Filing Information Notices (FIN)

Articles II(11), IV(3) and (6), X(2), and XVI(2) of the Interstate Insurance Product Regulation Compact as adopted by Compacting States. 

Section 103 of the Operating Procedure for the Filing and Approval of Product Filings (“Product Filing Rule”).

All Uniform Standards for adjustable individual life insurance policies: Individual Modified Single Premium Variable Life Insurance Policy Standards (IIPRC-L-06-I-1); Individual Flexible Premium Variable Adjustable Life Insurance Policy Standards (IIPRC-L-06-I); Individual Joint Last to Die Survivorship Flexible Premium Variable Adjustable Life Insurance Policy Standards (IIPRC-L-06-I-2); Individual Modified Single Premium Joint First to Die Variable Life Insurance Policy Standards (IIPRC-L-06-I-3); Individual Flexible Premium Adjustable Life Insurance Policy Standards (IIPRC-L-09-I); Individual Joint Last to Die Survivorship Flexible Premium Adjustable Life Insurance Policy Standards (IIPRC-L-09-I-2); Individual Modified Single Premium Adjustable Life Insurance Policy Standards (IIPRC-L-09-I-1); and Individual Current Assumption Whole Life Insurance Policy Standards (IIPRC-L-07-I-5).

The purpose of this Filing Information Notice is to explain the documentation required in prospective Compact filings to satisfy the requirement, as codified in the National Association of Insurance Commissioners (NAIC) Valuation Manual effective 1/1/2026 (specifically, Guidance Note to Section 3 of VM-02), that for policies where the cash surrender value is based on multiple sets of guaranteed interest rates, expense charges, and/or mortality, each set of guarantees must comply with nonforfeiture requirements. 

The Compact has Uniform Standards covering individual life insurance policies, including Uniform Standards for adjustable life insurance products, commonly referred to as universal life insurance (UL), inclusive of variable universal life insurance (VUL). Recent amendments to the NAIC Valuation Manual state that for policies where the cash surrender value is based on multiple sets of guaranteed interest rates, expense charges, and/or mortality, each set of guarantees must comply with nonforfeiture requirements. As the NAIC Life Actuarial (A) Task Force minutes from its discussion and adoption of the Guidance Note on May 8, 2025, reflect, the Guidance Note provides clarity to the existing nonforfeiture requirements for products with multiple sets of guarantees.

The Compact Office will apply this guidance to all UL products where the cash surrender value may be based on multiple sets of guarantees. The guidance clarifies that testing the set of guarantees (interest, expense charges, and/or mortality) for each accumulation option available for a product is necessary. This includes, but is not limited to, accumulation value floors, fixed or guaranteed interest accounts, and index-linked accounts. With respect to index-linked accounts, each index account is considered a separate accumulation option and if, for example, the minimum possible credit is 0% (such as a floor rate of 0%), then a 0% guaranteed interest rate should be tested.
 

1. Although the guidance provides clarity to the existing nonforfeiture requirements for products with multiple sets of guarantees, the Compact Office will not require refiling for the sole purpose of demonstrating and certifying the set of guarantees (interest, expense charges, and/or mortality) for each accumulation option meets the minimum nonforfeiture requirements.
    
2. A filing pending review on this Filing Information Notice’s date and any new filing made prior to June 1, 2026, where the actuary is unable to certify compliance that each set of guarantees (interest, expense charges, and/or mortality) will be approved when ready with the expectation that a revised filing updating nonforfeiture compliance in accordance with Paragraph 6 below will be submitted by June 1, 2026. In these cases, the actuarial checklist and reviewer note will state that the product is not compliant with the nonforfeiture requirements.
    
3. For a new filing submitted on or after June 1, 2026, including any form that could have an impact on nonforfeiture compliance of any UL product, the filing shall include documentation demonstrating and certifying that the set of guarantees (interest, expense charges, and/or mortality) for each accumulation option meets the minimum nonforfeiture requirements.
    
4. For any supporting documentation update (SDU) filing submitted on or after June 1, 2026, to a previously-approved UL product that requires filing an actuarial memorandum the filing shall include documentation demonstrating and certifying that the set of guarantees (interest, expense charges, and/or mortality) for each accumulation option meets the minimum nonforfeiture requirements.
    
5. A filing that only adds or changes an index-linked account or another accumulation option of a previously approved UL product shall provide documentation certifying the set of guarantees for the new or different index-linked account or accumulation option meets the minimum nonforfeiture requirements. The Scope provision of the Additional Standards for Index-Linked Crediting Benefit Features for Individual Adjustable Life Policies (IIPRC-L-08-LB-I) provides that these Uniform Standards are “in addition to the requirements of the applicable uniform policy standards,” and as such, compliance with minimum nonforfeiture requirements applies.
    
6. Documentation that certifies nonforfeiture compliance for each set of guarantees shall include at a minimum.
    
   1. Nonforfeiture demonstrations, if required as stated in Paragraphs 2, 3 or 4 above;
       
   2. Description of each set of guarantees (interest, expense charges, and/or mortality) associated with each product;
       
   3. Description of the testing performed including all assumptions; and
       
   4. Actuarial certification that each set of guarantees is compliant with the nonforfeiture requirements.
       
7. When filing supporting documentation pursuant to these filing procedures, please note in accordance with Filing Information Notice 2017-1:
    
   1. For a SDU filing, new forms are not permitted on the Form Schedule.
       
   2. The supporting documentation can follow one of these options:
       
      1. A new and updated actuarial memorandum, and specification pages if needed; or
          
      2. A separate addendum to each actuarial memorandum for each specific product filing; or
          
      3. An addendum applicable to the actuarial memoranda in more than one product filing of the same type of insurance, if the products are of similar design or are multiple versions of a product.
          
   3. The actuarial memorandum or addendum must:
       
      1. Reference form number and SERFF Tracking Number for each product covered in the memorandum or addendum;
          
      2. Ensure the description includes each set of guarantees associated with each product;
          
      3. Link to the approved filing(s) and corresponding forms using the Associated Filings feature; and
          
      4. Identify the most recently approved memorandum for the product by SERFF Tracking Number, if different than the product filing referenced under item (i) in this subsection, and link such filing using the Associated Filings feature.