Not sure if this is the place to post it, probably should be in some actuary forums? But does anyone know the difference between AXXX and XXX? Can anyone clarify the entire structure of Reg XXX? Thanks!!!
AXXX is a regulatory change passed to address issues left unanswered by Regulation XXX. Mainly, AXXX prescribes a new calculation methodology for reserves associated with universal life policies that have secondary guarantees such as no lapse guarantees. XXX is a regulatory change passed by the NAIC that raised the reserve requirements for certain types of life insurance products, such as level premium term insurance. Not sure what you mean by structure of XXX.
thanks… I guess what i meant was starting from the insurance company standpoint, how are these reserves to be funded?? Like this issue Potomac Trust 2005, what goes in there, what comes out there? why do people want to buy? Thanks again! If you can tell me where to find reading, thatd be great too. All i found was info too in depth, i don’t get it. Im awesome in a dumb way. 
sid3699 has correctly pointed out that XXX is related to simple level term life while AXXX deals with the more complicated universal life. In a nutshell, the reason of their existence is due of the redundency reserve requirment as set forth by the regulator and NAIC. Considering the typical term of a life policy which can easily be as long as 20-30 years, that’s a lot of excess reserve to be “locked up” for a long time. So instead of setting aside the reserve to back the life policies they underwrote using its own capital, the insurance companies funded this reserve throught the capital market.