Veralytic has compiled resources for compliance with the Uniform Prudent Investor Act (UPIA). Visitors may download copies of the UPIA itself, as well as guidelines for soliciting life insurance rates & terms from multiple sources (links are provided in the right navigation menu).
Veralytic subscribers have access to additional tools including:
- Simple "1-2-3" guidelines for trustees to bring ILITs into compliance, and strategies for charging new assets-under-management (AUM) fees.
- Sample reports from "Big-3" third-party administrators of TOLI holdings (TOLI TPAs) showing that TOLI TPAs do not generally provide suitability determinations, and how to justify TOLI policy costs and set reasonable expectations regarding rate of return on trust assets (both required by the UPIA).
- Sample announcement letters to show trustees how to introduce new TOLI management services. This allows their clients to opt-in based on the value to the client. It is created by the prudent process to generate new assets-under-management (AUM) fees to the trustee.
- Sample Rates and Terms sheets (instead of the insurer's illustrations of hypothetical policy values) to help trustees understand what they are being charged and what they are getting in the way of investment performance (both required under UPIA)... while still protecting the proprietary nature of your product offerings.
- Sample Engagement Letters to set forth the scope of comprehensive TOLI management services to be provided, the standard-of-care and warrantees for that work, the definition and ownership of intellectual property developed through the "prudent process", the compensation arrangement, and the nature of the working relationship between ILIT trustees and/or participating underwriters.
- Grantor Consent forms to solicit cooperation from the Grantor to increase gifts to adequately fund TOLI expenses, to decrease benefits to reduce TOLI expenses, to change allocation of invested assets, or supply updated medical records to explore trades and exchanges of TOLI holdings for more favorable alternatives.
For more information about accessing these tools, visit our subscription services page.