An American Academy of Actuaries (AAA) work group could have a long-term disability (LTD) insurance valuation table proposal ready for review by March 2012.
The AAA, Washington, briefed the Health Actuarial Task Force of the National Association of Insurance Commissioners (NAIC), Kansas City, Mo., on the valuation table effort during a recent task force conference call.
The Society of Actuaries (SOA), Schaumburg, Ill., paved the way for the valuation table project by using a database of 1 million LTD claims to produce a 10-year LTD claim termination experience report in 2009.
The Health Actuarial Task Force now wants the AAA to use the 2009 SOA report to create a valuation table that would replace the 1987 Commissioners Group Disability Table.
The AAA Long-Term Disability Work Group has been working on the valuation table project since May 2011.
Darrell Knapp and Roger Martin, the work group co-chairs, are leading a team that is looking at the structure of the table; methods for incorporating company experience into termination rates; adding the flexibility, or margins, to accommodate individual company variations; and implementing table recommendations in an NAIC model regulation.
- Allison Bell