We’ll be replacing and removing several products within our portfolio before the end of 2019 to reflect the 2017 Commissioner’s Standard Ordinary (CSO) Table and Principle-Based Reserving (PBR) requirements. We’re providing you this information now to help you plan for a smooth transition for you and your clients before January 1, 2020.
Products Being Updated
Below you’ll find a summary of our current products and their equivalent replacements. You’ll also find details on when replacement products will be available for sale.
| Current Product | Replacement Product (2017 CSO/PBR-compliant) | Date Replacement Product Available for Sale | |||
| Protective® Strategic Objectives VUL | Protective® Strategic Objectives II VUL (11/19) | November 18, 2019 | |||
| Protective Advantage ChoiceSM UL | Protective Advantage ChoiceSM UL (12/19) | December 2, 2019 | |||
| Protective Indexed ChoiceSM UL | Protective Indexed ChoiceSM UL (12/19) | ||||
| Protective Custom ChoiceSM UL (10-30) | Protective Custom ChoiceSM UL (10-30) (12/19) | ||||
| ProClassic IISM UL | ProClassic IISM UL (12/19) | ||||
| ProClassicSM UL NY | ProClassic II SM UL (12/19)* | ||||
| ProClassic LegacySM UL | ProClassic LegacySM UL (12/19) |
* Contingent upon product approval in the state of New York.
Products Being Removed
Several of Protective’s products will be closed to new sales as of December 31, 2019.
- Protective Investors ChoiceSM VUL
- Protective PreserverSM II Single Premium Variable Life
- Protective® Premiere III Variable Universal Life Special Buyer’s Version
- Protective SurvivorshipSM Term
- Protective ProClassicSM with the Enhanced Cash Surrender Value Rider
- Protective ProClassicSM UL NY
- Protective One-Year Term
- Protective SurvivorSM Universal Life
Transition Rules
Clients can receive current product versions through December 31, 2019, if they:
- Submit a signed application (includes completing the TeleLife® interview or signing a paper application) and illustration (if necessary).
- Pay an initial premium.
- Have a policy effective date in 2019.
If all three items above are not completed in 2019, for products being replaced, the client will automatically transition into the replacement product version noted in the table.
If all three items above are not completed in 2019, for products being removed, the client will need to apply for and purchase another product.
Illustrations:
| Current Product | New (basic) illustrations end: | ||
| Protective® Strategic Objectives VUL | November 17, 2019 | ||
| All other products | December 1, 2019 |
Any illustrations for current products that are run after the dates above must be marked as a revised illustration. After December 20, 2019, illustrations will only be available through the Protective Life Sales Desk.
Ticket business: All application tickets for must be submitted on or before November 17, 2019 for Protective Strategic Objectives VUL and on or before December 13, 2019 for all other products.
Special Considerations
- Underwriting for these products may continue into 2020, if:
- – The policy is issued with a policy effective date in 2019.
- – A signed application/illustration and initial premium payment are received in 2019.
- – All policies must be placed by February 1, 2020.
- For cases above the TIA/Conditional Receipt limit (cases with a death benefit larger than $1 million), please note that the full premium should be submitted. However, per the Conditional Receipt agreement, Protective will not be liable for total coverage above $1 million.
- “Initial premium” means the minimum monthly required premium, which will cover at least one month of monthly deductions. No exceptions to the cash requirement can be made.
- For 1035 conversions – “initial premium” must come in in 2019; remaining 1035 funds can come in later. However, if 1035 money is being used for initial policy funding, it must be in-house by December 31, 2019, no exceptions.
- Informal applications that remain pending after December 31, 2019 will not receive current product versions.
Stay tuned for future communications about our replacement products as we approach each of the launch dates listed in this communication. We’ll also send additional reminders through the remainder of 2019 about our requirements for getting policies issued by year-end.
Please contact the Protective Life Sales Desk with any illustration requests or additional questions.
Let’s deliver on our promises. Together.