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Insurers seek disability table delay

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The American Council of Life Insurers (ACLI) and America’s Health Insurance Plans (AHIP) are asking state regulators for more time to adjust to new group long-term disability (LTD) insurance standards.

The ACLI and AHIP have asked the National Association of Insurance Commissioners (NAIC) to push back the official adoption date for the new 2012 Group LTD Table.

The date would move from Jan. 1, 2014, to Jan. 1, 2017.

Insurers could choose to use the new table to set reserves for group LTD claims incurred starting Jan. 1, 2015.

The Health Actuarial Task Force, part of the NAIC’s Health Insurance and Managed Care Committee, is working with outside actuaries to help the insurance industry replace the 1987 Commissioners Group Disability Income Table with a table based on new experience data.

The NAIC has been talking about requiring carriers to use more data from the official table rather than data based on their own insureds. 

An actuary with one large insurer suggested in October 2012 that the shift could lead to that insurer having to increase group LTD statutory reserves by $200 million.

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