The 2017 Spring National Meeting. Synopsis

Transcription

1 The 2017 Spring National Meeting Synopsis Denver, CO April 8 11, 2017

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3 Date: 4/24/17 Synopsis of the NAIC Committee, Subcommittee and Task Force Meetings 2017 Spring National Meeting April 8 11, 2017 To: From: Members of the NAIC and Interested Parties The Staff of the NAIC Committee Action NAIC staff have reviewed the committee, subcommittee and task force reports and highlighted the actions taken by the committee groups during the Spring National Meeting in Denver, CO. The purpose of this report is to provide NAIC members, state insurance regulators and interested parties with a summary of these meeting reports. EXECUTIVE (EX) COMMITTEE AND PLENARY (Joint Session) April 11, Adopted the April 9 report of the Executive (EX) Committee. 2. Adopted by consent the committee, subcommittee and task force minutes of the 2016 Fall National Meeting. 3. Adopted the NAIC 2017 amended committee charges. 4. Adopted a proposal to appoint a joint task force of the Health Insurance and Managed Care (B) Committee and the Financial Condition (E) Committee regarding long-term care (LTC) activities. 5. Received the following committee reports: Life Insurance and Annuities (A) Committee; Health Insurance and Managed Care (B) Committee; Property and Casualty Insurance (C) Committee; Market Regulation and Consumer Affairs (D) Committee; Financial Condition (E) Committee; Financial Regulation Standards and Accreditation (F) Committee; and International Insurance Relations (G) Committee. 6. Adopted amendments to the Health Insurance Reserves Model Regulation (#10) to incorporate the 2016 Cancer Claim Cost Valuation Tables. 7. Adopted amendments to A Consumer s Guide to Home Insurance and A Shopping Tool for Homeowners Insurance. 8. Adopted amendments to the Privacy of Consumer Financial and Health Information Regulation (#672). 9. Adopted amendments to the Consumer Board of Trustees Plan of Operation. 10. Received an update on the states implementation of NAIC-adopted model laws and regulations. EXECUTIVE (EX) COMMITTEE April 9, Adopted the April 8 report from the joint meeting of the Executive (EX) Committee and the Internal Administration (EX1) Subcommittee, which included the following action: b. Adopted the Executive (EX) Committee minutes of Feb. 10 and Jan. 13, which included the following action: 1. Approved changes to the Executive (EX) Committee task force structure, which included appointing an Innovation and Technology (EX) Task Force, pending adoption of charges on an open call. 2. Appointed one consumer representative and three industry representatives for property/casualty (P/C) and life/health to the System for Electronic Rate and Form Filing (SERFF) Advisory Board. 3. Appointed Director Larry Deiter (SD) to the National Insurance Producer Registry (NIPR) Board of Directors. c. Adopted the Feb. 17 report of the Internal Administration (EX1) Subcommittee, which included the following action: 1. Received an update on the defined benefit plan and long-term investment plan portfolios as of Dec. 31, Adopted a recommendation from the NAIC s independent financial advisor to liquidate an investment and reinvest it in the current line-up of equity funds. d. Adopted the April 7 Audit Committee report, which included the following action: 1. Received an overview of the Dec. 31, 2016, financial statements and the Feb. 28, 2017, summary financials. 2. Received the 2016 audit report from RSM auditors. 3. Discussed the zone funding review provided by RSM. 4. Received the 2016 Service Organization Control (SOC) 1 Report. e. Adopted the April 8 report of the Information Systems (EX1) Task Force, which included the following action: 1. Received project portfolio summary reports. 2. Received project status reports for active strategic technical projects. 3. Received updates on technical projects closed from November 2016 through February Received an update on the review of a new 2017 fiscal with a technology component National Association of Insurance Commissioners

4 f. Approved the request from the Interstate Insurance Production Regulation Commission (IIPRC) for a $100,000 line of credit to be available during g. Approved the selection of a consultant for the Mortgage Guaranty Capital Model Project. h. Selected the meeting locations for the 2021 national meetings: the Spring National Meeting will be held in Dallas, TX; the Summer National Meeting will be held in Columbus, OH; and the Fall National Meeting will be held in San Francisco, CA. i. Designated Michael F. Consedine (NAIC CEO) to serve on the NIPR Board of Directors effective immediately. 2. Adopted its interim meeting summary report from Feb. 10 and Jan Adopted its March 9 minutes, which included the following action: a. Adopted the final report of the Governance Review (EX) Task Force. b. Adopted changes to the Executive (EX) Committee task force structure. c. Adopted a funding request regarding system enhancements to receive private letter ratings directly from nationally recognized statistical ratings organizations (NRSROs). 4. Adopted the reports of its task forces: the Financial Stability (EX) Task Force, including its 2017 amended charges; the Government Relations (EX) Leadership Council; the Innovation and Technology (EX) Task Force; and the Principle- Based Reserving Implementation (EX) Task Force. 5. Approved the model law development request for the Short Duration Long-Term Care Policies Model. 6. Received an update on the model law review initiative. 7. Received the 2016 annual report of the NAIC Insurance Regulator Professional Designation Program. 8. Received a status report of model law development efforts for amendments to: Model #10; Health Carrier Prescription Drug Benefit Management Model Act (#22); Accident and Sickness Insurance Minimum Standards Model Act (#170); Model Regulation to Implement the Accident and Sickness Insurance Minimum Standards Model Act (#171); Creditor- Placed Insurance Model Act (#375); Mortgage Guaranty Insurance Model Act (#630); Model #672; Standard Nonforfeiture Law for Individual Deferred Annuities (#805); and development of the new Unclaimed Life Insurance and Annuities Model Act and the new Insurance Data Security Model Law. 9. Received reports from NIPR and the IIPRC. Financial Stability (EX) Task Force April 8, Adopted its amended charges to add the following to its existing charges: Analyze existing post-financial crisis regulatory reforms for their application in identifying macroeconomic trends, including identifying possible areas of improvement or gaps, and propose to the Financial Condition (E) Committee or other relevant committee enhancements and/or additions to further improve the ability of state insurance regulators and industry to address macro-prudential impacts; consult with such committees on implementation as needed. 3. Heard an industry panel on macro-prudential monitoring and group supervision, which discussed potential enhancements to macro-prudential monitoring and related activities for consideration by the NAIC. Governance Review (EX) Task Force The Governance Review (EX) Task Force completed its charges and, on March 9, the Executive (EX) Committee disbanded the Task Force. Government Relations (EX) Leadership Council The Government Relations (EX) Leadership Council did not meet at the Spring National Meeting. Innovation and Technology EX) Task Force April 10, Adopted the April 8 report of the Big Data (EX) Working Group (f.k.a. Big Data (D) Working Group), which included the following action: b. Heard a presentation from Lawrence S. Powell, Ph.D. (University of Alabama) on big data and regulation in the insurance industry. Dr. Powell s presentation focused on the benefits of insurers use of big data, including more accurate pricing, better claims processing and identification of potential fraud, increased availability of insurance and improvement of insurers operational efficiency. Dr. Powell said the current regulatory system is well-suited to address insurers use of big data National Association of Insurance Commissioners 2

5 c. Discussed its draft work plan for 2017, which sets forth the three charges of the Working Group and provides guidance on its planned actions. The work plan will be modified to provide more emphasis on how insurers innovations in the use of data are having a positive impact on consumers. The Working Group exposed its work plan for a public comment period ending April 14. After a review of any comments, the work plan will be modified to provide additional prioritization of tasks and timelines for completion. 2. Adopted the April 9 report of the Cybersecurity (EX) Working Group (f.k.a. Cybersecurity (EX) Task Force), which included the following action: b. Heard a presentation regarding federal cybersecurity updates. The Financial and Banking Information Infrastructure Committee (FBIIC) has emphasized the importance of incorporating cybersecurity in financial oversight responsibilities. The federal banking regulators have proposed a standards-based, tiered approach to establishing a cybersecurity framework with prescriptive standards, which would apply to insurance savings and loan holding companies and insurers that have been designated as significantly important financial institutions (SIFIs). The National Institute of Standards and Technology (NIST) has issued a draft update to its Cybersecurity Framework, to further develop NIST s voluntary guidance on reducing cyber risks. c. Heard a presentation from the New York State Department of Financial Services regarding the implementation and status of its Cybersecurity Requirements for Financial Services Companies. The New York State Department of Financial Services developed the cybersecurity requirements due to current cybersecurity threats to financial institutions, as well as insurers. The cybersecurity requirements emphasize the importance of risk assessment. d. Received an update from the Insurance Data Security Model Law drafting group. A third version of the Insurance Data Security Model Law was released on Feb. 27 and the Working Group has received comments from interested parties. There appears to be consensus regarding the risk-based security requirements in the current version of the draft model law. The drafting group will continue to meet via conference call in an effort to reach consensus among interested stakeholders. e. Heard a presentation from HEMISPHERE Cyber Risk Management and the Association for Cooperative Operations Research and Development (ACORD). ACORD is committed to create a unified approach for cyber risk to improve data quality. By focusing on data standards for risk controls that are actionable and repeatable, ACORD will address market challenges by investing in assets and solutions to support regulators. HEMISPHERE Cyber Risk Management indicated that an insurer s questionnaires regarding an organizations cybersecurity program vary by carrier and do not align to the current threat landscape. 3. Adopted the April 9 report of the Speed to Market (EX) Working Group (f.k.a. Speed to Market (EX) Task Force), which included the following action: a. Adopted its Jan. 11 minutes, which included the following action: 1. Adopted its 2016 Summer National Meeting minutes. 2. Adopted its Sept. 29 and Sept. 26 minutes, during which the Working Group adopted its 2017 proposed charges. 3. Adopted the report of the Operational Efficiencies (EX) Subgroup (f.k.a. Operational Efficiencies (EX) Working Group). 4. Heard an update on SERFF implementation projects and activities. 5. Received an update on 2017 proposed fiscal requests. 6. Received a report from the SERFF Advisory Board. 7. Heard a report from the IIPRC. b. Adopted the report of the Operational Efficiencies (EX) Subgroup (f.k.a. Operational Efficiencies (EX) Working Group), which included the following action: 1. Adopted its March 7 and Feb. 14 minutes, during which the Subgroup discussed turnaround time standards for each business type. The Subgroup decided to leave the turnaround time standard at 40 days for all business types for 2017 and consider revising it in c. Received an update on SERFF implementation projects and activity. SERFF is less than 1% behind budget for transaction revenue, and it is expected to receive approximately 618,000 filings in Evaluation has been completed for a redesign of the SERFF user interface, including prioritization and analysis of features to be improved and design of a new look and feel. The team has begun evaluating and estimating architecture and technical work to begin a rewrite project with the assumption that SERFF will be rewritten as a cloud native system. The updates to SERFF for plan management of plan year 2018 have been made. d. Received a report from the SERFF Advisory Board. The Advisory Board reported that revenues are close to budget as of Feb. 28. The Advisory Board welcomed three new members: Secretary of Commerce Mark O. Rabauliman (MP); Alex Dolan (Oscar Insurance); and Katie Gurnett (Physicians Mutual Insurance Co). e. Heard a report from the IIPRC indicating the Interstate Insurance Product Regulation Compact (#692) has been enacted by 44 states and Puerto Rico to date, representing 75% of the premium volume nationwide. Connecticut becomes effective for filing in July National Association of Insurance Commissioners 3

6 4. Adopted the 2017 charges for its working groups. The charges for the Big Data (EX) Working Group and the Speed to Market (EX) Working Group were adopted under the previous committee structure and were adopted as-is by the Task Force. The charges for the Cybersecurity (EX) Working Group were also adopted under the previous committee structure; however, the Task Force adopted amendments to the charges as follows: a. Deleted: Review the following models and make recommendations to the Executive (EX) Committee: NAIC Insurance Information and Privacy Protection Model Act (#670); Model #672; Standards for Safeguarding Consumer Information Model Regulation (#673); and Insurance Fraud Prevention Model Act (#680). b. Added: Continue development of the Insurance Data Security Model Law. This model law is specific to insurers, brokers and other state-regulated entities regarding cybersecurity standards. 5. Discussed the Task Force s charge to study insurance issues related to mobility/autonomous vehicles and agreed it would be appropriate to add a new charge to study the insurance issues related to microinsurance. 6. Heard comments from interested parties related to innovation and technology, supporting the formation of the Task Force and offering suggestions regarding approaches to carrying out its charges. 7. Requested that any suggestions for speakers and/or presentations to assist the Task Force in achieving its goals be sent to Denise Matthews (NAIC). 8. Discussed its next steps, including the possibility of meeting prior to the Summer National Meeting. International Insurance Relations (EX) Leadership Group On March 9, the Executive (EX) Committee disbanded the International Insurance Relations (EX) Leadership Group and merge its charges into the International Insurance Relations (G) Committee. Principle-Based Reserving Implementation (EX) Task Force April 10, Discussed the results of the 2016 Principle-Based Reserving (PBR) Pilot Project. 3. Adopted revised charges for the PBR Review (EX) Working Group. 4. Adopted the April 7 report of the PBR Review (EX) Working Group, which included the following action: b. Adopted its March 15 minutes, during which the Working Group adopted its 2017 charges. c. Adopted the report of the PBR Review Procedures (EX) Subgroup, which included the following action: 1. Referred edits made to the Financial Analysis Handbook actuarial chapters to the Financial Analysis Handbook (E) Working Group for consideration. 2. Exposed edits made to the Financial Condition Examiners Handbook for a 30-day public comment period ending April 3. d. Discussed results and observations documented in the 2016 PBR Company Pilot Final Report. e. Disclosed the membership of the Valuation Analysis (E) Working Group as approved by the Financial Condition (E) Committee and heard an update from NAIC staff that the development of the standard portfolio model has been completed and that sensitivity testing of model assumptions is being conducted to develop a sense of how much the reserve changes given a change in a modeling assumption. f. Discussed PBR training programs that are available to state insurance regulators. Regulators were reminded that the training programs developed by Actuarial Compass and the Society of Actuaries (SOA) are free of charge to state insurance regulators. It was reported that the SOA training program has three modules completed, with three additional modules to be completed by the end of May. NAIC staff will send state insurance regulators a reminder detailing the process of how to access the training programs from the SOA and Actuarial Compass. The American Academy of Actuaries (Academy) also gave an update on its upcoming PBR Boot Camp training seminar. g. Heard a report from NAIC staff on the status of the Company Experience Data Collection project. 5. Received an update on the Life Actuarial (A) Task Force s PBR-related work, which included the following action: a. Adopted revisions to the Valuation Manual, Section 9.C.3.g of VM-20, Requirements for Principle-Based Reserves for Life Products; VM-22, Maximum Valuation Interest Rates for Income Annuities (which provides the methodology for determining valuation interest rates for income annuities and is designed to be more responsive to the economic environment than the current interest determination method); and four amendments for nonsubstantive clarifying changes. b. Adopted recommended revisions to the life and health, and fraternal actuarial opinion instructions to correct references to the Standard Valuation Law (#820) and to reflect an operative Valuation Manual National Association of Insurance Commissioners 4

7 c. Exposed numerous revisions for substantive changes to the Valuation Manual for a 21-day public comment period ending May 1, including the following: Valuation Manual companywide exemption; VM-22 to make the method for determining the valuation interest rate for income annuities more responsive to the economic environment; VM-30, Actuarial Opinion and Memorandum Requirements, to clarify the documentation requirements for assumptions related to mortality; an amendment to reflect immediate payment of claims in the net premium reserve (NPR) calculation; an amendment to revise the requirement for Task Force exposure and adoption of the asset default costs and asset spreads; and modifications to VM-51, Experience Reporting Formats, to add data fields that make Appendix 4 and Appendix 6 consistent with the 2017 data call by the New York Department of Financial Services (NYDFS) and the Kansas Insurance Department (KID). 6. Adopted a revised PBR Implementation Plan. 7. Concluded its work on the XXX/AXXX Reinsurance Framework. Producer Licensing (EX) Task Force On March 9, the Executive (EX) Committee disbanded the Producer Licensing (EX) Task Force and moved its charges to the newly appointed Producer Licensing (D) Task Force under the Market Regulation and Consumer Affairs (D) Committee. INTERNAL ADMINISTRATION (EX1) SUBCOMMITTEE See the Executive (EX) Committee listing for details. Information Systems (EX1) Task Force April 8, Received an update on the security activities of the NAIC and NIPR. 3. Received an operational report on the NAIC s information technology (IT) activities, including: product highlights; service; key data-collection metrics; human resources; process improvements; technology adoption and system usage; the NAIC/NIPR Insurance Summit; and an innovation and new technology update. 4. Received a project portfolio summary report and project status reports for the 15 active technical projects. The portfolio summary report included a roadmap representing each project to include the current status, percentage of work complete and project end date. 5. Received an update on technical projects closed from November through February, including: 1033 Decision Repository and Remove Special Activities Database (SAD); Committee Preference Enhancements; Enhancement and Expansion of Application Testing Infrastructure; Life Insurance Policy Locator; Market Analysis Prioritization Tool (MAPT) Major Medical; and Specification Generator Enhancements. 6. Received an update on the review of a 2017 fiscal with a technology component by the Technical Consulting (EX1) Working Group. 7. Agreed to change the date and time of the Task Force s Summer National Meeting, as long as the meeting time does not conflict with the Travel Insurance (C) Working Group meeting. LIFE INSURANCE AND ANNUITIES (A) COMMITTEE April 9, Adopted its Feb. 24 minutes, which included the following action: b. Adopted its revised 2017 charges to have the Model law Review (A) Subgroup work with the Life Actuarial (A) Task Force to review issues identified during the Subgroup s completion of the Model Law Review Initiative. c. Heard updates from its task force and working groups. d. Adopted a new annuity suitability charge to: 1) appoint an Annuity Suitability (A) Working Group to review and revise, as necessary, the Suitability in Annuity Transactions Model Regulation (#275); and 2) consider how to promote greater uniformity across NAIC member jurisdictions. 2. Heard a presentation on the NAIC Life Insurance Policy Locator Service (LIPLS). Launched in November 2016, the LIPLS has received 15,333 requests and made 1,796 matches, with a total claim amount of $17,203, A subjectmatter expert conference call was held March 21 in regulator-to-regulator session to discuss possible modifications to the LIPLS in the future, as suggested by state insurance regulators and the industry. 3. Adopted the report of the Annuity Disclosure (A) Working Group, which included the following action: a. Adopted its March 9 minutes, during which the Working Group discussed two issues identified under its charge to review and revise, as necessary, the illustration standards in the Annuity Disclosure Model Regulation (#245) in light of innovations in the marketplace. The Working Group agreed to consider a request for model law development to revise Model #245 on its next conference call National Association of Insurance Commissioners 5

8 4. Adopted the April 8 report of the Annuity Suitability (A) Working Group, which included the following action: a. Discussed its charge to consider revisions to Model #275 current suitability standards related to the best interest standard. Heard a presentation on the current provisions in Model #275 and the number of states that have adopted the model s provisions. b. Heard a discussion of the U.S. Department of Labor s (DOL) fiduciary rule and its current status. c. Heard from a panel of stakeholders consumers, industry, and agents and brokers regarding the Working Group s charge and its proposed work. 5. Adopted the report of the Life Insurance Buyer s Guide (A) Working Group, which included the following action: a. Adopted its March 27, March 13, Feb. 27 and Feb. 7 minutes, during which the Working Group discussed potential formats, structure and content for the revised Life Insurance Buyer s Guide (Buyer s Guide) and adopted a motion to forward to the Life Insurance and Annuities (A) Committee a request for model law development to remove the Buyer s Guide from the appendix to the Life Insurance Disclosure Model Regulation (#580) so that it can be a stand-alone document. 6. Adopted a request for model law development to remove the Buyer s Guide as an appendix to Model # Adopted the report of the Life Insurance Illustration Issues (A) Working Group, which included the following action: a. Adopted its Jan. 9 minutes, during which the Working Group continued to discuss how to develop a one- to twopage policy overview document to help consumers better understand specific life insurance policies. The Working Group agreed to forward to the Life Insurance and Annuities (A) Committee a request for model law review development to incorporate a short policy overview document into Model #580 and the Life Insurance Illustrations Model Regulation (#582). The request did not contemplate incorporating a policy overview template into the models. The Working Group plans to work with stakeholders on a template that could serve as a best practices document. 8. Adopted a request for model law development to incorporate a short policy overview document requirement into Model #580 and Model # Adopted the report of the Promoting Appropriate Sales Practices in Life Insurance and Annuities (A) Working Group (f.k.a. Preventing Abuses in Life Insurance and Annuities (A) Working Group), which included the following action: a. Adopted its March 24 minutes, during which the Working Group continued to discuss draft revisions to the NAIC Consumer Alert Preventing Abusive Practices: The Misuse of Senior Designations and Free Lunch Seminars and agreed to develop a survey to assist the Working Group in determining whether the Model Regulation on the Use of Senior-Specific Certifications and Professional Designations in the Sale of Life Insurance and Annuities (#278) should be revised. 10. Adopted the report of the Unclaimed Life Insurance Benefits (A) Working Group, which included the following action: a. Adopted its March 7 minutes, which included suspending its work pending guidance from the Life Insurance and Annuities (A) Committee due to the lack of consensus on the issue of the draft proposed Unclaimed Life Insurance and Annuities Model Act s applicability to existing and future policies, contracts and retained asset accounts. 11. Extended the request for model law development for the drafting of a new model to address unclaimed benefits and adopted a proposed request that the Unclaimed Life Insurance Benefits (A) Working Group develop a concise list of key controversial issues in the draft proposed Unclaimed Life Insurance and Annuities Model Act for review by the Life Insurance and Annuities (A) Committee. 12. Adopted the report of the Life Actuarial (A) Task Force, which included the following action: a. Adopted its March 16, March 9, March 2, Feb. 23, Feb. 2 and Jan. 25 minutes, which included the following action: 1. Adopted revisions to Actuarial Guideline XXXVIII The Application of the Valuation of Life Insurance Policies Model Regulation (AG 38). 2. Adopted revisions to the life and health, and fraternal actuarial opinion instructions to correct references to Model #820 and to reflect an operative Valuation Manual. 3. Adopted revisions to Section 9.C.3.g of VM-20. b. Exposed revisions to the Valuation Manual companywide exemption and to proposed VM-22, which make the method for determining the valuation interest rate for income annuities more responsive to the economic environment. c. Adopted four amendments for nonsubstantive clarifying changes to the Valuation Manual. d. Exposed seven amendments for substantive changes to the Valuation Manual. e. Received a recommendation for an actuarial guideline to clarify the applicability of the prospective test in Model #805, noting that it is no longer necessary for the Life Insurance and Annuities (A) Committee to defer submission of the proposal for Model #805 revisions related to contingent deferred annuities (CDAs) for consideration by Executive (EX) Committee and Plenary. f. Adopted its subgroup reports. 12. Adopted revisions to AG National Association of Insurance Commissioners 6

9 Life Actuarial (A) Task Force April 6 7, Adopted its March 16, March 9, March 2, Feb. 23, Feb. 2 and Jan. 25 minutes, which included the following action: a. Adopted revisions to AG 38. b. Adopted revisions to Section 9.C.3.g of VM-20. c. Exposed revisions to the Valuation Manual companywide exemption. d. Exposed revisions to proposed VM-22 that make the method for determining the valuation interest rate for income annuities more responsive to the economic environment. e. Adopted recommended revisions to the life and health, and fraternal actuarial opinion instructions to correct references to Model #820 and to reflect an operative Valuation Manual. 2. Discussed the PBR Pilot Project Report, changes to the Financial Condition Examiner s Handbook, changes to the Financial Analysis Handbook and the Valuation Analysis (E) Working Group. 3. Received the Model #805 drafting group recommendation for an actuarial guideline to clarify the applicability of the prospective test in Model #805. The recommendation noted that it is no longer necessary for the Life Insurance and Annuities (A) Committee to defer submission of the proposal for Model #805 changes related to contingent deferred annuities for consideration by the Executive (EX) Committee and Plenary. 4. Exposed the Academy Life Experience Committee and the SOA Preferred Mortality Oversight Group s (Joint Committee) 2017 Guaranteed Issue Mortality Tables Report, the accompanying mortality tables, and the working definition for GI business. 5. Heard an update on the Simplified Issue (SI) and accelerated underwriting (AUW) mortality table work of the SI/AUW VM-20 Practice Work Group. The update focused on the differentiation between SI and AUW underwriting practices. 6. Adopted the report of the VM-22 (A) Subgroup, including its Feb. 7 minutes. The Task Force also adopted the proposed VM-22 which provides the methodology for determining valuation interest rates for income annuities and is designed to be more responsive to the economic environment than the current interest determination method. 7. Adopted the report of the Longevity Risk (A/E) Subgroup, including its Feb. 21 minutes. The Task Force exposed revisions to VM-30 intended to clarify the documentation requirements for assumptions related to mortality. 8. Adopted four amendments for non-substantive clarifying changes to the Valuation Manual. The changes include moving the tables from VM-20 Appendix 2 to the Related Documents tab on the Task Force web page. A link to the Related Documents tab will be added to VM-20 Appendix Exposed seven amendments for substantive changes to the Valuation Manual for a 21-day public comment period ending May 1, including an amendment to reflect immediate payment of claims in the net premium reserve calculation and an amendment to revise the requirement for Task Force exposure and adoption of the asset default costs and asset spreads. 10. Heard an update from the IIPRC. 11. Adopted the report of the Experience Reporting (A) Subgroup. The Subgroup exposed, for a 21-day public comment period ending May 1, modifications to VM-51 which add data fields that make Appendix 4 and Appendix 6 consistent with the 2017 data call by the New York State Department of Financial Services and the Kansas Insurance Department. The Subgroup also informed the Task Force of a draft document being developed by the SOA Accelerated Underwriting Experience Data Group that seeks to identify data elements necessary to capture accelerated underwriting mortality experience. 12. Adopted the report of the C-3 Phase II/AG 43 (E/A) Subgroup. 13. Heard an update on SOA research and education, which highlighted SOA studies on mortality experience for payout annuities, annuities resulting from structured settlements and group annuities. 14. Heard an update from the Academy Council on Professionalism. 15. Heard an update on the May 2017 Academy PBR Boot Camp. HEALTH INSURANCE AND MANAGED CARE (B) COMMITTEE April 9, Heard a federal legislative and regulatory update, which included information concerning the U.S. Congress efforts in the repeal, replace and/or repair of the federal Affordable Care Act (ACA). 2. Heard an update on the Robert Wood Johnson Foundation (RWJF)/Manatt Data Transparency Project and SERFF s role with respect to qualified health plan (QHP) filings as part of the project s goal to enhance data transparency National Association of Insurance Commissioners 7

10 3. Heard an update from the Center on Health Insurance Reforms (CHIR) on its work related to the ACA. The update included information on the CHIR s ongoing work, which is being conducted with funding from the Commonwealth Fund and the RWJF. This work includes new analyses and publications related to: a) current and potential federal legislative ACA-related proposals, such as association health plans, and the possible implications of such proposals to consumers and the states; b) potential federal administrative actions, such as proposals to eliminate essential health benefits (EHBs) and the loss of cost-sharing reductions in the ACA marketplace, and the possible implications of such actions to consumers and the states; and c) state legislative and regulatory action. The CHIR s future work will include examining such issues as insurance sales across state lines; and expanding health savings accounts (HSAs). The CHIR also plans to update its small group market paper, which was initially published in Heard a panel discussion from representatives of health insurers, actuaries and consumers on federal legislative and regulatory proposals related to ACA repeal, replacement and/or repair. The discussion focused on recommendations each stakeholder group had for stabilizing the individual market, such as continuing uninterrupted the cost-sharing reduction (CSR) funding and finalizing the federal Center for Consumer Information and Insurance Oversight s (CCIIO) proposed market stabilization rule. 5. Adopted its March 16 and Feb. 15, 2017, and 2016 Fall National Meeting minutes. During the March 16 and Feb. 15 meetings, the Committee took the following action: a. Adopted revisions to Model #10. The revisions incorporate the 2016 Cancer Claim Cost Valuation Tables, replacing the current 1985 Cancer Claim Cost Tables. These revisions were adopted by the Executive (EX) Committee and Plenary during its meeting on April 11. b. Discussed the Committee s 2017 planned activities, which will include a focus on federal legislative and regulatory proposals related to ACA repeal, replacement and/or repair. c. Received updates on its task forces 2017 planned activities. 1. The Health Actuarial (B) Task Force plans, through two of its subgroups, to continue work related to more uniform LTC insurance rate reviews among the states and work on stand-alone LTC insurance asset adequacy. In addition, the Task Force s Health Care Reform Actuarial (B) Working Group will be tasked with reviewing any legislation and proposed regulations from an actuarial perspective related to ACA repeal, replace and/or repair. 2. The Regulatory Framework (B) Task Force plans to continue its work to review and consider revisions to Model #170 and Model #171. The Task Force, through the Model #22 (B) Subgroup, will continue its work on revisions to Model #22. The Task Force also would be involved in any ACA repeal, replacement and/or repair activities that would affect existing NAIC models. 3. The Senior Issues (B) Task Force plans, through the Long-Term Care Innovation (B) Subgroup, to develop realistic policy options for Congress, the states and the NAIC to consider for addressing ways consumers can finance their future LTC needs. The Task Force will monitor state adoption of the NAIC s recently adopted changes to the Model Regulation to Implement the NAIC Medicare Supplement Insurance Minimum Standards Model Act (#651) required by the federal Medicare Access and CHIP Reauthorization Act of 2015 (MACRA). The Task Force also recently established a new subgroup to develop a new NAIC model to address LTC insurance policies of short duration. 6. Adopted the following reports: Consumer Information (B) Subgroup, including its Dec. 16, 2016, minutes; Health Actuarial (B) Task Force; Regulatory Framework (B) Task Force; and Senior Issues (B) Task Force, which included disbanding the Medigap (B) Subgroup and the Long-Term Care Consumer Disclosure (B) Subgroup. 7. Adopted the Senior Issues (B) Task Force s recommendations developed by the Long-Term Care Innovation (B) Subgroup for federal policy options to be presented to Congress for potentially increasing the number of affordable asset protection product options available for middle-income Americans for the financing of their LTC needs. The recommendations will be forwarded to the Government Relations (EX) Leadership Council for its consideration. 8. Adopted the Health Actuarial (B) Task Force s request for an extension of model law development for Model #10 concerning revisions to reflect appropriate LTC insurance reserving standards. 9. Adopted the April 8 report of the Health Care Reform Regulatory Alternatives (B) Working Group, which included the following action: a. Heard a presentation on the Wisconsin Medicaid Program, which included a discussion of: the program s coverage structure in the past and currently; and the federal reform funding considerations, such as a block grant funding, per capita enrollment funding or a hybrid of the two. b. Heard a presentation on the New Hampshire Medicaid Program and Medicaid expansion, including the impact of its expansion on the individual market and the resulting strengthened relationship and coordination between the Medicaid agency and the state insurance department. c. Heard a presentation on the ACA Section 1332 waivers from Alaska and Oklahoma. Alaska described its process and reasons that led up to it applying for a waiver related to its reinsurance program. Oklahoma described its legislative process and its activities in preparation for submitting a waiver application within the next few months National Association of Insurance Commissioners 8

11 Health Actuarial (B) Task Force April 7, Adopted the report of the Health Care Reform Actuarial (B) Working Group, which included the following action: a. Heard an update from the Academy on federal health care reform developments. b. Heard an update from the SOA on federal health care reform research. c. Heard an update from the federal Center for Consumer Information and Insurance Oversight (CCIIO) on 2018 ACA rate review requirements. 2. Adopted its Feb. 24 minutes, which included the following action: b. Adopted amendments to Model #10 to incorporate the 2016 Cancer Claim Cost Valuation Tables. 3. Adopted the Dec. 22, 2016, minutes of the Cancer Claims Cost Tables (B) Subgroup, which included the following action: a. Exposed, for a public comment period ending Feb. 1, draft amendments to Model #10 to incorporate the 2016 Cancer Claim Cost Valuation Tables. 4. Adopted the April 7 report of the Long-Term Care Actuarial (B) Working Group, which included the following action: b. Heard an update on the Academy Long-Term Care Valuation Work Group activities. c. Adopted the report of the Long-Term Care Pricing (B) Subgroup. The Subgroup discussed a summary of comments on a list of eight questions to state insurance regulators concerning how LTC insurance rate increase requests are evaluated, which will be discussed further on future conference calls. d. Adopted the report of the Long-Term Care Valuation (B) Subgroup, which included the following action: 1. Discussed a revised proposal for a new actuarial guideline with directions for stand-alone asset adequacy testing for blocks of LTC insurance. 2. Exposed the revised actuarial guideline proposal for a 30-day public comment period. e. Heard an update from the SOA on LTC insurance research, which included discussion of the SOA Long-Term Care Think Tank s work on developing LTC insurance innovations that will meet consumer needs. 5. Disbanded the Long-Term Care Guidance Manual (B) Subgroup. The Subgroup completed its work to monitor and provide assistance to the states on the implementation of the 2000 and 2014 rating practices amendments to Model #641, and the model bulletin adopted by the NAIC in December 2013 regarding alternative filing requirements for LTC premium rate increases. On April 8, the Senior Issues (B) Task Force also voted to disband this joint Subgroup. 6. Exposed a proposal to amend VM-25, Health Insurance Minimum Reserve Requirements, for group long-term disability reserving requirements for a 14-day public comment period ending April Heard an update from the Academy Council on Professionalism. 8. Heard an update from the SOA on health insurance research. 9. Heard an update from the Academy Health Practice Council. Regulatory Framework (B) Task Force April 8, Adopted its Feb. 14 minutes, which included the following action: a. Discussed its plan to continue to consider revisions to Model #170, Model #171 and Model #22. The Task Force agreed that this work would continue to be done through the Accident and Sickness Insurance Minimum Standards (B) Subgroup and the Model #22 (B) Subgroup, respectively. b. Discussed that the ERISA (B) Working Group continues to complete revisions to the Health and Welfare Plans Under the Employee Retirement Income Security Act: Guide to State and Federal Regulation (ERISA Handbook). c. Discussed reviewing and revising NAIC models affected by the ACA repeal, replacement or repair proposals. d. Discussed concerns regarding health care sharing ministries. 3. Discussed possible next steps regarding existing NAIC models potentially affected by ACA repeal, replacement or repair proposals and decided to continue the discussion via conference call after the Spring National Meeting. 4. Continued to discuss health care sharing ministries and consumer transparency with respect to these non-insurance products. Decided to continue the discussion on a future conference call and, perhaps, invite a few of these entities to discuss their activities at the Summer National Meeting. 5. Adopted the report of the Accident and Sickness Insurance Minimum Standards (B) Subgroup. The Subgroup has not met since November The Task Force chair decided to suspend the Subgroup s meetings in light of the possible repeal, replace or repair of the provisions of the ACA, which could significantly affect the Subgroup s proposed revisions to Model #170 and Model #171. The Task Force decided to continue to suspend the Subgroup s meeting for the time being and discuss it again at the Summer National Meeting National Association of Insurance Commissioners 9

12 6. Adopted the report of the Model #22 (B) Subgroup, including its March 2 and Feb. 14, 2017, and Dec. 10 and Nov. 29, 2016, minutes. The Subgroup took the following action: a. Adopted its Nov. 15, Nov. 1, Oct. 25, Oct. 13 and 2016 Summer National Meeting minutes. b. Discussed the decision in the case of Pharmaceutical Care Management Association (PCMA) v. Gerhart and what impact, if any, the decision has on the Subgroup s work to revise Model #22. After discussion, the Subgroup decided that the decision does not impact its work, because the Iowa law regulating pharmaceutical benefit managers (PBMs) found to be preempted under the federal Employee Retirement Income Security Act (ERISA) differs greatly from the provisions in Model #22. c. Continued its discussion of the comments received on Model #22 and made preliminary decisions on what revisions to include in an initial draft of proposed revisions to the model. Specifically, the Subgroup discussed Section 5 Requirements for the Development and Maintenance of Prescription Drug Formularies and Other Pharmaceutical Benefit Management Procedures and Section 6 Information to Prescribers, Pharmacies, Covered Persons and Prospective Covered Persons. d. Discussed revised language based on the Subgroup s discussions during its Dec. 10, 2016, meeting for Model #22, Section 5 Requirements for the Development and Maintenance of Prescription Drug Formularies and Other Pharmaceutical Benefit Management Procedures. Preliminarily agreed to include the draft revised language for Section 5 in the initial draft of proposed revisions to Model #22. e. Continued discussion of proposed revisions to Model #22, Section 6. The Subgroup specifically discussed draft language based on its Dec. 10, 2016, meeting and its March 2 conference call for inclusion in Section 6 requiring carriers to provide a complete, current and accurate prescription drug formulary list and other prescription drug benefit information electronically or in some other manner. The Subgroup met March 28 via conference call to review new draft language based on its March 2 discussions intended to clarify disclosure requirements related to the formulary list and other prescription drug benefit information based on whether such information is related to a health benefit plan issued in the individual market or issued in the group market. The Subgroup plans to continue its discussions of the draft language April 25 via conference call. 7. Adopted the report of the ERISA (B) Working Group, including its 2016 Fall National Meeting minutes. The Working Group exposed revised drafts of proposed revisions to several sections of the ERISA Handbook based on the comments received on previous drafts, and set a Jan. 31 public comment deadline on its exposure of the revised drafts. The Working Group plans to meet via conference call after the Spring National Meeting to discuss any comments received. Senior Issues (B) Task Force April 8, Discussed whether to extend the five-year moratorium on re-entering the Medicare supplement (Medigap) market to all legal entities associated with a company or parent organization after a plan of any one of those entities is closed to new sales. The Task Force decided to conduct a state survey on the issue before making any decisions. 3. Adopted the report of the Long-Term Care Innovation (B) Subgroup, including its April 3, March 23 and Feb. 21, 2017, and Dec. 19, 2016, minutes. 4. Adopted the report of the Short Duration Long-Term Care Policies (B) Subgroup, including its March 29 minutes. 5. Adopted an LTC federal policy options document and referred it to the Health Insurance and Managed Care (B) Committee for consideration. The Long-Term Care Innovation (B) Subgroup developed a list of federal policy options for Congress to consider in the hope of increasing private LTC financing options for consumers. The Subgroup adopted these options on April Disbanded the Long-Term Care Consumer Disclosure (B) Subgroup. The Subgroup completed its work to update the consumer disclosure and protection provisions in the Long-Term Care Insurance Model Act (#640) and the Long-Term Care Insurance Model Regulation (#641). The Executive (EX) Committee and Plenary adopted the revisions at the 2016 Summer National Meeting. 7. Disbanded the Medigap (B) Subgroup. The Subgroup completed its work on revisions to Model #651 pursuant to the passage of the Medicare Access and CHIP Reauthorization Act of 2015 (MACRA), Public Law The Executive (EX) Committee and Plenary adopted the revisions at the 2016 Fall National Meeting. 8. Disbanded the Long-Term Care Guidance Manual (B) Subgroup. The Subgroup completed its work to monitor and provide assistance to the states on the implementation of the 2000 and 2014 rating practices amendments to Model #641, and the model bulletin adopted by the NAIC in December 2013 regarding alternative filing requirements for LTC premium rate increases. On April 7, the Health Actuarial (B) Task Force also voted to disband this joint Subgroup. 9. Heard an update on federal legislative matters. The update included a report on the status of the federal appropriations process as it relates to the funding for the State Health Insurance Assistance Programs (SHIPs). 10. Heard the IIPRC s request regarding the issue of non-duplication or management of benefits under multiple LTC policies National Association of Insurance Commissioners 10