State regulators could change the rules life insurers use when accounting for efforts to hedge against variable annuity interest rate risk.
A panel of regulators, the Variable Annuities Issues Working Group, plans to talk about a hedge accounting draft in December, in Honolulu, at an in-person meeting of the National Association of Insurance Commissioners.
The working group will be holding a session at the meeting Dec. 1. Jim Armstrong, the Iowa regulator who serves as the chair of the working group, will present a new draft of a variable annuity statutory accounting framework at the session, according to a session agenda.
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The NAIC is a Kansas City, Missouri-based group for state insurance regulator. It does not have the direct ability to set state insurance laws or regulations, but regulators in states and other jurisdictions, such as the District of Columbia, often use NAIC models to develop their own laws, regulations, guidelines, and other rules and materials.
The Honolulu meeting is set to run from Nov. 30 through Dec. 4.
The Variable Annuities Issues Working is part of the NAIC’s Financial Condition Committee.