NAIC Life and Health Actuarial Task Force Meeting Report: August 5

The National Association of Insurance Commissioners (“NAIC”) Life and Health Actuarial Task Force (“Task Force”) held a conference call to review proposed amendments to the Standard Valuation Law (“SVL”). 

The SVL is an NAIC model that establishes minimum requirements for calculating or valuing reserves for life insurance and annuity policies.

The meeting was called to order with a quorum of members present.

Non-substantive changes to the May 31, 2008 version of the SVL were submitted by John Engelhardt of the NAIC and unanimously approved by Task Force members.

The Task Force also considered substantive amendments discussed during its previous conference call submitted by Jim Jakielo of Connecticut; Bill Weller, consultant to America’s Health Insurance Plans; and John Bruins of the American Council of Life Insurers. 

All of the proposed amendments sought to clarify potentially confusing wording in the SVL, especially regarding annual submissions of actuarial opinions by insurance companies to state regulators.  These opinions, which seek to ensure proper computation of reserves and related actuarial items, are used in support of insurance policies. 

The proposed amendments also addressed SVL provisions calling for opinions (and attachments) to be in accordance with the Valuation Manual (as specified in the SVL) and to be acceptable to the receiving Commissioner. 

Questions arose about how to ensure acceptance by a Commissioner, and why following the Valuation Manual would not guarantee acceptance. 

The amendments ultimately adopted by the Task Force specified that opinions in accordance with the Valuation Manual would be subject to approval by the applicable Commissioner, rather than automatically guaranteed.

Task Force documents include:

• SVL2 (for comment)
• SVL2 Working Draft
• All proposed SVL amendments
• The SVL amendment table
• Letter from non-life trade groups regarding proposed application of life reporting amendment
• Non-substantive change to the 5/31/08 version of the SVL submitted by John Engelhardt
• Proposed changes to the SVL submitted by Fred Andersen (NY)

Consideration of any subsequent SVL amendments was postponed until the next scheduled Task Force meeting on August 19, 2008. 

The meeting was then adjourned.

 

If you have any questions or comments, please do not hesitate to contact Colodny Fass.

 

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