Prudential’s 2017 CSO/PBR Status – Year‐End 2019

Prudential’s individual life insurance portfolio is well-positioned entering 2020

Prudential continues to offer a broad portfolio of life insurance product solutions that meet various client needs. Over the last few years, we have been heavily focused on revising life insurance products for compliance with two new regulatory changes that affect the life insurance industry: New standard mortality tables, the 2017 Commissioners Standard Ordinary (CSO) and Principle‐Based Reserving (PBR).

Status of actively sold Prudential retail products
As we head into Q4 2019, Prudential is well-positioned with products already fully compliant with regulatory changes well ahead of the December 31, 2019 deadline, for all actively sold retail products:



Product Line Product Name Product Type 2017 CSO Compliant? PBR Compliant? Launch Date of 2017
CSO‐Compliant Offering
Universal Life UL Protector GUL Yes Yes February 2017
SUL Protector GUL Yes Yes August 2017 GUL Yes Yes August 2017
Index Advantage UL IUL Yes Yes February 2018
Survivorship Index UL IUL Yes Yes January 2019
Founders Plus UL IUL Yes Yes May 2019
Essential UL UL Yes Yes May 2019
Variable Universal Life SVUL Protector VUL Yes Yes* August 2017
VUL Protector VUL Yes Yes September 2018
Custom Premier II VUL Yes Yes May 2019
Term PruTerm One Term Yes Yes June 2017
Term Essential Term Yes Yes** July 2019
Term Elite Term Yes Yes** July 2019

*Effective October 14, 2019
**Effective October 28, 2019

Key Dates

  • December 28, 2019 – for any non‐compliant product (being issued on 2001 CSO rates), the policy must have an effective date of 12/28/2019 or earlier. Note that COD policies must be delivered by 12/28/2019 in order to meet this requirement.
  • December 31, 2019 ‐ Premium must be received by Prudential. For any non‐compliant product (being issued on 2001 CSO rates), premium must be received by Prudential by 12/31/2019.
  • January 1, 2020 – all products applied for and issued must comply with 2017 CSO mortality tables.

Important Information for New York (NY) Sales
While the vast majority of Prudential’s portfolio is already compliant with 2017 CSO and PBR, there are some products that are subject to delays in market in New York.

The following products are subject to temporary closure, effective October 27, 2019:

  • Survivorship Index UL (SIUL)
  • Essential UL (EUL)

Both SIUL and EUL 2017 CSO/PBR products have been filed in NY, but not yet approved. The last date to apply for old (2001 CSO) rates on these products in NY is October 27, 2019. Once each new product is approved in NY, we will offer the new 2017 CSO/PBR version as soon as possible.

Important Reminder: 1035 Exchanges

Any policy that is pending (submitted to Prudential but not yet placed) that is based on the 2001 CSO Table, regardless of when it was applied for, must be delivered and paid for before the end of 2019. There will be no exceptions available on this topic.

1035 exchanges are a particular risk of missing the 12/28/2019 effective date deadline for placement of 2001 CSO policies. If your client(s) have a pending 1035 exchange and are concerned the funds will not be released from the surrendering company on time, they may have the option to submit an out‐of‐pocket Minimum Initial Premium (MIP) to place the policy. If a policy can accommodate additional out‐of‐pocket premiums, prior to 12/28/2019, the policy can be requested to issue and a premium to place the policy must be collected at delivery to place the policy prior to 12/31/2019.

Reminder: Prudential retail products that are no longer available for sale
As a reminder, the following products are no longer available for sale:

  • Effective July 15, 2019: Term WorkLife 65
  • Effective August 16, 2019: UL Plus
  •  Effective October 1, 2019: Return of Premium (ROP) Term

Securities offered through The Leaders Group, Inc. Member FINRA/SIPC 26 W. Dry Creek Circle, Suite 800, Littleton, CO 80120, 303-797-9080.

GBS Insurance and Financial Services, Inc. is not affiliated with The Leaders Group, Inc. You may check the background of investment professionals on FINRA Broker Check

Copyright @2024 Premier Brokerage Services