Life News

Life Experience Subcommittee Updates LATF on Mortality Table Development

The Life Experience Subcommittee presented an update to the NAIC Life Actuarial Task Force on mortality development of the 2014 Commissioners Standard Ordinary table, the 2014 Valuation Basic Table, and margins under VM-20 for determination of Prudent Estimate Mortality.
(March 27, 2014)

LATF Adopts VM-20 Amendment Regarding Due Premiums

The NAIC Life Actuarial Task Force adopted a Life Reserves Work Group amendment proposal to VM-20 regarding treatment of due premiums in reserve calculation.
(March 27, 2014)

PBRSS Submits Comments on February 2014 Rector Report

The Principle-Based Reserve Strategy Subgroup submitted comments on the exposed Feb. 17, 2014, Report of Rector & Associates, Inc. to the Principle-Based Reserving Implementation (EX) Task Force.
(March 21, 2014)

CAIWG Responds to Questions from the NAIC on Contingent Annuities

The Contingent Annuity Issues Work Group responded to questions from the NAIC regarding the reserving and capital requirements for contingent annuities
(March 21, 2014)

AOM Discussion Group Releases Communication Improvement Report

The AOM Discussion Group released a report on ideas to improve the communication of issues within the appointed actuary’s memorandum.
(March 19, 2014)

Academy Presents to State Legislators

Academy members made well-received presentations at the National Conference of Insurance Legislators’ Spring Meeting in Savannah March 7-9. Ellen Kleinstuber, vice-chairperson of the Academy’s Pension Committee, presented on a March 7 panel, “Longevity Risk & Insurance.” She also offered comments at a special point-counterpoint discussion on a proposed pension de-risking model act. Joyce Bohl, a member of the Federal Health Committee, presented on March 8 as part of a panel on the Affordable Care Act and underwriting. (March 10, 2014)

Academy Exposes Practice Note for Principle-Based Reserves of Life Insurance

The Life Principle-Based Approach Practice Note Work Group completed its draft Practice Note for Principle-Based Reserves of Life Insurance, which is exposed for comment until April 25.
(February 24, 2014)

LRWG Proposes Revised Amendment on Due Premiums in VM-20

The Life Reserves Work Group submitted a revised amendment proposal regarding treatment of due premiums in the VM-20 reserve calculation.
(February 5, 2014)

Academy Submits Comments to NAIC on Definition of Qualified Actuary

The Academy submitted comments to NAIC’s Joint Qualified Actuary (A/B/C) Subgroup on definitions of “qualified actuary” as prescribed by the NAIC. In a letter from Academy President Tom Terry, the Academy stated that it is willing to work with regulators to make qualifications for health, life, and Property/Casualty actuaries more consistent and address concerns about oversight of qualification. (February 3, 2014)

Academy RBC Groups Submit Letter to NAIC on Operational Risk Proposal

Academy RBC work groups sent a letter to the NAIC SMI RBC Subgroup outlining concerns with a Dec. 9, 2013, Capital Adequacy Task Force Operational Risk Proposal. (January 30, 2014)

Nonforfeiture Modernization Work Group Develops Illustrations for LATF

The Nonforfeiture Modernization Work Group developed a spreadsheet for the NAIC Life Actuarial Task Force that illustrates potential nonforfeiture benefits for guaranteed lifetime withdrawal benefits contained in fixed deferred annuities based on the work group’s December proposal.
(January 30, 2014)

LPC Hosts 28th Post-NAIC Update/PBA Webinar

The Life Practice Council presented a webinar reviewing the NAIC Fall 2013 National Meeting and activities including a rundown of the most recent Life Actuarial (A) Task Force meeting, a discussion of activities at the Life Risk-Based Capital (E) Working Group meeting, an update on VM-22 development, and a review of activity on captives and special purpose vehicles as they relate to NAIC model regulations XXX and AXXX. (January 24, 2014)

LPC Submits Comments on Rector Report

The Life Practice Council submitted comments on the proposed “actuarial standard” in the Report of Rector & Associates to the NAIC Principle-Based Reserving Implementation (EX) Task Force.
(January 15, 2014)

Work Group Submits Comments on Separate Account Recommendations

The Separate Account Products Work Group commented on the Potential Actions/Recommendations (Document 2) exposed for comment in November by the NAIC Separate Account Risk (E) Working Group. (January 10, 2014)

Work Group Updates LATF on Developing Utilization Assumptions for GLIBs

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. (December 13, 2013)

LFS/RMC Offers Response to NY Insurance Dept. on Due Premiums

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. (December 13, 2013)

Work Group Updates LATF on Treatment of GLWBs Under Proposed GPNM Nonforfeiture Approach

Nonforfeiture Modernization Work Group updated the NAIC’s Life Actuarial Task Force on the treatment of GLWBs in fixed deferred annuities under the proposed GPNM nonforfeiture approach. (December 13, 2013)

LRWG Provides VM-20 Spreads to LATF

Life Reserves Work Group provides memo to the NAIC’s Life Actuarial Task Force of VM-20 on current and long-term spread tables.
(December 13, 2013)

SAPWG Submits Comments on Insulating Separate Account Assets for Non-Variable Products

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. (December 13, 2013)

Committee Makes Proposed Amendment to NAIC on Direct Iteration vs. Gross Premium Valuation for Deterministic Reserves

Life Financial Soundness/Risk Management Committee made a proposed amendment to NAIC’s Life Actuarial Task Force on whether the direct iteration approach for the deterministic reserve results in the same amount as the gross premium valuation approach currently required by VM-20. (December 13, 2013)