ASB - Actuarial Standards Board - Snippets
- Jack Turnquist, ASB, Actuarial Standards Board said his organization had held a public hearing in March because of concern about abuses in illustrations and concerns about how non-guaranteed elements were being illustrated.
- The Actuarial Standards Board had considered development of standards, but he felt that it would be done in a vacuum without an understanding of what the NAIC would propose.
- He said there needed to be coordination of the NAIC in development of the model regulation and the Actuarial Standards Board in development of the standards.
- Mr. Wright asked if the Actuarial Standards Board would he willing to start drafting its standards as soon as the model regulation was developed, and Mr. Turnquist responded in the affirmative.
- Mr. Wright asked how long this process would take.
- Mr. Turnquist said he thought the Board could be finished within 12 months from the time it started drafting, allowing for a period of exposure a.lid comment.
- He said the usual timeframe was 24 months but he would ask that this project be put on a fast track..
- The Actuarial Standards Board had considered development of standards, but he felt that it would be done in a vacuum without an understanding of what the NAIC would propose.
1993-4, NAIC Proceedings, Life Disclosure Working Group (1993 1204)
- Michael MATEJA: I'd like to make two points.
- First, I'm going to use the words actuarial science and say I think your charge is to provide SOP with regard to the implementation of actuarial science by the members of the profession. If I'm wrong in that regard, then maybe what I have to say would not be appropriate.
- When regulators, in their wisdom, find ways to implement public policy and they, in effect, put down something that is not actuarial science, then I don't think it's your job to implement it by promoting standards.
- What I see embedded in this sales illustration regulation is nothing like actuarial science. I would tell you to steer clear of it. We have no reason to have a standard for it.
- You have great leverage, by virtue of your position. You can say, "No, we're not going to tell actuaries to practice in such a way because it really doesn't make sense." I think you need to use that leverage at appropriate times and, in effect, could influence the conduct of the regulators.
- First, I'm going to use the words actuarial science and say I think your charge is to provide SOP with regard to the implementation of actuarial science by the members of the profession. If I'm wrong in that regard, then maybe what I have to say would not be appropriate.
1995 - SOA - Actuarial Standards Board (ASB): Current Hot Topics, Society of Actuaries - 18p
- Gary Corbett: The second alternative was to allow illustrations of nonguaranteed elements under certain constraints.
- Early on, the regulators and the industry agreed that companies should continue to illustrate their current dividend scale.
- I can agree with the arguments that Daphne Bartlett and others advanced for grading the interest rate to some standard rate.
- I personally believe this might be a better basis for illustrations, but the ASB had nothing to do with this decision.
- It was basically agreed to by the industry and the regulators; that is, they would continue to illustrate current scale. Such a scale is not a projection. It's simply the current scale. But the regulators said the ASB needed to put some disciplines on it. Actually, the debate has been about how you come up with a disciplined current scale.
- Mark A. Tullis: Although I agree with your comments, Dan, that this regulation and guideline doesn't tell you how to do pricing, it really does create a situation where, de facto, it would be very difficult to deviate much from the standards with regard to pricing.
- I agree technically with what you've said, and I think it's a
more serious problem than what your comments would indicate.
- I agree technically with what you've said, and I think it's a
1995 - SOA - Actuarial Standards Board (ASB): Current Hot Topics, Society of Actuaries - 18p
- The whole process started in the NAIC, as it had to.
- If radical changes in the way we illustrate policies were going to be made, they had to start at the NAIC.
- The NAIC was only too well aware of the fact that sales illustrations were the subject of innumerable abuses and they wanted to correct those abuses.
- Furthermore, the NAIC was being pushed by Senator Howard Metzenbaum who wanted to accuse the regulatory structure of not doing its job and then to bring regulation up to the federal level."
-- Frank S. Irish, ASB, Actuarial Standards Board
1997 - SOA - Professional Standards Affecting Life Actuaries, Society of Actuaries - 18p