CR 19-142 Rule Text

Michigan:   MI ST § 500.836b (1) (c), automatically updates valuation tables on January 1 after the NAIC Valuation Manual is adopted by the NAIC.

 

Minnesota:   M.S.A. § 61A.25 Subd. 10 (c), automatically updates valuation tables on January 1 after the NAIC Valuation Manual is adopted by the NAIC.

  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:

An unintended consequence of the 2015 revisions to s. 623.06, Stats., is that companies that write disability insurance are unable to smoothly transition to the newest disability valuation tables. The proposed rule repairs that gap in the current regulatory structure. The regulatory approach provides flexibility to insurers in accounting for claim reserves on a consistent basis without any unnecessary differentiation based on the issue date of the underlying policy and promotes consistency with NAIC standards and with other states’ regulations and laws.

  Analysis and supporting documentation that OCI used in support of OCI’s determination of the rule’s effect on small businesses or in preparation of an economic impact analysis:

The rule is unlikely to have a significant impact on small businesses as the effect on calculated reserves is not expected to be material. The purpose of the changes is to create easier and more logical record-keeping and to promote consistency with the standards of other states.

Effect on Small Business:

The rule is unlikely to have any impact on small businesses as the insurers affected by the rule changes are larger businesses and the rule does not increase costs to the insurers that might have been passed through to small business or individuals.

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:   [phone]

Email:   [e-mail]

Address:   125 South Webster St – 2nd Floor, Madison WI 53703-3474

  Mail:   PO Box 7873, Madison, WI 53707-7873

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 the December 16, 2019.

Written comments can be mailed or hand-delivered to:

Julie Walsh

Legal Unit - OCI Rule Comment for Rule Ins xxx

Office of the Commissioner of Insurance

125 South Webster St – 2nd Floor

Madison WI 53703-3474

Email address:

Julie Walsh

[e-mail]

For additional information please contact Julie Walsh at [phone] or at [e-mail].

____________________________________________________________________________

The proposed rule changes are:

SECTION 1. Ins 3.17 (6) (b) (intro.) is amended to read:

Ins 3.17 (6) (b) Minimum Except as provided in par. (bm), minimum standards for claim reserves are as follows:

SECTION 2. Ins 3.17 (6) (bm) is created to read:

Ins 3.17 (6) (bm) 1. The minimum claim reserve standards for contracts issued prior to January 1, 2017, at the option of the insurer, shall be either the reserving requirements as set forth in par. (b), or the reserving requirements set forth in the National Association of Insurance Commissioners Accounting Practices and Procedures Manual, Appendix A-010.

2. The minimum claim reserve standards for contracts issued on or after January 1, 2017, shall be the standards set forth in the National Association of Insurance Commissioners Valuation Manual as defined in s. 623.06 (1) (j), Stats.  

SECTION 3. Ins 3.17 (8) (b) (intro.) is amended to read:

Ins 3.17 (8) (b) The Except as provided in par. (bm), the basis for determining minimum standards for contract reserves are as follows:

SECTION 4. Ins 3.17 (8) (bm) is created to read:

Ins 3.17 (8) (bm) 1. The minimum contract reserve standards for accident and sickness contracts issued prior to January 1, 2017, at the option of the insurer, shall be either the reserving requirements as set forth in par. (b), or the reserving requirements set forth in the National Association of Insurance Commissioners Accounting Practices and Procedures Manual, Appendix A-010.

2. The minimum contract reserve standards for contracts issued on or after January 1, 2017, shall be the standards set forth in the National Association of Insurance Commissioners Valuation Manual as defined in s. 623.06 (1) (j), Stats.  

Section 1.

Section 2.

Section 3.

   

  Mark V. Afable

  Commissioner of Insurance