Effective on the first policy anniversary following August 31, 2015, the clients with Nova & SuperNova UL policies will see an increase in their schedule of cost of insurance (COI) rates. AXA is making this change because they are expecting future mortality experience to be less favorable than was anticipated when the current schedule of COI rates was established. However, rates will never be above the guaranteed maximum rates as specified in the policy.
AXA will be sending a letter to your clients, notifying them of the change in rates. They will copy the servicing agent on the client letters as well.
- Clients with policies that have September to December anniversaries will receive the letter in June 2015.
- Clients with policies that have January to August anniversaries will receive the letter in August 2015.
- AXA will also include a notice of the change in the policy’s annual statement from September 2015 through August 2016.
ITM TwentyFirst is a leading provider of ILIT administrative services, life settlement portfolio services and medical underwriting. We are monitoring the impact of these changes for all ITM TwentyFirst clients.