National Association of Insurance Commissioners (NAIC) Establishes Emerging Actuarial Issues Working Group on Insurer Reserve Requirements Under Actuarial Guideline XXXVIII — The Application of the Valuation of Life Insurance Policies Model Regulation
Oct 31, 2012
The National Association of Insurance Commissioners (“NAIC”) has formed a new working group to provide timely actuarial guidance for life insurers seeking to comply with recent revisions to Actuarial Guideline XXXVIII-The Application of the Valuation of Life Insurance Policies Model Regulation (“AG 38”) with respect to both in-force and prospective business.
To be known as the “Emerging Actuarial Issues (E) Working Group,” this new group will comprise regulatory actuaries from Texas (Chair), Kansas, New York, Pennsylvania and Virginia. Their charge is to consider questions presented by state regulators and companies with respect to requirements under AG 38, and to provide timely guidance after an appropriate public hearings and comment periods.
In 2011, the NAIC formed a Joint Working Group of the NAIC’s Life Insurance and Annuities Committee and Financial Condition Committee to address certain reserving practices with respect to universal life insurance products with secondary guarantees and term universal life products. In September 2012, revisions to AG 38 were adopted for both in-force and prospective business. To view the revisions, click here.
As part of its efforts on AG 38, the Joint Working Group also created a Draft Framework Document, which called for a “mechanism for responding to specific questions from interested parties about particular products under the prospective requirements.”
A report on the reserving methodology used by a company and approved by a domiciliary state is forthcoming.
To submit issues for consideration by the Working Group to NAIC staff, click here to access the designated form.
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