JMO Fan
06-24-2003, 08:37 AM
QUOTE FROM THE DESERT (for Life topics, see Life thread):
June '03 NAIC LHATF and RBC Conf: Life and Annuities
From: Donna Claire drclaire@compuserve.com
Date: Monday, June 23, 2003 12:30 PM
This is a summary of what happened at meetings from the June NAIC meeting the night the lights went out on Broadway (The LHATF meeting was in a room where the lights were on motion detectors. To put a positive spin on it, after a long day of meetings, we were all so riveted about a particular Academy report that we didn’t move, and the lights went out in the room):
LHATF
The following topics were covered
1. Annuity NF
2. Generalized NF
3. Revision to SVL
4. C -3 Phase II
5. LTC Reserves
6. Other Health Items
7. $-for-$ Partial Withdrawals for Variable Annuity GMDB’s
8. Consistency Between AOMR and Annual Statement Instructions
9. Credit Insurance Mortality Table
10. Life Insurance Illustrations Model
11. Reinsurance Issue
5. Long Term Care Reserves: The Accident and Health Working Group of the LHATF discussed the long term care model reserve standard. There were some changes to the current draft suggested, such as making the mortality standard the 2000a Mortality table. This group voted to expose the reserving regulation for comment.
6. Other Health Matters: Changes to the Small Employer Insurance Rating Guidance Manual were adopted. Changes to the Reserving Standards for Disability Income Insurance were exposed for comment. Work continues on the Medicare Supplement Refund formula. The Credit Disability Valuation Standard regulation was exposed for comment.
8. Need For Greater Consistency Between AOMR and Annual Statement Instructions: The Actuarial Opinion and Memorandum Regulation requires that certain lines in the annual statement be cited in the actuarial opinion. With the updates to the annual statement, the line citings are no longer correct. After debate, they figured most actuaries could determine what the correct situses were, and voted not to change the regulation.
LIFE RISK BASED CAPITAL
I also attended the Life RBC meeting since Larry Gorski, the recently appointed head of the Academy’s Life RBC meeting, is from my firm but was unable to attend. Larry had to attend the SOA Board meeting in conjunction with the Vancouver meeting. Phil Barlow of Washington D.C. is the new regulatory head of the NAIC’s Life RBC Working Group,
The following topics were covered:
1. Workers’ Comp Carve-out
2. C-3 Phase I
3. C-3 Phase II
4. Separate Accounts that Guarantee an Index
5. Modified Coins
6. LTC Insurance
1. Workers’ Compensation Carve-Out: The Life RBC Working Group voted to adopt changes to the Life RBC instructions so that worker’s comp will be treated the same way on the life blank as it would be on a P&C blank.
5. Modified Coinsurance: The Academy presented a report on modified coinsurance and fund withheld issues in RBC, which is available at www.actuary.org.
6. Long-Term Care Insurance: The Academy gave a report on suggested RBC changes for long-term care insurance. The changes would greatly increase the RBC factors for any company with under $75 million in LTC premiums (and reduce RBC for companies over this amount.) A conference call will be set up to discuss this.
Next Meeting
The next LHATF meeting will be September 11-12 in Chicago - the same dates that the valuation actuary symposium takes place in San Diego.
June '03 NAIC LHATF and RBC Conf: Life and Annuities
From: Donna Claire drclaire@compuserve.com
Date: Monday, June 23, 2003 12:30 PM
This is a summary of what happened at meetings from the June NAIC meeting the night the lights went out on Broadway (The LHATF meeting was in a room where the lights were on motion detectors. To put a positive spin on it, after a long day of meetings, we were all so riveted about a particular Academy report that we didn’t move, and the lights went out in the room):
LHATF
The following topics were covered
1. Annuity NF
2. Generalized NF
3. Revision to SVL
4. C -3 Phase II
5. LTC Reserves
6. Other Health Items
7. $-for-$ Partial Withdrawals for Variable Annuity GMDB’s
8. Consistency Between AOMR and Annual Statement Instructions
9. Credit Insurance Mortality Table
10. Life Insurance Illustrations Model
11. Reinsurance Issue
5. Long Term Care Reserves: The Accident and Health Working Group of the LHATF discussed the long term care model reserve standard. There were some changes to the current draft suggested, such as making the mortality standard the 2000a Mortality table. This group voted to expose the reserving regulation for comment.
6. Other Health Matters: Changes to the Small Employer Insurance Rating Guidance Manual were adopted. Changes to the Reserving Standards for Disability Income Insurance were exposed for comment. Work continues on the Medicare Supplement Refund formula. The Credit Disability Valuation Standard regulation was exposed for comment.
8. Need For Greater Consistency Between AOMR and Annual Statement Instructions: The Actuarial Opinion and Memorandum Regulation requires that certain lines in the annual statement be cited in the actuarial opinion. With the updates to the annual statement, the line citings are no longer correct. After debate, they figured most actuaries could determine what the correct situses were, and voted not to change the regulation.
LIFE RISK BASED CAPITAL
I also attended the Life RBC meeting since Larry Gorski, the recently appointed head of the Academy’s Life RBC meeting, is from my firm but was unable to attend. Larry had to attend the SOA Board meeting in conjunction with the Vancouver meeting. Phil Barlow of Washington D.C. is the new regulatory head of the NAIC’s Life RBC Working Group,
The following topics were covered:
1. Workers’ Comp Carve-out
2. C-3 Phase I
3. C-3 Phase II
4. Separate Accounts that Guarantee an Index
5. Modified Coins
6. LTC Insurance
1. Workers’ Compensation Carve-Out: The Life RBC Working Group voted to adopt changes to the Life RBC instructions so that worker’s comp will be treated the same way on the life blank as it would be on a P&C blank.
5. Modified Coinsurance: The Academy presented a report on modified coinsurance and fund withheld issues in RBC, which is available at www.actuary.org.
6. Long-Term Care Insurance: The Academy gave a report on suggested RBC changes for long-term care insurance. The changes would greatly increase the RBC factors for any company with under $75 million in LTC premiums (and reduce RBC for companies over this amount.) A conference call will be set up to discuss this.
Next Meeting
The next LHATF meeting will be September 11-12 in Chicago - the same dates that the valuation actuary symposium takes place in San Diego.