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

The Life Risk-Based Capital (E) Working Group met Sept. 21, 2009.

During this meeting, the Working Group:

• Released for a comment period of 30 days a new American Academy of Actuaries (AAA) C-3 Phase 3 report. A work group of the AAA was starting to draft the RBC instructions. The C-3 Phase 2 and Phase 3 instructions may be combined into an appendix of the RBC instructions.
• Received an update from the American Council of Life Insurers (ACLI) regarding a long-term mortgage proposal. The ACLI is still trying to work on the details, and a proposal is not available yet. The Working Group will not consider changing the short-term solution until a long-term proposal is received.
• Discussed an updated year-end 2010 proposal from the ACLI regarding derivatives collateral. An issue regarding the receipt of a double charge for the collateral reported as cash had generated an updated proposal. A conference call would be held to address the proposal.
• Received an update from the ACLI on the proposal for derivatives risk mitigation. A method to calibrate risk reduction when there was a maturity mismatch was being developed. Draft RBC instructions were nearing completion. Once the remaining issues were resolved, the May 2009 ACLI report to the Working Group would be amended. It was suggested that the proposal might be broken into segments.
• Adopted the minutes of the Aug. 27, Aug. 26, July 16, July 1, and June 26 Working Group conference calls.