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AG49-A

As of 04/1/2026

Illustration updates for Indexed Universal Life products (AG49-A updates adopted Nov. 2025)

Revisions to Actuarial Guideline 49-A (AG49-A) were adopted by the National Association of Insurance Commissioners (NAIC) in November 2025. The revisions apply to all Indexed UL policies sold on or after April 1, 2026.

What is changing?

Regulators found that some materials displayed historical averages and back-tested results that could differ significantly from the allowed maximum illustrated rate, potentially confusing consumers. Due to this, the changes have been focused on what historical data of an Index can be shown within an illustration.

  • Historical data: Illustrations are limited to only show historical index data for indices that are at least 10 years old.
  • Standardized history: The 20-year historical index performance table is being extended to include 25 years of actual historical index performance where it exists.
  • Comparisons: Restricts side-by-side comparisons of historical averages vs. the maximum illustrated rate.

Lincoln has updated IUL illustrations to meet the new standards of AG49-A as of February 17, 2026.

Does this change how the policy performs?

No. These rules are about how projections are illustrated, not how the policy actually credits interest in real life.

Summary of Actuarial Guideline 49

AG49 (2015): Established the first uniform limits on IUL illustrated rates and loan leverage to create more consistent and transparent policy illustrations across carriers. All S&P indices with the same parameters illustrate the same regardless of carrier.

AG49-A (2020): Illustrations were updated to limit the illustrated impact of charged for multipliers and bonuses (additional charges could only credit back the amount of the charge).

AG49-A (2023): Added restrictions targeting volatility-controlled indices with fixed bonus structures. Non-benchmarked accounts, especially volatility-controlled indices, must illustrate less than or equal to a benchmark index account.

AG49-A (2026): Aims to restrict illustrations that include back-tested data.

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For financial professional use only. Not for use with the public.