Beginning January 1, 2020, SBLI – like all U.S. life insurers - must issue any new life insurance policy on the 2017 Commissioners Standard Ordinary (CSO) Tables. The impact of this, and the transition guidelines, are outlined below.
SBLI Products already 2017 CSO Compliant:
The following life insurance products are already 2017 CSO compliant, and will continue to be available for sale after January 1, 2020:
SBLI Level Term
Non-Participating Whole Life – available for conversions only from SBLI Level Term policies or Level Term riders with an issue date on or after 8/1/2012.
SBLI Products to be replaced:
The following products currently utilize the 2001 CSO Tables and will be replaced with 2017 CSO compliant versions later this year (subject to state approval). As the following products are not 2017 CSO compliant, any outstanding approved applications must move to issue, and the initial premium must be paid and processed by December 27, 2019.
Flex Whole Life
Conversion UL
Note: No future dating beyond December 27, 2019 will be accepted. Any submitted application that has not been approved, issued and paid by December 27, 2019, will require a newly-signed 2017 CSO compliant illustration to allow it to be issued in 2020.
SBLI Products that will be retired:
The SBLI Conversion UL product for California will be withdrawn, without a successor product immediately available. Any conversion application will need to be completed and received by December 20, 2019 and paid in full by December 27, 2019.
Key Transition Rules Dates:
The following key dates have been established to help ensure the impacted products can be issued and paid by year-end:
All applications must be approved and placed in-force with premium paid by December 27, 2019.
For all submitted applications other than 1035s, SBLI suggests submitting them to the home office by November 1, 2019.
For 1035 applications, SBLI suggests submitting them to the home office by October 1, 2019.
Due to state regulations, there can be no exceptions to the December deadline.
New illustrations for SBLI Flex Whole Life and Conversion UL will be introduced November 14, 2019. Any applications submitted with these 2017 CSO compliant illustrations will not be affected by these deadlines.
For further information:
If you have any additional questions please contact the Brokerage Sales Desk at 1-888-224-7254 (Option 1) or Brokerage@SBLI.com.
