Academy at Summer NAIC Meeting

• Speaking with regulators at National Association of Insurance Commissioners (NAIC) actuarial task force meetings today in Louisville, Ky., Academy President-Elect Mary D. Miller proposed a voluntary template that actuaries could use to demonstrate how they meet the U.S. Qualification Standards for signing NAIC annual statements of actuarial opinion. Miller noted that this proposal from the Academy, as the issuer of the U.S. Qualification Standards, is a first step toward providing greater information and demonstrating accountability to regulators and the public regarding relevant actuarial qualifications. She invited regulators to provide feedback on the proposed template. The NAIC summer national meeting kicks off tomorrow.
• Representatives of the Academy, the Actuarial Standards Board (ASB), and the Actuarial Board for Counseling and Discipline updated regulators at today’s NAIC actuarial task force meetings on a variety of professionalism topics, including proposed and recent changes to actuarial standards of practice.

Public Policy Activities

• The Health Practice International Task Force published an issue brief providing an overview of the prevalence and costs associated with diabetes internationally and exploring ways in which several countries are addressing the high cost of diabetes.
• Six work groups of the Life Practice Council and the Health Practice Council presented to regulators at the NAIC summer national meeting. Presentations to the NAIC’s Life Actuarial Task Force (LATF) included:
• Nonforfeiture Modernization Work Group report on the gross premium nonforfeiture method framework for multiple guarantees;
• AG33 Non-Elective Incidence Task Force variation to Actuarial Guideline XXXIII; and
• Academy/SOA Joint Project Oversight Group update on mortality table development.

Presentations to NAIC’s Health Actuarial Task Force included:

• Long-Term Care (LTC) Credibility Monograph Work Group progress update on the monograph addressing LTC credibility;
• State LTC Principle-based Work Group update on the development of a principle-based approach model; and
• LTC Terminations Work Group progress report on data collected on terminations for LTC insurance.
• The Principle-Based Reserves Strategy Subgroup sent a comment letter to LATF on the net premium reserve component of the June 4, 2014, Rector report.

Annual Meeting and Public Policy Forum, Nov. 13–14

• Sen. Ben Nelson will share insights on insurance and regulatory issues as the Nov. 14 keynote speaker at the Academy’s Annual Meeting and Public Policy Forum in Washington. As chief executive of NAIC, Nelson has called for support of the state-based insurance regulation system, emphasized the need for dialogue on international insurance issues, met with President Obama to assess lessons learned from the Affordable Care Act’s first open enrollment period, and more. Others invited to speak at the Annual Meeting and Public Policy Forum include representatives of the White House staff, Congress, federal agencies, and the actuarial profession. You may earn up to 12.2 organized activity continuing education (CE) credits, depending upon your area of practice, including 1.5 professionalism CE credits, by attending the entire meeting. Learn more and register.

News from the Actuarial Standards Board

• The ASB recently approved a second exposure draft of a proposed new actuarial standard of practice, Principle-Based Reserves for Life Products. The ASB seeks feedback on issues such as whether the distinction between the company’s responsibility and the actuary’s responsibility is clear; whether the language of the standard quotes or summarizes VM-20 text appropriately and usefully; and whether it is sufficiently clear how the standard applies to actuaries who do not sign the PBR actuarial report but are involved in the preparation of principle-based reserves. The deadline for comments is Dec. 15, 2014.

Opportunities to Learn and Earn CE

• Are you ready to implement the new life principle-based reserve requirements? Delve into basic and advanced implementation topics at the “Implementing VM-20: A Practical Approach” seminar on Aug. 27 in New York. Basic sessions will provide an overview of how to perform a VM-20 calculation, while advanced sessions will focus on more complex VM-20 requirements. Learn more and register now.
• Do you wish to sign the NAIC annual statements of actuarial opinion, but haven’t met the basic education requirements set forth in Section 3.1.1 of the U.S. Qualification Standards? Obtain the required minimum basic and continuing education at the 2014 Life and Health Qualifications Seminar, which will take place Nov. 10–13 in Arlington, Va. Learn more and register now.

Be Ready for the Academy Regular Director Elections Opening on Aug. 25

• Did you receive your test email from Intelliscan (electionadmin@intelliscaninc.net), the Academy’s election vendor? It was sent to you this week to ensure that you receive your online ballot later this month. Check your spam folder if you don’t see it in your inbox and make sure to add the email address to your safe senders list. The elections will be held online Aug. 25 through Sept. 15. Visit the Academy Board Election Center to learn more about this year’s candidates!

Academy in the News

• Senior Health Fellow Cori Uccello’s comments regarding the reduction in the Affordable Care Act’s (ACA) transitional reinsurance program from 2014 to 2015 were cited in a Covering Health blog posting. Uccello represented the Academy in the June 27 Capitol Hill panel discussion, “Rates of Change: Putting 2015 Insurance Premiums into Context,” hosted by the Alliance for Health Reform and The Commonwealth Fund. Watch a video of the panel discussion here.
• A Vanguard story, “Social Security: How to decide when it’s time,” was sourced with an Academy-developed chart illustrating Social Security’s normal retirement ages and primary insurance amounts.
• A Center on Budget and Policy Priorities analysis of the 2014 Social Security Trustees Report cited Academy comments regarding long-term valuations of the Federal Old-Age and Survivors Insurance and Federal Disability Insurance Trust Funds.
• The (Scranton, Pa.) Times-Tribune cited an Academy issue brief on the different approaches for selecting discount rates used in measuring pension obligations. The article examined the reasons behind differing estimates of Scranton’s unfunded pension liabilities.
• A (subscriber-only) Risk.net story examining life insurance statutory reserve policies and prescribed valuation methods quoted the Principle-Based Reserves Strategy Subgroup’s April 11 letter clarifying its suggestion to eliminate the net premium reserve component of VM-20.

Newly Released

• August Healthcheck: Read about Medicare’s financial condition in the wake of the 2014 Trustees Report, a new issue brief exploring how different countries are working to reduce the risks and costs of diabetes, frequently asked questions about Medicare and the ACA’s qualified health plans and exchanges, and more.
  

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