Regulators are asking actuaries to evaluate a plan to split the 2001 Commissioners’ Standard Ordinary mortality tables to incorporate preferred and non-preferred mortality rates.
Insurers use the Commissioners’ Standard Ordinary tables to establish reserves for life insurance products.
The American Council of Life Insurers, Washington, would like to see regulators adopt the split tables for life insurance products as a temporary measure, to tide insurers over while regulators are developing a permanent, principles-based reserving system.
Tillinghast, Stamford, Conn., developed the split tables included in the ACLI proposal.
The Life & Health Actuarial Task Force of the National Association of Insurance Commissioners, Kansas City, Mo., is the group that put out the formal call for actuarial review of the ACLI proposal.
The review will be a joint effort of the American Academy of Actuaries, Washington, and the Society of Actuaries, Schaumburg, Ill., officials say.
NAIC officials say the actuaries conducting the review expect to complete their work in time for the NAIC’s September meeting.
Paul Graham, a life actuary representing the ACLI, says he would like to see the actuarial review completed in time for the NAIC June meeting, so that the NAIC has a chance to adopt the split table proposal by the end of the year.
Timing is important because state legislators will begin putting their 2007 legislative calendars together toward the end of the year, Graham says.