Source: http://register.dls.virginia.gov/details.aspx?id=1512
Timestamp: 2019-07-18 11:25:32
Document Index: 114389954

Matched Legal Cases: ['§ 12', '§ 38', '§ 38', '§ 38', '§ 38', '§ 38', '§ 38', '§ 38', '§ 38']

Vol. 26 Iss. 9 (Final Regulation) 14VAC5-321, Use Of The 2001 Cso Mortality Table In Determining Reserve Liabilities And Nonforfeiture Benefits January 04, 2010
Vol. 26 Iss. 9 - January 04, 2010
Titles of Regulations: 14VAC5-310. Rules Governing Actuarial Opinions and Memoranda (amending 14VAC5-310-90).
14VAC5-321. Use of the 2001 CSO Mortality Table in Determining Reserve Liabilities and Nonforfeiture Benefits (amending 14VAC5-321-30).
Statutory Authority: §§ 12.1-13 and 38.2-223 of the Code of Virginia.
Effective Date: December 31, 2009.
Agency Contact: Raquel C. Pino-Moreno, Principal Insurance Analyst, Bureau of Insurance, State Corporation Commission, 1300 East Main Street, P.O. Box 1157, Richmond, VA 23218, telephone (804) 371-9499, FAX (804) 371-9511, or email raquel.pino-moreno@scc.virginia.gov.
The revisions allow the Bureau of Insurance to authorize insurance companies to use the 2001 CSO Mortality Table for policies issued on or after January 1, 2004 (14VAC5-321). The current provision is applicable for policies issued on or after July 1, 2004. The revisions also require an appointed actuary to produce a report attesting to the fact that a company has booked reserves satisfying the minimum reserve requirements and describing how they reached their conclusion regarding adequacy (14VAC5-310). The revisions to the rules are based on the National Association of Insurance Commissioner’s (NAIC) revisions to its Actuarial Opinion and Memorandum Regulation Model, which was adopted by the NAIC on September 23, 2009, and its Recognition of the 2001 CSO Mortality Table for Use in Determining Minimum Reserve Liabilities and Nonforfeiture Benefits Model Regulation, which was adopted by the NAIC in 2002. The revisions were adopted as proposed.
AT RICHMOND, DECEMBER 4, 2009
At the relation of the
CASE NO. INS-2009-00230
Ex Parte: In the matter of Adopting
Revisions to the Rules Governing
Actuarial Opinions and Memoranda
and Use of the 2001 CSO Mortality Table
in Determining Reserve Liabilities
and Nonforfeiture Benefits
ORDER ADOPTING RULES
By Order To Take Notice entered October 21, 2009, all interested persons were ordered to take notice that subsequent to November 29, 2009, the State Corporation Commission ("Commission") would consider the entry of an order adopting amendments to the regulations entitled Rules Governing Actuarial Opinions and Memoranda and Use of the 2001 CSO Mortality Table in Determining Reserve Liabilities and Nonforfeiture Benefits ("Regulations"), proposed by the Bureau of Insurance ("Bureau") which amend the regulations at 14 VAC 5-310-90 and 14 VAC 5-321-30, unless on or before November 29, 2009, any person objecting to the adoption of the proposed amendments to the Regulations filed a request for a hearing with the Clerk of the Commission ("Clerk").
The Order to Take Notice also required all interested persons to file their comments in support of or in opposition to the proposed amendments to the Regulations on or before November 29, 2009.
No request for a hearing was filed with the Clerk. By letter dated November 5, 2009, Transamerica Life Insurance Company ("Transamerica") filed comments with the Clerk. The comments filed by Transamerica did not address the proposed amendments to the Regulations. Instead, the comments addressed the fact that § 38.2-3127.1 of the Code of Virginia requires that the Actuarial Opinion and accompanying Regulatory Asset Adequacy Issues Summary be filed with the Bureau annually rather than upon the request of the Bureau.
The Bureau does not recommend further changes to the proposed amendments to the Regulations and further recommends that the amendments to the rules be adopted as proposed.
THE COMMISSION, having considered the Bureau's recommendation, is of the opinion that the attached amendments to the Regulations should be adopted.
(1) The amendments to the regulations entitled Rules Governing Actuarial Opinions and Memoranda and Use of the 2001 CSO Mortality Table in Determining Reserve Liabilities and Nonforfeiture Benefits at 14 VAC 5-310-90 and 14 VAC 5-321-30 which are attached hereto and made a part hereof, should be, and they are hereby, ADOPTED to be effective December 31, 2009.
(2) The Commission's Division of Information Resources forthwith shall cause a copy of this Order, together with the attached rules, to be forwarded to the Virginia Registrar of Regulations for appropriate publication in the Virginia Register of Regulations.
(3) The Commission's Division of Information Resources shall make available this Order and the adopted rules on the Commission's website, http://www.scc.virginia.gov/case.
(4) AN ATTESTED COPY hereof, together with a copy of the amended regulations, shall be sent by the Clerk of the Commission to the Bureau in care of Deputy Commissioner Douglas C. Stolte, who forthwith shall give further notice of the amendments to the regulations by mailing a copy of this Order, together with the amended regulations, to all licensed life insurers, burial societies, fraternal benefit societies, qualified reinsurers, and certain interested parties designated by the Bureau.
(5) The Bureau shall file with the Clerk of the Commission an affidavit of compliance with the notice requirements of Ordering Paragraph (2) above.
A. The following general provisions shall apply with respect to the preparation and submission of the asset adequacy memorandum required by § 38.2-3127.1 of the Code of Virginia.
1. In accordance with § 38.2-3127.1 of the Code of Virginia, the appointed actuary shall prepare a memorandum to the company describing the analysis done in support of his opinion regarding the reserves. The memorandum shall be made available for examination by the commission upon its request but shall be returned to the company after such examination and shall not be considered a record of the Bureau of Insurance or subject to automatic filing with the commission.
4. The reviewing actuary shall have the same status as an examiner for purposes of obtaining data from the company and the work papers and documentation of the reviewing actuary shall be retained by the commission; provided, however, that any information provided by the company to the reviewing actuary and included in the work papers shall be considered as material provided by the company to the commission and shall be kept confidential to the same extent as is prescribed by law with respect to other material provided by the company to the commission pursuant to the statute governing this chapter. The reviewing actuary shall not be an employee of a consulting firm involved with the preparation of any prior memorandum or opinion for the insurer pursuant to this chapter for any one of the current year or the preceding three years.
5. In accordance with § 38.2-3127.1 of the Code of Virginia, the appointed actuary shall prepare a regulatory asset adequacy issues summary, the contents of which are specified in subsection C of this section. The regulatory asset adequacy issues summary shall be submitted no later than March 15 of the year following the year for which a statement of actuarial opinion based on asset adequacy is required. The regulatory asset adequacy issues summary is to be kept confidential to the same extent and under the same conditions as the actuarial memorandum.
14VAC5-321-30. 2001 CSO Mortality Table.
A. At the election of the insurer for any one or more specified plans of insurance and subject to the conditions stated in this chapter, the 2001 CSO Mortality Table may be used as the minimum standard for policies issued on or after July January 1, 2004, and before the date specified in subsection B of this section to which subdivision 1 of § 38.2-3130 and § 38.2-3209 of the Code of Virginia are applicable. If the insurer elects to use the 2001 CSO Mortality Table, it shall do so for both valuation and nonforfeiture purposes.
B. Subject to the conditions stated in this chapter, the 2001 CSO Mortality Table shall be used in determining minimum standards for policies issued on and after January 1, 2009, to which subdivision 1 of § 38.2-3130 and § 38.2-3209 of the Code of Virginia are applicable.
C. A table from the 2001 CSO Preferred Class Structure Mortality Table used in place of a 2001 CSO Mortality Table, pursuant to the requirements of 14VAC5-322, will be treated as part of the 2001 CSO Mortality Table only for purposes of reserve valuation pursuant to the requirements of this chapter.
VA.R. Doc. No. R10-2018; Filed December 8, 2009, 3:17 p.m.