State regulators are seeking public comments about proposed rules for setting reserves for some types of optional benefits sold with annuity contracts.
The Life and Health Actuarial Task Force, a unit of the National Association of Insurance Commissioners, Kansas City, Mo., has posted the draft, for revisions to Actuarial Guideline XXXIII: Determining CARVM Reserves for Annuity Contracts with Elective Benefits, on its website.
The draft would revise an existing actuarial guidelines, which deals with the rules for applying the “Commissioners’ Annuity Reserve Valuation Method” to valuing reserves for benefits that come with annuities.
The proposed revisions would apply to benefit types involving multiple payments, such as a guaranteed lifetime income benefit.
The revisions call for applying the various valuation rules “to each separate payment according to the withdrawal, annuitization, or non-elective benefit characteristics of the contract and payment provisions at the time each payment is to be made.”
In related news, the LHATF expects to hold a conference call Tuesday on several proposed Valuation Manual revisions.
Today, the LHATF held a call to review other proposed revisions, including provision that would deal with appointment of a statistical agent.
The regulators and others working on the statistical collection agent concept are suggesting that all companies should start out supplying statistics on an annual basis, but that the “data call” requirements could be lighter for smaller companies once the statistical agent program has been in effect for 5 years.