Ohio has revised two administrative rules affecting reserving requirements for life insurers, giving some relief to domestic companies. Under the amended rules, life insurers may use the 2001 CSO Preferred Mortality tables for contracts issued on or after September 18, 2003 (with the consent of the Department of Insurance). Regulation XXX has also been amended to eliminate the constraints on the X factors used in determining deficiency reserves.
These changes were accomplished by adoption of amendments to Ohio’s administrative rules OAC §3906-1-10 and §3906-1-12. The amendments were filed on January 22. Because they were adopted on an emergency basis, they took effect immediately. The emergency rules stay in effect for 90 days.
These changes are not mandatory. Life insurers have the option of whether to implement these changes.
Ohio’s rule amendments are consistent with two proposals offered by the American Council of Life Insurers (ACLI) to provide capital and surplus relief to life insurers and with subsequent discussions within the National Association of Insurance Commissioners (NAIC). The ACLI offered proposals on a total of nine issues. Five of those proposals– including those on which Ohio has acted –continue to be discussed by the NAIC.
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