1. Regulatory Issues in Health Reserving
Julia T. Philips, FSA, MAAA
Life and Health Actuary
Minnesota Department of Commerce

2. Requirements and Guidance

3. State Statutes and Regulations
Statutory Reporting
Minimum Reserve Standards
Actuarial Opinion

4. National Association of Insurance Commissioners
Model Laws and Regulations: Standard Valuation Law, Actuarial Opinion and Memorandum Regulation, Health Insurance Reserves Model Regulation
Accounting Practices and Procedures
Actuarial Guidelines

5. National Association of Insurance Commissioners
Examiner’s Handbook
Codification: AP&P Manual with SSAP’s, Appendices
Health Reserves Guidance Manual: Draft available on NAIC Web Site

6. American Academy of Actuaries
Actuarial Standards of Practice: ASOP No. 5, ASOP No. 9, ASOP No. 14, ASOP No. 16, ASOP No. 20, ASOP No. 22, ASOP No. 28, ASOP No. 36, and ???
Code of Professional Conduct
Qualification Standards for Prescribed Statements of Actuarial Opinion
Practice Notes

7. ASOP No. 5 Revision Timetable
Current standard adopted 1991
Revised standard exposed 9/99
Comments were due 3/00
Proposed final revision to be reviewed at ASB 9/00

8. ASOP No. 5 Revisions
New format as of May, 1996
Includes paid claims, not just unpaid
Long-term products: cancer, LTC, DI, LTD
Not included in ASOP: Settlement expenses, deficiency reserves, and policy reserves.

9. Regulatory Issues in Health Reserving
Conservatism
Provider contracts
Credibility
Follow-up studies
Premium deficiency reserves