New COVID Relief Legislation
Deep within the Consolidated Appropriations Act (CAA) 2021 are the new interest rate assumptions via Sec 7702 that will allow for more MEC space (more premium, less death benefit) in a cash value policy. The interest rates originally built into these assumptions were based on the rates of the 1980s.
The language has been changed to account for prevailing interest rates. What is unknown, at this time, is if applicable products need to be re-filed or re-designed. So we may see the impact of these changes in carrier's permanent products in the coming months.