Members of a National Association of Insurance Commissioners panel have recommended that the NAIC plenary adopt most of a capital and surplus rules change proposal developed by the American Council of Life Insurers.
The NAIC’s Capital and Surplus Relief Working Group at the NAIC, Kansas City, Mo., met in Washington Tuesday to consider the proposal, which was presented to the NAIC, Kansas City, Mo., in November 2008 by the ACLI, Washington.
The ACLI says adopting all 9 components of its proposal as written would bring the rules governing life company capital and surplus requirements up to date, freeing up about $25 billion to $30 billion in capital, or about 6% to 7% of life insurers’ 2007 adjusted capital.
Working group members voted on the proposal point by point.
The plenary, the NAIC body that includes all voting NAIC members, is scheduled to hold a final vote on the proposal Thursday.
The working group members voted as follows:
- Recommendations that address the use of preferred mortality tables and the use of original mortality tables in relation to the principles-based reserving project were adopted, with dissents from Maine and Wisconsin.
- A recommendation to eliminate constraints in Regulation Triple-X for the calculation of X factors was adopted with dissents from Maine and Wisconsin.