The National Association of Insurance Commissioners is getting closer to approving a measure that could increase the uniformity of life insurance reserve requirements.
Members of the Life Insurance and Annuities Committee of the NAIC, Kansas City, Mo., voted Wednesday to endorse proposed revisions to the Standard Valuation Law.
Before the proposed changes can take effect, they must be approved by the NAIC’s executive committee and by the NAIC’s plenary – the body that includes all voting members of the NAIC.
The SVL is a model that states can use when setting standards for life reserve calculations. If the proposed revisions are approved, the SVL would embody a “principles-based” approach to calculating reserves.