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A.M. Best Updates Life/Health Supplemental Rating Questionnaire

A new schedule has been added to the annuity section to capture exposures to the various fixed index and variable annuity guaranteed benefits. The schedule also shows how companies mitigate such exposures through either reinsurance or hedging. The new fixed income section will provide greater insight into the quality of insurers' bond portfolios. The derivative information section will now include a section supporting the credit for certain hedging instruments now allowed by the NAIC in determining risk-based capital.

In an effort to streamline the process, data for annuity premiums and accident and health premiums by distribution source will no longer be requested as A.M. Best believes that differences between distribution types have become less pronounced over the past several years.

In addition, the 2011 Canadian Life/Health SRQ has been reformatted to be consistent with the U.S. SRQ.

A copy of the new and revised life/health questions can be accessed at http://www.ambest.com/ratings/methodology.asp.

Founded in 1899, A.M. Best Company is the world's oldest and most authoritative insurance rating and information source. For more information, visit www.ambest.com.

Copyright (c) 2012 by A.M. Best Company, Inc. ALL RIGHTS RESERVED.

A.M. Best Co.
Andrew Gold
Senior Financial Analyst
908-439-2200, ext. 5487
andrew.gold@ambest.com
or
George Hansen
Managing Senior Financial Analyst
908-439-2200, ext. 5469
george.hansen@ambest.com
or
Rachelle Morrow
Senior Manager, Public Relations
908-439-2200, ext. 5378
rachelle.morrow@ambest.com
or
Jim Peavy
Assistant Vice President, Public Relations
908-439-2200, ext. 5644
james.peavy@ambest.com