Description: This is the first of two articles discussing the model laws governing minimum reserves and non-forfeiture values that the NAIC adopted in December 1980. The author, Chairman of the NAIC Technical Task Force on Valuation and Nonforfeiture Value Regulation, in this first article describes the objectives of the revision, which include updating assumptions, increasing flexibility, and improving the ability to deal with new types of products, the cooperative effort entailed, the actuary’s role and responsibilities in doing business under the new law, and the financial impact.

Description: Part 3 of Gray's summary of the Canadian report on taxation by the Carter Commission. One of the provisions would impose a 50% insurance company tax rate on the excess of surplus earnings over policy dividends disbursed.

Description: This article describes some implications of increasing government intervention in the industry, such as the potential to eliminate the industry's ability to classify risk due to anti-discrimination laws and pressure to expand social 'insurance' programs

Description: A committee chaired by former Prime Minister, Sir Harold Wilson, has published its findings from a study on the functioning of British financial institutions and their value to the economy. This article reports on five of the report's topics that are of special interest to actuaries.

Description: Discussion of solvency problems and the actuary's role in addressing them in the life insurance industry.

Description: A regulator's perspective on the changing insurance and financial services industry, including changes in the state regulatory environment driven by the regulators themselves, as well as potential changes in the competitive environment prompted by the Financial Services Modernization Act.

Description: Discussion as to whether within an organization an actuary's regulatory role can conflict with his business-oriented role or be aligned with the strategic goals of the company.

Description: This article describes how Long-Term Care riders attached to Life Insurance policies provide real insurance value at a reasonable cost and allow life insurance companies to compete on a basis other than cost.

Description: This article consists of excerpts from the author’s presidential address to the Southeastern Actuaries’ Club on November 21, 1980. The author notes ‘the only thing we could all possibly agree on today about the economic situation is that the degree of uncertainty is high,’ and ‘it is this uncertainty that presents us actuaries with professional problems which cannot be addressed by traditional methods.’ In explaining how we can deal with inflation and uncertainty the author argues for repeal of both the Standard Valuation Law and the Standard Nonforfeiture Law.

Description: This article discusses new developments on the regulatory front. Under the new agreement, insurance company management and boards will be required to issue a statement that reflects their judgment about the firm’s viability, including its capital adequacy. The required opinion will have five elements - identifying risks, measuring risks, a risk feedback loop, a risk tolerance statement, and a risk policy.