Vol 3 | No. 3
Registration Open for September’s Virtual PBR Boot Camp
Registration is open for the Academy’s Virtual PBR Boot Camp, to be held Sept. 14–17. Sessions over four days will provide useful and practical information for those at all levels of familiarity with PBR (principle-based reserving) methodologies and reserve requirements in a virtual platform that will enable all to attend safely and still have opportunities for live engagement.
Participants will benefit from the depth of experience of the presenters for this highly regarded seminar and will have the opportunity to earn valuable continuing education credit.
Topics include life insurance and implementation of VM-20; overviews on PBR life insurance assets; reinsurance; variable annuities; and regulator and auditor reviews and updates.
See the full agenda and register on the Virtual PBR Boot Camp webpage.
LPC Seeks Feedback on VM-20 Practice Note
The Life Practice Council (LPC) is seeking input on possible items for inclusion in an addendum to the life@actuary.org.
The Variable Annuity Reserves and Capital Work Group released the VM-21 Checklist. This checklist provides a comprehensive guide to VM-21, which specifies requirements for principle-based reserves for variable annuity contracts.
The VM-21 Checklist is a companion piece to the PBR Checklist, released in October 2019.
Academy Presents at NAIC Summer Virtual National Meeting
Several Academy presentations were made to the NAIC’s Life Actuarial (A) Task Force (LATF) at NAIC’s Virtual Summer 2020 National Meeting in early August.
Immediate Past President Shawna Ackerman, Actuarial Standards Board (ASB) Chairperson Kathy Riley, and Actuarial Board for Counseling and Discipline (ABCD) member Godfrey Perrott gave professionalism briefings to LATF and other NAIC practice-area task forces, including highlights of recent and upcoming Academy and ASB and ABCD activity, including the upcoming professionalism webinar, “In Times of Uncertainty, Professionalism is Certain,” to be held on Aug. 20.
The Academy presented an update of the Yearly Renewable Term (YRT) Field Test led by the Life Practice Council’s (LPC) Jason Kehrberg, and an update from Annuity Reserves Work Group Chairperson Ben Slutsker and Vice Chairperson John Miller.
Other LPC presentations included:
Life Experience Committee
The Life Experience Committee Mortality Improvement Subgroup presented an update on the 2020 Life MI Scale Recommendation.
PBR Work Group
The PBR Implementation Work Group provided an update on Academy PBR Resources.
Additional Academy Life Comments to NAIC
Several Academy life comments were made to the NAIC in the past few months.
Actuarial Perspectives on Accelerated Underwriting
The Life Underwriting and Risk Classification Work Group gave a presentation on actuarial perspectives on accelerated underwriting to the NAIC Accelerated Underwriting (A) Working Group.
Life Underwriting
The Life Underwriting and Risk Classification Work Group sent a follow-up letter to the NAIC Accelerated Underwriting (A) Working Group on Actuarial Standards of Practice (ASOPs) that were referenced in the work group’s June 18 presentation.
AG 49
The Life Illustrations Work Group sent a letter to the NAIC’s IUL Illustration (A) Subgroup regarding an exposed proposal from the American Council of Life Insurers on how to treat IUL illustrations under Actuarial Guideline XLIX (AG 49).
PBR
The Annuity Reserves Work Group provided an update to the NAIC VM-22 (A) Subgroup on the preliminary framework elements for fixed annuity principle-based reserving (PBR).
Illustrations
The Life Illustrations Work Group sent a comment letter to the NAIC’s Life Actuarial (A) Task Force (LATF) on the “independent proposal.”
C-2 Longevity Factors
The C-2 Longevity Risk Work Group sent a comment letter and supplemental materials to the NAIC Life Risk-Based Capital Working Group on C-2 Longevity Factors.
Tax Comments
The Tax Work Group submitted a comment letter to the Internal Revenue Service (IRS) regarding a proposed regulation that provides guidance on the computation of life insurance reserves for income tax reporting.
IUL Comments
The Life Illustrations Work Group sent a comment letter to the NAIC Life Actuarial (A) Task Force regarding the illustrations of Indexed Universal Life (IUL) insurance policies under Actuarial Guideline XLIX (AG 49) and the redline of AG 49A.
Fixed-Annuity PBR
The Annuity Reserves Work Group gave an update to the NAIC VM-22 (A) Subgroup on the preliminary framework elements for fixed annuity PBR.
Annual Meeting & Public Policy Forum—Life Breakout Sessions Set
Life Breakout Sessions
Below is a summary of life breakout sessions—visit our website to see full descriptions.
Implications of the SECURE Act—Experts will discuss the implications of the Setting Every Community Up for Retirement Enhancement (SECURE) Act on the life insurance industry and its impact on defined contribution plans and annuities.
Regulation Best Interest and Annuity Suitability Model—In recent years, the Securities and Exchange Commission, the National Association of Insurance Commissioners, and the New York State Department of Financial Services have adopted new or revised regulations. Experts will discuss their implications on the life insurance industry and the role of the actuary in complying with the changes.
Effects of COVID-19 on the Life Insurance Industry—Speakers will focus on the potential financial impacts and ways that the life insurance industry will need to adapt in the post-pandemic environment.
Register Today for the 2020 LHQ Seminar
The Academy’s register today.