The Actuarial Standards Board of the American Academy of Actuaries recently adopted a revision of ASOP No. 24, now titled NAIC Life Insurance Illustrations Model Regulation.
The ASOP, which underwent three exposure periods and received 10 comment letters, provides guidance to actuaries when performing actuarial services in support of a certification or representation that life insurance illustrated scales are in conformity with the National Association of Insurance Commissioners (NAIC) Life Insurance Illustrations Model Regulation (Model) or applicable actuarial guidelines (applicable AGs).
Notable changes include introducing the new term “applicable actuarial guideline (applicable AG)”; adding guidance on consistency of experience factors; and revising and updating guidance to include a reference to the scope of and any limitations imposed by an applicable AG. The effective date for this revision of ASOP No. 24 is Dec. 1, 2024.
