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NAIC Considers Easing Capital Requirements for Life Insurers

Insurance commissioners are considering loosening capital requirements to assist life insurers. The issue may come up during the upcoming quarterly meeting of the National Association...
December 2, 2008

Insurance commissioners are considering loosening capital requirements to assist life insurers. The issue may come up during the upcoming quarterly meeting of the National Association of Insurance Commissioners (NAIC). The American Council of Life Insurers asked the NAIC to consider changes as falling stock prices make it harder for insurers to meet required levels. NAIC President Sandy Praeger said an executive-level working group is studying details of the issue. If taking action would improve the economic security of life insurers, it may be in policyholders' best interests to do so, she said. Wisconsin Insurance Commissioner Sean Dilweg, vice chairman of the NAIC Life Insurance and Annuities Committee, struck a more skeptical note. "Now is really not the time to loosen capital requirements as it comes to capital reserves," he said.