Description: This panel discussed studies of the risk of loss due to changes in the interest rate environment. It addressed why the C-3 risk is important and how inflation and stability in interest rates can affect the financial soundness of life insurance companies. There was also a discussion of the theoretical work being carried out to calibrate the C-3 risk of variation in interest rates and to what extent the valuation actuary can properly recognize the risk of loss from changes in the interest rate environment within the framework of valuations laws and regulations.

Description: This presentation is an open forum, session number 37OF, from the 2002 Valuation Actuary Symposium, held September 19-20 in Lake Buena Vista, FL. The panelist provides background on this new version of statutory accounting, formally called the Accounting Practices and Procedures Manual, an NAIC document that took effect at the beginning of 2001, noting that even though the accounting isn’t yet formally an accreditation standard, it’s basically in effect everywhere. The panelist discusses the three key classes of documents within the manual: the Statutory Statement of Accounting Principles [SSAP] Appendix A consisting of various excerpts from NAIC model laws and regulations, and Appendix B, containing interpretations of the Emerging Accounting Issues Working Group. The panelist then discusses the relevant pieces of accounting guidance that are important to health valuation actuaries. Discussion from participants is included.

Description: From the 1986 Valuation Actuary Symposium, held in Washington DC in October 1986 Discussion of cash flow testing to assess level of C-1,C-2, and C-3 risk. Also, update on regulatory and legislative issues in Canada pertaining to the Valuation Actuary, reserves, and risk based capital

Description: From the 1985 Valuation Actuary Symposium A perspective on the role of the valuation actuary and how it has and will change in the USA, Canada, and the UK.

Description: 1993 SOA Annual Meeting, New York. This session discussion is about the impact of RBC on product design. Topics included: 1. An overview of the regulatory aspects of RBC. 2. How to incorporate RBC into the pricing of insurance products. 3. The small company perspective 4. The application of marginal RBC analysis. 5. A preliminary analysis on RBC covariance between product lines.

Description: 1993 SOA Meeting, Quebec. This session was about product development in the age of age of risk-based capital including traditional capital measures, emerging trends, and NAIC changes.

Description: Update on statutory Valuation reserves and required surplus for variable annuities with living benefit guarantees

Description: 2003 Valuation Actuary Symposium, San Diego, CA. This panel discussion provided an overview of the current risk-based capital RBC requirements for life insurers as well as insight into topical issues and potential changes to RBC. Discussion topics included: 1. Recap of RBC law and RBC calculation rules. 2. Modeling potential impact of alternative actions. 3. The tax impact of the factors. 4. Stochastic capital requirements for variable products. 5. The role of reinsurance and offshore solutions.

Description: 1993 SOA Meeting, Quebec. Actuaries doing reserve testing under new valuation standards face decisions as to how to test for the C-1 or asset default risk. Related topics discussed: 1. The different purposes of evaluating C-1 risk. 2. Some of the evaluation methodologies used. 3. The sources of data to make your assumptions. 4. Some real-life issues and problems, focusing specifically on mortgage loans. 5. An overview of the Society's Credit Risk Study which looked at private placement and mortgage loan credit losses. 6. Practical considerations in modeling C-1 risk and living up to the applicable professional standards.

Description: From a session at the 2002 Valuation Actuary Symposium, held in Lake Buena Vista, Florida, September 19–20, 2002 Discussion of issues and the impact of current statutory valuation requirements for life insurance policies. Requirements covered include the Actuarial Standard of Practice on XXX, Actuarial Guideline AXXX, and Actuarial Guidelines 36 and 37. Products and issues discussed include nonlevel premium or nonlevel benefit insurance e.g., selective term, universal life with secondary guarantees or shadow accounts, determination of X factors, interpretation issues regarding XXX, variable life, and variable universal life, equity-indexed universal life, and the new CSO mortality table.