Mortgage Loan Industry Experience Factor
The Average Industry Experience Factor (AvIEF) for the December 31, 2008, annual statement was calculated to be 0.002 percent. The AvIEF is defined in the Asset Valuation Reserve section of the NAIC‘s Quarterly and Annual Statement Instructions Life, Accident & Health for the year 2008.
Please note that for the risk-based capital calculation it is still under consideration by the NAIC Executive Committee an ACLI proposal to use a higher industry normalized loss ratio for the mortgage experience adjustment factor calculation. The ACLI proposal can be found on the Capital and Surplus Relief (EX) Working Group:
The IEF is an average of the mortgage data received at the NAIC for eight (8) previous quarters as follows:
Individual companies should utilize information from the same quarters in calculating their average Company‘s Experience Factor (AvCEF).
Contact Dan Swanson of the NAIC by phone at (816) 783 - 8412 or by e-mail at firstname.lastname@example.org with any questions concerning this factor.