Description: This article discusses update in the last two years to Solvency II.

Description: This article presents a high-level overview of the Federal Income tax rules in section 382 regarding limitations on the use of losses after an ownership change takes place and summarizes problems and issues for the insurance industry in proposed regulations under section 382 as summarized in comments made by the industry and the ACLI

Description: This article lays conceptual foundations associated with projecting investment-related discretionary elements of various life insurance and annuity products. It outlines potential implementation approaches that may be appropriate when calculations are performed in a risk-neutral setting. The article concludes that crediting rates in risk-neutral models can be projected as in real-world models, except that the modeled provision for expected credit losses should be modified to equal real-world expected losses initially, but over the projection reflect management’s evolving expectation, moving ultimately to risk neutral expected losses.

Description: Feature article discussing variable annuity reform.

Description: This article provides a summary of the research paper and Excel-based tool that can be found on the SOA’s website at Regulatory Capital Adequacy for Life Insurance Companies: A Comparison of Four Jurisdictions | SOA.

Description: With coinsurance of an existing block of long-duration insurance contracts, there may be existing reinsurance that remains in force. The new coinsurance is typically net of such “inuring reinsurance.” In this article, we look at approaches that the new reinsurer might apply to account for the effects of inuring reinsurance.

Description: A compilation of reader responses is presented to a real life situation involving a business decision. This issue’s case study involved a recently promoted chief actuary receiving pressure to make a downward reserve adjustment at year end.

Description: For establishing the ongoing adequacy of claim reserves for blocks of long-term care insurance, retro testing is a blunt tool, the results of which are not conclusive. Claim reserve retro tests should be reviewed by claim duration, include the impact of interest consistently, and include updated assumptions that can have an impact on claim termination rates or other factors. The new NAIC LTC Experience Reporting Forms estimated to arrive for reporting year 2008 will help modernize LTCI retro tests, providing additional accuracy and standardization. Actuaries should not wait for these forms, but rather ensure that any claim reserve analysis moves beyond a basic calendar year retro test.

Description: This article reviews Section 404 of the Sarbanes-Oxley Act. From Pension Section News, September 2004, Issue No. 56.