Protective Life is dedicated to providing quality service, building trust and simplifying everything for you and your clients. As part of that effort, we want to ensure that you stay informed and compliant about regulatory updates within our industry.
Effective January 1, 2020, all life insurance products in the industry must utilize the 2017 CSO mortality table and can no longer utilize the 2001 CSO mortality table as the non-forfeiture and guaranteed mortality table.
As a result, several of Protective’s products will be closed to new sales as of December 31, 2019. While there is ample time before the end of the year, now is the time to begin thinking about any clients who might fit into these products and get business in before year-end.
Please see product names, dates and transition rules below.
Affected Products
- Protective Investors ChoiceSM VUL
- Protective PreserverSM II Single Premium Variable Life
- Protective® Premiere III Variable Universal Life Special Buyer’s Version
- Protective SurvivorshipSM Term
- Protective ProClassicSM with the Enhanced Cash Surrender Value Rider
- Protective One-Year Term
- Protective SurvivorSM Universal Life
Transition Rules
Clients can receive the products listed above through December 31, 2019, if they:
- Submit a signed application (including completing the TeleLife® interview or signing a paper application) and illustration (if necessary),
- pay an initial premium, and
- have a policy effective date in 2019.
If all three items above are not completed in 2019, the client will need to apply for and purchase another product.
- Beginning December 2, the products above will no longer be available for new illustrations. Any illustrations for these products that are run after December 2 must be marked as a revised illustration.
Special Considerations
- Underwriting for these products may continue into 2020, if:
- The policy is issued with a policy effective date in 2019, and
- a signed application/illustration and initial premium payment are received in 2019.
- However, all policies must be issued by February 1, 2020.
- All cases above the TIA/Conditional Receipt limit (cases > $1 million death benefit) must be fully underwritten and placed in force in 2019.
- “Initial premium” means the minimum monthly required premium, which will cover at least one month of monthly deductions. No exceptions to the cash requirement can be made.
- For 1035 conversions — “initial premium” must come in 2019; remaining 1035 funds can come in later. However, if 1035 money is being used for initial policy funding, it must be in-house by 12/31, no exceptions.
- Informal applications that remain pending after December 31 will not receive these products.