1988-1

Life Insurance Advertising Issues Subgroup

  • 6. "Nonguaranteed Policy Element" shall mean any premium, cash value, death benefit, endowment value, dividend or other policy benefit or pricing element or portion thereof whose amount is not guaranteed by the terms of the contract.
  • Any policy element that contractually follows a separate account result or a defined index is not considered a nonguaranteed policy element.

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  • 5. Report of the Internal Administration (EXl} Subcommittee
    President Edward J. Muhl (Md.) presented the report of the Internal Administration (EXl) Subcommittee. He reported the subcommittee authorized the officers to execute a renewal contract with Arthur Andersen for the Commissioners Education Program.
  • He also reported that the subcommittee considered the status of the Paine Webb
  • Mr. Thornberry also reported on the appointment of a second working group on Supervision and Conservatorship chaired by Commissioner Gunter
  • He asked commissioners to submit possible agenda
    items. He stated likely issues include risk retention, IRIS and the public perception of state regulation and the NAIC.
  • He noted that states having difficulty with travel funds may petition for travel expenses to be paid for by the NAIC.
  • Draft of State Resources Survey
  • ALL NAIC MEMBERS
    INTERNAL ADMINISTRATION (EX!) SUBCOMMITTEE
    AUGUST 31, 1987
    ATTACHMENT TWO-A
    RE: FUNDING RECOMMENDATIONS FOR ENHANCEMENT OF SOLVENCY SURVEILLANCE AND MARKETPLACE
    MONITORING FUNCTIONS

    • BACKGROUND
      In June 1987 at the Chicago NAIC meeting, the membership approved an increase in data base fees to fund an enhancement in the NAIC's computer hardware and software and a related increase in data processing staffing.

NAIC Meeting Format Survey - Compilation of EX2 Questionnaire - As of 9/10/87

  • Life & Health Financial Ratios Working Group Report (Attachment Two) .. 246
  • Survey of Insolvent Companies (Attachment Two-A) .................... 248
  • Comparison of the Life IRIS Results With the Examiner Team Ratings and the Survey of Financially Troubled Companies (Attachment Two-B) .. . 251
  • Quarterly Surveillance Tests (Attachment Two-C) ...................... 255
  • Two-E Monitoring Systems for Annuity Writers and Interest-Sensitive Product Report Format

The Advisory Committee does not want to appear to be disrespectful.

  • We recognize the hard work and effort applied to these issues as well as the value of the survey.
    • We also realize that there may have been discussions to which we were not privy.
    • Therefore, please consider the above preliminary, and as a request for additional information.
  • But, the Advisory Committee's perception is that the model laws and regulations are intended to assure a level of uniformity in the transaction of a business which is often national in scope.
    • The proposed language encouraging additional criteria or variation among the states adds an element of uncertainty which inevitably would lead to additional costs which are passed on to the group policyholder and eventually to the insured individual, the employee, and/or association member.
  • Therefore, we would suggest that any proposed departure from the existing regulation be measured by its impact on all parties.

Sample GMP Nonforfeiture Test Calculation

  • This section gives 22 examples of GMP nonforfeiture test calculations.
  • The front side of each example gives the product specifications, the nonforfeiture basis, and calculated guaranteed maturity cash values compared with SNFL minimum values.
  • The back side of each example shows the month-by-month calculations for one year of the universal life cash values.

1988-1, NAIC Proc. 

  • 4. Status Report on New Commissioners Guide on Statistical Data
    • Judith Mintel (State Farm) presented the report of the advisory committee drafting the New
      Commissioners Guide on Statistical Data.
    • The report included an outline of what could be included in the manual (Attachment Two).
  • 5. Consideration of Data Reporting Standards
    • The Chair read an outline of the data reporting requirements that the Task Force had considered at its  Dec. 6 meeting (Attachment Three).
  • The Chair noted that several states had requested that the Task Force develop model legislation concerning the reporting of statistical data.
    • He said that about 36 states have some kind of statute requiring statistical reporting at this time.

Life and Health Actuarial Task Force

  • He also reported that the task force was considering a plan to hold a "Valuation Actuary Seminar for Regulators:' An informal discussion had been held between two members of the task force, Stephen Kellison of the Academy and SSO staff to get some feeling of what might be planned.
  • Mr. Montgomery also reviewed the number one priority projects of the task force.
    • He further indicated that the task force had recommended that:
      • 1) seminars on the valuation actuary concept be set up and
      • 2) that the priorities of the task force be set as needed.
  • OUTLINE - NAIC State Regulator's Guide to Property and Casualty Insurance Data
  • "CLASSES" TO BE SURVEYED
  • OUTLINE OF STATISTICAL HANDBOOK