State Variations in Valuation Laws

[dunnigan]

How do actuaries handle state variations in minimum standards for calculating reserves?

[Take 2]

Following the domiciliary state requirements usually suffices for all jurisdictions.

[twig93]

Following the domiciliary state requirements usually suffices for all jurisdictions.
Not necessarily true for New York... but pretty much true everywhere else.

[kazh]

Not necessarily true for New York... but pretty much true everywhere else.

I'm grateful I never worked for a company that was directly licensed in NY. :D

[Chuck]

I don't know if it happens any longer, but many years ago my company at the time used to have a different annual statement in TX because they had different requirements for deficiency reserves.

[Steve Grondin]

I don't know if it happens any longer, but many years ago my company at the time used to have a different annual statement in TX because they had different requirements for deficiency reserves.

TX had a non-level term reg that extended AG4 to CSO80 contracts. It was repealed a while back, and Triple X plays that role today (at least for some contracts).

Some companies have a domiciliary blue book, and a worst case blue book filed in states with more onerous regulations. As noted above, NY is particular, and assert their own rules even on business written in other states of companies domiciled in other states if the company is licensed in NY. As a result, many corporations have separate subsidiaries that handle all their NY business.