Valuation of Securities (E) Task Force
November 29, 2007

The Valuation of Securities (E) Task Force met on Thursday, November 29, 2007 via conference call. During this meeting, the Task Force:

• Received the report of the Derivatives Market Study Working Group; adopted the recommendation of the Working Group that Schedule DB of the Annual Statement Blank should be modified and that the proposed changes should be forwarded to the Blanks (E) Working Group for consideration; adopted the recommendation of the Working Group that the NAIC should revise and retain Derivatives Instruments Model Regulation No. 282 as a national standard and instructed the staff to prepare an Appendix A document for review by the Task Force which, when approved, would place the recommendation of the Task Force relative to Model Regulation 282 before the NAIC Executive Committee. The Task Force also adopted the minutes of the Nov. 1, 2007 Working Group conference call.

• Received the report of the Invested Asset (E) Working Group. The Chair of the Working Group reported that it will hold a series of conference calls beginning in December to work on its charge: i.e. to consider whether improvements can be made to NAIC processes related to assigning regulatory treatment to new securities. The Task Force also adopted the Nov, 15, 2007 minutes of the Working Group.

• Adopted the 2008 Research Unit Agenda.

• Heard a staff report on the development of an internet based process to disseminate SVO determinations on securities rated by an NAIC ARO. The staff expects the system and process to be operational on or after Feb. 1, 2008.

• Received a report from the staff recommending that the Tokyo Stock Exchange be added to the list of exchanges which insurance companies can use to report market values for the common stock of Subsidiary, Controlled and Affiliated Companies under SSAP 97. The Task Force also adopted the recommendation of the staff and directed it to prepare a transmittal letter to the Statutory Accounting Principles Working Group.

• Discussed an ACLI letter recommending changes to the recently adopted proposal to allow non-insurers to utilize the SVO EIV and ARS services.  The Task Force concurred that non-insurers using these services were free to share the SVO determinations with others.