The Actuarial Standards Board of the American Academy of Actuaries approved a third exposure draft of a proposed revision of Actuarial Standard of Practice (ASOP) No. 24, now titled NAIC Life Insurance Illustrations Model Regulation. The ASOP applies 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. Such a certification or representation may be made in an illustration actuary’s certification pursuant to applicable law (statutes, regulations, and other legally binding authority) based on the Model or may be made in the absence of an applicable law based on the Model.

The second exposure draft of the proposed revision was released in July 2023, and six comment letters were received and considered in making changes that are reflected in the third exposure draft. Notable changes reflected in the third exposure draft include revising guidance on “timeframe” and “adjustments to actual experience,” and adding guidance on “hedge costs” and “consistency of experience factors” as well as a disclosure for actions or events reflected in the experience factors for which experience has not yet emerged.

The comment deadline is July 1, 2024. Information on how to submit comments can be found in the draft.

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