NU Online News Service, June 4, 2004, 6:27 p.m. EDT – Regulators at the National Association of Insurance Commissioners have decided against trying to implement new guidelines for variable annuity product guarantees this year.[@@]
But regulators at the Kansas City, Mo., group say they still hope to complete their work on the C3, Phase II project by the end of the year and have the recommendations implemented by the end of 2005.
C-3 risk is the risk of underestimating liabilities for existing business or business to be written during the year that RBC is to be measured.
The members of the C-3, Phase II project team want to establish risk-based capital criteria for variable annuities with guarantees.
Some regulators have expressed disappointment at the move to postpone implementation, but none objected when a colleague commented that the project is not ready advance at the June 12-15 NAIC summer meeting.