The National Association of Insurance Commissioners has approved a change in the way reserves for future claims must be calculated by U.S. life insurance companies.
The new “principles-based” reserve rules, which need to be adopted by state legislators before they can become effective, are likely to reduce the amount of required reserves, allowing life insurers to use their funds for purposes other than paying claims.
The vote was not unanimous, with 13 commissioners opposed and 43 in favor. The states that were opposed included New York and California.
Victoria Spears
Victoria Prussen Spears is senior vice president of Meyerowitz Communications Inc., a law firm marketing communications consulting company. A graduate of Sarah Lawrence College and Brooklyn Law School, Ms. Spears was an attorney at a leading New York City law firm before joining Meyerowitz Communications. She may be contacted at [email protected].