A panel at the National Association of Insurance Commissioners has voted 10-3 to approve a draft of changes to Actuarial Guideline 38.[@@]
All members of the panel, the NAIC’s Life & Health “A” Committee, voted on the draft.
The A.G. 38 model draft revisions could change the rules life insurers must follow when reserving for universal life products with secondary guarantees. The effort to develop the draft is part of a broader effort to create a reserving system based on what supporters say are established actuarial principles.
The NAIC’s Life & Health Actuarial Task Force already has approved the draft, but the NAIC, Kansas City, Mo., deferred action on the draft during its recent summer meeting in Boston.
Regulators are treating the draft as a short-term solution that can provide a temporary update to reserving rules while actuaries and others work together to develop a long-term, principles-based solution.
Efforts have been under way since February to reach common ground on the contentious issue.