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Proposed Rulemaking
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Proposed Permanent rules relating to Changes to Mortality Adjustment Factors in Calculating Deficiency Reserves When Valuing Life Insurance Policies |
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Rule description:
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These proposed rules remove restrictions on the mortality adjustment factors (X factors) in the deficiency reserve calculation. The deficiency reserve calculation allows insurers to adjust the valuation mortality to mortality that approximates the expected mortality by use of the X factors. The arbitrary restrictions that are being removed from the rule prevent the use of mortality with the amount and slope similar to the expected mortality. Without this change, insurers may be required to report reserve liability larger than necessary and therefore overprice their product. This would place the insurers and consumers at a competitive disadvantage. |
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Filed:
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October 12, 2012 |
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Last Day for Public Comment:
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December 7, 2012 |
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Links:
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Statement of Need, Notice of Proposed Rulemaking, Text |
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