1. (a) This Rule applies to universal life insurance policies and certificates issued after December 31, 2006, and before January 1, 2014, that contain a secondary guarantee that the death benefits will remain in effect as long as the accumulation of premiums paid satisfies the secondary guarantee requirement stated in the policy or certificate.

2. (b) For purposes of applying 11 NCAC 11F .0405(b) and 11 NCAC 11F .0405(c), a withdrawal rate of no more than two percent per year for the first five policy years, followed by no more than one percent per year to the policy anniversary specified in the following table, and zero percent thereafter shall be used. If the duration determined by reference to the table is less than five policy years, a withdrawal rate of no more than two percent per year shall be used through that duration, with zero percent per year used thereafter.

   Issue Age Duration

   0-50 Policy Duration 30 years.

   51-60 Duration at which policyholder reaches attained age 80.

   61-70 Policy Duration 20 years.

   71-89 Duration at which policyholder reaches attained age 90.

   90 and over No withdrawal rate assumption allowed.

History Note: Authority G.S. 58-2-40; 58-58-50(b); 58-58-50(l);
Eff. December 1, 2007;
Amended Eff. March 1, 2011;
Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. December 20, 2015.