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NAIC Life Insurance and Annuities (A) Committee Approves Revisions to Standard Valuation Law to Enable Principles-Based Reserving |
September 17, 2009
Previously published on September 10, 2009
In a major step forward in the move toward adopting principles-based reserving, the Life Insurance and Annuities (A) Committee ((A) Committee) of the National Association of Insurance Commissioners (NAIC) voted on September 9, 2009, to approve revisions to the Standard Valuation Law (Model 820) (SVL), which had previously been approved by the NAIC Life and Health Actuarial Task Force to enable a principles-based approach to reserve valuation for insurance companies. The revised SVL and the accompanying Valuation Manual (which has not yet been approved) represent the model legislation at the core of the NAIC's framework for principles-based reserving. The SVL and Valuation Manual would replace the current formulaic method of calculating reserves with principles-based reserving, a more dynamic approach to reserving that would more easily account for the ever-more complex insurance products that have become prevalent in today's marketplace.
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The views expressed in this document are solely the views of the author and not Martindale-Hubbell. This document is intended for informational purposes only and is not legal advice or a substitute for consultation with a licensed legal professional in a particular case or circumstance. |
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