Life Financial Soundness / Risk Management Committee provided a response to the NAIC’s Life Actuarial Task Force regarding questions from the New York Insurance Department on Academy’s proposal for treatment of due premiums.
( )The Separate Account Products Work Group submitted comments to the NAIC’s Separate Accounts Risk Working Group on suggested principles for insulating separate account assets for non-variable products.
( )Annuity Reserves Work Group provided an update to NAIC’s Life Actuaries Nonforfeiture Group’s VM-22 Subgroup on efforts towards development of appropriate utilization assumptions for Guaranteed Lifetime Income Benefits (GLIBs) in the floor reserve calculation.
( )Are you wondering how key global and domestic stakeholders responded to the insurance contracts accounting exposure drafts and where international accounting is headed? Find out Jan. 2 as the Academy hosts a webinar during which presenters will provide a discussion of the Academy’s comments on key issues in the IASB and FASB exposure drafts on insurance contracts; an overview of concepts and concerns from globally influential bodies on those exposure drafts; and, a look at the direction of global convergence.
( )Senior Life Fellow Nancy Bennett addressed state legislators on the lifetime-income needs of retirees in a presentation given at the National Conference of Insurance Legislators’ annual meeting.
( )The Life Practice Council submitted comments on the Initial Report of Rector & Associates to the NAIC Principle-Based Reserving Implementation (EX) Task Force regarding assets for captive reinsurance.
The Life Practice Council’s Principle-Based Reserves (PBR) Legislation-In-Brief was distributed to insurance legislators and top insurance regulators of each state where the NAIC model Standard Valuation Law may be considered in 2014. The brief is intended to inform legislators and insurance commissioners of the importance of the new PBR methodology and the NAIC model Standard Valuation Law.
( )The Life Capital Adequacy Subcommittee sent a comment letter on the double counting of the Asset Valuation Reserve and another one on additional collateral for transactions with unauthorized reinsures to the NAIC Life-Risk Based Capital (E) Working Group.
Senior Life Fellow Nancy Bennett gave a presentation to the Southeastern Regulators Association Conference on principle-based reserving for life insurance products.
The AG 43/C-3 Phase II Work Group sent a comment letter to the NAIC C-3 Phase II/AG 43 (E/A) Subgroup regarding a recent amendment with modifications to current total return gross wealth ratios for Actuarial Guideline 43.
The Pension Committee submitted comments to the Actuarial Standards Board on its recent modeling ASOP exposure draft that included concerns that the potential ASOP could be applied too broadly.
( )The C-3 Work Group presented its recommendation of potential alternatives to C-3 Phase 1 to the NAIC Life Risk-Based Capital (E) Working Group.
The Joint Economic Scenario Generator Project Oversight Group of the American Academy of Actuaries and the Society of Actuaries updated a list of Frequently Asked Questions for Version 7 of the interest rate generator for life insurance products.
The Life Illustration Work Group updated the practice note for Actuarial Standard of Practice No. 24, which outlines compliance with the NAIC Life Insurance Illustrations Model Regulation.
( )Want to learn what you missed at the NAIC Summer Meeting? Register now for the Life Practice Council’s Sept. 19 webinar to learn about the Academy’s activities at the meeting and progress on principle-based reserving (PBR), which is now being adopted by the states. Speakers will lead an in-depth discussion of reserving developments for non-variable annuities (VM-22) and also provide updates on Life Actuarial Task Force activity and the Academy’s professionalism initiatives.
Senior Life Fellow Nancy Bennett presented the Academy’s paper on lifetime income to the NAIC ERISA Retirement Income Working Group at the NAIC Summer National Meeting. Her presentation examining the financial risks of increased lifespans and the needs for retirees to secure lifetime income was based upon the Lifetime Income Risk Joint Task Force’s “Risky Business: Living Longer Without Income for Life.”
The C1 Work Group made a presentation to the NAIC Investment Risk-Based Capital Working Group on the benefits and uses of a representative portfolio for C1 factors in the Risk-Based Capital formula.
The Life Practice Council and its subgroups delivered several presentations, reports and amendment proposals to the Life Actuarial Task Force on various topics at the August 22 and 23 meeting. They included:
· Amendment proposals on letters of credit, due premiums, and VM-20 scope
· Report and presentation proposing an aggregate margin approach for VM-20
· Report and presentation on a potential reserve methodology for non-variable annuities in VM-22
· Report on nonforfeiture treatment of certain fixed deferred annuities
· Presentation of a recent survey conducted on modeling efficiency
· Presentation updating the task force on progress made by the AOMR Communication Group
( )The Life Practice Council sent its Legislation-In-Brief to the NAIC Principle-Based Reserving Implementation Task Force that outlines details of and support for the NAIC model Standard Valuation Law and PBR methodology. The LPC plans to distribute the brief to state insurance regulators and legislators.
Life PBR—The New Valuation World (Sept. 24–25): Register now for this interactive seminar that will combine instructor-led training with small-group discussions on the practical application of the principle-based reserving mechanics as outlined in VM-20. Principle-based reserve experts will discuss the latest developments, including the new PBR Actuarial Standard of Practice and PBR practice note—both expected to be completed this year.
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