Last Updated 4/30/2018

Issue: States are revising their Standard Valuation Law (#820) and the Standard Nonforfeiture Law for Life Insurance (#808) to implement principle-based reserving (PBR). Effective Jan. 1, 2017, the PBR Valuation Manual became operative. As of Oct. 31, 2017, 47 states representing 85.9% of premium have enacted legislation and the NAIC has adopted revised accreditation standards to become effective Jan. 1, 2020.

The now disbanded Principle-Based Reserving Implementation (EX) Task Force and numerous technical groups have made significant steps toward strengthening the PBR framework. The Task Force was created in 2012 to provide leadership and serve as the coordinating body for the NAIC technical groups working on PBR implementation. The Task Force and the PBR Review (E) Working Group disbanded at the NAIC Fall National Meeting in 2017 in light of the implemented Principle-Based Reserving (PBR) Implementation Plan.

Status: The Financial Condition (E) Committee will oversee the inclusion of PBR in the financial handbooks and other activities. The Life Actuarial (A) Task Force will continue to oversee edits to, and publication of, the Valuation Manual and will assist the Financial Condition (E) Committee, its task forces, working groups, subgroups and technical groups as requested.