3901-6-11 Recognition of the 2001 CSO mortality table for use in determining minimum reserve liabilities and nonforfeiture benefits.

 

 

 

Rule Summary and Fiscal Analysis (Part A)

 

Department Of Insurance

Agency Name

 

Tina Chubb

Division                                                                  Contact

 

2100 Stella Court Columbus OH 43215 - 1067             [phone]     (614)

644-3742

Agency Mailing Address (Plus Zip)                                       Phone                     Fax

 

 

 

3901-6-11

Rule Number

NEW

TYPE of rule filing

Rule Title/Tag Line              Recognition  of  the  2001  CSO  mortality  table  for  use  in

determining  minimum  reserve  liabilities  and  nonforfeiture benefits.

RULE SUMMARY

1.  Is the rule being filed consistent with the requirements of the RC 119.032 review? No

2.  Are you proposing this rule as a result of recent legislation? No

3.  Statute prescribing the procedure in accordance with the agency is required to adopt the rule: 119.03

4.  Statute(s) authorizing agency to adopt the rule: 3901.041;3903.72;3915.071

5.  Statute(s) the rule, as filed, amplifies or implements:

3903.72;3915.071;3901-6-10

6.  State the reason(s) for proposing (i.e., why are you filing,) this rule:

This rule is being promulgated to permit companies to be able to use up-to-date mortality for reserving purposes for new products being issued.

7.  If the rule is an AMENDMENT, then summarize the changes and the content of the proposed rule; If the rule type is RESCISSION, NEW or NO CHANGE,

then summarize the content of the rule:

This rule permits companies to use the 2001 mortality table on January 1st of the year after the effective date and requires companies to use the table after December 31, 2008. The table provides a more modern reserving standad for life insurance.

8.  If the rule incorporates a text or other material by reference and the agency claims the incorporation by reference is exempt from compliance with sections

121.71 to 121.74 of the Revised Code because the text or other material is generally available to persons who reasonably can be expected to be affected by the rule, provide an explanation of how the text or other material is generally available to those persons:

2001 CSO mortality table and blended tables of the American Academy of Actuaries CSO Task Force as adopted by the National Association of Insurance Commmissioners in December 2002 can be found at www.actuary.org

9.  If the rule incorporates a text or other material by reference, and it was infeasible for the agency to file the text or other material electronically, provide an explanation of why filing the text or other material electronically was infeasible:

Not Applicable

10.  If the rule is being rescinded and incorporates a text or other material by reference, and it was infeasible for the agency to file the text or other material, provide an explanation of why filing the text or other material was infeasible:

Not Applicable.

11.  If revising or refiling this rule, identify changes made from the previously filed version of this rule; if none, please state so:

Under (F)(1)(b) in the fifth line the word "year" has been inserted in after the word "policy" and before "k+t"

12.  119.032 Rule Review Date:

(If you answered NO to question No. 1, provide the scheduled review date. If you answered YES to No. 1, the review date for this rule is the filing date.)

NOTE: At time of final filing, two dates are required: the current review date plus a date not to exceed 5 years from the effective date for Amended rules or a date

not to exceed 5 years from the review date for No Change rules.

FISCAL ANALYSIS

13.  Estimate the total amount by which this proposed rule would increase / decrease either revenues / expenditures for the agency during the current biennium (in dollars): Explain the net impact of the proposed changes to the budget of your agency/department.

This will have no impact on revenues or expenditures.

$0.00

Not Applicable

14.  Identify the appropriation (by line item etc.) that authorizes each expenditure necessitated by the proposed rule:

Not Applicable

15.  Provide a summary of the estimated cost of compliance with the rule to all directly affected persons. When appropriate, please include the source for your information/estimated costs, e.g. industry, CFR, internal/agency:

Compliance costs are unknown: all companies will eventually have to replace all of the policy forms they sell; however, they may have to do that normally in the course of business before January 1, 2009.

16.  Does this rule have a fiscal effect on school districts, counties, townships, or municipal corporations? No

17.  Does this rule deal with environmental protection or contain a component dealing with environmental protection as defined in R. C. 121.39? No