The ASB recently adopted a final revision of ASOP No. 11, now titled Treatment of Reinsurance or Similar Risk Transfer Programs Involving Life Insurance, Annuities, or Health Benefit Plans in Financial Reports. The ASOP provides guidance to actuaries when performing actuarial services with respect to financial reports that reflect reinsurance programs that involve life insurance, annuities, or health benefit plans. This standard applies to actuaries when performing actuarial services in connection with preparing, determining, analyzing, or reviewing financial reports for internal or external use that reflect reinsurance or similar risk transfer programs on life insurance, annuities, or health benefit plans. The standard, which can be viewed here, is effective for actuarial services performed in connection with financial reports issued on or after Dec. 1, 2022.
The ASB recently approved an exposure draft of a revision of ASOP No. 18, now titled Long-Term Care. The ASOP provides guidance to actuaries when performing actuarial services with respect to long-term care (LTC) benefit plans sponsored by insurers or other entities. The standard applies to actuaries designing, pricing, or determining funding of an LTC benefit plan and also to actuaries measuring or evaluating LTC liabilities within an LTC benefit plan. The standard does not apply to actuaries providing actuarial services related to LTC benefits for Medicaid eligible recipients, unless the actuarial services are for a long-range financial projection of LTC benefit expenditures and eligible recipients under the Medicaid program. The comment deadline for the exposure draft is Sept. 1, 2021. Information on how to submit comments can be found in the exposure draft.
The ASB released its2020 Annual Report, which highlights the board’s accomplishments throughout the year, including adopting three revised ASOPs, approving five exposure drafts for comment, and approving proposals to revise 10 existing ASOPs and one actuarial compliance guideline.
The standard, which was last revised in 2008, applies to actuaries when performing actuarial services, including giving advice, in connection with Continuing Care Retirement Communities (CCRCs) (including nonprofit and for-profit entities) or At Home Programs that are not regulated as insurance entities. These actuarial services may be performed for owners, operators, financing entities, current or prospective residents or members, as well as for other professionals or regulatory bodies.
Notable changes made to the existing standard that are reflected in the exposure draft include revising the ASOP to address actuarial practice for At Home Programs that are not regulated as an insurance entity, and new disclosure requirements intended to enhance the quality of actuarial communications regarding CCRCs and At Home Programs.
The comment deadline for the exposure draft is Feb. 1, 2021. Information on how to submit comments can be found in the exposure draft.
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About The ASB
The Actuarial Standards Board (ASB) sets standards for appropriate actuarial practice in the United States through the development and promulgation of Actuarial Standards of Practice (ASOPs). These ASOPs describe the procedures an actuary should follow when performing actuarial services and identify what the actuary should disclose when communicating the results of those services.