AUSTIN, Texas (Dec. 10, 2019) — The National Association of Insurance Commissioners (NAIC) released a Budget and Fiscal Impact Statement (BFIS) for a two-week comment period. The fiscal is in regards to a Principle-Based Reserving yearly renewable term (YRT) reinsurance study.
The proposed study is intended to provide information needed to develop a permanent solution to address an inconsistency in company interpretations regarding the modeling of YRT reinsurance. Once completed, the adopted permanent solution will be incorporated into the Valuation Manual.
The NAIC Joint Executive (EX) Committee/Internal Administration (EX1) approved the study and public comment period at the Fall National Meeting in Austin, Texas. A vote to approve the fiscal is expected in January 2020