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Valuation of Securities (E) Task Force

2020 Membership

Mission

The mission of the Valuation of Securities (E) Task Force is to provide regulatory leadership and expertise to establish and maintain all aspects of the NAIC's credit assessment process for insurer-owned securities, as well as produce insightful and actionable research and analysis regarding insurer investments.

2021 Proposed Charges

The Valuation of Securities (E) Task Force will:

  1. Review and monitor the operations of the NAIC Securities Valuation Office (SVO) and the NAIC Structured Securities Group (SSG) to ensure they continue to reflect regulatory objectives.
  2. Maintain and revise the Purposes and Procedures Manual of the NAIC Investment Analysis Office (P&P Manual) to provide solutions to investment-related regulatory issues for existing or anticipated investments.
  3. Monitor changes in accounting and reporting requirements resulting from the continuing maintenance of the Accounting Practices and Procedures Manual, as well as financial statement blanks and instructions, to ensure that the P&P Manual continues to reflect regulatory needs and objectives.
  4. Consider whether improvements should be suggested to the measurement, reporting and evaluation of invested assets by the NAIC as the result of: 1) newly identified types of invested assets; 2) newly identified investment risks within existing invested asset types; or 3) elevated concerns regarding previously identified investment risks.
  5. Identify potential improvements to the credit filing process, including formats and electronic system enhancements.
  6. Provide effective direction to the NAIC’s mortgage-backed securities modeling firms and consultants.
  7. Coordinate with other NAIC working groups and task forces—including, but not limited to, the Capital Adequacy (E) Task Force, the Investment Risk-Based Capital (E) Working Group, the Statutory Accounting Principles (E) Working Group and the Blanks (E) Working Group—to formulate recommendations and to make referrals to such other NAIC regulator groups to ensure expertise relative to investments, or the purpose and objective of guidance in the P&P Manual, is reflective in the guidance of such other groups and that the expertise of such other NAIC regulatory groups and the objectives of their guidance is reflected in the P&P Manual.
  8. Identify potential improvements to the filing exempt process (the use of credit rating provider ratings to determine an NAIC designation) to ensure greater consistency, uniformity and appropriateness to achieve the NAIC’s financial solvency objectives.
  9. The Task Force will implement policies to oversee the NAIC’s staff administration of rating agency ratings used in NAIC processes, including, staff’s discretion over the applicability of their use in its administration of Filing Exemption.

2020 Charges

Ongoing Support of NAIC Programs, Products or Services *

1. The Valuation of Securities (E) Task Force will:

A. Review and monitor the operations of the NAIC Securities Valuation Office (SVO) and the NAIC Structured Securities Group (SSG) to ensure they continue to reflect regulatory objectives.

B. Maintain and revise the Purposes and Procedures Manual of the NAIC Investment Analysis Office (P&P Manual) to provide solutions to investment-related regulatory issues for existing or anticipated investments.

C. Monitor changes in accounting and reporting requirements resulting from the continuing maintenance of the Accounting Practices and Procedures Manual, as well as financial statement blanks and instructions, to ensure that the P&P Manual continues to reflect regulatory needs and objectives.

D. Consider whether improvements should be suggested to the measurement, reporting and evaluation of invested assets by the NAIC as the result of: 1) newly identified types of invested assets; 2) newly identified investment risks within existing invested asset types; or 3) elevated concerns regarding previously identified investment risks.

E. Identify potential improvements to the credit filing process, including formats and electronic system enhancements.

F. Provide effective direction to the NAIC’s mortgage-backed securities modeling firms and consultants.

G. Coordinate with other NAIC working groups and task forces—including, but not limited to, the Capital Adequacy (E) Task Force, the Investment Risk-Based Capital (E) Working Group, the Statutory Accounting Principles (E) Working Group and the Blanks (E) Working Group—to formulate recommendations and to make referrals to such other NAIC regulator groups to ensure expertise relative to investments, or the purpose and objective of guidance in the P&P Manual, is reflective in the guidance of such other groups and that the expertise of such other NAIC regulatory groups and the objectives of their guidance is reflected in the P&P Manual.

H. Identify potential improvements to the filing exempt process (the use of credit rating provider ratings to determine an NAIC designation) to ensure greater consistency, uniformity and appropriateness to achieve the NAIC’s financial solvency objectives.

NAIC Support Staff: Charles Therriault

Valuation of Securities (E) Task Force - 201118

Public Conference Call
Wednesday, November 18, 2020
3:30 PM ET, 2:30 PM CT, 1:30 PM MT, 12:30 PM PT
Expected Length of Call: 1 hr 30 min
Webex Link

The purpose of this meeting is to receive and consider technical updates to the Purposes and Procedures Manual of the NAIC Investment Analysis Office


Valuation of Securities (E) Task Force

2020 Summer National Meeting
Valuation of Securities (E) Task Force
Friday, August 07, 2020
11:30 AM - 12:30 PM CT

ADOPTED INTERIM CHANGES TO THE PURPOSES & PROCEDURES MANUAL OF THE INVESTMENT ANALYSIS OFFICE

Adopted 9/29/2020

Amendment to the Purposes and Procedures Manual of the NAIC Investment Analysis Office (P&P Manual) to Add Instructions for ETFs that Contain a Combination of Preferred Stocks and Bonds

Adopted 8/7/2020

Amendment to the Purposes and Procedures Manual of the NAIC Investment Analysis Office (P&P Manual) to Permit Supranational Entities Filed with the SVO to be Added to the Sovereign NAIC Designation Equivalent List

Amendment to the Purposes and Procedures Manual of the NAIC Investment Analysis Office (P&P Manual) with Update to the General Mapping of Credit Rating Provider Ratings, Long and Short-term, to NAIC Designations and NAIC Designation Categories

Adopted 7/1/2020

Amendment to the Purposes and Procedures Manual of the NAIC Investment Analysis Office (P&P Manual) for Technical NAIC Designation Category Corrections

Amendment to the Purposes and Procedures Manual of the NAIC Investment Analysis Office (P&P Manual) to Rename the U.S. Direct Obligations/Full Faith and Credit Exempt List to the NAIC U.S. Government Money Market Fund List and Discontinue the NAIC Bond Fund List

Adopted 5/14/2020

Amendment to the Purposes and Procedures Manual of the NAIC Investment Analysis Office (P&P Manual) of Instructions to Map Financial Modeled RMBS/CMBS Security NAIC Designations to NAIC Designations Categories (PDF)

Amendment to the Purposes and Procedures Manual of the NAIC Investment Analysis Office (P&P Manual) for Principal Protected Notes with an Updated Definition and Instructions (PDF)

Adopted 2/4/2020

Amendment to the Purposes and Procedures Manual of the NAIC Investment Analysis Office following a new SEC rule affecting Exchange-Traded Funds.

 

Related NAIC Publications

Contacts

Media Inquiries
(816) 783-8909
news@naic.org


Charles Therriault
Director, Securities Valuation Office
Phone: 212.386.1920

Eric Kolchinsky
Director, Structured Securities Group
Phone 212.386.1943

 

Please see the current Committee List for a complete list of committee members.