OIR Holds Workshop on Preneed Life Insurance Proposed Rule: July 9

On Wednesday, July 9, 2008, the Florida Office of Insurance Regulation (“OIR”) held a workshop on proposed Rule 69O-164.040: Determining Reserve Liabilities for Preneed Life Insurance.  To view the meeting notice and proposed Rule, click here.

The proposed Rule calls for continued usage of the American Academy of Actuaries’ 1980 Commissioner’s Standard Ordinary Life Valuation Mortality Tables (“1980 CSO”) in determining minimum standards for reserve and non-forfeiture values of preneed life insurance, rather than using the 2001 Commissioners’ Ordinary Standard Life Valuation Mortality Tables (“2001 CSO”), which has been deemed inadequate.

Proposed Rule 69O-164.040 allows use of the 2001 CSO for preneed life insurance policies issued before January 1, 2012, but only after an insurer submits documentation demonstrating it has adequate reserves.

The proposed Rule is in accordance with the National Association of Insurance Commissioners (“NAIC”) proposal on this issue.  To view more information regarding the NAIC Life and Health Actuarial Task Force activities, click here. 
 

Should you have any questions or comments regarding the proposed Rule, please do not hesitate to contact Colodny Fass.