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ARTICLE · 21 MAY 2010

NAIC Will Study Separate Account Risk Charges

The Separate Account Risk Charge (E) Working Group (Risk Charge Working Group) of the National Association of Insurance Commissioners (NAIC) recently held its first meeting by conference call (chaired by Blaine Shepherd of Minnesota).

United StatesCorporate/Commercial Law

Article by Stephen Roth, Mary Jane Wilson-Bilk and Frederick R. Bellamy

Originally published April 22, 2010

The Separate Account Risk Charge (E) Working Group (Risk Charge Working Group) of the National Association of Insurance Commissioners (NAIC) recently held its first meeting by conference call (chaired by Blaine Shepherd of Minnesota). The charge of the Working Group is to consider the need to develop express regulatory requirements that insurers establish adequate risk charges to compensate the general account for the risks that it assumes in guaranteeing individual separate account products. At the end of its study, the Working Group is charged with providing recommendations to the NAIC's Financial Condition (E) Committee on whether to request that a model law be developed.

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