Capital Adequacy (E) Task Force
Capital Adequacy (E) Task Force Page
Joint Executive (EX) / Plenary Committee Summary Report
Fall 2009 Meeting Summaries Index

The Capital Adequacy (E) Task Force met Sept. 22, 2009. During this meeting, the Task Force:

• Released for a 30-day comment period the property and health RBC proposals for the RBC treatment of the Term Asset-Backed Securities Loan Facility (TALF) assets pledged as collateral.
• Discussed the American Council of Life Insurers' (ACLI) residential mortgage-backed securities (RMBS) proposal. It was stated that the Valuation of Securities Task Force is taking the lead on the proposal, but that this Task Force will continue to monitor the issue.
• Discussed the life RBC C-3 Phase 3 proposal. An updated C-3 Phase 3 report was released and an American Academy of Actuaries (AAA) work group will draft the life RBC instructions.  
• Continued work on a long-term proposal for life RBC mortgages by the ACLI. It had been decided that discussion of updating or extending the short-term mortgage experience adjustment factors beyond 2009 would not occur until the long-term proposal was available for review.   
• Received an update regarding the ACLI proposal for derivative risk mitigation. It was stated that work would continue on the three different types of derivatives credit, but it was hoped that the simplest type of credit could be implemented for year-end 2010 life RBC. 
• Discussed that a proposal for adding 10 years of Schedule P annual statement data was released for comment, and several comments were received. It was stated that the Property Risk-Based Capital Working Group would have a conference call to discuss the proposal after the Fall National Meeting.
• Discussed the property RBC catastrophe risk proposal. It was announced that a conference call of regulators supporting different catastrophe groups had been held, and a constructive dialogue had occurred.
• Adopted 2010 Task Force charges.
• Received an update regarding the C-3 Phase 2 Results Subgroup. Memorandums for two companies were reviewed, and a conference call for a third company was in the process of being scheduled.
• Requested that new Task Force procedures be drafted due to three national meetings being held instead of four.
• Adopted the minutes from the Sept. 10 and July 7 Task Force conference calls.
• Adopted the minutes from the Life Risk-Based Capital Working Group, Property Risk-Based Capital Working Group, Health Risk-Based Capital Working Group and Capital Adequacy Task Force (CADTF)/Life and Health Actuarial Task Force (LHATF) Joint Subgroup.
• Discussed that the Capital Adequacy Task Force (CADTF)/Life and Health Actuarial Task Force Joint Subgroup needed a new chairperson and requested volunteers. A reminder was given that volunteers were also needed for the Task Force’s subgroups to address the Solvency Modernization Initiative and investment issues.
• Received a referral from the NAIC officers regarding the fraternal RBC instructions. The Task Force adopted motions to draft a model request form and review the fraternal RBC instructions for potential areas that need to be adjusted.  
• Discussed whether to request having the Risk-Based Capital (RBC) for Health Organizations Model Act (#315) become an accreditation standard. This item will be added to the Task Force agenda for the Winter National Meeting.