PBR and CSO – what does it mean?
- Principal Based Reserves are new reserving requirements that must be implemented by 1/1/20. PBR makes reserving specific to a carriers’ own mortality, lapse, and investment experience, rather than the prior approach where all carriers used the same standard formula.
- The new CSO or life expectancy tables must also be implemented by 1/1/20. The CSO table is used for calculating a policy’s minimum cash value, statutory reserves, and minimum death benefit to premium ratio for the policy to be considered life insurance..
Pricing will change – NOW is the time to get coverage! Lock in your clients’ insurability and rates!! Principal’s portfolio is currently very competitively priced. The attached reflects Principal’s plan for repricing products – some have been introduced, some will be coming later this year.
Principal makes it quick and easy to get the coverage your clients need!
- Accelerated Underwriting – Allows your qualifying clients (18-60) to get up to $1M of coverage with any product with no labs, exams or APS! Recently expanded to include Standard, Super Standard as well as Preferred and Super Preferred!
- On-Line Part B – your clients will have the option to complete their Part B via a phone interview OR on-line. This applies to all cases (AU and fully underwritten – all products). Available for Drop Ticket starting Sept 16.
- Tableshave – Automated Standard Approval Program. For permanent coverage (including up to $5M and age 70), we can shave 3 tables or $7.50 medical temp flat extra.
- Healthy Lifestyle Credits – applies healthy credits for good results on all products, ages and face amounts. Can improve up to two tables on rated cases and 1 class Standard or better.
- Rate Improvement Program – for clients paying a single to five pay on UL Protector, SUL Protector and IUL Flex. Rate class will be improved one class at issue.