via J.P. Morgan Asset Managment
J.P. Morgan Global Insurance Solutions recently attended the NAIC Spring National Meeting. At the meeting, various regulatory issues were highlighted and discussed. A few highlights:
Investment Risk-Based Capital Working Group
No action taken, yet the following items were discussed: how the Federal Tax Reform affects RBC for investments (based on insurance type), proposed 20 bond factors and update on RBC formulas, and how ETFs will be treated relative to bond portfolio adjustments.
Statutory Accounting Principles Working Group
"If a revision to SSAP No. 30 is done, it will likely require that closed-end funds be reported at fair value, while instruments like unit investment trusts be reported at net asset value (NAV) since they are redeemable at that NAV."
Other discussion items include: Reporting NAIC Designations as Weighted Averages, Amendments to the P&P Manual for VOSTF Bank Loan Referral, and Private Placement Variable Annuities.
Blanks Working Group
Exposed 18 new items for 2018, such as new symbols, updated language for schedule DB, and modified instruction to reflect various changes to SSAP items.
Valuation of Securities Task Force
VOSTF discussed Private Letter Rating updates with regards to process, timing, new suffixes and filing process. J.P. Morgan also provides a breakdown of potential RBC changes for Schedule BA.
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