The National Association of Insurance Commissioners has released the text of the proposed Standard Valuation Law revisions.
Members of the Life Insurance and Annuities Committee at the NAIC, Kansas City, Mo., voted Sept. 9 to endorse the proposed SVL revisions.
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.
Advocates of principles-based reserving want life insurance reserving decisions to be based on modern statistical forecasting techniques and sound actuarial judgment, rather than on static formulas.