7137083, 69O-164.040 - Florida Administrative Rules, Law, Code, Register

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Florida Department of State and Division of Library and Information Services

Notice: 7137083

Notice of Proposed Rule

Department:

DEPARTMENT OF FINANCIAL SERVICES

Division:

OIR – Insurance Regulation

Chapter:

VALUATION AND NONFORFEITURE

Overview

RULE:

69O-164.040

Determining Reserve Liabilities for Preneed Life Insurance

PURPOSE:

The purpose of this 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, and to require the continued use of the 1980 Commissioners Standard Ordinary Life Valuation Mortality Table for use in determining the minimum standard of valuation and the minimum standard nonforfeiture value.

SUMMARY:

This rule calls for adopting the 1980 Commissioner’s 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’ Ordinary Standard 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.

RULEMAKING AUTHORITY:

625.121(5)(a)3., 627.476(9)(h)5. FS.

LAW:

625.121(5)(a)3., 627.476(9)(h)5. FS.

PRINT PUBLISH DATE:

5/22/2009 Vol. 35/20

COMMENTS:

From 5/22/2009 To 6/12/2009 (21 Days)
The public comment period for this notice has already expired.

REFERENCE MATERIALS:

No reference(s).

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