Life Risk-Based Capital (E) Working Group
Life Risk-Based Capital (E) Working Group Page
Joint Executive (EX) / Plenary Committee Summary Report
Summer 2009 Meeting Summaries Index

The Life Risk-Based Capital (E) Working Group of the Capital Adequacy (E) Task Force met Friday, June 12.

During this meeting, the Working Group:

  • Agreed to hold a conference call after the Summer National Meeting to address the 11 comment letters received regarding the American Academy of Actuaries (AAA) C-3 Phase III proposal. There were enough outstanding issues with the proposal that adoption could not occur for year-end 2009 Life RBC. Work will continue, so that the proposal can be adopted for year-end 2010.
  • Released a year-end 2009 proposal from the American Council of Life Insurers (ACLI) regarding derivatives collateral, with comments due June 27. The derivatives collateral would be treated as an NAIC class 1 asset for RBC purposes, which is different from the year-end 2008 guidance that was adopted. A year-end 2010 proposal will be addressed separately.
  • Received an update from the ACLI on the treatment of collateral for derivatives. The ACLI is working to respond to questions stemming from the Working Group’s May 27 conference call. Another conference call will be scheduled to finish reviewing the advanced example and implementation of the proposal.
  • Received an update on the ACLI long-term mortgage proposal. The ACLI is still working on the details, and a proposal is expected in the next few weeks. The proposal would need to be adopted by the Winter National Meeting in order to meet the goal of going into effect for year-end 2010.
  • Discussed concerns regarding the short-term mortgage experience adjustment factor calculation. This issue will be discussed further at the June 14 meeting of the Capital Adequacy (E) Task Force.
  • Adopted the minutes of the May 27, April 28, April 7 and March 31 Working Group conference calls, which included adoption of the year-end 2009 mortgage experience adjustment factor calculation.

Action Items:

  1. Released for a comment period of 15 days the ACLI year-end 2009 derivatives collateral proposal.
  2. Adopted the minutes of the May 27, April 28, April 7 and March 31 Working Group conference calls.
 

Minutes are available approximately two weeks after the meeting concludes.

Minutes are available free for meeting attendees using the User ID and Password supplied by the NAIC. Members may access minutes via StateNet. Non-attendees and those requiring minutes from previous meetings, may purchase the Proceedings of the NAIC through the NAIC Store.