Universal life policies

The article discusses two factors in older universal life policies that have created unexpected financial burdens for owners of these policies: the rising cost of insurance (i.e. death protection) within the policy, and unexpected shortfalls in policy funds available to meet this cost. Based on the article and what we have learned in class, explain specifically what has driven each of these factors. (Hint: the rising cost of insurance in the policy is related to the type of life insurance contained in the policy, which is identified in the article.) Based on what we have learned in class, briefly describe the main regulatory responses to these issues.