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

The Life Risk-Based Capital (E) Working Group met Dec. 4, 2009. During this meeting, the Working Group:

• Released the American Council of Life Insurers (ACLI) derivatives risk mitigation proposal for a comment period of two weeks. The RBC instructions and RBC blanks pages will only include the simple one-to-one hedges and exclude the intermediate one-to-many derivatives transactions if adopted for year-end 2010. A conference call will be held the last week of December to potentially adopt the proposal for year-end 2010.

• Released for a comment period of 45 days new American Academy of Actuaries' C-3 Phase 2 and C-3 Phase 3 draft RBC instructions. The ACLI expects to have proposals for reducing the C-3 Phase 3 scope and for a materiality test finalized by Jan. 4, 2010. The Working Group hopes to finalize a proposal by the 2010 Spring National Meeting. A conference call will be held in January 2010 to facilitate comments during the comment period.

• Discussed that an ACLI proposal for the RBC treatment of mortgage loans was received recently and would be discussed on a future conference call.

• Discussed that the derivative collateral proposal would be addressed on a conference call to be held the last week of December.

• Adopted the minutes of its Nov. 17 and Nov. 12 conference calls.