NU Online News Service, Oct. 19, 3:20 p.m. EDT

National Association of Insurance Commissioners' moves to obtain revised ratings and reassessment of capital requirements for residential-backed mortgage securities (RMBS) could give insurers more financial flexibility, said Moody's Investors Service.

That assessment in Moody's Weekly Credit Outlook came after an NAIC committee and task force voted last week to seek a third-party vendor to examine the loss models for RMBS after a life insurers' trade group argued that nationally recognized rating firms like Moody's failed to distinguish between securities with a total loss and those projected for minor losses.

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