State regulators are still working on efforts to replace a table that shapes the group long-term disability (LTD) insurance industry, the 1987 Commissioners Group Disability Income Table.
The Health Actuarial Task Force, part of the National Association of Insurance Commissioners, has posted a new draft of the proposed Actuarial for Guideline for Group Long-Term Disability Insurance.
The Group Long-Term Disability Work Group, a unit of the American Academy of Actuaries, has been working with the NAIC to replace the 1987 table with the new 2012 Group Long-Term Disability Valuation Table.
The new table is based on data collected in 2008, and supporters say using it could help insurers fine-tune disability reserves and product prices. But a large insurer suggested about a year ago that one proposed approach to shifting to the new table would force it to add $200 million to its group LTD reserves.
One provision that has been particularly controversial has been a section that would determine when insurers must use data from the standard table, rather than data based on their own book of business.
In the current guideline draft — a revised version of a draft that was posted Oct. 3 — drafters say special rules would apply to claims for cases that have lasted for three or fewer months.