NAIC Rules on Captive Reinsurance Transactions and Principle-Based Reserving

Topics: NAIC, Regulation

On December 16, 2014, the National Association of Insurance Commissioners (“NAIC”) adopted reserve financing rules for certain captive reinsurance transactions—NAIC Actuarial Guideline XLVIII (“AG 48”). These rules apply to most level-term contracts (known as “XXX”) and universal life with secondary guarantee (known as “AXXX”) contracts issued on or after January 1, 2015.