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.
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An insurer would have to adopt internal controls to ensure that all material liabilities and risks subject to valuation were included in the valuation.