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…

ProdMod: North American’s Updated Builder Plus IUL is Here!

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…

ProdMod: North American Adjusts Minimum Face Amounts on UL & IUL Products

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…

ProdMod: North American Adds Fidelity Multifactor Yield Index 5% ER to IUL Portfolio

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…

Updated: Year-End Processing Deadlines for All Core Carriers Now Available

With just over three weeks left before 2021 is upon us, we now have the final year-end deadlines for 2020 business from all the AIN Core Carriers. Please review the list below for additional details for each insurance company,

Important: These deadlines may or may not reflect the transition rules regarding AG 49A. Please see AIN’s AG 49A Resource for those rules and deadlines.


The pertinent 2020 year-end cutoff dates for the AIN Core Carriers can be found via the links below.

AdminUpdate: North American WriteAway Program Maximum Increased to $2MM

FROM NORTH AMERICAN…

Higher face amount now available through WriteAway

We are excited to announce that more cases can now be run through WriteAway, North American’s accelerated underwriting program, as the maximum face amount for ages 18 – 50 is doubling from $1 million to $2 million! The maximum face amount for ages 51 – 60 will remain at $500,000.

WriteAway is an efficient underwriting process that couples an online application with publicly available data to help eliminate a paramedical exam and labs for your healthiest clients. WriteAway uses the same pricing as traditional underwriting with no additional policy fee. Clients eligible for a faster underwriting decision include clients who are age 18–60 who don’t have major medical conditions.

Find out more about the WriteAway platform on the North American website.

Find out more about these changes from North American…

AdminUpdate: North American’s WriteAway Accelerated Underwriting Program Now Available in California

Underwriting updates: WriteAway® in California

WriteAway, North American’s accelerated underwriting program, is coming to California! This new process will be available beginning June 27, 2020.

Transition Rules for Pending Cases in California:

  • If you have cases currently pending that meet WriteAway Eligibility criteria, the current temporary non-fluid process established for California can continue to be utilized until June 27, 2020.
  • For any new cases that have not yet been submitted, you can either utilize the current temporary non-fluid process established for California until June 26, 2020, or hold the application until June 27, 2020, and submit via e-Application utilizing the new electronic process.

As of June 27, 2020, the temporary non-fluid process that was recently established for California will be discontinued for new applications, and the only way to obtain a non-fluid decision will be via the new electronic WriteAway process via SimpleSubmit.

Find out more about these changes from North American…

AdminUpdate: Updated Spread and Illustrated Rates for North American IUL products

Recent changes in market volatility have caused us to evaluate our spread rates and make adjustments that we believe to be most prudent to maintaining long-term success. Please be advised that we are making changes to the spread and illustrated rates for only the S&P annual-point-to-point with spread index selection for the following currently marketed products: Builder Plus IUL® 2, Protection Builder IUL, and Smart Builder IUL.

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 26, 2020. All monies with an effective date ON OR AFTER June 29, 2020 will receive the new rates

Find out more about these changes from North American…