Description: Adopted by the NAIC on October 14, 2005, the new RBC C3 Phase II requirements were effective for year-end 2005. The regulation requires either a factor approach - the “Alternative Method” - or a stochastic modeling approach subject to a minimum Standard Scenario requirement for determining the C3 component of risk-based capital for variable annuities. This article summarizes the results of a survey on insurers' approach to this for year-end and their results.

Description: Cautions against putting too much faith in financial models - such as the IASB's proposal to accrue future expected profits on the day a policy is issued.

Description: A methodology for calculating risk margins related to policyholder behavior risks for guaranteed living benefits on variable annuities when measuring fair value under FAS 157.

Description: Full version of The Financial Reporter, Issue No. 65, June 2006.

Description: Results of an industry survey on life insurance companies' efforts to implement the recently adopted Life Risk-Based Capital Phase II Instructions, which include new requirements for variable annuity contracts. Adopted by the NAIC on October 14, 2005, the new requirements are effective for year-end 2005. Also discusses a summary of the requirements set forth in the instructions.

Description: Column from the section chairperson highlighting the accomplishments of the section regarding research, volunteer efforts and education.

Description: The NAIC is working with state insurance departments to replace the existing rules-based valuation laws with principle-based valuation laws. On the GAAP front, both the International Accounting Standards Board, which sets GAAP accounting guidance for many countries outside the United States, and the Financial Accounting Standards Board, which promulgates GAAP guidance in the United States, are moving toward a “current estimate” standard of valuation, which often results in a fair value or similar measurement basis. This article reviews the IASB’s discussion paper on insurance valuation and the American Academy of Actuaries’ response to it.

Description: April 2009 issue of the Financial Reporting Section newsletter, The Financial Reporter

Description: Discusses the new Principles for Accounting Standards published in September 2009 by the Monitoring Board for the International Accounting Standards Committee Foundation - oversight group for the IASB, and provides other IASB updates for the July-September period.

Description: Provides a comparison of methodologies between Actuarial Guideline 43 and C-3 Phase II RBC to help the practitioner calculate both RBC and reserves in an accurate but efficient manner.