Law360, New York (April 7, 2015, 11:50 AM EDT) -- After three full years of regulators compiling data, reading legal documents, studying actuarial models and consulting with outside advisors related to the life insurance industry's use of captive reinsurers for so-called AXXX and XXX reserve financing transactions, the year-end of 2014 was punctuated on Nov. 17, 2014, when the Principle-Based Reserving Implementation (EX) Task Force of the National Association of Insurance Commissioners (the "PBR Task Force") adopted a draft of Actuarial Guideline 48, dated Nov. 14, 2014, which defines the rules to be followed for new life reserve financing transactions after Jan. 1, 2015 (subject to certain grandfathering rules described below). These rules were finally adopted by the Executive Committee and Plenary of the NAIC on Dec. 16, 2014, and are in the process of being implemented. While the version of AG 48 that was so adopted is clearly still a work in progress, it should give regulators, industry participants and financing parties more clarity for financings in the life sector for 2015 than they have seen at anytime since these structures came under intense scrutiny in 2011....
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