A team is trying to meet a mid-August deadline for drafting a new standard valuation law and a new valuation manual that will reflect the shift to a principles-based approach to reserving.
Regulators from Texas and New York and representatives from the American Council of Life Insurers, Washington, hope to present an SVL draft in a couple of weeks at a meeting of the National Association of Insurance Commissioners’ Life & Health Actuarial Task Force.
Mike Boerner, a Texas regulator and life actuary, says the SVL draft would require that a company hire an independent actuary to perform an annual review of PBA, which might include a review of capital valuations.
A commissioner could require an insurer to provide any information, including all work papers, relating to an independent actuary’s review.
An insurer would have to adopt internal controls to ensure that all material liabilities and risks subject to valuation were included in the valuation.