Insurers Face Higher Capital Requirements For MBS

Law360, New York (October 29, 2012, 6:15 PM EDT) -- Regulators on a National Association of Insurance Commissioners task force on Friday reportedly approved requiring insurers to reserve more capital to cover risks tied to mortgage-backed securities.

The NAIC's Valuation of Securities Task Force voted 11-2 to support a proposal dealing with the modeling of residential mortgage-backed securities and commercial mortgage-backed securities, one that would push insurers to increase capital reserves if it is adopted by the NAIC, according to a report by LifeHealthPro.

With NAIC offices closed in New York and Washington, D.C., due to...
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