Minnesota: MINN. STAT. §§ 60A.60 to 60A.696 (“regulation of risk-based capital”)
8. A summary of the factual data and analytical methodologies that OCI used in support of the proposed rule and how any related findings support the regulatory approach chosen for the proposed rule:
OCI has issued orders to insurers who offer stand-alone Medicare, variable life and medical malpractice polices in which the agency provided more refined approaches to compulsory surplus requirements in line with the proposed changes in this rule. The intent of the rule is to adopt the factors that OCI has currently been modifying through specific company orders as industry-wide standards for simplicity and uniformity.
9. Any analysis and supporting documentation that OCI used in support of OCI’s determination of the rule’s effect on small businesses under s. 227.114: The proposed rule would modify surplus requirements for stand-alone Medicare, variable business, and medical malpractice insurance products. OCI is not aware of any insurers that issue these type of products that would be considered a small business.
10. A description of the Effect on Small Business:
This rule will have little or no effect on small businesses.
11. Agency contact person:
A copy of the full text of the proposed rule changes, analysis and fiscal estimate may be obtained from the web site at: https://oci.wi.gov/Pages/Regulation/RulesCurrentlyPending.aspx or by contacting Karyn Culver at: Phone: (608) 267-9586
Address: 125 South Webster St – 2nd Floor, Madison WI 53703-3474
Mail: PO Box 7873, Madison, WI 53707-7873
12. Place where comments are to be submitted and deadline for submission:
Persons wishing to testify or provide oral or written comments regarding the proposed administrative rule may appear during the hearing. Additionally, the rule may be reviewed and comments made at https://docs.legis.wisconsin.gov/code or sent to the following: The deadline for submitting comments is 4:00 p.m. on December 2, 2022.
Written comments can be mailed or hand-delivered to:
Legal Unit – OCI Rule Comment for Rule Ins 51
Office of the Commissioner of Insurance
125 South Webster St – 2nd Floor
Madison WI 53703-3474
The proposed rule changes are:
SECTION 1. Ins 51.01 (21) is amended to read:
“Risk based capital plan” means a comprehensive financial plan containing the elements specified in s. Ins 50.15 (1)51.15 (1). SECTION 2. Ins 51.80 (3) (a) 1. is amended to read:
1.15% of premiums for individual life and disability insurance, not including variable life insurance;
SECTION 3. Ins 51.80 (3) (a) 2. is amended to read:
2. 10% of premiums for group life and disability insurance, not including variable life insurance;
SECTION 4. Ins 51.80 (3) (a) 3. is amended to read:
3. The greater of 2% of reserves or 7 1⁄2% of premiums for annuities and deposit administration funds, not including variable annuity business;
SECTION 5. Ins 51.80 (3) (a) 3e. is created to read:
3e. 2% of premiums for variable life and variable annuity business;
SECTION 6. Ins 51.80 (3) (a) 3m. is created to read:
3m. 30% of premiums for medical professional liability insurance;
SECTION 7. Ins 51.80 (3) (a) 3s. is created to read:
3s. 7% of premiums for Medicare stand-alone drug coverage insurance;
SECTION 8. 51.80 (6) is amended to read:
(6) Premiums. For purposes of subs. (3) and (4), for all insurers except insurers that file on the national association of insurance commissioners health annual statement blank, premiums are gross premiums and other considerations received for insurance and annuities in the 12-month period ending on or not more than 60 days before the date as of which the calculation is made with the following deductions and exclusions:
SECTION 9. 51.80 (6m) is created to read:
(6m) Heath Insurance Premiums. For purposes of subs. (3) and (4), for insurers that file on the national association of insurance commissioners health annual statement blank, premiums are earned premiums and other considerations for insurance in the 12-month period ending on or not more than 60 days before the date as of which the calculation is made with the deductions and exclusions allowed in sub. (6) (a) and (b).
SECTION 10. EFFECTIVE DATE. The rule takes effect on the first day of the month following publication in the Wisconsin Administrative Register as provide in s. 227.22 (2) (intro.), Stats. Section 1.
Section 2.
Nathan Houdek
Commissioner of Insurance
