Where you're starting: portfolio goals, targets, and constraints

• How would you summarize your current portfolio objective for general account and surplus in one sentence?
• Describe your current target NAIC risk-based capital ratio and any internal target bands you maintain. Options: Below regulatory minimum, At regulatory minimum, Above regulatory minimum, Target range set by board, No formal target
• What admitted asset limits in your domiciliary state materially constrain your allocations today? Options: Corporate bonds, Structured credit, Commercial mortgage loans, Private placements, Alternative assets, No material limits
• Who in your organization owns capital policy, and how does that role interact with investment decision-making? Options: CFO, CIO, Board/Investment Committee, Appointed actuary, Shared responsibility
• Estimate the percent of invested assets currently in illiquid or private instruments, rounded to the nearest 5%. Options: 0-5%, 6-15%, 16-25%, 26-35%, 36-50%, Over 50%
• Which single performance metric drives your monthly review, book yield, net investment income, statutory surplus, or something else? Options: Book yield, Net investment income, Statutory surplus, Total return, Capital-adjusted return

When capital charges bite: gaps and surprises that change decisions

• If a C-1 capital shock forced you to reprice or sell holdings tomorrow, which portfolio line would you cut first and why?
• Identify recent holdings that produced unexpected NAIC charge changes and describe the trigger event.
• Give a concrete example of a trade or purchase that later required more capital than you had anticipated.
• How quickly can your team re-run statutory capital models after a material trade, measured in business days? Options: Same day, 1 business day, 2-3 business days, More than 3 business days, Not automated
• On a practical level, how disruptive are rating agency capital discussions when exposures shift? Options: Very disruptive, Moderately disruptive, Occasionally disruptive, Rarely disruptive
• What single capital or accounting surprise would make you pause a manager selection immediately?

Reporting that actually informs decisions, not just monthly emails

• Who currently receives SAP-basis performance and C-1 charge reporting in your governance chain, and where does responsibility stop? Options: CIO, CFO, Appointed actuary, Investment committee, Board
• List the statutory reports and frequencies you require from an external manager. Options: Monthly SAP performance, Quarterly C-1 analysis, Ad hoc board packages, Annual actuarial inputs, Daily position files
• Where do you see the biggest mismatch between external manager reports and your in-house statutory accounting? Options: Valuation methods, Timing differences, NAIC charge assumptions, Cash flow classification, Other
• Would you accept monthly samples with quarterly reconciliations, or do you require full monthly statutory reconciliations? Options: Full monthly reconciliations required, Monthly samples with quarterly reconciliation OK, Quarterly only acceptable, Undecided
• Provide an example of a past reconciliation failure and the downstream regulatory, board, or operational impact it caused.
• If manager reporting cannot be reconciled to your book within two weeks, what is the formal escalation or consequence? Options: Pause allocations, Request remediation plan, Reduce exposure, Terminate relationship, Other

What is slowing you down operationally and who feels it most

• Tell which internal processes or decision gates regularly delay investment changes and why they persist.
• Name the role who must sign off on any asset-class change and whether that creates a single point of failure. Options: CIO, CFO, Investment committee, Appointed actuary, Other
• Are your systems able to export trial balance, ledger, and position-level data needed for statutory reconciliation automatically? Options: Fully automated API feeds, Partial exports with manual steps, Manual extraction only, Not available
• Estimate the elapsed time to add a dedicated API feed for positions and cash flows, from commitment to live. Options: Under 2 weeks, 2-6 weeks, 6-12 weeks, More than 12 weeks
• Which operational gap, if not closed, would prevent you from moving forward with an external manager?

Competitive landscape and the alternatives you are weighing

• Why are you considering alternatives to your current manager or in-house approach at this time? Options: Improve book yield, Lower capital charges, Better reporting, Access to private assets, Cost reduction, Regulatory pressure
• Select the types of alternatives you are actively evaluating, internal build, incumbent manager, boutique specialist, or hybrid solutions. Options: Internal build, Incumbent manager, Boutique specialist, Multi-manager program, Hybrid approach
• List what would have to be true about your current approach for you to remain with it instead of changing.
• Has anyone internally proposed solving this without an outside vendor, and what did that proposal involve? Options: Hire staff and build ops, Buy a vendor platform, Outsource specific functions, No internal proposal
• Should you choose the incumbent, what service-level or reporting improvements would you require to stay?
• Identify who would need to sign off to select a new external manager this quarter and whether they are currently supportive.

Readiness check: systems, data, and compliance that gate scope

• Could a missing API, actuarial input, or legal approval alone delay the project past your target quarter end? Options: Yes, commonly, Possible but manageable, Rarely, No, we have contingency
• Map the external systems that must integrate for success, for example general ledger, asset platform, core accounting, and actuarial models. Options: General ledger, Custody platform, Portfolio accounting, Actuarial valuation, Risk models, Other
• Rate the cleanliness of position-level data on a scale and list the most common reconciliation mismatch types. Options: High, Moderate, Low, Very poor
• Name who owns API access and documentation for custody and trading systems and how quickly they respond to integration requests. Options: Internal IT, Investment operations, Third-party vendor, No clear owner
• Are there pending regulatory approvals, domicile-specific acceptances, or actuarial sign-offs that could block go-live? Options: Yes, multiple, Single pending item, Under review but likely, No known blockers
• Point to the one compliance or data failure that would stop onboarding within your target timeline.

Commercial must-haves and acceptance criteria that enable signing

• Assuming the pilot proves your book-yield and capital outcomes, what internal approvals would still be required before you sign? Options: CFO approval, Investment committee approval, Board approval, Actuary sign-off, Legal review
• Provide the acceptance criteria you require tied to statutory reporting, NAIC charge analysis, and board packages.
• Describe how you want performance fees to be measured and what thresholds should trigger fee recognition or clawback. Options: Net-of-capital yield outperformance, Absolute book-yield target, Relative benchmark, Custom hurdle
• Outline which data-access authorizations require legal review and the typical review turnaround. Options: 30 days or less, 31-60 days, 61-90 days, Over 90 days
• Indicate, if anyone, who must veto the commercial terms before execution and how likely they are to use that veto.

Timing, transition appetite, and the signals that accelerate a deal

• Can you commit to a statutory reporting cutover in the next 90 days if all technical, legal, and operational conditions are met? Options: Yes, ready to commit, Yes, with caveats, No, need more time, Unsure
• Quantify the size and timing of any portfolio transitions you would want during onboarding, for example percent reallocated and over how many months.
• Specify the monitoring thresholds and escalation paths that must be in place before you approve go-live. Options: Daily monitoring with immediate escalation, Weekly monitoring with defined SLAs, Monthly monitoring only, Other
• Indicate who will receive status updates and which forum you prefer for reporting issues, for example weekly ops call or monthly board package. Options: Weekly ops call, Monthly executive update, Ad hoc issue alerts, Board package only
• Is there a firm board meeting or regulatory deadline that forces a yes or no on signing the program? Options: Yes, specific date, Yes, within quarter, No firm deadline, Unsure

Pilot, minimum viable success, and the quick wins that build confidence

• Pick one pilot metric you would want proven in 90 days that would convince your board to expand the mandate. Options: Book-yield uplift, Capital-adjusted return, Reconciliation accuracy, Operational SLAs met, Reporting turnaround
• Share which asset classes you would be comfortable transitioning first and why those feel lower risk. Options: Investment-grade corporates, Structured credit, Commercial mortgage loans, Private placements, Other
• Give the minimum data deliverables the pilot must include to be meaningful, for example daily positions, monthly SAP P&L, and C-1 sensitivity files.
• Explain how you will judge whether the pilot is operationally acceptable beyond headline returns. Options: Reconciliation accuracy, Timeliness of reporting, Issue resolution speed, SLA adherence, All of the above
• Would you still consider continuing under different commercial terms if the pilot misses the target but operational controls prove reliable? Options: Yes, open to renegotiation, Maybe, depends on shortfall, No, must meet targets, Undecided

• Regulatory & Strategy Walkthrough

• Confirm the current state and its cost
• You confirm the demonstrated strategies and assumptions produce the net investment income and capital ratio outcomes you need within your statutory constraints.
• Deliver a modeled impact memo showing projected net investment income, NAIC capital-charge deltas, and sample SAP-basis reporting for the scenarios reviewed.
• You agree on the remaining evidence and modeled outputs required for buying committee review, including sample statutory reports and sensitivity tables.
• Map capital-aware strategies to your targets
• Provide the latest statutory trial balance, admitted asset limits, target net investment income, and target capital ratio thresholds.
• You confirm the proposed reporting integration approach meets the timing and format requirements for your statutory and board reporting cycles.
• Model one buyer scenario in your context
• Prepare an appendix mapping required data feeds, API credentials, and reporting endpoints for the integrations discussed prior to the follow-up.
• Confirm reporting and integration approach
• Confirm attendees for the follow-up buying committee review and the preferred decision timeline.
• Validate fit to your needs

• Regulatory & Strategy Walkthrough (Solution Experience)
• Solution Experience Deck
• Solution Brief — Regulatory & Strategy Walkthrough

• meeting
• slides
• document

• Manage Investment-Grade Fixed Income Portfolio
• Manage Structured Credit Investments
• Originate and Service Commercial Mortgage Loans
• Source and Manage Private Placements
• Construct Book-Yield Optimized Portfolios
• Provide SAP-Basis Performance Reporting
• Calculate NAIC C‑1 Capital Charges
• Admitted Asset Eligibility Screening
• Monitor Asset-Liability Duration and Mismatch
• Monitor and Enforce Concentration Limits
• Produce Regulatory and Rating Agency Capital Reports
• Statutory Accounting Trade Posting and Reconciliation
• Execute Securities Transactions and Settlements

Manage Investment-Grade Fixed Income Portfolio

• Do you require management limited to investment-grade credit bands defined by NAIC designations or a bespoke quality floor? Options: Standard NAIC-investment-grade bands, Bespoke minimum rating (specify below), No rating floor required
• Which portfolio size band describes the mandate for duration and cash-flow matching? Options: Less than $100M, $100M - $500M, $500M - $2B, Greater than $2B
• How do you want coupons and maturities paced relative to statutory reserve cash-flow windows (e.g., match reserve ladder, target 1-3 year duration gap)? Options: Match reserve ladder, Target specific duration band, Maximize book yield within capital limit, Other (describe)
• Who will provide the approved issuer or sector exclusion list for restricted investments under your domiciliary state rules?
• Provide your target book yield or book-yield delta relative to current SAP-basis yield for this tranche of the general account.
• Specify any NAIC-prescribed admitted-asset limits or state-specific admitted exceptions that should be enforced during sourcing.

Manage Structured Credit Investments

• Which types of structured credit do you permit against Schedule D (e.g., CMBS, non-agency RMBS, CLO tranches)? Options: CMBS, Non-agency RMBS, CLO tranches, ABS, Other (describe)
• Do you require tranche-level NAIC C-1 capital modeling before purchase approval for structured products? Options: Yes, No, Only for non-investment-grade tranches
• How many days of deal-level legal and collateral documents will you provide for underwriting (e.g., PSA, offering memorandum, CLO waterfall)?
• Identify your preferred servicing and custody arrangements for structured credit cashflow remittance and reporting. Options: Third-party custodian, In-house custody, Special servicer arrangement, Other (describe)
• Clarify the maximum allowable C-1 capital charge per position or issuer that would trigger pre-approval escalation to your investment committee. Options: C-1 <= 0.5%, C-1 0.5%-1.0%, C-1 >1.0% requires escalation, Other (specify)
• Describe required post-purchase reporting cadence for structured credit deals into your statutory reporting pack (e.g., monthly cash-flow remittance, quarterly stress scenarios).

Originate and Service Commercial Mortgage Loans

• Which loan types should be in scope for origination against Schedule BA/BC (e.g., stabilized office, multifamily, construction-to-perm)? Options: Stabilized office, Multifamily, Industrial, Retail, Construction-to-perm, Other (describe)
• How many pipeline originations per quarter do you expect to commit to for servicing capacity planning? Options: 0-5, 6-15, 16-30, 30+
• Who will provide loan-level underwriting standards (LTV, DSCR, appraisal providers) and will you accept alternative valuation sources? Options: We provide standards, We require your proposed standards, Hybrid (describe)
• Provide the servicing reporting fields required for your statutory record (examples: principal balance by NAIC category, accrued interest, loan-to-value by collateral).
• Specify required trustee, escrow, and custodian workflows and file formats for remittance and collateral reporting (e.g., CSV loan-level remittance).
• Indicate your tolerance threshold for delinquency and non-performing loans that would require board notification (e.g., >X% of origination balance).

Source and Manage Private Placements

• Which private placement structures should be eligible (e.g., corporate private placements, municipal private placements, whole loans)? Options: Corporate private placement, Municipal private placement, Whole loan, Other (describe)
• How many layers of due diligence (credit memo, legal counsel review, actuarial review) are required before execution? Options: 1 (credit memo), 2 (credit + legal), 3+ (credit, legal, actuarial)
• Describe the required documentation set to be uploaded prior to funding (examples: private placement agreement, audited financials, offering memorandum).
• Name the investor-side approvals (e.g., CFO sign-off, appointed actuary concurrence, board investment committee) required for private placement closes.
• Specify post-close valuation cadence and methods for statutory reporting (amortized cost, fair-value reserve treatment if any).
• Identify any domicile-specific admitted asset filing or exemption that must be tracked for private placements.

Construct Book-Yield Optimized Portfolios

• Which book-yield target or uplift versus current SAP-basis yield should the portfolio construction aim to achieve (absolute or basis points)?
• Do you require optimization subject to explicit NAIC C-1 capital budget and rating-agency economic capital constraints? Options: Yes, both NAIC and rating-agency constraints, Only NAIC C-1 constraints, Only rating-agency constraints, No explicit capital constraints
• How should admitted-asset eligibility be prioritized when it conflicts with book-yield targets (e.g., prioritize admitted status, allow limited non-admitted allocation)? Options: Prioritize admitted assets, Allow limited non-admitted with approval, Maximize yield regardless
• Outline the rebalancing frequency and trigger thresholds for book-yield drift versus target (examples: quarterly if drift > 10 bps).
• Indicate required deliverables for the investment committee: optimized security list, expected book-yield, projected NAIC charges by scenario.
• Describe any constraints on duration or convexity relative to statutory reserve durations that must be enforced by the optimizer.

Provide SAP-Basis Performance Reporting

• Specify the statutory accounting principles (SAP) performance artifacts you require (examples: SAP-basis income statement, schedule of realized/unrealized gains, book-yield reconciliation).
• Which reporting cadence do you require for SAP-basis performance to be delivered into your statutory pack (monthly, quarterly, ad hoc for board)? Options: Monthly, Quarterly, Monthly + quarterly board pack, Ad hoc only
• Confirm the file formats and delivery endpoints for ingest into your statutory ledger (examples: CSV GL mapping, fixed-width ledger import, SFTP drop). Options: CSV with GL mapping, Secure API endpoint, SFTP file drop, Other (describe)
• Specify acceptance criteria that will confirm SAP-basis performance reporting is complete for a reporting period (examples: GL reconciliation variance < 0.1% of invested assets, all Schedule D lines populated).
• Which cost-basis and amortization methods must be reflected on the report for each security type (examples: straight-line premium/discount amortization for municipals)?
• Indicate whether you require audit-ready supporting schedules mapped to Schedule D and Schedule BA for each reporting cycle. Options: Yes, No, Only for year-end

Calculate NAIC C‑1 Capital Charges

• Which NAIC charge tables or vintage rules should be used for C-1 calculation (current NAIC matrix, state-specific overrides, or custom assumptions)? Options: Current NAIC matrix, State overrides, Custom assumptions provided by you
• How frequently should C-1 charges be recalculated and delivered (daily mark-to-market, weekly, monthly)? Options: Daily, Weekly, Monthly, Monthly + stress scenarios
• Provide the mapping between your ledger securities classification and NAIC categories if it differs from standard mapping.
• Identify required stress-scenario outputs tied to capital planning (examples: 1-in-20 default shock, spread widening by sector) and the required reporting format.
• Who will own validation of C-1 inputs (pricing source, credit rating source, recovery assumptions) and what sample size for validation do you require?
• Indicate whether you require NAIC C-1 traceability documentation for audit (calculation workbook, inputs snapshot, versioning). Options: Yes, No

Admitted Asset Eligibility Screening

• Which admitted-asset rule set drives eligibility (domicile state statutes, NAIC admitted asset guidance, or both)? Options: Domicile state rules, NAIC guidance, Both
• How should securities be classified when an instrument is only partially admitted (examples: percentage admitted, blocked amounts)? Options: Percent admitted mapping, Block to non-admitted, Require pre-approval
• Specify the document set you will provide to support admitted-asset determinations (examples: offering memorandum, legal opinion, registration statements).
• Which delivery mechanism do you prefer for the admitted-asset determination file to your statutory team (SFTP, API, reconciled CSV)? Options: SFTP, API, Reconciled CSV
• List any domicile-specific admitted exceptions and the evidence required to qualify (example: court rulings, state bulletins).
• Are automated flags for changes in admissibility (e.g., payment default, regulatory bulletin) required to trigger review? Options: Yes, No

Monitor Asset-Liability Duration and Mismatch

• Which liability sets must be mirror-matched for duration monitoring (examples: statutory reserves by line, structured settlement liabilities)?
• How often do you require duration mismatch reports (daily, weekly, monthly) and in which format for actuarial review? Options: Daily, Weekly, Monthly
• Specify the duration measure to be used (Macaulay, modified duration, effective duration) for asset and reserve comparison. Options: Macaulay, Modified, Effective, Custom (describe)
• Name the owners who must receive automated alerts when mismatch exceeds thresholds (examples: CIO, appointed actuary, risk officer).
• Quantify mismatch tolerance bands that will trigger rebalancing or escalation (examples: duration gap > 1 year or convexity divergence > X).
• Provide required scenario outputs for ALM review (interest-rate up/down shocks, yield-curve twist, economic capital impact).

Monitor and Enforce Concentration Limits

• Which concentration metrics must be enforced (issuer exposure, sector exposure, single obligor C-1-weighted exposure)? Options: Issuer exposure, Sector exposure, C-1-weighted exposure, Other (describe)
• What numeric concentration limits apply (examples: single issuer <= 5% of invested assets, sector <= 20%)?
• Are look-through rules required for structured products and private placements when calculating concentration by obligor? Options: Yes, No
• Assign the owner(s) who approve exceptions to concentration limits and the approval tier required (CIO, CFO, board).
• Describe the cadence and format of concentration limit reporting required for your investment committee and statutory pack.
• Are real-time trade-blocking controls required when a proposed trade would breach a concentration limit? Options: Yes, block, Yes, warn but allow override, No automated blocking

• Nondisclosure Agreement (NDA)
• Master Services Agreement (MSA)
• Statement of Work (SOW)
• Investment Management Agreement (IMA)
• Fee Schedule & Performance Fee Appendix
• Data Access Authorization
• Custody & Trading Authorization
• Regulatory Compliance Addendum (Insurance)
• Regulatory & Board Reporting Acceptance Criteria
• Data Processing Agreement (DPA)
• Execution & Closing Certificate

• Go-live Health Check
• First Measurement Review
• Acceptance Gate Decision
• Quarterly Success Review

• Update monitoring thresholds or notification rules if agreed changes are needed.
• Formal pass or fail recorded for each acceptance criterion in Solution Scope.
• Named signatory documented for each accepted deliverable where applicable.
• Remediation items for any failed or conditional criteria listed with resolution timelines and retest conditions.
• Publish the acceptance decision record and attach the evidence package used for the decision.
• Create and prioritize the remediation backlog for any non-accepted items with target dates for re-test.
• Update the shared issue channel with the acceptance outcomes and next steps.
• Performance trend review
• Agree that SAP-basis book yield and statutory reporting accuracy remain within acceptable bounds or record required adjustments.
• Close or re-prioritize stale issues, and confirm owners and timelines for high-priority remediation items.
• Confirm monitoring thresholds and escalation steps are current and specific.
• Log prioritized enhancement requests in the shared channel with requested delivery quarter.
• Complete high-priority remediation work and provide validation evidence prior to the next quarterly review.
• Re-confirm success criteria and owners
• All Solution Scope acceptance criteria owners confirmed and reachable.
• High-severity deployment defects and data feed gaps listed with remediation tasks and target dates.
• Clear go-forward checklist to reach first measurement readiness.
• Record and publish the deployment remediation plan with target dates for each item.
• Restore or reconfigure any failed data feed and confirm a successful test run.
• Provide access and quick-start guidance to remaining users requiring onboarding.
• Present first-period results vs Solution Scope targets
• Confirm whether SAP-basis book yield and C-1 capital charge impact are trending toward Solution Scope targets.
• Document root-cause analysis for any metric shortfalls with tangible remediation steps.
• Set a clear timeline and tasks that bring the deal to the acceptance gate.
• Deliver a one-page root-cause summary for any metric missing its target, including required changes and test cases.
• Implement agreed accounting mapping or NAIC assumption adjustments and run a validation test.
• Schedule the acceptance gate meeting and circulate the required evidence package.
• Restate Solution Scope acceptance criteria and required evidence
• Deployment and migration validation
• Present outcome data against each criterion
• Capital-charge impact review
• Diagnose root causes for any performance gaps
• Open issues and enhancement request triage
• Reconcile reporting and validation discrepancies
• Early adoption and usage signals
• Document acceptance decision per criterion
• Agree corrective actions and timeline to acceptance gate
• Agree remediation plan and resolution timeline for any failed or conditional items
• Monitoring thresholds and escalation triggers
• Open issues and blockers
• Agree immediate remediation actions