What Is AG38?

  • Originally published October 30, 2012 , last updated March 30, 2016

Effective January 1, 2013, new NAIC Guidelines (AG38) will quietly go into effect and cause a chain reaction of product and reserve changes that will have a significant impact on your clients and your business.

Unfortunately, many producers are unaware of these changes that carriers and regulators have been working on behind closed doors. Here is just a small sampling of what you can expect in 2013:

  • Massive product changes to annuities, UL, SPWL, and many other products
  • Carriers will be forced to increase reserves, which will lead to higher pricing and lower profits
  • Many products will be pulled from the market, creating less choice
  • Lower guarantees and bonuses for policy owners
  • Reduced commissions across the board

*Change will not affect in-force policies.

Here’s what carriers are saying

Aviva announced NLG product changes to comply with new regulatory guidelines. Click here to view bulletin. Regulatory uncertainty causes Aviva to make changes to New York life portfolio. Click here to view bulletin.

North American announced important product changes as a result of AG38. Read more nowView Changes Ahead. Click here to view North American's AG38 Rules Flowchart.

United of Omaha released a bulletin from the desk of Mark Rush.


The National Association of Insurance Commissioners (NAIC) adopted revisions to a controversially applied actuarial guideline that governs reserves for universal life products with secondary guarantees after almost a year of intense debate among regulators on all levels and the industry.

Some government actuaries had raised concerns about adequate reserving for these newer product designs and if some companies were slipping through the old guideline’s loopholes and not reserving enough.

Actuarial Guideline 38 (AG38), as revised, provides examples of various policy features that constitute “guarantees” and gives directions and guidance on how to reserve for these guarantees, but it is not prescriptive in its nature and it allows companies to use their best judgment, weighing payment patterns which keep the policy in force over the lifetime.

Are you prepared for these changes? For more information download The Producer’s Guide to AG38 and find out how you can capitalize to win more business.