The purpose of this chapter is to allow insurance companies
to utilize certain alternative asset and reserve accounting practices for
eligible derivative assets and indexed products, respectively, in order to
better match asset and reserve accounting as it relates to interest crediting
for indexed products and to provide for a more true and fair representation of
the capital position of insurance companies that offer or have in force indexed
products. Specifically, this chapter addresses the mismatch related to the
changes in value of an eligible derivative asset as compared to the interest
accrual in the reserve calculation for the underlying indexed product and
provides insurance companies with the ability, once certain criteria are met,
to:
(1) account for eligible
derivative assets using the amortized cost method, and
(2) use a reserve calculation methodology for
indexed annuity products under which interest credits based upon one or more
external indices are included in the reserve only after those interest credits
have been credited to the contract holder under the terms of the annuity
contract.
Notes
Iowa Admin. Code r. 191-97.2
ARC 8061B, lAB 8/26/09,
effective 9/30/09
