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ACLI: Are We Affected?

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An American Council of Life Insurers counsel is asking state regulators whether a reinsurance recoverables project will involve life insurers.

Wayne Mehlman, the counsel for insurance regulation at the ACLI, Washington, has written to David Vacca, an assistant director at the National Association of Insurance Commissioners, Kansas City, Mo., to ask about the reinsurance recoverables issue.

The NAIC’s Receivership & Insolvency Task Force recently adopted a charge that requires it to look into concerns about the timing and collection of reinsurance recoverables held by insurers in receivership.

The ACLI believes that the charge relates to property-casualty company insolvencies, not life company insolvencies, Mehlman writes in the letter.

The letters the NAIC has received from state receivership offices about the issue appear to relate to p-c insolvencies, Mehlman notes.

“If you concur that the task force’s charge relates only to recoverables involving P&C insolvencies, we respectfully request that you state this for the record,” Mehlman writes. “Otherwise, we ask that you provide us with examples of problems and/or concerns relating to recoverables involving life insolvencies.”

A copy of the ACLI’s letter to the NAIC is available here.