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  #1  
Old 04-09-2019, 02:00 PM
Actuary321 Actuary321 is offline
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Default Is 2017 CSO on the ropes?

I have heard from a couple sources within my company that there is talk of holding off on the required implementation of 2017 CSO as of 1/1/2020.

Has anyone else heard these rumors or have any better information?
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Old 04-09-2019, 02:17 PM
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No, but I would be interested to know why they think this. Given the work companies have put into repricing all their products, it seems like it would be a really big deal.
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Old 04-09-2019, 06:56 PM
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No, but I would be interested to know why they think this. Given the work companies have put into repricing all their products, it seems like it would be a really big deal.
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Old 04-09-2019, 10:51 PM
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Still works for me.
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Old 04-10-2019, 12:24 AM
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I don't know of the rumors, but my sense is that there are many companies that have not done much with 2017 CSO (and thus could be the impetus).

I would think delaying 1/1/2020 PBR date more urgent than delaying 2017 CSO.
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Old 04-10-2019, 11:12 PM
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I don't know of the rumors, but my sense is that there are many companies that have not done much with 2017 CSO (and thus could be the impetus).

I would think delaying 1/1/2020 PBR date more urgent than delaying 2017 CSO.
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Old 04-11-2019, 04:05 PM
Actuary321 Actuary321 is offline
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Maybe just the GI table?

The NAIC meetings just finished up (April 6th-9th). I wonder if anyone who was there heard anything? Donna?

OK, I'll give it some time. Last Nov the meetings ended on 14th and she posted her updates on the 22nd, IIRC. And it is always good work and well worth the wait.

Last edited by Actuary321; 04-11-2019 at 04:13 PM..
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Old 04-11-2019, 04:53 PM
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I only saw something about the GI tables, not in general


https://www.thinkadvisor.com/2019/04...ue-life-table/
Quote:
NAIC May Cancel Shift to New Guaranteed Issue Life Table
Officials say use of a 2017 table could disrupt the market.
Spoiler:
The National Association of Insurance Commissioners (NAIC) may roll back a move toward a new mortality table for guaranteed issue life insurance.
Some state insurance regulators say moving toward the new 2017 Commissioners Standard Guaranteed Issue Mortality Table, which was approved in 2018, would cause big problems for life insurers.

(Related: How Well Does Accelerated Life Underwriting Really Work?)
Regulators have proposed a canceling the shift to the 2017 table and moving back to the old 2001 Commissioners Standard Ordinary ultimate mortality table for guaranteed issue business issued after Dec. 31, 2019.

Definitions
The NAIC is a Kansas City, Missouri-based group for state insurance regulators.

States often use NAIC models when developing their insurance laws, regulations and procedures.
“Guaranteed issue life insurance” is life insurance sold without use of medical underwriting. Many of the purchasers may be older people with health problems, who cannot qualify for ordinary life insurance but want to have modest amounts of life insurance available to pay for their funerals and help the beneficiaries with bills.

What Happened in Orlando
Concerns about the new guaranteed issue life mortality tables surfaced this week in Orlando, Florida, at the NAIC’s spring national meeting.

Members of the NAIC’s Life Actuarial Task Force agreed to seek public comments on Amendment Proposal 2019-38. The proposal would start the process of blocking the move to the 2017 mortality table and returning to the 2001 table.

Rhonda Ahrens, a regulator with the Nebraska Department of Insurance, proposed the amendment that would roll back the guaranteed issue life mortality table standard.

Ahrens acknowledges on the request form that the Life Actuarial Task Force approved the shift in 2018.

“Unfortunately, the original analysis of the table failed to consider all the issues associated with guaranteed issue products,” Ahrens says in the request form. “Additional analysis by companies trying to implement the table have shown that use of the table is likely to disrupt the guaranteed issue market by making the products less viable due to pricing, cross -subsidization, nonforfeiture, and other concerns.”

If the NAIC rolls back the mortality table standard, the Life Actuarial Task Force will continue to monitor the performance of guaranteed issue products and the appropriateness of using the 2001 mortality table for guaranteed issue business, Ahrens says.

Resources
Documents related to the Life Actuarial Task Force meeting are available here, under the Meeting Materials tab.

materials:
https://www.naic.org/meetings1904/cm...terials.pdf?28


it's on page 30, and doesn't have more detail than what was in the piece
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Old 04-15-2019, 11:58 AM
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Thanks, Mary Pat.
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