Practice Note for the Application of C-3 Phase II and Actuarial Guideline XLIII
This practice note was prepared by the Academy’s VA Practice Note Work Group, a work group of the Academy’s Life Practice Note Steering Committee. It is an update of both the July 2009 C-3 Phase II and Actuarial Guideline XLIII practice note and its December 2009 addendum. This updated practice note represents a description of practices believed by the VA Practice Note Work Group to be commonly employed by actuaries in the United States in 2011. This practice note is not a promulgation of the Actuarial Standards Board, is not an actuarial standard of practice, is not binding upon any actuary and is not a definitive statement as to what constitutes generally accepted practice in the area under discussion. Events occurring subsequent to this publication of the practice note may make the practices described in this practice note irrelevant or obsolete. This practice note follows a structure similar to the previous C-3 Phase II and Actuarial Guideline XLIII practice note and utilizes most of the questions and answers from those notes. This practice note has been organized into a “Question & Answer” format, providing answers to a variety of issues companies may need to address when implementing C-3 Phase II and Actuarial Guideline XLIII (referred to as “AG 43” throughout this practice note). The primary changes from the July 2009 C-3 Phase II and Actuarial Guideline XLIII Practice Note are the incorporation of the December 2009 Addendum, updates to reflect emerging practice and the inclusions of new questions. The National Association of Insurance Commissioner’s (NAIC) website contains a list of questions that were received by the NAIC relative to implementing C-3 Phase II. The questions and suggested answers were posted on the NAIC website in January 2006 and can be found at: http://www.naic.org/documents/committees_e_capad_lrbc_C3_phasell_questions.doc. Due to changes in the Risk-Based Capital (RBC) calculation, some line numbers and other references in this list of questions are outdated, but the information is still valid. Additional information can be found on the NAIC website at: http://www.naic.org/committees_e_capad_lrbc_c3_market.htm. Please direct any comments to the Academy’s Life Policy Analyst at lifepolicyanalyst@actuary.orgmailto:.
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