I suspect this request for a change in accounting for capital in order to maintain the minimum % reserve as required by the NAIC model, is done to ensure these (and perhaps other) insurers don't experience another credit downgrade, which would make their costs of borrowing greater, thus compounding their problems.I haven't read anywhere that fixed 'guarantees' on annuity products are being threatened...yet. But what is also conspicuously absent from the airwaves and print are banner headlines singing the praises of those who were 'visionary' enough to invest their $$ in annuity products before the market crash. Not exactly sure what this may indicate, but knowing the insurance industry as I do, that they are not exploiting this suggests there might be trouble lurking under the surface somewhere. But this is just a guess.BruceM
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