b'Backing up Our Guarantees Working for the financial Variable Annuities Our multi-year effort to modernize new requirementssecurity of people around the governing variable annuities came to a conclusion in 2019 as the NAICworld and seeking access to adopted a new framework that ensures consumers are paying the rightmarkets in China, India, and amount for guarantees. Indonesiawhere there are Principle-Based Reserves In 2019, we laid the groundwork for our limits on foreign ownershipcompanies to comply with a shift to a Principle-Based Reserves approachand continuing in North for life insurance.America with the USMCA Guaranty Associations Our work has led to successful adoption ofupdates to NAFTA strengthens guaranty association legislation in 14 states. This means 26 total statesour industry in the U.S.have now substantially incorporated revisions to the NAICs Life and Health Insurance Guaranty Model Act. The Business of the Business We continue to advocate for the busi- 95 %ness interests of the industry through numerous activities. One example: ongoing work to protect the required capital for bond holdings against proposed adverse bond factors. Advocacy in the Courts In 2019, we filed amicus briefs on behalf ofof life insurance members covering a range of important issues including cost of insur- industry assetsance, guaranty fund coverage of LTC, and the application of lapse notice provisions. Not incidentally, we helped obtain wins on all three decisionsare invested in the handed down this year. U.S. economyACLI2019 ANNUAL REVIEW 17'