NAIC Extends Modification Period Under Life Company RBC Guidance

On Friday the Financial Condition (E) Committee of the National Association of Insurance Commissioners (NAIC) voted unanimously to extend the modification period covered by its March 27 life company risk-based capital (RBC) guidance for COVID-19-related modifications. The modification, which would have ended June 30, was extended to September 30, 2020.

The extension provides time for NAIC’s Life RBC Working Group to issue guidance on RBC reporting issues arising out of the unusual circumstances of 2020. To facilitate that process, MBA and the American Council of Life Insurers (ACLI) jointly submitted a request for guidance to that Working Group on Monday, which includes a request to extend the modification period to December 31, 2020.

• Why it matters. The extension gives life companies more runway to work with borrowers to address the impacts of the pandemic and to make prudent modifications as appropriate.
• What’s next. MBA and ACLI will be working with the NAIC Life RBC Working Group to obtain the necessary guidance on RBC reporting. 

Contact Bruce Oliver if you would like to participate in MBA’s Life Company RBC Working Group.