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Life Health > Health Insurance

Disability valuation table project crawls ahead

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State insurance regulators are seeking public comments on a collection of documents that could eventually help actuaries do a better job of pricing individual disability insurance.

The Individual Disability Valuation Table Implementation subgroup, part of the National Association of Insurance Commissioners (NAIC), has posted a draft of new individual disability insurance valuation tables, instructions for the new tables, and a valuation standard report and its section of the NAIC website.

Comments on the drafts are due May 8.

Regulators first exposed a draft related to the effort, 2013 Individual Disability Income Valuation Tables project, in 2013.

See also: Group drafts individual disability table

Regulators are trying to use disability experience data collected from 1990 to 2007 to replace the tables now in use, the 1985 Commissioners’ Individual Disability A Table (1985 CIDA) and the Commissioners’ Individual Disability C Table (1985 CIDC).

The data for the tables now in use was collected in the 1970s. Actuaries formally proposed updating the tables in 2012.

Update project supporters say updating the valuation tables would help insurers analyze disability risk in more flexible ways, and that, in some cases, having better information could help insurers offer customers rates that better match their level of risk. 


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