Mortgage Loan Industry Experience Factor

TO:                  Interested Parties

FROM:             NAIC

DATE:              November 30, 2012

SUBJECT:        Mortgage Loan Industry Experience Factor for the December 31, 2012 Annual Statement


The Average Industry Experience Factor (AvIEF) to be used for the December 31, 2012, annual statement is 0.009 percent. The AvIEF is defined in the Asset Valuation Reserve section of the NAIC’s Annual Statement Instructions Life, Accident & Health. The IEF is an average of the mortgage data received at the NAIC for eight (8) previous quarters as follows:


4th Quarter 2010  


1st Quarter 2011


2nd Quarter 2011  


3rd Quarter 2011  


4th Quarter 2011 


1st Quarter 2012  


2nd Quarter 2012   0.009%
3rd Quarter 2012    0.008%
Average IEF   0.009%


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


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


Please contact Dave Fleming (816-783-8121 or with any questions concerning this factor.