This year the National Association of Insurance Commissioners (NAIC) was tasked with revisiting Actuarial Guideline 49 (AG49) regarding how to illustrate IUL products. On

June 25, 2020, the Life Actuarial Task Force approved a revised version of AG49 called “AG49-A”. North American has been proactive in its product design approach with regard to compliance with AG49-A, so the changes to our products will be minimal. The biggest impact you will notice is with regard to illustrated loan crediting, as changes to maximum illustrated rates are minimal.

Please be advised that we are making changes to the cap, participation, illustrated, and spread rates (if applicable) for the following currently marketed products: Builder Plus IUL^® 2 and Protection Builder IUL^®, and Smart Builder IUL^®. For these products to receive the current rates, ALL monies must be placed into the index accounts with an effective date ON OR BEFORE December 14, 2020. All monies with an effective date

ON OR AFTER December 15, 2020, will receive the new rates.

Please consider using the new rates for all future illustrations as applications you submit today may not be ready for issue until after the new rates have been implemented.

The rate changes will take effect for index selections that renew on or after December 15, 2020.