Guidelines On Applications For Approval Of New And Repackaged Life Insurance Products
In addition to the policy provisions outlined above, Universal Life Insurance policies require further provisions because of the peculiar nature of the product. A Universal Life Insurance product is defined as any policy in which a life insurance company deducts separate and explicit charges for mortality and expenses and in addition credits the policy with extra interest credits (except dividends). The provisions described here exclude Variable Universal Life Insurance where the interest credits vary depending on the performance of assets in separate accounts backing the policies. The main thrust underlying these special provision is the principle of disclosure.