Life Insurance and Annuities (A) Committee
September 30, 2007

The Life Insurance and Annuities (A) Committee met on Sunday, Sept. 30, 2007.

During this meeting, the Committee:

• Adopted its Aug. 28, 2007 conference call minutes.
• Discussed and adopted its 2008 proposed charges.
• Discussed the ACLI Suitability Certification proposal related to the NAIC Suitability in Annuity Transactions Model Regulation. The Committee deferred making a decision on the proposal until it had more time to review it. The Committee plans on holding a conference call prior to the 2007 Winter National Meeting to further discuss the proposal.
• Discussed comments received on the current draft of proposed revisions to the Unfair Trade Practices Act related to travel underwriting in life insurance. The Committee anticipates distributing a new draft within the next few weeks. It is anticipated that this new draft will include two options. One option will reflect the Alabama comments and the other option will reflect the Florida comments. The Committee will hold a conference call prior to the 2007 Winter National Meeting to discuss the comments received on this draft and may vote to adopt the draft at that time.
• Adopted the report of the Life and Health Actuarial Task Force, which included adopting the Task Force’s action to permit the current Task Force members and existing subgroups of the Task Force to continue working on Task Force assignments during the period between the election of NAIC officers and the Task Force’s re-appointment by the Executive Committee and the subsequent appointment of the subgroups. The Task Force expanded its charge to the Statistical Agent Subgroup to encompass PBR in its recommendations. It also requested AAA to recommend an appropriate mortality table or tables for pre-need, guaranteed issue and simplified underwriting life insurance. The Task Force also exposed several proposals for comment: a revision of the proposed AG VACARVM, including technical corrections proposed by AAA; a revision of the proposed Model Regulation for Mortality Assumptions for Pre-Need Insurance; a proposed revision of the SVL to effect principles-based reserve methodology; and a revision of the Valuation Manual. The Task Force is continuing its work to implement a principles-based valuation system and received reports from various groups related to its implementation. The Committee is monitoring the Task Force’s work as part of its charge to oversee the development of a principles-based reserving system.

Action Items:

1. Adopted its Aug. 28, 2007 conference call minutes.
2. Adopted its 2008 proposed charges.
3. Adopted the report of the Life and Health Actuarial Task Force.