New York Life Advanced Markets Network

Network News

June 22, 2009

Product Update

Introducing AD109 One Year Non-Renewable Term

One Year Non-Renewable Term offers temporary life insurance protection for one year only for an affordable single premium. The rates will be available to calculate the economic benefit cost on certain split dollar arrangements. Effective with applications dated May 15, 2009 and subsequent, NYLIC AD109 One Year Non-Renewable Term will be available in approved states. For issue ages 18-64, the policy offers a conversion privilege. If the policy is not converted before the first policy anniversary, the policy will automatically expire. No commissions are payable on this product.

Sales Opportunities:

• Funding for the permanent policy is not yet available
• Trust or other document has not been completed
• Ultimate owner is not yet determined

Product Specifications:

• Issue Ages: 18-90
• Non-renewable
• Date Coverage Ends: The last day of coverage is one day prior to the first policy anniversary. For example: For a One Year Non-Renewable policy dated June 1, 2009, the coverage ends at the end of May 31, 2010.
• Minimum Face amount: $100,000
• Maximum Face amount: $10,000,000
• Premiums: Single premium only
• Risk Classes: The policy will be offered to standard and better risk classes only. Flat extras are not allowed. The rates will not differ by gender. The policy will have one set of rates for all underwriting classes. However, the policy will be underwritten using all risk classes, and upon conversion to a permanent plan, the client will receive the underwriting risk class he/she qualified for, provided it is available on the new plan.
• Conversions:
  • For issue ages 18-64, conversion is available prior to the first policy anniversary. Conversion is not available if the issue age of the Insured is age 65 and older.
  • Full and partial attained age term conversions are allowed. Upon a partial conversion, the remaining amount may be left on the One Year Non-Renewable Term policy if it meets the minimum face amount requirement. The remaining amount will expire one day prior to the first policy anniversary, unless it is converted before expiration. The unconverted Term portion cannot be carried over to the new permanent plan as a term rider. Asset Preserver is not available as a conversion policy.
  • No conversion credits are given
  • Original age term conversions are not available
  • No conversions are allowed after the final date of conversion. Therefore, the 31-day grace period that applies to other Term products will not apply to One Year Non-Renewable Term.
• Riders: No riders are available.
• Commissions: No commissions are payable.

Completing The Application

The product must be indicated in writing on the application. In Section I, under NYLIC, in the blank section, check the box and write in "One Year Non-Renewable Term". Write in the face amount (within product limits). No
riders are applicable.

State Availability

As of May 4, 2009, NYLIC AD109 One Year Non-Renewable Term has been approved in 46 states/jurisdictions.  AD109 OYNRT is not yet available in IL, MT, NJ, NY and OR.

Illustrations

Illustrations will not be available for the NYLIC One Year Non-Renewable Term policy. The attached Fact Sheet contains a table of the rates per thousand and an example of how to calculate the premium for the product. The rates are available as an economic benefit choice for split-dollar illustrations.

Restating Our OPP Rules

OPP limits, without underwriting, were increased for policy years 2-4. For Whole Life, Custom Whole Life, Modified Premium Whole Life and Survivorship Whole Life policies with an active OPP rider, the limits on lump sum OPP premiums that will be accepted without underwriting will continue until further notice ($1,000,000 maximum OPP premium)

Current OPP Limits

Amounts above these maximums may be available with underwriting.

The increased OPP limits do not apply to Billable or Check-O-Matic OPP arrangements and the standard limits for these arrangements apply at 2x the ASBP without underwriting (5x ASBP with underwriting).

The ASBP can be found on the policy data page of each policy.

OPP Minimums

• Lump-sum (per transaction) - $100
• Check-O-Matic or Auto-OPP (per transaction) - $10

Special Note: Max OPP Limitations - There are no exceptions to this!

• Policies with face amounts of less than $50,000 can not have OPP payments in excess of 10x ASBP
• Policies with a substandard rating can not have OPP payments in excess of 10x ASPB

Underwriting Update

New Risk Classification Criteria for the Senior Market and BMI Enhancement

We are proud to introduce the creation of new Select Preferred and Preferred / Select Standard risk classification criteria for the senior market. With this introduction we are also modifying our current BMI ranges for Select Preferred and Preferred / Select Standard.

Senior Market

As the population ages, we recognize that more of our clients and potential customers will be part of the senior age group. In order to provide a competitive opportunity for sales in this market, we have created the Senior
Risk Classification Criteria. The new guidelines are more "age appropriate" for clients in the 70 and over category.

The most significant changes to senior clients, as distinct from the current risk classification criteria for ages 18 - 69, are the liberalization of the guidelines to blood pressure, pulse, lipid levels, Body Mass Index (BMI) and the removal of family history as a criterion. Blood pressure, pulse and cholesterol levels that were previously ratable, are now eligible for "preferred level" classification. Please see the table below reflecting the new senior guidelines (BMI will be addressed in the next section).

Criteria	Select Preferred	Preferred/ Select Standard
Blood pressure	Maximum of 145/85	Maximum of 155/90 (Untreated or treated with a single blood pressure medication)
Cholesterol	Minimum of 140 Maximum of 250	Minimum of 140 Maximum of 300
Pulse	40 < Pulse < 100	40 < Pulse < 100

BMI Enhancements

Based on our new Senior Risk Classification Criteria and our internal monitoring of insured data, we are able to provide an enhancement to all of our BMI ranges to qualify proposed insureds into our "preferred level"
categories.

New Senior Risk Classification Criteria

Ages 70 and over	BMIRange
Select Preferred	19.5 - 27.4
Preferred / Select Standard	27.5 - 32.9

Enhanced BMI

Ages 18 - 69	BMI
Select Preferred	19.5 - 27.4
Preferred / Select Standard	18.5 - 19.4 27.5 - 30.9

The BMI formula uses weight in pounds and height in inches. (Round the result to the nearest tenth)
BMI = [Weight / (Height x Height)] x 703

These proposals are intended to provide a competitive edge, while assuring New York Life's ongoing excellence in the underwriting of this growing population of senior age clients.

For questions on this topic please contact Madison Brokerage at 888-539-3232