Banking and Insurance; and then to the Committee on Finance.]A BILL to amend and reenact sections nine and nineteen, article two, chapter thirty-three of the code of West Virginia, one thousand nine hundred thirty-one, as amended; to amend and reenact section nine, article seven of said chapter; and to amend and reenact section one, article thirty-nine of said chapter, all relating to authorizing limited disclosure of confidential information received by the insurance commissioner; making amendments regarding disclosure of confidential information by the insurance commissioner to federal banking agencies required by the federal Gramm- Leach-Bliley Act; and making technical corrections.
That sections nine and nineteen, article two, chapter
thirty-three of the code of West Virginia, one thousand nine hundred thirty-one, as amended, be amended and reenacted; that
section nine, article seven of said chapter be amended and
reenacted; and that section one, article thirty-nine of said
chapter be amended and reenacted, all to read as follows:§33-2-9. Examination of insurers, agents, brokers and solicitors; access to books, records, etc.
(a) The purpose of this section is to provide an effective and
efficient system for examining the activities, operations,
financial condition and affairs of all persons transacting the
business of insurance in this state and all persons otherwise
subject to the jurisdiction of the commissioner. The provisions of
this section are intended to enable the commissioner to adopt a
flexible system of examinations which directs resources as may be
considered appropriate and necessary for the administration of the
insurance and insurance-related laws of this state.(b) For purposes of this section, the following definitions
shall apply:(1) "Commissioner" means the commissioner of insurance of this
state;(2) "Company" or "insurance company" means any person engaging
in or proposing or attempting to engage in any transaction or kind
of insurance or surety business and any person or group of persons
who may otherwise be subject to the administrative, regulatory or taxing authority of the commissioner, including, but not limited
to, any domestic or foreign stock company, mutual company, mutual
protective association, farmers mutual fire companies, fraternal
benefit society, reciprocal or interinsurance exchange, nonprofit
medical care corporation, nonprofit health care corporation,
nonprofit hospital service association, nonprofit dental care
corporation, health maintenance organization, captive insurance
company, risk retention group or other insurer regardless of the
type of coverage written, benefits provided or guarantees made by
each;(3) "Department" means the department of insurance of this
state; and(4) "Examiners" means the commissioner of insurance or any
individual or firm having been authorized by the commissioner to
conduct an examination pursuant to this section, including, but not
limited to, the commissioner's deputies, other employees, appointed
examiners or other appointed individuals or firms who are not
employees of the department of insurance.(c) The commissioner or his or her examiners may conduct an
examination under this section of any company as often as the
commissioner in his or her discretion considers appropriate. The
commissioner or his or her examiners shall at least once every five
years visit each domestic insurer and thoroughly examine its
financial condition and methods of doing business and ascertain whether it has complied with all the laws and regulations of this
state. The commissioner may also examine the affairs of any
insurer applying for a license to transact any insurance business
in this state.(d) The commissioner or his or her examiners shall, at a
minimum, conduct an examination of every foreign or alien insurer
licensed in this state not less frequently than once every five
years. The examination of an alien insurer may be limited to its
United States business: Provided, That in lieu of an examination
under this section of any foreign or alien insurer licensed in this
state, the commissioner may accept an examination report on the
company as prepared by the insurance department for the company's
state of domicile or port-of-entry state until the first day of
January, one thousand nine hundred ninety-four. Thereafter, the
reports may only be accepted if:(1) The insurance department was at the time of the
examination accredited under the national association of insurance
commissioners' financial regulation standards and accreditation
program; or(2) The examination is performed under the supervision of an
accredited insurance department or with the participation of one or
more examiners who are employed by an accredited state insurance
department and who, after a review of the examination work papers
and report, state under oath that the examination was performed in a manner consistent with the standards and procedures required by
their insurance department.(e) In scheduling and determining the nature, scope and
frequency of examinations conducted pursuant to this section, the
commissioner may consider such matters as the results of financial
statement analyses and ratios, changes in management or ownership,
actuarial opinions, reports of independent certified public
accountants and other criteria as set forth in the examiners'
handbook adopted by the national association of insurance
commissioners and in effect when the commissioner exercises
discretion under this section.(f) For purposes of completing an examination of any company
under this section, the commissioner may examine or investigate any
person, or the business of any person, insofar as the examination
or investigation is, in the sole discretion of the commissioner,
necessary or material to the examination of the company.(g) The commissioner may also cause to be examined, at the
times as he or she considers necessary, the books, records, papers,
documents, correspondence and methods of doing business of any
agent, broker, excess lines broker or solicitor licensed by this
state. For these purposes, the commissioner or his or her
examiners shall have free access to all books, records, papers,
documents and correspondence of all the agents, brokers, excess
lines brokers and solicitors wherever the books, records, papers, documents and records are situate. The commissioner may revoke the
license of any agent, broker, excess lines broker or solicitor who
refuses to submit to the examination.(h) In addition to conducting an examination, the commissioner
or his or her examiners may, as the commissioner considers
necessary, analyze or review any phase of the operations or methods
of doing business of an insurer, agent, broker, excess lines
broker, solicitor or other individual or corporation transacting or
attempting to transact an insurance business in the state of West
Virginia. The commissioner may use the full resources provided by
this section in carrying out these responsibilities, including any
personnel and equipment provided by this section as the
commissioner considers necessary.(i) Examinations made pursuant to this section shall be
conducted in the following manner:(1) Upon determining that an examination should be conducted,
the commissioner or his or her designee shall issue an examination
warrant appointing one or more examiners to perform the examination
and instructing them as to the scope of the examination. The
appointment of any examiners pursuant to this section by the
commissioner shall not be subject to the requirements of article
three, chapter five-a of this code, except that the contracts and
agreements shall be approved as to form and conformity with
applicable law by the attorney general. In conducting the examination, the examiner shall observe those guidelines and
procedures set forth in the examiners' handbook adopted by the
national association of insurance commissioners. The commissioner
may also employ any other guidelines or procedures as the
commissioner may consider appropriate;(2) Every company or person from whom information is sought,
its officers, directors and agents shall provide to the examiners
appointed under subdivision (1) of this subsection timely,
convenient and free access at all reasonable hours at its offices
to all books, records, accounts, papers, documents and any or all
computer or other recordings relating to the property, assets,
business and affairs of the company being examined. The officers,
directors, employees and agents of the company or person shall
facilitate the examination and aid in the examination so far as it
is in their power to do so;(3) The refusal of any company, by its officers, directors,
employees or agents, to submit to examination or to comply with any
reasonable written request of the examiners shall be grounds for
suspension, revocation, refusal or nonrenewal of any license or
authority held by the company to engage in an insurance or other
business subject to the commissioner's jurisdiction. Any
proceedings for suspension, revocation, refusal or nonrenewal of
any license or authority shall be conducted pursuant to section
eleven of this article;(4) The commissioner or his or her examiners shall have the
power to issue subpoenas, to administer oaths and to examine under
oath any person as to any matter pertinent to the examination,
analysis or review. The subpoenas shall be enforced pursuant to
the provisions of section six of this article;(5) When making an examination, analysis or review under this
section, the commissioner may retain attorneys, appraisers,
independent actuaries, independent certified public accountants,
professionals or specialists with training or experience in
reinsurance, investments or information systems or other
professionals and specialists as examiners, the cost of which shall
be borne by the company which is the subject of the examination,
analysis or review or, in the commissioner's discretion, paid from
the commissioner's examination revolving fund. The commissioner
may recover costs paid from the commissioner's examination
revolving fund pursuant to this subdivision from the company upon
which the examination, analysis or review is conducted unless the
subject of the examination, analysis or review is an individual
described in subdivision (2), subsection (q) of this section;(6) Nothing contained in this section may be construed to
limit the commissioner's authority to terminate or suspend any
examination, analysis or review in order to pursue other legal or
regulatory action pursuant to the insurance laws of this state.
The commissioner or his or her examiners may at any time testify and offer other proper evidence as to information secured during
the course of an examination, analysis or review whether or not a
written report of the examination has at that time either been
made, served or filed in the commissioner's office;(7) Nothing contained in this section may be construed to
limit the commissioner's authority to use and, if appropriate, to
make public any final or preliminary examination report, any
examiner or company workpapers or other documents or any other
information discovered or developed during the course of any
examination, analysis or review in the furtherance of any legal or
regulatory action which the commissioner may, in his or her sole
discretion, consider appropriate. An examination report, when
filed, shall be admissible in evidence in any action or proceeding
brought by the commissioner against an insurance company, its
officers or agents and shall be prima facie evidence of the facts
stated therein.(j) Examination reports prepared pursuant to the provisions of
this section shall comply with the following requirements:(1) All examination reports shall be comprised of only facts
appearing upon the books, records or other documents of the
company, its agents or other persons examined or as ascertained
from the testimony of its officers or agents or other persons
examined concerning its affairs and any conclusions and
recommendations the examiners find reasonably warranted from the facts;(2) No later than sixty days following completion of the
examination the examiner in charge shall file with the commissioner
a verified written report of examination under oath. Upon receipt
of the verified report, the commissioner shall transmit the report
to the company examined, together with a notice which shall afford
the company examined a reasonable opportunity of not more than ten
days to make a written submission or rebuttal with respect to any
matters contained in the examination report;(3) Within thirty days of the end of the period allowed for
the receipt of written submissions or rebuttals the commissioner
shall fully consider and review the report, together with any
written submissions or rebuttals and any relevant portions of the
examiner's workpapers and enter an order:(A) Adopting the examination report as filed or with
modification or corrections. If the examination report reveals
that the company is operating in violation of any law, rule or
prior order of the commissioner, the commissioner may order the
company to take any action the commissioner considers necessary and
appropriate to cure the violation; or(B) Rejecting the examination report with directions to the
examiners to reopen the examination for purposes of obtaining
additional data, documentation or information and refiling pursuant
to subdivision (2) of this subsection; or(C) Calling for an investigatory hearing with no less than
twenty days' notice to the company for purposes of obtaining
additional documentation, data, information and testimony;(4) All orders entered pursuant to this subsection shall be
accompanied by findings and conclusions resulting from the
commissioner's consideration and review of the examination report,
relevant examiner workpapers and any written submissions or
rebuttals. Any order issued pursuant to paragraph (A), subdivision
(3) of this subsection shall be considered a final administrative
decision and may be appealed pursuant to section fourteen of this
article and shall be served upon the company by certified mail,
together with a copy of the adopted examination report. Within
thirty days of the issuance of the adopted report the company shall
file affidavits executed by each of its directors stating under
oath that they have received a copy of the adopted report and
related orders.(k) Hearings conducted pursuant to this section shall be
subject to the following requirements:(1) Any hearing conducted pursuant to this section by the
commissioner or the commissioner's authorized representative shall
be conducted as a nonadversarial confidential investigatory
proceeding as necessary for the resolution of any inconsistencies,
discrepancies or disputed issues apparent upon the face of the
filed examination report or raised by or as a result of the commissioner's review of relevant workpapers or by the written
submission or rebuttal of the company. Within twenty days of the
conclusion of any hearing, the commissioner shall enter an order
pursuant to paragraph (A), subdivision (3), subsection (j) of this
section;(2) The commissioner may not appoint an examiner as an
authorized representative to conduct the hearing. The hearing
shall proceed expeditiously with discovery by the company limited
to the examiner's workpapers which tend to substantiate any
assertions set forth in any written submission or rebuttal. The
commissioner or the commissioner's representative may issue
subpoenas for the attendance of any witnesses or the production of
any documents considered relevant to the investigation whether
under the control of the commissioner, the company or other
persons. The documents produced shall be included in the record
and testimony taken by the commissioner or the commissioner's
representative shall be under oath and preserved for the record.
Nothing contained in this section shall require the commissioner to
disclose any information or records which would indicate or show
the existence or content of any investigation or activity of a
criminal justice agency;(3) The hearing shall proceed with the commissioner or the
commissioner's representative posing questions to the persons
subpoenaed. Thereafter, the company and the department may present testimony relevant to the investigation. Cross-examination may be
conducted only by the commissioner or the commissioner's
representative. The company and the commissioner shall be
permitted to make closing statements and may be represented by
counsel of their choice.(l) Adoption of the examination report shall be subject to the
following requirements:(1) Upon the adoption of the examination report under
paragraph (A), subdivision (3), subsection (j) of this section, the
commissioner may continue to hold the content of the examination
report as private and confidential information for a period of
ninety days except to the extent provided in subdivision (6),
subsection (i) of this section. Thereafter, the commissioner may
open the report for public inspection so long as no court of
competent jurisdiction has stayed its publication;(2) Nothing contained in this section may prevent or be
construed as prohibiting the commissioner from disclosing the
content of an examination report, preliminary examination report or
results or any matter relating thereto or the results of any
analysis or review to the insurance department of this or any other
state or country or to law-enforcement officials of this or any
other state or agency of the federal government at any time, so
long as the agency or office receiving the report or matters
relating thereto agrees in writing to hold it confidential and in a manner consistent with this section;(3) In the event the commissioner determines that regulatory
action is appropriate as a result of any examination, analysis or
review, he or she may initiate any proceedings or actions as
provided by law;(4) All working papers, recorded information, documents and
copies thereof produced by, obtained by or disclosed to the
commissioner or any other person in the course of an examination,
analysis or review made under this section must be given
confidential treatment and are not subject to subpoena and may not
be made public by the commissioner or any other person, except to
the extent provided in subdivision (5), subsection (i) of this
section. Access may also be granted (m) The commissioner may require any examiner to furnish a
bond in such amount as the commissioner may determine to be
appropriate and the bond shall be approved, filed and premium paid,
with suitable proof submitted to the commissioner, prior to
commencement of employment by the commissioner. No examiner may be
appointed by the commissioner if the examiner, either directly or indirectly, has a conflict of interest or is affiliated with the
management of or owns a pecuniary interest in any person subject to
examination under this section. This section shall not be
construed to automatically preclude an examiner from being:(1) A policyholder or claimant under an insurance policy;(2) A grantor of a mortgage or similar instrument on the
examiner's residence to a regulated entity if done under customary
terms and in the ordinary course of business;(3) An investment owner in shares of regulated diversified
investment companies; or(4) A settlor or beneficiary of a "blind trust" into which any
otherwise impermissible holdings have been placed;(5) Notwithstanding the requirements of this subsection, the
commissioner may retain, from time to time, on an individual basis
qualified actuaries, certified public accountants or other similar
individuals who are independently practicing their professions even
though these persons may, from time to time, be similarly employed
or retained by persons subject to examination under this section.(n) Personnel conducting examinations, analyses or reviews of
either a domestic, foreign or alien insurer shall be compensated
for each day worked at a rate set by the commissioner. The
personnel shall also be reimbursed for their travel and living
expenses at the rate set by the commissioner. Other individuals
who are not employees of the department of insurance shall all be compensated for their work, travel and living expenses at rates
approved by the commissioner or as otherwise provided by law. As
used in this section, the costs of an examination, analysis or
review means:(1) The entire compensation for each day worked by all
personnel, including those who are not employees of the department
of insurance, the conduct of the examination, analysis or review
calculated as hereinbefore provided;(2) Travel and living expenses of all personnel, including
those who are not employees of the department of insurance,
directly engaged in the conduct of the examination, analysis or
review calculated at the rates as hereinbefore provided for;(3) All other incidental expenses incurred by or on behalf of
the personnel in the conduct of any authorized examination,
analysis or review.(o) All insurers subject to the provisions of this section
shall annually pay to the commissioner on or before the first day
of July, one thousand nine hundred ninety-one, and every first day
of July thereafter an examination assessment fee of eight hundred
dollars. Four hundred fifty dollars of this fee shall be paid to
the treasurer of the state to the credit of a special revolving
fund to be known as the "Commissioner's Examination Revolving Fund"
which is hereby established and three hundred fifty dollars shall
be paid to the treasurer of the state. The commissioner may at his or her discretion, upon notice to the insurers subject to this
section, increase this examination assessment fee or levy an
additional examination assessment fee of two hundred fifty dollars.
In no event may the total examination assessment fee, including any
additional examination assessment fee levied, exceed one thousand
five hundred dollars per insurer in any calendar year.(p) The moneys collected by the commissioner from an increase
or additional examination assessment fee shall be paid to the
treasurer of the state to be credited to the commissioner's
examination revolving fund. Any funds expended or obligated by the
commissioner from the commissioner's examination revolving fund may
be expended or obligated solely for defrayment of the costs of
examinations, analyses or reviews of the financial affairs and
business practices of insurance companies, agents, brokers, excess
lines brokers, solicitors or other individuals or corporations
transacting or attempting to transact an insurance business in this
state made by the commissioner pursuant to this section or for the
purchase of equipment and supplies, travel, education and training
for the commissioner's deputies, other employees and appointed
examiners necessary for the commissioner to fulfill the statutory
obligations created by this section.(q) The commissioner may require other individuals who are not
employees of the department of insurance who have been appointed by
the commissioner to conduct or participate in the examination, analysis or review of insurers, agents, brokers, excess lines
brokers, solicitors or other individuals or corporations
transacting or attempting to transact an insurance business in this
state to:(1) Bill and receive payments directly from the insurance
company being examined, analyzed or reviewed for their work, travel
and living expenses as previously provided for in this section; or(2) If an individual agent, broker or solicitor is being
examined, analyzed or reviewed, bill and receive payments directly
from the commissioner's examination revolving fund for their work,
travel and living expenses as previously provided for in this
section. The commissioner may recover costs paid from the
commissioner's examination revolving fund pursuant to this
subdivision from the person upon whom the examination, analysis or
review is conducted.(r) The commissioner and his or her examiners shall be
entitled to immunity to the following extent:(1) No cause of action shall arise nor shall any liability be
imposed against the commissioner or his or her examiners for any
statements made or conduct performed in good faith while carrying
out the provisions of this section;(2) No cause of action shall arise, nor shall any liability be
imposed, against any person for the act of communicating or
delivering information or data to the commissioner or his or her examiners pursuant to an examination, analysis or review made under
this section if the act of communication or delivery was performed
in good faith and without fraudulent intent or the intent to
deceive;(3) The commissioner or any examiner shall be entitled to an
award of attorney's fees and costs if he or she is the prevailing
party in a civil cause of action for libel, slander or any other
relevant tort arising out of activities in carrying out the
provisions of this section and the party bringing the action was
not substantially justified in doing so. For purposes of this
section, a proceeding is "substantially justified" if it had a
reasonable basis in law or fact at the time that it was initiated;(4) This subsection does not abrogate or modify in any way any
constitutional immunity or common law or statutory privilege or
immunity heretofore enjoyed by any person identified in subdivision
(1) of this subsection.In order to assist the commissioner in the regulation of
insurers in this state, it is the duty of the commissioner to
maintain, as confidential, and to take all reasonable steps to
oppose any effort to secure disclosure of, any documents or
information received from the national association of insurance
commissioners, federal banking agencies or insurance departments of
other states which is confidential in such other jurisdictions. It is within the power of the commissioner to share information,
including otherwise confidential information, with the national
association of insurance commissioners, the board of governors of
the federal reserve system or other appropriate federal banking
agency or insurance departments of other states: Provided, That
such other jurisdictions agree to maintain the same level of
confidentiality as is available under this statute and to take all
reasonable steps to oppose any effort to secure disclosure of the
information. "Federal banking agency" means the comptroller of the
currency, the director of the office of thrift supervision, the
board of governors of the federal reserve system or the federal
deposit insurance corporation as set forth in section three of the
federal deposit insurance act.(a) Title. -- This section shall be known as the standard
valuation law.(b) Reserve valuation. -- The commissioner shall annually
value, or cause to be valued, the reserve liabilities (hereinafter
called reserves) for all outstanding life insurance policies and
annuity and pure endowment contracts of every life insurance
company doing business in this state and may certify the amount of
any such reserves specifying the mortality table or tables, rate or
rates of interest and methods (net level premium method or other) used in the calculation of such reserves. In calculating such
reserves, he or she may use group methods and approximate averages
for fractions of a year or otherwise. In lieu of the valuation of
the reserves herein required of any foreign or alien company, he or
she may accept any valuation made, or caused to be made, by the
insurance supervisory official of any state or other jurisdiction
when such valuation complies with the minimum standard herein
provided and if the official of such state or jurisdiction accepts
as sufficient and for all valid legal purposes the certificate of
valuation of the commissioner when such certificate states the
valuation to have been made in a specified manner according to
which the aggregate reserves would be at least as large as if they
had been computed in the manner prescribed by the law of that state
or jurisdiction.(c) Actuarial opinion of reserves. -- This subsection shall
become operative on the first day of January, one thousand nine
hundred ninety-six.(1) General. -- Every life insurance company doing business in
this state shall annually submit the opinion of a qualified actuary
as to whether the reserves and related actuarial items held in
support of the policies and contracts specified by the commissioner
by regulation are computed appropriately, are based on assumptions
which satisfy contractual provisions, are consistent with prior
reported amounts and comply with applicable laws of this state. The commissioner by regulation shall define the specifics of this
opinion and add any other item considered to be necessary to its
scope.(2) Actuarial analysis of reserves and assets supporting such
reserves. --(A) Every life insurance company, except as exempted by or
pursuant to regulation, shall also annually include in the opinion
required by subdivision (1) of this subsection an opinion of the
same qualified actuary as to whether the reserves and related
actuarial items held in support of the policies and contracts
specified by the commissioner by regulation, when considered in
light of the assets held by the company with respect to the
reserves and related actuarial items, including, but not limited
to, the investment earnings on the assets and the considerations(B) The commissioner may provide by regulation for a
transition period for establishing any higher reserves which the
qualified actuary may consider necessary in order to render the
opinion required by this subsection.(3) Requirement for opinion under subdivision (2). -- Each opinion required by subdivision (2) of this subsection shall be
governed by the following provisions:(A) A memorandum in form and substance acceptable to the
commissioner as specified by regulation shall be prepared to
support each actuarial opinion.(B) If the insurance company fails to provide a supporting
memorandum at the request of the commissioner within a period
specified by regulation or the commissioner determines that the
supporting memorandum provided by the insurance company fails to
meet the standards prescribed by the regulations or is otherwise
unacceptable to the commissioner, the commissioner may engage a
qualified actuary at the expense of the company to review the
opinion and the basis for the opinion and prepare such supporting
memorandum as is required by the commissioner.(4) Requirement for all opinions. -- Every opinion shall be
governed by the following provisions:(A) The opinion shall be submitted with the annual statement
reflecting the valuation of such reserve liabilities for each year
ending on or after the thirty-first day of December, one thousand
nine hundred ninety-five.(B) The opinion shall apply to all business in force,
including individual and group health insurance plans, in form and
substance acceptable to the commissioner as specified by
regulation.(C) The opinion shall be based on standards adopted, from time
to time, by the actuarial standards board and on such additional
standards as the commissioner may by regulation prescribe.(D) In the case of an opinion required to be submitted by a
foreign or alien company, the commissioner may accept the opinion
filed by that company with the insurance supervisory official of
another state if the commissioner determines that the opinion
reasonably meets the requirements applicable to a company domiciled
in this state.(E) For the purposes of this section, "qualified actuary"
means a member in good standing of the American academy of
actuaries who meets the requirements set forth in such regulations.(F) Except in cases of fraud or willful misconduct, the
qualified actuary shall not be liable for damages to any person
(other than the insurance company and the commissioner) for any
act, error, omission, decision or conduct with respect to the
actuary's opinion.(G) Disciplinary action by the commissioner against the
company or the qualified actuary shall be defined in regulations by
the commissioner.(H) Any memorandum in support of the opinion and any other
material provided by the company to the commissioner in connection
therewith shall be kept confidential by the commissioner and shall
not be made public and shall not be subject to subpoena, other than for the purpose of defending an action seeking damages from any
person by reason of any action required by this section or by
regulations promulgated hereunder: Provided, That the memorandum
or other material may otherwise be released by the commissioner:
(i) With the written consent of the company; (d) Computation of minimum standards. -- Except as otherwise
provided in subsections (e), (f) and (m) of this section, the
minimum standard for the valuation of all such policies and
contracts issued prior to the effective date of this section shall
be that provided by the laws in effect immediately prior to such
date. Except as otherwise provided in subsections (e), (f) and (m)
of this section, the minimum standard for the valuation of all such
policies and contracts issued on or after the effective date of this section shall be the commissioners reserve valuation methods
defined in subsections (g), (h), (k) and (m) of this section, three
and one-half percent interest or in the case of life insurance
policies and contracts, other than annuity and pure endowment
contracts, issued on or after the first day of June, one thousand
nine hundred seventy-four, four percent interest for such policies
issued prior to the sixth day of April, one thousand nine hundred
seventy-seven, five and one-half percent interest for single
premium life insurance policies and four and one-half percent
interest for all other such policies issued on and after the sixth
day of April, one thousand nine hundred seventy-seven, and the
following tables:(1) For all ordinary policies of life insurance issued on the
standard basis, excluding any disability and accidental death
benefits in such policies: The commissioners 1941 standard
ordinary mortality table for such policies issued prior to the
operative date of subsection (4a), section thirty, article thirteen
of this chapter; the commissioners 1958 standard ordinary mortality
table for such policies issued on or after the operative date of
said subsection and prior to the operative date of subsection (4c)
of said section: Provided, That for any category of such policies
issued on female risks, all modified net premiums and present
values referred to in this section may be calculated according to
an age not more than six years younger than the actual age of the insured; and for such policies issued on or after the operative
date of subsection (4c), section thirty, article thirteen of this
chapter: (i) The commissioners 1980 standard ordinary mortality
table; or (ii) at the election of the company for any one or more
specified plans of life insurance, the commissioners 1980 standard
ordinary mortality table with ten-year select mortality factors; or
(iii) any ordinary mortality table adopted after the year one
thousand nine hundred eighty by the national association of
insurance commissioners that is approved by regulation promulgated
by the commissioner for use in determining the minimum standard of
valuation for such policies.(2) For all industrial life insurance policies issued on the
standard basis, excluding any disability and accidental death
benefits in such policies: The 1941 standard industrial mortality
table for such policies issued prior to the operative date of
subdivision (4), subsection (b), section thirty, article thirteen
of this chapter and for such policies issued on or after such
operative date, the commissioners 1961 standard industrial
mortality table or any industrial mortality table adopted after the
year one thousand nine hundred eighty by the national association
of insurance commissioners that is approved by regulation
promulgated by the commissioner for use in determining the minimum
standard of valuation for such policies.(3) For individual annuity and pure endowment contracts, excluding any disability and accidental death benefits in such
policies: The 1937 standard annuity mortality table or, at the
option of the company, the annuity mortality table for 1949,
ultimate, or any modification of either of these tables approved by
the commissioner.(4) For group annuity and pure endowment contracts, excluding
any disability and accidental death benefits in such policies: The
group annuity mortality table for 1951, any modification of such
table approved by the commissioner, or at the option of the
company, any of the tables or modifications of tables specified for
individual annuity and pure endowment contracts.(5) For total and permanent disability benefits in or
supplementary to ordinary policies or contracts: For policies or
contracts issued on or after the first day of January, one thousand
nine hundred sixty-six, the tables of period two disablement rates
and the 1930 to 1950 termination rates of the 1952 disability study
of the society of actuaries, with due regard to the type of benefit
or any tables of disablement rates and termination rates adopted
after the year one thousand nine hundred eighty by the national
association of insurance commissioners that are approved by
regulation promulgated by the commissioner for use in determining
the minimum standard of valuation for such policies; for policies
or contracts issued on or after the first day of January, one
thousand nine hundred sixty-one, and prior to the first day of January, one thousand nine hundred sixty-six, either such tables
or, at the option of the company, the Class (3) disability table
(1926); and for policies issued prior to the first day of January,
one thousand nine hundred sixty-one, the Class (3) disability table
(1926).Any such table shall, for active lives, be combined with a
mortality table permitted for calculating the reserves for life
insurance policies.(6) For accidental death benefits in or supplementary to
policies issued on or after the first day of January, one thousand
nine hundred sixty-six, the 1959 accidental death benefits table or
any accidental death benefits table adopted after the year one
thousand nine hundred eighty by the national association of
insurance commissioners, that is approved by regulation promulgated
by the commissioner for use in determining the minimum standard of
valuation for such policies, for policies issued on or after the
first day of January, one thousand nine hundred sixty-one, and
prior to the first day of January, one thousand nine hundred
sixty-six, either such table or, at the option of the company, the
intercompany double indemnity mortality table; and for policies
issued prior to the first day of January, one thousand nine hundred
sixty-one, the intercompany double indemnity mortality table.
Either table shall be combined with a mortality table for
calculating the reserves for life insurance policies.(7) For group life insurance, life insurance issued on the
substandard basis and other special benefits: Such tables as may
be approved by the commissioner.(e) Computation of minimum standard for annuities. -- Except(1) For individual annuity and pure endowment contracts issued
prior to the sixth day of April, one thousand nine hundred
seventy-seven, excluding any disability and accidental death
benefits in such contracts: The 1971 individual annuity mortality
table or any modification of this table approved by the
commissioner and six percent interest for single premium immediate
annuity contracts and four percent interest for all other
individual annuity and pure endowment contracts;(2) For individual single premium immediate annuity contracts
issued on or after the sixth day of April, one thousand nine
hundred seventy-seven, excluding any disability and accidental
death benefits in such contracts: The 1971 individual annuity mortality table or any individual annuity mortality table adopted
after the year one thousand nine hundred eighty by the national
association of insurance commissioners that is approved by
regulation promulgated by the commissioner for use in determining
the minimum standard of valuation for such contracts or any
modification of these tables approved by the commissioner and seven
and one-half percent interest;(3) For individual annuity and pure endowment contracts issued
on or after the sixth day of April, one thousand nine hundred
seventy-seven, other than single premium immediate annuity
contracts, excluding any disability and accidental death benefits
in such contracts: The 1971 individual annuity mortality table or
any individual annuity mortality table adopted after the year one
thousand nine hundred eighty by the national association of
insurance commissioners that is approved by regulation promulgated
by the commissioner for use in determining the minimum standard of
valuation for such contracts or any modification of these tables
approved by the commissioner and five and one-half percent interest
for single premium deferred annuity and pure endowment contracts
and four and one-half percent interest for all other such
individual annuity and pure endowment contracts;(4) For all annuities and pure endowments purchased prior to
the sixth day of April, one thousand nine hundred seventy-seven,
under group annuity and pure endowment contracts, excluding any disability and accidental death benefits purchased under such
contracts: The 1971 group annuity mortality table or any
modification of this table approved by the commissioner and six
percent interest;(5) For all annuities and pure endowments purchased on or
after the sixth day of April, one thousand nine hundred
seventy-seven, under group annuity and pure endowment contracts,
excluding any disability and accidental death benefits purchased
under such contracts: The 1971 group annuity mortality table or
any group annuity mortality table adopted after the year one
thousand nine hundred eighty by the national association of
insurance commissioners that is approved by regulation promulgated
by the commissioner for use in determining the minimum standard of
valuation for such annuities and pure endowments or any
modification of these tables approved by the commissioner and seven
and one-half percent interest.After the third day of June, one thousand nine hundred
seventy-four, any company may file with the commissioner a written
notice of its election to comply with the provisions of this
subsection after a specified date before the first day of January,
one thousand nine hundred seventy-nine, which shall be the
operative date of this subsection for such company provided, if a
company makes no such election, the operative date of this section
for such company shall be the first day of January, one thousand nine hundred seventy-nine.(f) Computation of minimum standard by calendar year of issue.
-(1) Applicability of this section. -- The interest rates used
in determining the minimum standard for the valuation of:(A) All life insurance policies issued in a particular
calendar year, on or after the operative date of subdivision (4),
subsection (c), section thirty, article thirteen of this chapter as
amended;(B) All individual annuity and pure endowment contracts issued
in a particular calendar year on or after the first day of January,
one thousand nine hundred eighty-two;(C) All annuities and pure endowments purchased in a
particular calendar year on or after the first day of January, one
thousand nine hundred eighty-two, under group annuity and pure
endowment contracts; and(D) The net increase, if any, in a particular calendar year(2) Calendar year statutory valuation interest rates. -(A) The calendar year statutory valuation interest rates, I,
shall be determined as follows and the results rounded to the nearer one quarter of one percent:(i) For life insurance, I =.03 + W(R1 -.03) + W/2(R2 -.09);(ii) For single premium immediate annuities and for annuity
benefits involving life contingencies arising from other annuities
with cash settlement options and from guaranteed interest contracts
with cash settlement options, I =.03 + W(R -.03) where R1 is the
lesser of R and .09, R2 is the greater of R and .09, R is the
reference interest rate defined in this subsection and W is the
weighting factor defined in this section;(iii) For other annuities with cash settlement options and
guaranteed interest contracts with cash settlement options, valued
on an issue year basis, except as stated in subparagraph (ii) of
this paragraph, the formula for life insurance stated in
subparagraph (i) of this paragraph shall apply to annuities and
guaranteed interest contracts with guarantee durations in excess of
ten years and the formula for single premium immediate annuities
stated in subparagraph (ii) of this paragraph shall apply to
annuities and guaranteed interest contracts with guarantee duration
of ten years or less;(iv) For other annuities with no cash settlement options and
for guaranteed interest contracts with no cash settlement options,
the formula for single premium immediate annuities stated in
subparagraph (ii) of this paragraph shall apply;(v) For other annuities with cash settlement options and guaranteed interest contracts with cash settlement options, valued
on a change in fund basis, the formula for single premium immediate
annuities stated in subparagraph (ii) of this paragraph shall
apply.(B) However, if the calendar year statutory valuation interest
rate for any life insurance policies issued in any calendar year
determined without reference to this sentence differs from the
corresponding actual rate for similar policies issued in the
immediately preceding calendar year by less than one half of one
percent, the calendar year statutory valuation interest rate for
such life insurance policies shall be equal to the corresponding
actual rate for the immediately preceding calendar year. For
purposes of applying the immediately preceding sentence, the
calendar year statutory valuation interest rate for life insurance
policies issued in a calendar year shall be determined for the year
one thousand nine hundred eighty (using the reference interest rate
defined for the year one thousand nine hundred seventy-nine) and
shall be determined for each subsequent calendar year regardless of
when subdivision (4), subsection (c), section thirty, article
thirteen of this chapter, as amended, becomes operative.(3) Weighting factors. -(A) The weighting factors referred to in the formulas stated
above are given in the following tables:(i) Weighting Factors for Life Insurance:Weighting Factors_____________________________________
10 or less .50
More than 10, but not more than 20 .45More than 20 .35For life insurance, the guarantee duration is the maximum
number of years the life insurance can remain in force on a basis(ii) Weighting factor for single premium immediate annuities
and for annuity benefits involving life contingencies arising from
other annuities with cash settlement options and guaranteed
interest contracts with cash settlement options: .80;(iii) Weighting factors for other annuities and for guaranteed
interest contracts, except as stated in subparagraph (ii) of this
paragraph, shall be as specified in clauses (I), (II) and (III) of
this subparagraph, according to the rules and definitions in
clauses (IV), (V) and (VI) of this subparagraph:(I) For annuities and guaranteed interest contracts valued on
an issue year basis:Weighting Factor for Plan Type
________________________________________________
5 or less: .80 .60 .50More than 5, but not more than 10: .75 .60 .50More than 10, but not more than 20: .65 .50 .45More than 20: .45 .35 .35(II) For annuities and guaranteed interest contracts valuedWeighting Factor for Plan Type
A B C1
_____________________
.15 .25 .05
(III) For annuities and guaranteed interest contracts valued
on an issue year basis (other than those with no cash settlement
options) which do not guarantee interest on considerations received
more than one year after issue or purchase and for annuities and
guaranteed interest contracts valued on a change in fund basis
which do not guarantee interest rates on considerations received
more than twelve months beyond the valuation date, the factors
shown in clause (I) of this subparagraph or derived in clause (II)
of this subparagraph increased by:Weighting Factor for Plan Type
A B C1
_______________________
.05 .05 .05
(IV) For other annuities with cash settlement options and
guaranteed interest contracts with cash settlement options, the
guarantee duration is the number of years for which the contract
guarantees interest rates in excess of the calendar year statutory
valuation interest rate for life insurance policies with guarantee
duration in excess of twenty years. For other annuities with no
cash settlement options and for guaranteed interest contracts with
no cash settlement options, the guaranteed duration is the number
of years from the date of issue or date of purchase to the date
annuity benefits are scheduled to commence.(V) Plan type as used in the above tables is defined as
follows:Plan Type A:At any time policyholder may withdraw funds only: (1) With an
adjustment to reflect changes in interest rates or asset values
since receipt of the funds by the insurance company; or (2) without
such adjustment but in installments over five years or more; or (3)
as an immediate life annuity; or (4) no withdrawal permitted;Plan Type B:Before expiration of the interest rate guarantee, policyholder
may withdraw funds only: (1) With an adjustment to reflect changes
in interest rates or asset values since receipt of the funds by the
insurance company; or (2) without such adjustment but in
installments over five years or more; or (3) no withdrawal permitted. At the end of interest rate guarantee, funds may be
withdrawn without such adjustment in a single sum or installments
over less than five years;Plan Type C:Policyholder may withdraw funds before expiration of interest
rate guarantee in a single sum or installments over less than five
years either: (1) Without adjustment to reflect changes in
interest rates or asset values since receipt of the funds by the
insurance company; or (2) subject only to a fixed surrender charge
stipulated in the contract as a percentage of the fund.(VI) A company may elect to value guaranteed interest
contracts with cash settlement options and annuities with cash
settlement options on either an issue year basis or on a change in
fund basis. Guaranteed interest contracts with no cash settlement
options and other annuities with no cash settlement options must be
valued on an issue year basis. As used in this section, an issue
year basis of valuation refers to a valuation basis under which the
interest rate used to determine the minimum valuation standard for
the entire duration of the annuity or guaranteed interest contract
is the calendar year valuation interest rate for the year of issue
or year of purchase of the annuity or guaranteed interest contract
and the change in fund basis of valuation refers to a valuation
basis under which the interest rate used to determine the minimum
valuation standard applicable to each change in the fund held under the annuity or guaranteed interest contract is the calendar year
valuation interest rate for the year of the change in the fund.(4) Reference interest rate. --(A) Reference interest rate referred to in subparagraph (ii),
paragraph (A), subdivision (2) of this subsection shall be defined
as follows:(i) For all life insurance, the lesser of the average over a
period of thirty-six months and the average over a period of twelve
months, ending on the thirtieth day of June of the calendar year
next preceding the year of issue, of the monthly average of the
composite yield on seasoned corporate bonds as published by Moody's
investors service, inc.(ii) For single premium immediate annuities and for annuity
benefits involving life contingencies arising from other annuities
with cash settlement options and guaranteed interest contracts with
cash settlement options, the average over a period of twelve
months, ending on the thirtieth day of June of the calendar year of
issue or year of purchase, of the monthly average of the composite
yield on seasoned corporate bonds as published by Moody's investors
service, inc.(iii) For other annuities with cash settlement options and
guaranteed interest contracts with cash settlement options, valued
on a year of issue basis, except as stated in subparagraph (ii) of
this paragraph, with guarantee duration in excess of ten years, the lesser of the average over a period of thirty-six months and the
average over a period of twelve months, ending on the thirtieth day
of June of the calendar year of issue or purchase, of the monthly
average of the composite yield on seasoned corporate bonds as
published by Moody's investors service, inc.(iv) For other annuities with cash settlement options and
guaranteed interest contracts with cash settlement options, valued
on a year of issue basis, except as stated in subparagraph (ii) of
this paragraph, with guarantee duration of ten years or less, the
average over a period of twelve months, ending on the thirtieth day
of June of the calendar year of issue or purchase, of the monthly
average of the composite yield on seasoned corporate bonds as
published by Moody's investors service, inc.(v) For other annuities with no cash settlement options and
for guaranteed interest contracts with no cash settlement options,
the average over a period of twelve months, ending on the thirtieth
day of June of the calendar year of issue or purchase, of the
monthly average of the composite yield on seasoned corporate bonds
as published by Moody's investors service, inc.(vi) For other annuities with cash settlement options and
guaranteed interest contracts with cash settlement options, valued
on a change in fund basis, except as stated in subparagraph (ii) of
this paragraph, the average over a period of twelve months, ending
on the thirtieth day of June of the calendar year of the change in the fund, of the monthly average of the composite yield on seasoned
corporate bonds as published by Moody's investors service, inc.(5) Alternative method for determining reference interest
rates. -In the event that the monthly average of the composite yield
on seasoned corporate bonds is no longer published by Moody's
investors service, inc., or in the event that the national
association of insurance commissioners determines that the monthly
average of the composite yield on seasoned corporate bonds as
published by Moody's investors service, inc., is no longer
appropriate for the determination of the reference interest rate,
then an alternative method for determination of the reference
interest rate, which is adopted by the national association of
insurance commissioners and approved by regulation promulgated by
the commissioner, may be substituted.(g) Reserve valuation method. -- Life insurance and endowmentExcept as otherwise provided in subsections (h), (k) and (m)
of this section, reserves according to the commissioners reserve
valuation method for the life insurance and endowment benefits of
policies providing for a uniform amount of insurance and requiring
the payment of uniform premiums shall be the excess, if any, of the
present value, at the date of valuation, of such future guaranteed
benefits provided for by such policies, over the then present value of any future modified net premiums therefor. The modified net
premiums for any such policy shall be such uniform percentage of
the respective contract premiums for such benefits that the present
value, at the date of issue of the policy, of all such modified net
premiums shall be equal to the sum of the then present value of
such benefits provided for by the policy and the excess of
subdivision (1) of this subsection over subdivision (2) of this
subsection, as follows:(1) A net level annual premium equal to the present value, at
the date of issue, of such benefits provided for after the first
policy year, divided by the present value, at the date of issue, of
an annuity of one per annum payable on the first and each
subsequent anniversary of such policy on which a premium falls due:
Provided, That such net level annual premium shall not exceed the
net level annual premium on the nineteen-year premium whole life
plan for insurance of the same amount at an age one year higher
than the age at issue of such policy.(2) A net one-year term premium for such benefits provided for
in the first policy year: Provided, That for any life insurance
policy issued on or after the first day of January, one thousand
nine hundred eighty-five, for which the contract premium in the
first policy year exceeds that of the second year and for which no
comparable additional benefit is provided in the first year for
such excess and which provides an endowment benefit or a cash surrender value or a combination thereof in an amount greater than
such excess premium, the reserve according to the commissioners'
reserve valuation method as of any policy anniversary occurring on
or before the assumed ending date defined herein as the first
policy anniversary on which the sum of any endowment benefit and
any cash surrender value then available is greater than such excess
premium shall, except as otherwise provided in subsection (k) of
this section, be the greater of the reserve as of such policy
anniversary calculated as described in the preceding paragraph and
the reserve as of such policy anniversary calculated as described
in that paragraph, but with: (i) The value defined in subdivision
(1) of that paragraph being reduced by fifteen percent of the
amount of such excess first-year premium; (ii) all present values
of benefits and premiums being determined without reference to
premiums or benefits provided for by the policy after the assumed
ending date; (iii) the policy being assumed to mature on such date
as an endowment; and (iv) the cash surrender value provided on such
date being considered as an endowment benefit. In making the above
comparison, the mortality and interest bases stated in subsections
(d) and (f) of this section shall be used.Reserves according to the commissioners' reserve valuation
method for: (i) Life insurance policies providing for a varying
amount of insurance or requiring the payment of varying premiums;
(ii) group annuity and pure endowment contracts purchased under a retirement plan or plan of deferred compensation, established or
maintained by an employer (including a partnership or sole
proprietorship) or by an employee organization, or by both, other
than a plan providing individual retirement accounts or individual
retirement annuities under section 408 of the Internal Revenue Code
(26 U. S. C. §408) as now or hereafter amended; (iii) disability
and accidental death benefits in all policies and contracts; and
(iv) all other benefits, except life insurance and endowment
benefits in life insurance policies and benefits provided by all
other annuity and pure endowment contracts, shall be calculated by
a method consistent with the principles of the preceding paragraphs
of this section.(h) Reserve valuation method. -- Annuity and pure endowment
benefits. This subsection shall apply to all annuity and pure
endowment contracts other than group annuity and pure endowment
contracts purchased under a retirement plan or plan of deferred
compensation established or maintained by an employer (including a
partnership or sole proprietorship) or by an employee organization,
or by both, other than a plan providing individual retirement
accounts or individual retirement annuities under section 408 of
the Internal Revenue Code (26 U. S. C. §408) as now or hereafter
amended.Reserves according to the commissioners' annuity reserve
method for benefits under annuity or pure endowment contracts, excluding any disability and accidental death benefits in such
contracts, shall be the greatest of the respective excesses of the
present values, at the date of valuation, of the future guaranteed
benefits, including guaranteed nonforfeiture benefits, provided for
by such contracts at the end of each respective contract year over
the present value, at the date of valuation, of any future
valuation considerations derived from future gross considerations,
required by the terms of such contract, that become payable prior
to the end of such respective contract year.The future guaranteed benefits shall be determined by using
the mortality table, if any, and the interest rate, or rates,
specified in such contracts for determining guaranteed benefits.
The valuation considerations are the portions of the respective
gross considerations applied under the terms of such contracts to
determine nonforfeiture values.(i) Minimum reserves. --(1) In no event shall a company's aggregate reserves for all
life insurance policies, excluding disability and accidental death
benefits, issued on or after the effective date of this section be
less than the aggregate reserves calculated in accordance with the
methods set forth in subsections (g), (h), (k) and (l) of this
section and the mortality table or tables and rate or rates of
interest used in calculating nonforfeiture benefits for such
policies.(2) In no event shall the aggregate reserves for all policies,
contracts and benefits be less than the aggregate reserves
determined by the qualified actuary to be necessary to render the
opinion required by subsection (c) of this section.(j) Optional reserve calculation. --Reserves for all policies and contracts issued prior to the
effective date of this section may be calculated, at the option of
the company, according to any standards which produce greater
aggregate reserves for all such policies and contracts than the
minimum reserves required by the laws in effect immediately prior
to such date.Reserves for any category of policies, contracts or benefits
as established by the commissioner issued on or after the effective
date of this section may be calculated, at the option of the
company, according to any standards which produce greater aggregate
reserves for such category than those calculated according to the
minimum standard herein provided, but the rate or rates of interest
used for policies and contracts, other than annuity and pure
endowment contracts, shall not be higher than the corresponding
rate or rates of interest used in calculating any nonforfeiture
benefits provided therein.Any such company which at any time shall have adopted any
standard of valuation producing greater aggregate reserves than
those calculated according to the minimum standard herein provided may, with the approval of the commissioner, adopt any lower
standard of valuation, but not lower than the minimum herein
provided: Provided, That for the purposes of this section, the
holding of additional reserves previously determined by a qualified
actuary to be necessary to render the opinion required by
subsection (c) of this section shall not be considered to be the
adoption of a higher standard of valuation.(k) Reserve calculation. -- Valuation net premium exceeding
the gross premium charged.If in any contract year the gross premium charged by any life
insurance company on any policy or contract is less than the
valuation net premium for the policy or contract calculated by the
method used in calculating the reserve thereon but using the
minimum valuation standards of mortality and rate of interest, the
minimum reserve required for such policy or contract shall be the
greater of either the reserve calculated according to the mortality
table, rate of interest and method actually used for such policy or
contract or the reserve calculated by the method actually used for
such policy or contract but using the minimum valuation standards
of mortality and rate of interest and replacing the valuation net
premium by the actual gross premium in each contract year for which
the valuation net premium exceeds the actual gross premium. The
minimum valuation standards of mortality and rate of interest
referred to in this section are those standards stated in subsections (d) and (f) of this section: Provided, That for any
life insurance policy issued on or after the first day of January,
one thousand nine hundred eighty-five, for which the gross premium
in the first policy year exceeds that of the second year and for
which no comparable additional benefit is provided in the first
year for such excess and which provides an endowment benefit or a
cash surrender value or a combination thereof in an amount greater
than such excess premium, the foregoing provisions of this
subsection shall be applied as if the method actually used in
calculating the reserve for such policy were the method described
in subsection (g) of this section, ignoring the second paragraph of
said subsection.The minimum reserve at each policy anniversary of such a
policy shall be the greater of the minimum reserve calculated in
accordance with said subsection, including the second paragraph of
that section, and the minimum reserve calculated in accordance with
this subsection.(l) Reserve calculation. -- Indeterminate premium plans.In the case of any plan of life insurance which provides for(1) Be appropriate in relation to the benefits and the pattern
of premiums for that plan; and(2) Be computed by a method which is consistent with the
principles of this standard valuation law as determined by
regulations promulgated by the commissioner.(m) Minimum standards for health (disability, accident and
sickness) plans. -The commissioner shall promulgate a regulation containing the
minimum standards applicable to the valuation of health
(disability, sickness and accident) plans.(n) The commissioner shall promulgate a rule on or before the
first day of November, one thousand nine hundred ninety-five,
prescribing the guidelines and standards for statements of
actuarial opinion which are to be submitted in accordance with
subsection (c) of this section and for memoranda in support
thereof; guidelines and standards for statements of actuarial
opinion which are to be submitted when a company is exempt from
subdivision (2) of said subsection of the standard valuation law;
and rules applicable to the appointment of an appointed actuary.(o) Effective date. --All acts and parts of acts inconsistent with the provision of
this section are hereby repealed as of the effective date of this section. This section shall take effect the first day of January,
one thousand nine hundred ninety-six.(p) Modification of the standard valuation law for certain
types of contracts. -(1) The commissioner may, by rule, establish alternative
methods of calculating reserve liabilities, which methods shall be
used to calculate reserve liabilities for the types of policies,
annuities or other contracts identified in the rule: Provided,
That the method specified in the rule shall be one which, in the
opinion of the commissioner and in light of the methods applied to
such contracts by the insurance regulators of other states, is
appropriate to such contracts. This power shall be in addition to,
and in no way diminish, rule-making power granted to the
commissioner elsewhere in this code.(2) The legislative rule filed in the state register on the
twentieth day of August, one thousand nine hundred ninety-six,
(valuation of life insurance policies, 114 CSR 49) is hereby
disapproved and is not authorized for promulgation: Provided, That
for purposes of determining the legal effects of the aforementioned
rule, this provision shall be considered to have taken effect on
the thirty-first day of December, one thousand nine hundred
ninety-seven. This disapproval shall in no way limit the
commissioner's power to promulgate in the future a rule similar or
identical to the rule here disapproved.(a) Every insurer domiciled in this state shall file a report
with the commissioner disclosing material acquisitions and
dispositions of assets or material nonrenewals, cancellations or
revisions of ceded reinsurance programs unless (b) The report required in subsection (a) of this section is
due within fifteen days after the end of the calendar month in
which any of the foregoing transactions occur.(c) One complete copy of the report, including any exhibits or
other attachments filed as part thereof, shall be filed with:(1) The insurance commissioner; and(2) The national association of insurance commissioners.(d) All reports obtained by or disclosed to the commissioner
pursuant to this article shall be given confidential treatment and
shall not be subject to subpoena and shall not be made public by
the commissioner, the national association of insurance
commissioners or any other person