State Insurance Department
Definition
A state insurance department is the agency within a U.S. state government — sometimes designated a department, division, or
NAIC Model Regulation
Definition
An NAIC model regulation is a non-binding template regulation produced by the National Association of Insurance Commissioners — an
In-Force Illustration
Definition
An in-force illustration is a document provided to the contract owner during the life of an annuity contract
Annuity Disclosure Requirements
Definition
Annuity disclosure requirements are the body of state and federal regulation, derived primarily from the NAIC Annuity Disclosure Model
Illustration Regulation
Definition
Illustration regulation is the body of state-level insurance regulation, derived primarily from the NAIC Annuity Disclosure Model Regulation,
Regulation Best Interest
Definition
Regulation Best Interest is a 2019 rule of the U.S. Securities and Exchange Commission, effective June 30, 2020,
Best Interest Standard
Definition
The best interest standard is a regulatory standard of care requiring that a recommendation be made in the best
Inflation-Adjusted Income
Definition
Inflation-adjusted income is a stream of income payments expressed in real terms — deflated to a common-purchasing-power
Real Versus Nominal Income
Definition
Real versus nominal income is the distinction between the actual dollar amount of an income payment (nominal) and that
Actuarial Present Value
Definition
Actuarial present value is the present value of a future cash flow weighted by the probability that the cash
Break-Even Analysis (Annuity Context)
Definition
Break-even analysis in the annuity context is the calculation of the age at which the cumulative payments from
Replacement Rate
Definition
Replacement rate is the ratio of an individual's retirement income to their pre-retirement income, typically expressed
Floor-and-Upside Approach
Definition
A floor-and-upside approach is a retirement income strategy that pairs guaranteed-income arrangements covering essential consumption (the
Income Floor
Definition
An income floor is a target minimum level of lifetime annual income that a retirement plan is designed to
Bucket Strategy
Definition
A bucket strategy is a decumulation approach in which retirement assets are segregated into multiple sub-portfolios — typically short-
