In November 2008, the ACLI requested that the NAIC consider nine industry proposals - one of which relates to reinsurance collateral relief - that would have the effect of increasing life insurers' reported statutory capital and surplus on their December 31, 2008, annual statements. As to reinsurance collateral, the ACLI explained that ceding insurers are experiencing temporary difficulties in reserve financing because letters of credit ("LOC") capacity is severely limited and the market value of trusteed assets has declined significantly. The ACLI asked the NAIC to issue guidance to reflect that a Commissioner's discretionary authority under the Credit for Reinsurance Model Law and Model Regulation (i) be applied to expand available collateral (such as accepting LOCs from entities other than Qualified U.S. Financial Institutions), and (ii) be used to establish criteria for expediting accreditation of assuming insurers before year-end 2008.

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