Executive Benefits

2019 Year-end Transition Guidelines

The life insurance industry is updating their product portfolios to be compliant with principle-based reserving (PBR) and 2017 CSO by January 1, 2020. Learn more about this industry update and how it can impact your business.


Lincoln is committed to providing competitive solutions to meet your clients' needs. Here are some key dates and tips to finish the year strong:

  • All noncompliant 2001 CSO products must be approved and placed in-force with premium by December 31, 2019. This includes the placement of:
    • All new 2001 CSO cases
    • Policy additions to existing 2001 CSO case
  • Minimum initial premium required to place a case or policy addition in-force must be enough to cover at least 3 months of charges and expense.
  • To help ensure policy placement, Lincoln suggests:

External 1035 exchange applications be submitted

by October 1, 2019

Internal 1035 exchange applications be submitted

by December 1, 2019

Initial Simplified Issue and Fully Underwritten requirements

by December 1, 2019

Initial Guaranteed Issue underwriting requirements

by December 22, 2019
All paperwork and premium(s) be received in good order

by December 27, 2019
Noncompliant Products1 Placed with Premium Deadline
Lincoln Corporate Commitment® VUL December 31, 2019
Lincoln Corporate Commitment® Private Placement VUL (BOLI)
Lincoln Corporate Commitment® Private Placement VUL (COLI)
Lincoln Corporate Commitment® BOLI UL
Lincoln Private Placement Express® VUL

1Subject to ICC/state approval.


Take a look at Lincoln's current PBR/2017 CSO compliant portfolio1

Launch Date

PBR/ 2017 CSO Ready

2001 CSO Predecessor

November 18, 2019

 Lincoln Corporate Exec℠ Variable Universal Life (COLI)

Lincoln Corporate Commitment® VUL (COLI)

November 18, 2019

 Lincoln Premier℠ Private Placement Variable Universal Life (BOLI)

Lincoln Corporate Commitment® Private Placement VUL (BOLI)

November 18, 2019

 Lincoln Premier℠ Private Placement Variable Universal Life (COLI)

Lincoln Corporate Commitment® Private Placement VUL (COLI)

November 18, 2019

 Lincoln Premier℠ BOLI Universal Life

Lincoln Corporate Commitment® BOLI UL

1 Subject to ICC/State Approval.

The following products will not have a PBR/2017 CSO compliant product for January 1, 2020:

Noncompliant Products Nationwide/
New York		 Discontinuation date
Lincoln Corporate Commitment® VUL New York January 1, 2020
Lincoln Corporate Commitment® Private Placement VUL (BOLI) New York
Lincoln Corporate Commitment® Private Placement VUL (COLI) New York
Lincoln Corporate Commitment® BOLI UL New York
Lincoln Corporate Commitment® BOLI New York
Lincoln Private Placement Express® VUL (COLI) Both


FAQs

Q. What will happen to pending new cases and policy additions to existing 2001 CSO cases that are not issued with initial premium by December 31, 2019?


A. By regulation, after December 31, 2019, no cases or policy additions may be issued under 2001 CSO products. Applications for pending 2001 CSO requests may be amended for use with PBR/2017 CSO products, subject to ICC/state approvals. New product illustrations will also need to be run and signed prior to issue.

Q. Can PBR/2017 CSO cases be backdated prior to November 18, 2019, to save attained age?


A. Yes, PBR/2017 CSO cases may be backdated up to 6 months, to save attained age.

Q. Will class changes and increases be permitted on 2001 CSO products after December 31, 2019?


A. Yes, class changes and increases will continue to be permitted on 2001 CSO products after December 31, 2019, subject to contract terms and underwriting guidelines.

Q. Will the option to change insureds be permitted after December 31, 2019?


A. No, exercising the exchange of insured rider would disqualify the contract as insurance due to the material change restrictions under the rules governing the 2017 CSOs.