Defined terms for the annuity market and lifetime income landscape.
NAIC model regulation is a template rule developed by the National Association of Insurance Commissioners that individual states may adopt in whole, in part, or not at all, providing a mechanism for coordinated regulatory standards across state insurance departments in a state-primary system.
A named fiduciary is the fiduciary explicitly designated in the plan document (or identified through a procedure set out in the plan document) as having authority to control and manage the operation and administration of an ERISA-covered plan.
Narrow framing is the practice of treating a single decision in isolation from the broader portfolio or lifetime context of decisions it belongs to, so gains and losses in that one decision are evaluated on their own rather than pooled with related outcomes.
A Nash equilibrium, in the cooperative context, is a configuration of participation decisions in which no individual could improve their outcome by unilaterally changing whether they join, remain in, or exit a pool, given what every other participant has decided to do.
Natural hedging is the practice of offsetting longevity-related exposures within a single portfolio by combining liabilities that respond in opposite directions to changes in life expectancy — typically life insurance and annuities — so that systematic mortality shifts partially cancel.
