Mortgage Loan Industry Experience Factor
TO: Interested Parties
DATE: November 30, 2012
SUBJECT: Mortgage Loan Industry Experience Factor for the December 31, 2012 Annual Statement
The Average Industry Experience Factor (AvIEF) to be used for the December 31, 2012, annual statement is 0.009 percent. The AvIEF is defined in the Asset Valuation Reserve section of the NAIC’s Annual Statement Instructions Life, Accident & Health. 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).
Please note that the changes made to the Life Risk-Based Capital minimum and maximum adjustment limits do not apply to the Asset Valuation Reserve calculation.
Please contact Dave Fleming (816-783-8121 or firstname.lastname@example.org) with any questions concerning this factor.