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Update News for January 2013    

Here is a quick run-down on what you will find in this bulletin:

These topics will be dealt with in more detail throughout this bulletin.

Happy New Year

The New Year is always a great opportunity to extend our ongoing thanks and appreciation to our many subscribers for their continued support of Compulife throughout the past year. Obviously we could not do what we do without the thousands of subscribers who purchase our software. Each subscriber is an important part of the success of this business. Thank you!

We know we have to earn your business and we work hard to do so. We hope that our ongoing efforts have contributed to your success in 2012 and that they will continue to add to your profitability in the New Year. We hope our software earns you back many times more than what it costs you to use it.

All the very best to you and your family in 2013.

Quebec Premium Tax

The premium tax rate for Quebec has been reduced from 2.55% to 2.3%. This impacts UL plans where the tax rate is factored into the premium calculation after the T100 premium component has been priced. Not all companies/products calculate the tax in the same way, and so some UL/T100 premiums are unaffected.

IMPORTANT: For those using the Compulife internet engine on their own web servers (not those using our $99 per year web quote option) there is a file you need to ensure you update this month. The file name is "provtax.ini" and the old one needs to be replaced with the new one on your server. The file contains the tax rates for each province.

Actuarial Guideline 38 - AG38

While the following has no direct impact on Canadian subscribers, we suspect that reinsurers that do business on both sides of the border have to some degree been impacted by discussions of reserves for long term guarantee products (such as T100) and it explains the rounds of price increases that have been occurring for the past year. So while the following 3 paragraphs were of primary interest to U.S. subscribers, we thought Canadian subscribers would find it interesting.

As a follow-up to last month's bulletin, we warned you that a new regulatory reserve requirement was going to lead to a large number of no lapse UL products being re-priced. As of the writing of this bulletin, 8 life insurance companies are introducing new rates for their no lapse UL policies effective January 1, 2013. While it was a load of work, we stayed on top of it all during December and all 8 life companies are in the January monthly update.

We fully expect that there will be some further changes during January and that we are likely to be hit with a few last minute changes. A number of companies have been scrambling to get the rate changes processed, and the new rates into our hands. You'd be surprised at the times of the day we are getting some emails with rates attached.

The biggest problem facing agent/brokers is what happens to in progress business. Many companies have requirements that policies actually be issued by December 31st, or the new rates will apply. If you have any questions you will need to be in touch with the companies themselves. It's going to be a mess for a couple of months.

Term4Sale Listing Renewals

As occurs each year a certain number of subscribers are late in paying for their term4sale postal code listing renewals. While we try to allow for a grace period, demand for postal code listings has been increasing. Each year we always experience a certain amount of attrition. The good news is that it will open up previously full postal codes for agents who have been wanting them.

If renewals are not received by January 4th, a credit will be issued for the unpaid invoice and the postal code listing(s) will be deleted from the customers account. Once all the deletions have been made, an email will be sent to ALL Compulife subscribers advising that the postal code database has been updated. If you have been wanting to add postal codes, receipt of that email would be a very good time to review your listings to determine if previously full postal codes are now available for purchase.

As always, paid postal code listings are on a first come, first served basis. Once a subscriber has paid for a postal code, they can only be bumped by a subscriber asking for that postal code as a "home" or "free" postal code. If you don't understand how that works, you can read about it at:

Postal Code Analyzer

Can You Help Us Add More Forms?

This is another carry over from the U.S. bulletin and doesn't apply to Canada with the exception that we stand ready to add life company forms to our Canadian software, if and when we can ever convince a Canadian life company or companies to provide us with their forms. U.S. subscribers consider the feature an important part of the service, and you will see from the following information that we have quite a number of U.S. companies and are trying to add some more.

The first Canadian subscriber, able to convince the first Canadian life insurance company to provide us with their forms, will get a FREE year added to their Compulife subscription.

During December, I had the following email exchange with one of the users of our internet quote engine:

After that email exchange, I went ahead and produced the following email to each of the life companies that were on the list of those whose forms we don't have. Here is what I wrote:

The point of sharing this with you is that I heard back from one company who wanted to know how many of our subscribers had been asking for their forms in Compulife. That was a nice way of saying they were only interested in greasing a squeaky wheel. In other words, if you didn't care if the company's forms where in Compulife, they didn't care either.

So here is what I am asking you do to. If one or more of the following companies is a company that you do business with, would you please email the company and tell them that it would be very helpful to you if you could have their forms available in Compulife. And just to make it easy, here's the list of companies we'd like to add:

NOTE: Lincoln Benefit Life has already begun the process of providing us with their forms.

And if there is a company not on any of the above lists, that you would like to add to our forms library, please don't be shy in letting us and them know that you want their forms in Compulife