Mortgage Loan Industry Experience Factor

TO:

Interested Parties

FROM:

NAIC

DATE:

March 23, 2010

SUBJECT:

Mortgage Loan Industry Experience Factor for the March 31, 2010 Quarterly Statement

The Average Industry Experience Factor (AvIEF) to be used for the March 31, 2010, quarterly statement is 0.005 percent.  The AvIEF is defined in the Asset Valuation Reserve section of the NAIC‘s Annual Statement Instructions Life, Accident & Health for the year 2010. The IEF is an average of the mortgage data received at the NAIC for eight (8) previous quarters as follows:  

1st Quarter 2008

0.001%

2nd Quarter 2008 

0.002%

3rd Quarter 2008

0.003%

4th Quarter 2008

0.004%

1st Quarter 2009

0.004%

2nd Quarter 2009

0.008%

3rd Quarter 2009

0.006%

4th Quarter 2009

0.008%

 

Average IEF

0.005%

 

Individual companies should utilize information from the same quarters in calculating their average Company‘s Experience Factor (AvCEF).

 

Please note that changes made to the Life Risk-Based Capital minimum and maximum adjustment limits do not apply to the Asset Valuation Reserve calculation.

 

Contact Dan Swanson of the NAIC by phone at (816) 783 - 8412 or by e-mail at DSwanson@naic.org with any questions concerning this factor.