Description: The author notes “the last major change in the Valuation and Non-forfeiture Laws occurred during the 1940's when the work of the Guertin Committee resulted in the adoption by the National Association of Insurance Commissioners NAIC of the Standard Valuation and Non-forfeiture Laws. While there have been a number of amendments to these laws since their adoption, both insurance department and company actuaries have concluded that there is need for a general overhaul of these standard laws to make them more responsive to today's business and regulatory needs.” The article goes on to discuss recent developments, recommendations, and legislative action, including the work of the Society of Actuaries Special Committee on Valuation and Non-forfeiture Laws, and the NAIC Technical Task Force.

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.