The Health Actuarial Task Force has pushed a big group long-term disability (LTD) project another step closer to completion.
The task force, an arm of the National Association of Insurance Commissioners (NAIC), Kansas City, Mo., has posted a Group LTD Valuation Table Report and an discussion draft of a proposed Group LTD Valuation Table on its section of the NAIC’s website.
To calculate the amount of reserves that an insurer should set aside to back group LTD benefits payments, an actuary needs to know when the stream of payments might end, or terminate, either because the claimant has recovered or the claimant has died.
A new group LTD valuation table would provide updated data that actuaries could use to determine group LTD claim termination assumptions, the table drafters say.
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Unlike the table now in use, the 1987 Commissioners Group Disability Table, the new table would break group LTD claim termination information down by diagnosis, and the new table also would include an adjustment to reflect steady increases in the number of years that group LTD claimants can expect to live, drafters say.