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February 02, 2007 at 10:32 PM
Members of the Life & Health Actuarial Task Force voted earlier this week to expose a draft of preferred life actuarial guidance to public review.
All members of the LHATF except for New York supported the move to expose the draft of Actuarial Guideline TAB, which deals with the application of the model regulation permitting the recognition of preferred mortality tables for use in determining minimum reserve liabilities.
The guideline is supposed to help the actuaries who advise insurers decide which mortality rates to use when insurers switch to the 2001 Commissioners Standard Ordinary Preferred Class Structure Mortality Table.
Mike Batte, a life actuary with the New Mexico Department of Insurance, called for quick action on AG TAB before the guideline vote, during an LHATF conference call.
The NAIC, Kansas City, Mo., already has approved new preferred mortality tables, and lawmakers are starting to introduce preferred mortality table bills in state legislatures, Batte said.
Because states are adopting the tables, NAIC members “need to get the guideline done,” Batte said. “We cannot wait all year.”
The version of the guideline exposed includes 2 amendments proposed by the American Council of Life Insurers, Washington.
- For mortality classes of less than 10 years, only a test based on the present value over the life of the contract would have to be passed.
- The certification exemption for business valued on the residual standard smoker table as well as the residual standard nonsmoker table currently specified in the draft would be expanded.
