Insurance regulators are asking for comments about a proposed temporary regulation that could affect sellers of term life and universal life with secondary guarantees.
The Life and Health Actuarial Task Force of the National Association of Insurance Commissioners, Kansas City, Mo., voted to “expose” a draft of the interim reserve proposal.
The exposure process gives members of the public a chance to react to a proposal before the NAIC acts on the proposal.
The American Council of Life Insurers, Washington, developed the interim reserve proposal in an effort to come up with a placeholder regulation that could guide life reserving while officials at the NAIC debate permanent changes.
The ACLI proposal would make 3 major changes to the reserve standards in the Standard Valuation Law, the backbone of reserving for life insurance products.