AG38 Product Changes
& Transition Rules

As you are aware, the National Association of Insurance Commissioners (NAIC) has revised Actuarial Guideline 38 (AG38), redefining the reserve amounts carriers must set aside for secondary guarantee universal life insurance products. These new reserving guidelines go into effect January 1, 2013 and will result in the discontinuation of new sales of Protective Life's Secure-T, Centennial G II, Centennial G II Plus, ModLife, OneStep Life universal life insurance products as well as the repricing of Protective Survivor UL (6/12) as of December 31, 2012. Inforce policies remain unchanged.

We remain committed to the universal life insurance market and will soon be releasing details regarding the new products we will be introducing to address the revised guidelines. In the meantime, we would like to share with you the transition dates for the product changes, so you are prepared for any potential impact on your business.

Paper applications

  • Applications signed and received by December 31, 2012 will be accepted for the current products
  • Policies issued in 2013 will result in a choice for the applicant:
    • Accept a policy backdated to December 28, 2012 by paying back premiums and signing a customer acknowledgment form to receive the old products
    • Switch to one of the new competitive products that will be available beginning January 1, 2013
  • All policies issued under the current product plans must be placed and in force by February 28, 2013

Applications submitted via TeleLife and direct writers

  • Case must be sold and ticket dropped prior to December 31, 2012 to receive the current products
  • Related applications must be signed and received by January 31, 2013
  • Policies issued in 2013 will result in a choice for the applicant:
    • Accept a policy backdated to December 28, 2012 by paying back premiums and signing a customer acknowledgement form to receive the old products
    • Switch to one of the new competitive products that will be available beginning January 1, 2013
  • All policies issued under the current product plans must be placed and in force by February 28, 2013