LifeTrackTM
Delivering Baseline, Pre-acceptance and Replacement Policy Reviews
RIC policy reviews meet OCC, OTS and the Uniform Prudent Investor Act requirements as they apply to regulatory compliance and fiduciary management. Our reports evaluate life contracts, providing the trustee with valuable insight on any performance issue(s). RIC uses the information from these reviews to provide trustees with effective tools and reports for portfolio management.
The Baseline Review
The Baseline Review is our comprehensive life insurance policy review. The review assesses the financial strength of the carrier and performs a valuation of the insurance contract. It includes a competitive analysis along with the analyst's notes and management observations. Every baseline review addresses premium adequacy for funding considerations, loan levels, life expectancies, survival probabilities and other pertient policy provisions. Based on these risk factors, an ongoing review frequency is assigned.
Pre-acceptance Reviews and Replacement Analysis
Pre-acceptance and Replacement Reviews provide similar evaluation procedures, but analysis is based on the purpose of the review. These specialized reviews have a guaranteed 48 hour delivery once information is received, allowing the trustee to make a prompt, advised decision.
Pre-acceptance - This review determines whether a proposed life insurance policy fulfills the Trust's requirements and conditions for issuance and/or acceptance.
Replacement - As policies age and new products are developed, better contracts may exist on the market. This analysis examines the original policy against a proposed replacement contract to assess whether the alternative is more advantageous to the grantor and his trust. The proposed replacement is also compared to a market representative policy to ensure its competitiveness.
Both reports document procedural fiduciary responsibilities pertaining to ILIT administration and management.
Key Performance Indicators
Carrier Evaluation - RIC maintains current ratings from industry leaders such as TheStreet.com, A.M. Best, Standard and Poor's, Fitch and Moody's. A comprehensive classification is assigned to each carrier to indicate strength.
Competitive Analysis - Utilizing RIC's illustration library of premier carriers, we conduct a hypothetical 1035 exchange. This apples-to-apples comparison measures the cash efficiency of the existing policy relative to other currently available products.
Funding Levels - An under-funded policy can lead to an unplanned lapse. RIC identifies the projected lapse, when applicable, and the survival probability. Trustees can then make adjustments as needed to prolong coverage and allow the policy to reach maturity.
Loans - Loans may inhibit policy performance and can ultimately threaten policy continuation. It is important to know the current level of indebtedness and how it will change in the future based on the current funding plan.
ILIT Reporting Center
RIC delivers performance assessments on individual life policies as well as the entire ILIT portfolio. Our advnaced management tools enable easy identification of portfolio risk factors. Along with reviews, the Reporting Center also displays information on all carriers within your block of business. Information is provided in a convenient, paperless environment at the click of a button.
Each segregated file room is 128 bit encrypted and firewall protected. Trustees have internal control over users and access levels.
