NAIC Nonforfeiture Draft Open For Comment
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A regulatory proposal that would permit insurers to credit interest to individual deferred annuities that reflect current interest rate conditions will be exposed for comment following a unanimous vote by regulators.
Regulators recently voted to expose a draft of the Standard Nonforfeiture Law for Individual Deferred Annuities for public comment and discuss how to proceed with the draft model during the spring meeting of the National Association of Insurance Commissioners in Atlanta on March 8-11.
Low interest rates have raised concern among insurers that crediting interest for nonforfeiture purposes at a minimum 3% rate could affect their financial strength if they cannot find investments with rates that match liabilities.