The NAIC requires life insurers to have reserve accounts that protect insureds from the:

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The NAIC requires life insurers to maintain reserve accounts to safeguard against poor investment performance, which could affect the ability of an insurer to pay claims. Reserve accounts also protect against underwriting errors, but that is not the primary reason for the NAIC's requirements. Catastrophic events, such as hurricanes, and terrorism risks are typically addressed through reinsurance or other risk management strategies, rather than reserve accounts.

The NAIC Requires Life Insurers to Have Reserve Accounts That