Variable Universal, Term Life Are Top Sellers in First Half.Individual life insurance sales rose strongly in the first half of this year, according to according to prep. 1. As stated or indicated by; on the authority of: according to historians. 2. In keeping with: according to instructions. 3. data compiled by Limra International a marketing and research organization in Windsor Windsor, British royal family Windsor (wĭn`zər), family name of the royal house of Great Britain. The name Wettin, family name of Albert of Saxe-Coburg-Gotha, consort of Queen Victoria, was changed to Windsor by George V in 1917. , Conn. Limra reported that new annualized annualized Of or relating to a variable that has been mathematically converted to a yearly rate. Inflation and interest rates are generally annualized since it is on this basis that these two variables are ordinarily stated and compared. premiums increased by 16%, face amount sold by 27%, and the number of policies sold by 4% compared with the same period in 1999. The increases were driven primarily by sales of variable universal life, for which new premiums rose 41%, face amount 34% and new policies 12%. Sales increased for all but four of the 53 companies that sell VUL VUL Variable Universal Life VUL Vulnerability (unit) VUL Vulgar , and the top five sellers saw premiums increase by 39%. Term sales remained strong in the wake of Regulation XXX, the model act promulgated prom·ul·gate tr.v. prom·ul·gat·ed, prom·ul·gat·ing, prom·ul·gates 1. To make known (a decree, for example) by public declaration; announce officially. See Synonyms at announce. 2. by the National Association of Insurance Commissioners The National Association of Insurance Commissioners (NAIC) is an Internal Revenue Code Section 501(c)(3) non-profit organization which seeks to organize the regulatory and supervisory efforts of the various state insurance commissioners from around the United States. that went into effect in many states on Jan. 1. The regulation requires insurers to reserve greater amounts for level-premium term life policies and universal life policies. New term premiums in the first half of the year were up 38%. Face amount was up 37%, and the number of new policies was up 16%. The sales results are based on Limra's quarterly survey of U.S. individual life insurance sales of 94 companies and their 57 subsidiaries operating in the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. . The survey represents about 76% of the total industry in terms of new premiums collected, Limra said. Other life products did not fare as well. New whole life premiums and face amount declined 9%, and the number of policies sold fell 5%. Universal life premiums fell 9%, face amount dropped 2%, and the number of policies sold was down 13%. Variable life premiums were up 20%, face amount 15% and number of policies 3%. Of the 76 companies that provided sales results by distribution channel, brokers increased their new premiums by 36%. Following them were multiple-line exclusive agents (12%), agency-building agents (7%) and personal producing general agents (4%). Sales by home service agents were level with the first half of last year. Limra has more than 800 member companies in 60 nations. |
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