AG CCC Causes Rethink on ROP Term

Like so many aspects of the life insurance business, manufacturing return of premium (ROP) term just became more complicated. Actuarial Guideline CCC (AG CCC) is already effective for new policy forms and starting in 2010 affects all contracts. The guideline treats ROP by rider the same as ROP as an integrated benefit and provides guidance for the calculation of cash values (CVs). These changes, among others, will impact the design, pricing, ROP pattern and administration of ROP products going forward.