PBR and 2017 CSO Compliant Product Deadlines and Information

January 1st graphic cropped

Beginning January 1, 2020 all life insurance policies must meet:

    • The new 2017 CSO mortality tables, and
    • Principle-Based Reserving (PBR) requirements

Life insurance products that don’t meet both requirements must be issued and paid prior to December 31, 2019.  There are no exceptions to this deadline.

What does this mean to you and your clients?

• Several of the products available through Dixon Wells have already been revised to meet the new requirements, but many products will change during the last quarter.

• In general, price sensitive products like term and universal life with secondary guarantees benefited by the new requirements so many of these products are already compliant. In contrast, policies designed to maximize cash value accumulation may not benefit from the change. So many carriers delayed these product changes.

• This means that if the product that you are proposing or sold to your client is not yet CSO/PBR compliant the clock is ticking. It’s especially urgent if you are contemplating a Section 1035 Exchange as those funds must be transferred to the policy prior to the deadline.

• When reviewing products for your clients, be sure to understand whether the products have been updated for the new requirements.

FAQ

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