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  #151  
Old 06-17-2016, 05:51 PM
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Mary Pat Campbell
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Any word on how they plan on reconciling the small company exemption? If I remember correctly, some states regs had the small co exemption, others didn't.
I don't know. Someone else?
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  #152  
Old 06-17-2016, 06:17 PM
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Mary Pat Campbell
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http://www.lifehealthpro.com/2016/06...016&page_all=1

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Insurers mark significant regulatory shift
Despite skepticism, principle-based reserving moves forward

The new, so-called “principles-based reserving system” marks the most significant change in regulating life insurers since before World War II, according to Scott Harrison, executive director of the Affordable Life Insurance Alliance.

This group, based in Washington, D.C., has been working on the issue since 2005, Harrison said. The Alliance has three members: Lincoln Financial, Pacific Life and John Hancock. “There was huge skepticism that this could be accomplished,” Harrison said.

The final decision was made Friday by the NAIC based on a recommendation from the PBR Implementation Task Force. The Task Force has been dealing with the issue since 2013. NAIC approval was triggered after laws supporting the use of PBR were approved by 45 states, representing nearly 80 percent of the U.S life insurance market.

The only current major holdout is New York; California commissioner Dave Jones agreed to support it through legislation passed by the state last winter after the state’s insurers agreed to fund the state’s costs of having adequate actuaries monitor insurers’ books.

For life insurers, the implementation of PBR will provide certainty around reserving and may reduce requirements for some, according to Deloitte’s annual report on life insurance regulatory issues.

The change also has the support of industry rating agencies. Deep Banerjee, a director at S&P Global Ratings in New York, said it will have no impact on ratings.

That’s because over the last several years, rating agencies have shifted to evaluating reserves on an economic level. “The whole idea is that the statutory reserving system used by the states does not capture the true economics of these products,” Banerjee said.

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  #153  
Old 06-18-2016, 01:36 PM
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So, as a non-life person:

1) How are life reserves set now if not by principle? Are life reserving actuaries not a thing or did they just have very little discretion or judgment?
2) What will the practical impact of PBR be in all your opinions, to SOA actuaries, to life companies, and perhaps anything beyond that?
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  #154  
Old 06-18-2016, 02:24 PM
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Mary Pat Campbell
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Quote:
Originally Posted by JasonScandopolous View Post
So, as a non-life person:

1) How are life reserves set now if not by principle? Are life reserving actuaries not a thing or did they just have very little discretion or judgment?
2) What will the practical impact of PBR be in all your opinions, to SOA actuaries, to life companies, and perhaps anything beyond that?
there is a huge distinction between GAAP and STAT reserving....I remember laughing at the P/C people thinking we could just do a GAAP adjustment. No, we can't. These have to be developed separately, and they're not connected. There is basically no actuarial judgment involvement in STAT.

And what we're talking about here affects only individual life insurance. Annuities actually got some of the PBR treatment first.

Finally, claim reserves (whether STAT or GAAP) are small compared to policy reserves. There is actuarial judgment there, but it's not material for most individual life insurance.
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  #155  
Old 06-30-2016, 04:00 PM
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Default Pennsylvania governor signs House Bill 1766

http://www.legis.state.pa.us/cfdocs/...type=B&bn=1766

https://legiscan.com/PA/bill/HB1766/2015/

2016-06-30 House Act No. 59
2016-06-30 House Approved by the Governor
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  #156  
Old 07-07-2016, 10:05 AM
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Default Bloomberg - NY State to adopt PBR in 2018

http://www.bloomberg.com/news/articl...rules-in-shift

New York state’s top financial regulator, Maria Vullo, agreed to adopt new industry-supported reserve requirements for life insurers, departing from a predecessor who derided the shift as “unwise.”

Vullo will adopt the rules in 2018 and create a group of insurance leaders including TIAA’s Roger Ferguson and New York Life Insurance Co.’s Ted Mathas to offer input, her department said Wednesday in a statement. Birny Birnbaum, executive director of the Center for Economic Justice consumer-advocacy group, is also on the panel.
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  #157  
Old 07-07-2016, 02:43 PM
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Mary Pat Campbell
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This is a bit surprising.
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  #158  
Old 08-19-2016, 01:59 PM
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Default The NAIC has added more states.

http://www.naic.org/documents/commit...ap_808_820.pdf

I did not see Michigan, so I found:
http://www.michigan.gov/documents/di...S_529165_7.pdf

MCL 500.836b provides that the operative date of the valuation manual will be January 1 following July 1 of the first calendar year in which certain triggers found in MCL 500.836b(1)(b)are met.
This year, the number of states adopting the National Association of Insurance
Commissioners (NAIC) valuation manual has reached the specified supermajority. As of this date, 45 states, including Michigan, have advised the NAIC that they have enacted laws substantially similar to the model standard valuation law. These states represent more than 79% of the applicable premium volume required in MCL 500.836b(1)(b)(ii).
After conducting an extensive analysis of the states' laws, the NAIC member states voted unanimously to recognize that all three triggers defining the operative date have been satisfied.
Accordingly, the operative date for the valuation manual in Michigan is January 1, 2017.
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  #159  
Old 08-24-2016, 10:40 AM
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Default NAIC to adopt changes to the Valuation Manual

http://www.naic.org/meetings1608/com...?1472043445888

The meeting is in San Diego. A "clean" Valuation Manual may be available later this year. No promises.
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  #160  
Old 01-11-2017, 02:26 PM
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Default Michigan HB 5514

Date............Journal.................Action
12/31/2016 Expected in HJ 82...presented to the Governor 12/28/2016 @ 11:19 AM
12/31/2016.............................approved by the Governor 1/6/2017 @ 9:18 AM
12/31/2016.............................filed with Secretary of State 1/10/2017 @ 11:56 AM
12/31/2016.............................assigned PA 558'16 with immediate effect

http://www.legislature.mi.gov/(S(dlt...e=2016-HB-5514
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