Life news

The Academy's Life Practice Council provides objective technical expertise to policy-makers and regulators on life insurance issues, including a principle-based regulatory approach to reserving and risk-based capital.

The council is led by Cande Olsen, the Academy’s vice president for life insurance issues.

Academy LVS submits comments on AG 38 Framework

The Academy Life Valuation Subcommittee submitted a comment letter to the NAIC Joint Working Group of the Life Insurance and Annuities (A) Committee and Financial Condition (E) Committee regarding their draft Framework on Actuarial Guideline 38. (01/31/12)

Academy CAIWG addresses NAIC subgroup issues

The Academy’s Contingent Annuity Work Group wrote a letter to the NAIC Contingent Deferred Annuity (A) Subgroup that clarified questions and concerns that were raised during the Jan. 19 conference call regarding the comparative analysis of the potential value of a typical contingent annuity and a self-directed investment arrangement (self-insurance). (01/26/12)

The 2012 Life & Health Valuation Law Manual is now available

You can order your copy online or by mail/fax. The manual is designed to help appointed actuaries comply with the requirements of the NAIC model Standard Valuation Law and the Model Actuarial Opinion and Memorandum Regulation. (1/20/12)

Contingent Annuity Analysis presented to NAIC Contingent Deferred Annuity (A) Subgroup

The Academy’s Contingent Annuity Work Group presented an analysis to the NAIC Contingent Deferred Annuity (A) Subgroup comparing two different investment arrangements: typical Contingent Annuity design vs. self-insurance. (01/19/12)

Presentation to the NAIC's Contingent Deferred Annuity (A) Subgroup

Cande Olsen made a presentation to the NAIC's Contingent Deferred Annuity (A) Subgroup on the Academy's Contingent Annuity Work Group's report that was submitted to the NAIC on October 28. (12/22/11)

Academy and SOA partner on economic scenario generators

The Academy and the Society of Actuaries (SOA) have joined resources to manage the economic scenario generators used in regulatory reserve and capital calculations. The latest version of the interest rate and equity generator is now on the SOA website. The SOA will provide frontline support and maintenance for the economic scenario generators. A joint Society of Actuaries/American Academy of Actuaries Project Oversight Group will oversee the generators and assist the SOA in providing technical support and direction for the current and future versions of the generators.

All versions of the generators, pre-packaged scenario sets, and documentation will be archived on the Academy website. Academy members involved in creating and updating the generators will continue to work with the regulatory community and the SOA to refine the generators and implement regulatory requirements for economic scenario generators. Support questions should be directed to: ESGhelp@SOA.org. (12/16/11)

Discussion paper regarding tax implications for structuring new commissioners’ mortality tables

The Academy’s Tax Work Group submitted a discussion paper to the Life Actuarial Task Force and the American Council of Life Insurers regarding tax implications for structuring new commissioners’ mortality tables to include the extra mortality risk of business not subject to full underwriting. (12/14/11)

Post-NAIC Update/PBA Webinar (Nov. 22) Available on CD-ROM

The Academy’s Life Practice Council presented the Post-NAIC Update/PBA webinar on Nov. 22 to review the NAIC Fall 2011 National Meeting and progress on implementing the Principle-based Approach (PBA) to reserving. The webinar also included updates regarding the VM-20 impact study and NAIC developments on the Own Risk Solvency Assessment (ORSA). Click here to order the audio file. (12/08/11)

Contingent Annuity Comment Letter to NAIC Released

The Contingent Annuity Work Group submitted a comment letter to the NAIC Life Insurance and Annuities (A) Committee regarding looming issues associated with contingent annuity products. (October 2011)

Practice Note on ASU 2010-26 Acquisition Costs Re-exposed

The Life Financial Reporting Committee has re-exposed a practice note on the Optional Retrospective Application of ASU 2010-26 Acquisition Costs for an additional two weeks until October 28, 2011. (10/14/11)

Presentations available for Preparing for Change under PBA: Life Company Reserves and Capital Seminar

Slide presentations from the May 18 seminar, Preparing for Change under PBA: Life Company Reserves and Capital are available for download. You will find presentations on "hot topics" and information specific to the implementation challenges related to the Principle-Based Approach (PBA) for statutory reserves and capital. It was jointly sponsored by the Society of Actuaries and the American Academy of Actuaries. (05/26/11)

Post-NAIC Update/PBA Webinar Available on CD-ROM

The recorded Post-NAIC Update/PBA Webinar (April 14) is available for purchase on CD-ROM. The Academy's Life Practice Council reviewed the NAIC Spring National Meeting and also gave updates regarding the principle-based approach practice note and the Valuation Manual-20 impact study. (04/15/11)

C-3 Phase II/AG XLII Practice Note Completed

The Variable Annuity Practice Note Work Group has completed a practice note on the Application of C-3 Phase II and Actuarial Guideline XLIII (04/06/11)

MCEV Practice Note Finalized

The Life Financial Reporting Committee has issued a practice note regarding Market Consistent Embedded Values (03/25/11)

Annuity Illustration Work Group sends comment letter to NAFA

The Annuity Illustration Work Group sent a letter to the National Association of Fixed Annuities with comments in response to its recommendations on the Annuity Disclosure Model Regulation. (2/17/2011)

Joint report on SMI project

The Academy's life, health, and property/casualty RBC committees released a joint report in response to the NAIC's request for assistance with the Solvency Modernization (SMI) project on the NAIC's Risk-Based Capital (RBC) formulas. This report discusses the intended/expected safety levels for RBC and identifies risks that are missing from the RBC formulas. (02/04/2011)

Pre-order Your 2011 Life & Health Valuation Law Manual

The Life & Health Valuation Manual is designed to help appointed actuaries comply with the requirements of the NAIC model Standard Valuation Law and the Model Actuarial Opinion and Memorandum Regulation. Learn more. (12/07/10)

DTA Bridge Group Final Report

Deferred Tax Asset Bridge Group submits a final report to the NAIC Capital Adequacy Task Force showing the appropriate treatment of the Deferred Tax Asset (DTA) in the Risk-Based Capital formulas for Life, Property / Casualty (P&C), and Health. (10/01/10)

Comments on Financial Instruments paper

The Financial Reporting Committee and Life Financial Reporting Committee submit comments to FASB on its Proposed Accounting Standards Update, Accounting for Financial Instruments and Revisions to the Accounting for Derivative Instruments and Hedging Activities. (10/01/10)

Modeling Efficiency Work Group issues practice note

The Modeling Efficiency Work Group has issued a practice note regarding scenario and cell model reduction. (09/22/10)

Academy Testifies at Public Hearing on Lifetime Income Options

Representatives from the Life Practice Council and Pension Practice Council testified on September 15th in a jointly sponsored Department of Labor and Department of the Treasury public hearing on lifetime income options for retirement. (09/15/10)

Academy Webinar: Aug. NAIC Meeting Recap

Sept. 9 webinar presented by the Life Practice Council will recap the Aug. NAIC meeting. Sign up now to learn more about the decisions, progress, and discussion on the proposed principle-based reserves project. (08/20/10)

PBA Implementation Seminar—SOLD OUT

The PBA Implementation: Getting a Rock Solid Start Seminar will give you insights into the new principle-based requirements for life products from the soon-to-be-completed Valuation Manual. This Sept. 22 seminar is ideal for those who are responsible for calculating reserves on life products. Learn more. (08/20/10)

Testimony to NCOIL on Stranger Originated Annuities

On July 9, Senior Life Fellow, Nancy Bennett delivered testimony to the National Conference of Insurance Legislators regarding Stranger Originated Annuities.

Comments on IASB Amortized Costs Exposure Draft

The Academy sends comments to the IASB concerning its Exposure Draft Financial Instruments: Amortised Cost and Impairment.

DTA Bridge Group Report

The Academy's DTA Bridge Group submits a requested interim report to the NAIC Capital Adequacy Task Force showing the appropriate treatment of the Deferred Tax Asset (DTA) in the Risk-Based Capital formulas for Life, Property / Casualty (P&C), and Health.

Comments to Massachusetts Governor Deval Patrick on gender pricing

On June 4, the Life Products Committee sent a letter to Massachusetts Governor Deval Patrick regarding a bill (HB 889) to allow gender pricing at the Savings bank Life Insurance Company.

MCEV Practice Note Exposed

The Life Financial Reporting Committee released a practice note on Market Consistent Embedded Value (MCEV) for comment until August 2, 2010.

Testimony to NAIC on Stranger Originated Annuities

On May 20, the Life Products Committee presented testimony at a National Association of Insurance Commissioners public hearing on Stranger Originated Annuities.

Comments to NAIC on principle-based valuation and capital approach (PBA) for life insurance.

The Life Practice Council (LPC) submitted a letter to the National Association of Insurance Commissioners' (NAIC) (EX) Working Group and Life Insurance & Annuities (A) Committee on principle-based valuation and capital approach (PBA) for life insurance.

IFRS Practice Note exposed

The Life Financial Reporting Committee released a practice note on Actuarial Practices Relating to Accounting for Insurance Pursuant to International Financial Reporting Standards (IFRS) for comment.

Councils' Response to DOL/Treasury Request

The Pension Practice Council and Life Practice Council's response to a request for information from the departments of Labor and the Treasury regarding lifetime-income options for participants and beneficiaries in retirement plans.

Comments to FASB

The Academy's Life Financial Reporting Committee and Financial Reporting Committee comment on the FASB on exposure draft, Proposed ASU-Financial Services-Insurance (Topic 944): Accounting for Costs Associated with Acquiring or Renewing Insurance Contracts.

Practice note on common practices relating to FASB statement 133

The Life Financial Reporting Committee has issued a new practice note to assist actuaries with application of FAS 133 with respect to variable annuities with guaranteed benefits.

Guaranteed minimum death benefits comments

The Academy's Life Products Committee comments to the Interstate Insurance Product Regulation Commission (IIPRC) on the proposed standards for Guaranteed Living Benefits on individual deferred annuities.

C-3 Phase II and Actuarial Guideline XLIII Practice Note and addendum

The Academy's Life Practice Note Steering Committee releases an addendum to the July 2009 C-3 Phase II and Actuarial Guideline XLIII Practice Note, providing guidance relative to additional questions raised by actuaries dealing with the implementation of Actuarial Guideline XLIII since the practice note was first published.

2010 Life and Health Valuation Law Manual

Orders are now being taken for the upcoming 2010 Life and Health Valuation Law Manual. The manual is updated every year.

Model efficiency research and education

The Academy’s Model Efficiency Work Group is actively promoting and assembling research reports on various techniques to make complex modeling demands more manageable. You can help us by contributing to our research!

The next phase: C3 Phase III

The Economic Scenario Work Group develops a proposed scenario generator model for interest rate modeling in principle-based life and annuity capital and reserve calculations.

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