The National Association of Insurance Commissioners has selected PIMCO as a third-party modeler that will help state regulators determine the risk-based capital requirements for residential mortgage-backed securities. The new NAIC model is slated to produce expected security-level losses for about 18,000 RMBS owned by U.S. insurers at the end of 2009 so insurers can map their holdings to designations set by the group and those designations' accompanying risk-based capital requirements. The designations in this case will apply only to yearend 2009 reporting.
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