announcement from North American
• ADDvantage Term Product Guides and Marketing Materials

FROM NORTH AMERICAN…

North American is pleased to announce a new Indexed Universal Life (IUL) insurance product available May 24, 2021. Builder Plus IUL 3 is designed for death benefit protection and strong long-term cash value accumulation potential. Builder Plus IUL 3 highlights:

• Strong death benefit protection
• Includes new 7702 and 7702A calculations for Guideline Premium Test (GPT), Cash Value Accumulation Test (CVAT), and what qualifies as a Modified Endowment Contract
• New fixed interest participating policy loans available in year one
• Strong long-term cash value accumulation potential through multiple interest bonus opportunities:
  • A base bonus on fixed and index accounts in years 11+
  • A higher current bonus beginning in year one for allocations to Fidelity Multifactor Yield IndexSM 5% ER
  • A separate bonus for funds borrowed as a result of fixed interest participating policy loans
  • Accelerated Death Benefit Endorsements for critical, chronic, and terminal illness
  • WriteAway® accelerated underwriting available for eligible cases

7702 and 7702A updates

Updated calculations for GPT and CVAT allow for potentially larger premium amounts for the same death benefit (or lower death benefit for same premium). For more information on this, please refer to our Frequently Asked Questions.

Updated cap, illustrated rates and PDA interest rate

North American believes in providing competitive products along with long-term value and stability. As we are committed to upholding these promises, we continue to evaluate our products and rates to ensure they are aligned with this long-term focus. Please be advised that we will soon be making adjustments to the cap and maximum illustrated rates for the following currently marketed products:

• Builder Plus IUL® 2
• Protection Builder IULSM
• Smart Builder IUL®

Please note, the cap and illustrated rate changes do not impact the Builder Plus IUL® 3 (Refer to field bulletin 352NB for Builder Plus IUL 3 availability).

For these products to receive the current rates, ALL monies must be placed into the index accounts with an effective date ON OR BEFORE June 25, 2021. All monies with an effective date on or after June 28, 2021, will receive the new rates as outlined in the tables on page two of the field bulletin.

Find out more about these changes from North American…

• Formal Announcement from North American
• Field Bulletin with full Transition Rules
• Cap and Rate Adjustment Announcement

FROM NORTH AMERICAN…

New Minimum Face Amount Requirements

As we continue to navigate the current economic environment with a long-term focus in mind, we remain committed to making decisions that will benefit our producers and policyholders for years to come. As a result of our continued analysis, we will be adjusting our minimum face amount requirements on universal life (UL) and indexed universal life (IUL) insurance products with applications signed April 24, 2021 or after. The minimum face amounts will change as follows:

New Minimum Face Amount Requirements:

• Custom Guarantee® UL 9
  • Ages 60-70: changing from $25,000 to $50,000
  • Ages 71-85: changing from $25,000 to $100,000
• Protection Builder IUL®
  • Ages 60-70: changing from $25,000 to $50,000
  • Ages 71-85: changing from $25,000 to $100,000
• Builder Plus IUL® 2
  • Ages 71-75: changing from $50,000 to $100,000
• Smart Builder IUL
  • No changes

Find out more about these changes from North American…

• Formal Announcement from North American

FROM NORTH AMERICAN…

Introducing a new Fidelity index designed to deliver more consistent returns over time

North American is excited to announce the addition of the new proprietary Fidelity Multifactor Yield IndexSM 5% ER to all currently marketed North American indexed universal life insurance (IUL) products. The Index is 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.

Six factor indices were chosen by Fidelity with the goal of enhancing returns, managing risk, and targeting specific outcomes. A fixed income overlay is applied with a combination of 10-year treasuries and cash to account for potential changes in interest rates. The allocation between equity allocations and fixed allocations are adjusted daily with a goal to meet a 5% volatility target.

The new Fidelity index will be available on all currently marketed IUL products beginning January 25, 2021. Highlights include:

• A privately held company founded in 1946, Fidelity Investments has diverse investment capabilities across a multi asset class platform.
• The index utilizes an Annual Point-to-Point crediting methodology and will have a non-guaranteed Enhanced Participation Rate of 135% on current IUL products.
• In addition to strong illustrated rates, allocations to this Index will also receive a reduced account value charge, allowing for even greater performance potential.

Find out more about these changes from North American…

• Formal Announcement from North American
• Learn More about Fidelity Multifactor Yield Index here
• eDelivery with DocuSign now available for UL Products