Product Specification#
Status: Draft, 2026-08-03.
Scope note: This is a standardized composite specification assembled for reference
liability-model implementation. It does not describe any single insurer’s product. Facts
carry source tags: [S#]/[R#] refer to the sources catalogued in sources.md (extraction
provenance in _research/indexed-ul.md); [REG-R#] refers to the cross-product
reference library (references/regulatory-and-actuarial-references.md; research
provenance in _research/regulatory-actuarial.md, same R-numbering). std marks a
standardization introduced for the reference implementation (choice among observed carrier
practices, or a placeholder where carrier values are not public); every std table row
has a footnote giving the rationale and the observed range. Items the research notes flag
as unverified remain flagged here. All “current” (non-guaranteed) rates are snapshots as
of each source document’s print date and change frequently S3 S4.
Product overview and market role#
Indexed universal life (IUL) is a flexible-premium universal life chassis in which cash
value allocated to indexed accounts earns interest “based in part on the performance of
market-based indexes”; the policy is not directly invested in the market S1. The NAIC
Valuation Manual defines an IUL policy as “any universal life (UL) insurance policy where
the interest credits are linked to an external reference” R3. Some carriers brand the
identical design “fixed index universal life” (FIUL) S8. Mechanically, IUL is
current-assumption UL plus one or more indexed accounts: all premium, charge, death
benefit, loan, and lapse provisions follow the UL pattern (base chassis:
products/universal_life/product-spec.md and the technical notes in that
directory); only the interest-crediting engine differs.
IUL is sold primarily for cash-value accumulation and distribution (policy loans in retirement); one carrier states a target market of ages 30–55 S5. Competition centers on illustrated performance: current illustrated rates for S&P 500-style accounts across 16 carriers ranged 5.61%–7.38% in a 3/2026 benchmarking snapshot S6. IUL policies are state-regulated fixed products; none of the five carriers researched references an SEC prospectus, and IUL products are generally not SEC-registered (unverified as a general proposition — EDGAR was not searched for product documents) [see research notes, Gaps].
The representative baseline below is deliberately the AG 49-A Benchmark Index Account (BIA) design — 1-year S&P 500 point-to-point, annual cap, 0% floor, 100% participation, no multipliers/bonuses/enhancements R1 — because it is the one account design every researched carrier offers S2 S3 S5 S6 and the regulatory canonical form R1.
Representative specification#
Table 1 — Chassis and coverage#
Parameter |
Representative value |
Basis |
|---|---|---|
Policy type |
Flexible-premium indexed universal life |
|
Issue ages |
0–85 |
|
Age basis |
Age nearest birthday (ANB) |
std (F1) |
Minimum face amount |
$100,000 |
|
Underwriting classes |
Preferred Elite / Preferred Plus / Preferred / Non-Tobacco / Preferred Tobacco / Tobacco / Juvenile (0–17) |
|
Death benefit options |
A (level), B (increasing = face + account value) |
|
DB option changes |
Allowed after policy year 3, once per year, not after age 95 |
|
Tax qualification test |
Guideline Premium Test + cash value corridor (§7702) |
std (F4) |
Corridor factors |
250% at attained ages 0–40 grading to 100% at ages 90–95 |
|
Maturity age |
Attained age 121; policy continues in force, no further charges unverified |
std (F5) |
No-lapse guarantee |
Cumulative-premium test; no-lapse period by issue age: 0–45: 20 yrs; 46–60: to age 65; 61+: 5 yrs |
S3 (F6) |
Grace period |
61 days |
|
Reinstatement |
Within 3 years of lapse, evidence of insurability; lapsed time does not count toward surrender-charge period |
|
Face increases |
After year 1, to age 85, min $25,000, underwritten; new charge/surrender layers |
|
Face decreases |
After year 3, min $25,000, ≤20% p.a. before later of age 65 / end of surrender period, subject to §7702 |
Footnotes:
F1 std: Observed both ways — Transamerica uses age last birthday S3, Securian age nearest birthday S7. ANB chosen because the 2017 CSO / 2015 VBT table families publish ANB variants directly usable for guaranteed and best-estimate mortality REG-R17 REG-R18.
F2: Observed range $25,000 (Transamerica band 1) S3 to $100,000 (Nationwide, Securian) S5 S7. $100,000 chosen as the modal modern accumulation-IUL minimum; also the threshold for preferred classes at Transamerica S3.
F3: A Graded option (increasing to 70, grading level at 95) S3 and a Return of Premium option S5 exist; excluded from baseline as minority designs.
F4 std: §7702 allows CVAT or GPT+corridor R4. GPT chosen because Transamerica’s Overloan Protection Rider attaches only to GPT non-MEC policies S3, indicating GPT as the operative accumulation-IUL administration basis; CVAT documented as a variation.
F5 std: No retrieved document states maturity mechanics explicitly; age 121 is inferred (unverified) from charges running to age 120 and a rider (Additional Insured) terminating at base insured age 121 S3. Confirm against specimen policy forms before relying on it.
F6: Structure and periods from Transamerica’s Minimum Monthly No-Lapse Premium (MNLP) design: no lapse during the no-lapse period while cumulative premiums less loans/withdrawals ≥ cumulative MNLP S3 S4. Comparators: Nationwide 20 yrs (issue ages 0–55) / (75 − issue age) yrs (56–69) / 5 yrs (70+) S5; Pacific Life age-90 NLG rider plus optional lifetime-duration rider S1.
Table 2 — Accounts and index crediting (baseline = AG 49-A Benchmark Index Account design R1)#
Parameter |
Representative value |
Basis |
|---|---|---|
Fixed account, current rate |
4.50% (first-year rate locked) |
S2 (F7) |
Fixed account, guaranteed minimum |
1.00% |
S2 (F7) |
Indexed account: index |
S&P 500 price return (dividends excluded) |
|
Crediting method |
Annual point-to-point (1-year segment term) |
|
Participation rate |
100%, guaranteed |
|
Current cap |
10.00% (snapshot, 11/2024 print; caps are redeclared at each segment start and highly variable) |
S2 (F8) |
Guaranteed minimum cap |
2.00% |
S2 (F8) |
Floor |
0% annual, guaranteed |
|
Segment starts (sweep dates) |
Monthly, on the policy monthiversary |
std (F10) |
Segment term / max segments |
12 months; up to 12 concurrent segments per account |
|
Holding (interim) account |
Net premium held in the fixed account and credited at fixed-account rates until the next sweep date |
|
Matured segment value |
Rolls into a new segment per standing allocation instructions |
|
Mid-segment values |
Death benefit/CSV reflect segment balance without unrealized index credit; amounts leaving a segment mid-term receive no index credit |
S3 (F9) |
Footnotes:
F7: Fixed-account guarantees observed 1.00% S2 S5 to 2.00% S3 S4; currents 4.25% S5 to 4.50% S2. The S2 pair (4.50%/1.00%) is used as the internally consistent snapshot.
F8: Current caps observed for 1-yr S&P 500 PTP accounts: 10.00% S2, 10.25% S5, 10.50% S7, 12.00%–13.75% (same product, two print dates — caps fell between prints) S3 S4. Guaranteed minimum caps observed 0.25% S8 to 4.00% S2 High Cap account; Transamerica instead guarantees the cap never below its current Basic Interest Account rate S3 S4. Treat any current cap as a calibration snapshot, not a fixed parameter.
F9: Floor-design variation: Transamerica credits a guaranteed 0.75% during the segment and nets it out of excess index interest S3; Securian expresses its guarantee as a 2% cumulative average tested at death or termination S7. The 0% annual floor is the dominant design S2 S5 S6 S8 and the BIA definition R1; the retrospective cumulative guarantee is documented under Variations.
F10 std: Carrier practice varies: Pacific Life sweeps on the 15th of each month S1; Transamerica creates segments on monthly policy dates, transfers into index accounts only on the first day of a policy month S3. Baseline standardizes sweep = policy monthiversary so segment dates align with monthly processing. Nationwide’s Minimum Required Fixed Interest Strategy Allocation (an estimate of the coming year’s charges held back in the fixed strategy) S5 is documented as a variation, not baseline.
F11 std: Automatic re-entry per standing instructions per S3 (Automatic Transfer Rule). Baseline: 100% of matured value rolls into a new segment of the same account; reallocation to the fixed account is a policyholder option.
Table 3 — Charges#
Parameter |
Representative value |
Basis |
|---|---|---|
Premium load |
5.00% of each premium, all years, current; 8.00% guaranteed maximum |
std (F12) |
Monthly policy fee |
$10.00/month current; $15.00 guaranteed maximum |
|
Per-unit (per-$1,000) charge |
$0.30 per $1,000 of face per month, policy years 1–10 current (re-starts on face increases); guaranteed maximum $0.40 payable all years |
|
Cost of insurance (COI) |
Monthly rate × net amount at risk / 1,000; varies by age, sex, class, duration, band; guaranteed maximum = 2017 CSO ANB smoker-distinct ultimate; current = 65% of guaranteed |
structure S3; guaranteed basis std/REG-R17; current ratio std (F15) |
Indexed-account asset charge |
None in baseline (BIA has no charge-funded enhancement) |
R1 (F16) |
Surrender charge |
Per $1,000 of initial face (and of each increase layer), 10-year period; initial $25.00 per $1,000 declining linearly to 0 at year 11 |
|
Withdrawal fee |
$25 per withdrawal; minimum withdrawal $500; CSV may not fall below $500 |
Footnotes:
F12 std: Observed: Transamerica 4% current all years / 6% guaranteed (6%/8% Puerto Rico) S3; Nationwide 8% year 1, 6% years 2+ current / 10% guaranteed S5; Pacific Life deducts a load, amount not public S1. A level 5% current / 8% guaranteed is a mid-range standardization avoiding year-shape complexity.
F13: $10/month current is common to S3 S5. Guaranteed maxima observed $12 S3 and $20 S5; $15 std is a rounded mid-range value.
F14 std: Structure (currently charged years 1–10, guaranteed for all years, varying by issue age/sex/band/tobacco, re-start on face increases) is sourced S3 S5; the dollar scales live in policy data pages and are not public (research notes, Gaps), so the level is a modeling placeholder chosen to be a realistic secondary expense charge; calibrate to pricing targets in use.
F15 std: COI structure and re-rating discipline (changeable up to guaranteed maximums, changes must be based on expectations of future cost factors) are sourced S3; NGE re-determination practice is governed by ASOP 2 REG-R26. Carrier COI tables are not public (research notes, Gaps). Guaranteed = 2017 CSO (the statutory valuation/nonforfeiture basis for new issues REG-R17) is the conventional guaranteed ceiling std; the 65% current-to-guaranteed ratio is a placeholder std — replace with a scale calibrated to 2015 VBT / ILEC experience plus margin REG-R18 REG-R19.
F16: Charge-funded high-cap/multiplier accounts exist across carriers — ongoing asset charges of 0.72%/yr S3 or 0.80%/yr S2, or up-front strategy charges of 0.65%–1.0% at segment creation S5 — and fund a Supplemental Hedge Budget under AG 49-A R1. Excluded from baseline; see Variations.
F17 std: Period: 10 years is modal S1 S5 S7 (15 years at Transamerica S3); re-starts on face increases S3 S7. Dollar scales are not public (research notes, Gaps); the $25/$1,000 linear-decline scale is a placeholder of realistic magnitude.
Table 4 — Loans and withdrawals#
Parameter |
Representative value |
Basis |
|---|---|---|
Standard (declared-rate) loan — charged |
3.00% effective annual, in arrears, all years |
std (F18) |
Standard loan — credited on collateral |
2.00% years 1–10; 3.00% (wash) years 11+ |
std (F18) |
Participating (indexed) loan — charged |
5.00% current; 8.00% guaranteed maximum |
|
Participating loan — credited |
Loaned value remains credited at indexed-account rates |
S5 (F19) |
Loan sourcing |
Fixed account first, then pro rata across index accounts/segments |
|
Minimum loan |
$500 |
|
Withdrawals |
After free-look; pro rata across unloaned accounts; $500 minimum; $25 fee |
|
Illustration constraint |
Illustrated loan credited rate ≤ illustrated loan charged rate + 50 bps |
Footnotes:
F18 std: Observed declared-rate designs: Transamerica charged 2.75% current / 3% guaranteed, credited 2%, preferred loans years 11+ charged 2% current / 2.25% max on gains S3 S4; Nationwide charged 3.90% years 1–10, 3.00% years 11+ (0% net from year 11), credited 3.00% current / 1.00% guaranteed S5; Securian charged 4%, credited 3% years 1–10 / 4% years 11+ S7. The standardization keeps the universal pattern (net loan spread ~1% early, →0% “wash” after year 10) with round numbers. The baseline liability model uses standard loans only std; participating loans are a variation.
F19: Nationwide Alternative Loan: charged 5% current / 8% guaranteed max, credited at indexed strategy rates, may be mixed or switched S5; Securian indexed loans charged 5% S7; Pacific Life routes loaned value to a dedicated lower-par volatility-control account via rider (current par 160%, guaranteed min 20%) S2. Securian: fixed-rate loan triggers a 12-month lockout on fixed-to-indexed transfers S6; short-term loans interest-free if repaid within 90 days S7.
Contractual mechanics#
Death benefit provisions#
Option A: DB = max(Face, corridor factor × account value). Option B: DB = Face + account value, similarly corridor-tested S3 R4.
Corridor factors per §7702(d): 250% at attained ages 0–40 grading to 100% at 90–95 R4.
Death proceeds are reduced by outstanding loan balance and any unpaid monthly deductions std (universal UL practice; loan-netting implicit in loan design S3 S5).
During a segment, the death benefit reflects the segment balance without unrealized index credit S3 (0%-floor baseline: segments simply carry no interim interest, F9).
Account value mechanics#
Account value = fixed account + sum of active segment balances + loan collateral account
std (decomposition; components per S1 S2 S3 S5). On each monthiversary, in the
processing order specified in technical-notes.md: premiums are received net of load;
monthly deductions (policy fee + per-unit charge + COI + rider charges) are taken from the
fixed account first, then pro rata from active segments std (sourcing convention;
carrier practice varies — Transamerica sources loans fixed-first/pro-rata S3 and adjusts
the index-credit base for mid-segment deductions S3); eligible fixed-account balance is
swept into a new 12-month segment S3 std.
Index crediting#
For a segment created at time m with index level I(m):
index change r = I(m+12) / I(m) − 1 (price return, dividends excluded) [S2] [S3]
credited rate = max(floor, min(cap, par × r)) = max(0%, min(10.00%, 100% × r)) [S2] [S3]
index credit = credited rate × segment balance at maturity (after all deductions) **[std]**
The credit-base convention is standardized: the credit applies to the actual remaining segment balance at maturity, i.e., amounts withdrawn, borrowed (standard loans), or deducted mid-segment earn no index credit (withdrawal/loan forfeiture S3; extension to mid-segment deductions std). Transamerica’s contractual variant instead credits (adjusted index change %) × (adjusted beginning value) − (interest already credited at the guaranteed minimum during the segment), where the adjusted beginning value subtracts withdrawals, loan transfers, and one-half of monthly deductions and index-account charges taken during the segment S3 — documented as a variation because it presumes an in-segment guaranteed rate (0.75% S3) the baseline does not have.
Caps (and, on other designs, participation rates and spreads) are non-guaranteed elements
declared at each segment start S3 S4 S8, subject to contractual guaranteed minima
(Table 2), and economically set by the option budget — see technical-notes.md,
option-budget section R1 R6.
Charges and credits#
Monthly deduction = policy fee + per-unit charge + COI on net amount at risk + rider charges (+ indexed-account asset charges on enhanced accounts, not in baseline) S1 S3 S5. COI rates may be re-rated up to guaranteed maximums based on expectations of future mortality, interest, persistency, expense, reinsurance, and tax experience S3; ASOP 2 governs the re-determination discipline REG-R26. The fixed account is credited monthly at the declared rate (guaranteed minimum 1.00% S2); segments receive their index credit only at maturity S3.
Loans#
Standard loans move loaned value into a loan collateral account credited at a fixed rate while the loan accrues at the charged rate (Table 4) std/S3 S5; the net cost grades to ~0% (“wash”) after year 10 S3 S5 S7. Participating loans leave loaned value exposed to indexed crediting while charging a fixed rate S5 S7 — positive expected spread, negative in 0%-floor years; baseline models standard loans only std (F18). Loans reduce the death benefit and, if unpaid, accrue against the account; an Overloan Protection Rider can convert the policy to paid-up status to prevent loan-induced lapse and tax recognition (one-time charge on exercise: 5% of policy value at ages 75–90 grading to 1% at 94–120) S3.
Withdrawals#
Partial withdrawals after free-look, pro rata across unloaned accounts, $500 minimum, $25 fee S3; mid-segment withdrawals forfeit index credit on the withdrawn amount S3. Withdrawals reduce Option A death benefit dollar-for-dollar std (standard UL practice; not explicit in retrieved brochures). Withdrawals within the first 15 policy years associated with benefit reductions can be taxable under §7702(f)(7)(B) S1.
Grace, lapse, reinstatement#
If cash surrender value cannot cover the monthly deduction and the no-lapse test fails, a 61-day grace period begins S3; the policy lapses if the required premium is unpaid at grace end. No-lapse test: cumulative premiums less loans/withdrawals ≥ cumulative minimum monthly no-lapse premium during the no-lapse period S3 S4 (representative MNLP rate: male non-tobacco issue age 45, band 1: $20.80 per $1,000 face annually S3). Reinstatement within 3 years with evidence of insurability S3.
Renewal / conversion / maturity#
No renewal or conversion mechanics (permanent policy). Maturity at attained age 121 std, unverified inference (F5): charges cease at age 120 (Transamerica’s index account monthly charge runs to age 120 S3) and coverage continues.
Riders#
In scope for the reference model:
No-lapse guarantee (integral or rider): age-banded no-lapse period with cumulative premium test S3 S5; Pacific Life implements as automatically issued Age 90 NLG rider (issue ages ≤79, DB options A/B) plus optional Flexible Duration NLG to lifetime S1. Modeled: the baseline MNLP test (Table 1, F6).
Overloan Protection Rider: on GPT non-MEC policies; converts to paid-up on exercise, preventing loan-induced lapse/taxation; one-time exercise charge 5% of policy value at ages 75–90 grading to 1% at 94–120 S3. Described; exercised-state modeling optional.
Out of scope (listed for completeness, all observed in research): term riders on base or additional insureds S3; children’s benefit S3; guaranteed insurability S3; waiver of monthly deductions / waiver of premium S3; accidental death benefit S3; accelerated death benefits for terminal/critical/chronic illness S3; long-term care riders S1 S3 S5; enhanced performance factor (multiplier) riders S1; surrender value enhancement S5; change of insured S5; income settlement endorsements S3.
Variations across insurers#
Floor design. 0% annual floor is dominant S2 S5 S6 S8; Transamerica credits a guaranteed 0.75% during the segment, netted out of excess index interest (its declared account guarantees 2%) S3; Securian guarantees a 2% cumulative average tested retrospectively at death or termination S7. Choice: 0% annual floor — dominant practice and the AG 49-A BIA definition R1; the retrospective cumulative guarantee is a documented variation requiring a shadow accumulation in the model.
Index menu. Every carrier offers 1-yr S&P 500 PTP with cap and 100% participation S2 S3 S5 S6. Beyond it: multi-index best-performer blends (Transamerica Global 50/30/20 S3; Nationwide Multi-Index Monthly Average 50/30/20 S5; Securian Hindsight S7); uncapped S&P 500 with spread (5.75% spread, Nationwide S5) or declared participation (Pacific Life Dynamic Par, illustrations at 50% par S2); multi-year segments (Pacific Life 2-yr cap 24%/5-yr par 110% S2); uncapped volatility-controlled proprietary indexes at high participation (200% S2, up to 320% S5, 215% S7, 160% S8). Choice: BIA-style S&P 500 account only — canonical R1, universal, and the post-2023 illustration regime caps other accounts’ illustrated leverage at the BIA’s anyway R1 R6.
Charge-funded enhancements. Ongoing asset charge (0.80%/yr buys cap 12.0% vs 10.0%, Pacific Life S2; 0.72%/yr on all index accounts, Transamerica S3) vs up-front segment charge (0.65%–1.0% buys cap 25.00%/13.25% vs 14.00%/10.25%, Nationwide S5); multiplier riders for a monthly charge S1. Persistency bonuses: 0.20% annualized from year 16 (Nationwide Rewards, guaranteed if premium test met) S5; bonus products may carry higher surrender charges or lower caps S8. Choice: excluded — the BIA explicitly has no multipliers/bonuses/enhancements R1, and post-AG 49-A these designs cannot illustrate net benefit anyway R6.
Guaranteed crediting minima. Guaranteed minimum caps 0.25% S8 – 4.00% S2; guaranteed participation 5% S2 S8 – 105% S2; cap floored at declared-account rate S3. Choice: 2.00% guaranteed cap, 100% guaranteed par S2 — from the same source as the baseline current cap.
Premium loads. Level (4%/6% gtd S3) vs front-loaded (8%/6%, 10% gtd S5). Choice: level 5%/8% std (F12).
Surrender charge period. 10 years S1 S5 S7 vs 15 years S3; all re-start on face increases S3 S7. Choice: 10 years (modal).
Loan design. All carriers: declared-rate loan trending to ~0% net cost after ~year 10 plus an indexed/participating loan charged ~5% S3 S4 S5 S7; Pacific Life dedicates a lower-par VC account to loaned value S2; Securian imposes a 12-month fixed→indexed lockout after fixed loans S6. Choice: both described; standard loan modeled in baseline std — it decouples loan modeling from index scenarios.
Interim-account and sweep mechanics. Sweep on the 15th S1 vs first day of policy month S3; charge-holdback in fixed strategy (MRFISA) S5. Choice: monthiversary sweep, no holdback std (F10).
Regulatory context#
NAIC UL Model Regulation (Model #585). The UL chassis regulation: valuation, nonforfeiture, mandatory policy provisions, disclosure, annual policyowner statements. Section 10 adds interest-indexed UL requirements: filings describing how the insurer addresses the risk of the indexed rate falling, description of assets held for interest-indexed policies, and an annual Statement of Actuarial Opinion for interest-indexed UL R10 REG-R5. Do not substitute the AP&P Appendix A print for it. Appendix item A-585 has now been read in full and carries the valuation half only — definitions and valuation requirements, with no nonforfeiture provisions, no mandatory policy provisions, no annual-report requirements and no interest-indexed UL section; it names only the Standard Valuation Law (#820) as its relevant model law and does not name Model #585 anywhere, so everything in this bullet stays cited to R10 REG-R5 REG-R155.
NAIC Life Illustrations Model Regulation (Model #582) + AG 49-A. Model 582 defines the disciplined current scale, self-support and lapse-support tests, and the illustration actuary’s annual certification R2. AG 49-A (policies sold on/after 12/14/2020, as revised 2023 — colloquially “AG 49-B”) layers IUL-specific limits: the Benchmark Index Account definition, the maximum illustrated rate (25-year lookback mean capped at 145% of the Annual Net Investment Earnings Rate), illustrated option-leverage of other accounts capped at the BIA’s, the 50 bp loan-spread limit, and alternate-scale disclosure R1 REG-R10. History and design intent per the SOA lineage article R6 REG-R9; practice guidance in the AAA Life Illustrations Practice Note and ASOP No. 24 (current revision Dec. 2024) R8 REG-R30.
Valuation: Standard Valuation Law + VM-20. Statutory reserves for IUL follow the Valuation Manual as a life product under VM-20 (net premium reserve plus deterministic/ stochastic reserves as applicable); VM-01 defines “index credit” broadly (any credit, multiplier, bonus, or charge reduction linked to an index; may be positive or negative); VM-20 requires cash-flow modeling of the assets hedging indexed credits under the clearly-defined-hedging-strategy (CDHS) framework R3 REG-R3; enabling statute Model #820 REG-R1; NLG (secondary-guarantee) designs interact with AG 38 for pre-PBR cohorts REG-R7. The formulaic leg — pre-2017 issues, and the All Other net premium reserve where VM-20 §3.B.6 routes indexed UL with no deterministic or stochastic reserve to VM-A/VM-C — is the A-585 universal life CRVM adaptation, now read at first hand: a guaranteed-maturity-premium / guaranteed-maturity-fund construction, not the §5.A modified-net-premium one, whose GMP is solved on policy guarantees at issue “excluding guarantees linked to an external referent”, i.e. with the index-linked crediting stripped out. That exclusion is the only index-specific reserve rule in the item; every rate, table and factor it uses is delegated to A-820 by year of issue REG-R155 REG-R153 REG-R110. Mechanics, the alternative minimum reserve and the A-830 ULSG branch are read at first hand in
_research/appp-a585-a250-a255-a270.mdand_research/appp-a830.md.Nonguaranteed elements. Caps, participation rates, declared rates, COI rates, and loads are NGEs; determination and revision practice is governed by ASOP No. 2 REG-R26.
Federal tax. §7702 definition of life insurance (CVAT or GPT+corridor; floating “insurance interest rate” replacing fixed 4%/6% for post-2020 issues) R4; §7702A MEC 7-pay test with §72 taxation of MEC distributions R5; tax reserves per IRC §807 (greater of net surrender value and 92.81% of the NAIC-method reserve, capped at statutory) REG-R16.