Actions Taken At The NAIC Fall Meeting
The following actions occurred at the fall meeting of the National Association of Insurance Commissioners in New Orleans earlier this month.
The Life Insurance and Annuities “A” Committee adopted the “Recognition of the 2001 CSO Mortality Table for use in determining minimum reserve liabilities and nonforeiture benefits model regulation.” The model provides the regulatory mechanism for putting the 2001 CSO tables into operation.
Actuarial guideline MMMM, which establishes reserves for variable annuities with guaranteed living benefits, is to be exposed through mid-October and then possibly adopted by the Life & Health Actuarial Task Force, the “A” committee was told by LHATF Chair Mike Batte. If adopted, the plan is for LHATF to have a joint call with the “A” committee in November and for both panels to fully adopt the guideline at the NAICs winter meeting in December.
The “A” committee adopted a final report of The Life Liquidity Risk Working Group, which examines sources of liquidity risk and offers suggestions such as the need for disclosure of information relative to insurers exposure to stress liquidity risk.
The “A” committee accepted a report of the Viatical Settlement Working Group updating progress on a viatical settlements model regulation.
The reports to the “A” committee followed a session of the executive committee and plenary during which actuarial guideline AXXX, the application of the valuation of life insurance policies model regulation, a follow-up to actuarial guideline XXX, was adopted by the NAIC. Triple-X addressed reserving for level premium products.
Reproduced from National Underwriter Life & Health/Financial Services Edition, September 23, 2002. Copyright 2002 by The National Underwriter Company in the serial publication. All rights reserved.Copyright in this article as an independent work may be held by the author.