AppMan^© Announcement:
Aviva Transition Guidelines for the New No-Lapse Guarantee Products
 

Effective January 25, 2010, Aviva will launch Advantage Builder III and Guarantee UL Solution II

To stay competitive while effectively managing their portfolio, Aviva is launching Advantage Builder III and Guarantee UL Solution II in approved states on Monday, January 25, 2010.

This revised portfolio will provide top-level competitive NLG premiums in every age category, especially in single pay or limited premium payment designs. In general, Advantage Builder III will be the preferred product for customers aged 65 and under, while Guarantee UL Solution II will generally be the better product for customers over the age of 65.

Here are the steps Aviva is taking to reposition its No-Lapse Guarantee portfolio:

• Required NLG premiums and policy charges are being updated. Aviva is increasing NLG premiums an average of 5% overall for both products.

• Aviva is making Guarantee UL Solution more competitive at age 70 and above by lowering the NLG premium at those issue ages. The product redesign will make limited pay scenarios more competitive than lifetime pay across age categories.

• Aviva is increasing expense charges and target premiums across age categories on Guarantee UL Solution to align with lifetime NLG premiums. Lifetime NLG premiums will be fully commissionable through approximately age 65.

• Target premiums and expense charge will also be increased on Advantage Builder III to align with lifetime pay NLG premiums, which will be fully commissionable through approximately age 65.
   

As we transition to the new products, guidelines have been established and will be driven by the application signed date. This will allow you to know at the time the application is taken which product series will apply.

The following transition guidelines apply only to states that have approved the new products as of the date of this announcement. Those states include:

Advantage Builder III

Guarantee UL Solution II

In the above states, applicants will receive the current NLG products if ALL the following conditions are met:
 

• The application is signed on or before January 24, 2010. This must be the full Part A application. Trial applications cannot be used to meet this deadline.

• The application is received by Aviva on or before February 5, 2010.

• The policy is issued on or before April 30, 2010.

All applications signed on or after January 25, 2010, will receive the rates on the new products, Advantage Builder III and Guarantee UL Solution II. All applications received by Aviva after February 5, or policies issued after April 30, will also receive the new products. There will be no exceptions.

For the states not part of the initial launch, a similar transition schedule will be provided upon state approval of the products.

The timely completion of all outstanding requirements is extremely important, and New Business teams will make every effort to ensure all applications eligible for the current product series are processed as soon as possible.

For all states, backdating to save age will be allowed within 60 days of the issue date, but no earlier than January 5, 2010. Keep in mind that the application signed date will determine which set of rates are applied. If the application is signed on or after January 25, the new product series will be used even if backdating causes the policy effective date to occur prior to the date the new products take effect.

Aviva's Life Portraits Sales Solutions software will be updated on January 25. An updated version of the software will be required to quote both old and new product series. The updated software will be available for download at www.fm-inc.com and click on Tool Kit.

View Transition Guidelines Bulletin