Determining Reserve Liabilities for Pre-Need Life Insurance Rule Hearing Report: November 5
Nov 10, 2008
On Wednesday, November 5, 2008, the Florida Office of Insurance Regulation (“OIR”) scheduled a public hearing on proposed Rule 69O-164.040: Determining Reserve Liabilities for Pre-need Life Insurance. However, the hearing was not held because it was not requested by any interested parties. To view a copy of the proposed Rule, click here.
The purpose of the proposed Rule is to recognize the inadequacy of the 2001 Commissioners’ Standard Ordinary Life Valuation Mortality Table for use in determining the minimum standard of valuation and the minimum standard nonforfeiture value, as well as to require continued use of the 1980 Commissioners Standard Ordinary Life Valuation Mortality Table.
The Rule calls for adopting the 1980 Commissioners’ Standard Ordinary Life Valuation Mortality Tables (“1980 CSO”) for use in determining reserve value and non-forfeiture value of pre-need life insurance, rather than using the new 2001 Commissioners’ Standard Ordinary Life Valuation Mortality Tables (“2001 CSO”).
The Rule allows use of the 2001 CSO for pre-need life insurance policies issued before January 1, 2012, but only after the insurance company submits documentation demonstrating they have adequate reserves.
Next, the proposed Rule will be heard by the Financial Services Commission for final adoption unless there are substantive changes made.
Should you have any questions or comments, please do not hesitate to contact Colodny Fass.
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