Casualty Actuarial and Statistical (C) Task Force
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The Casualty Actuarial and Statistical (C) Task Force met Dec. 6, 2009. During this meeting, the Task Force:

• Adopted proposed revisions to the Catastrophe Modeling Handbook (Handbook) to reflect advancements in modeling that have occurred since the Handbook was originally created in 2001. Changes include the following:

• Updated questions a regulator could consider when reviewing a company’s catastrophe model (Section VII).

• Updated Appendices 11 (hurricane interrogatories) and 12 (earthquake interrogatories), each with two parts – Part A for an insurer or a rating organization and Part B for a modeler.

• A new Section VIII titled, “Regulatory Review and Acceptance” to discuss proprietary information.

• A new appendix to provide an annotated bibliography of resources available about catastrophe modeling.

• Additional terms and corresponding definitions to add to the Working Definitions Section in the Handbook (e.g., demand surge, shake intensity, dip slip faults).

• Adopted the 2007 Dwelling Fire, Homeowners Owner-Occupied, and Homeowners Tenant and Condominium/Cooperative Unit Owner’s Insurance (Homeowners Report).

• Discussed the Profitability (C) Working Group’s plans to consider expansion of the lines of business in the report and to examine how premium deficiency reserves are handled in the calculations.

• Requested that NAIC staff determine the cost and feasibility of creating a reporting system suitable for multiple states to receive the data required by the Medical Professional Liability Closed Claim Reporting Model Law (#77).

• Discussed NAIC activities regarding principle-based reserving, title insurance and the Solvency Modernization Initiative; the exposure of the Task Force’s premium deficiency reserve proposal by the Blanks (E) Working Group; the International Monetary Fund’s (IMF) Financial Sector Assessment Program (FSAP); and subgroup activities and progress.

• Discussed the American Academy of Actuaries’ work.

• Adopted interim meeting minutes from the Nov. 10 and Oct. 13 conference calls.