NAIC Adopts Principles-Based Reserving, Picks New Leaders

Law360, New York (December 3, 2012, 5:56 PM EST) -- The National Association of Insurance Commissioners voted Sunday to move toward a principles-based system for calculating reserves that life insurers should set aside to cover claims, while also electing Louisiana's insurance commissioner as its new president.

At the NAIC's fall meeting in Washington, a supermajority of insurance commissioners adopted a valuation manual detailing how life insurers and regulators can calculate principle-based reserves, despite protests from regulators in New York and California against a shift from the current formula-based reserving approach.

Proponents of PBR say it will...
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