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September 11, 2006 at 01:13 PM
The body that represents all members of the National Association of Insurance Commissioners has adopted the NAIC’s life and annuity reserving rules.
The executive committee of the NAIC, Kansas City, Mo., and the plenary, or body that represents all voting NAIC members, have approved a package of provisions that includes adoption of Actuarial Guideline 38, which establishes reserves for variable annuities with guarantees.
The package also includes adoption of the Model Regulation Permitting the Recognition of Preferred Mortality Tables For Use in Determining Minimum Reserve Liabilities.
The preferred mortality table provision splits the existing 2001 Commissioners Standard Ordinary Table into 3 non-smoking and 2 smoking preferred mortality risk tables.
The NAIC’s Life Insurance and Annuities Committee endorsed the package at the end of August.
Regulars and insurance industry representatives describe the package as a collection of interim changes designed to tide the industry over while actuaries, regulators and others work on a shift to a new, more flexible, “principles-based” approach to setting and assessing reserve levels.
