The Ohio Department of Insurance recently revised two administrative rules and issued three bulletins intended to offer reserve relief to domestic insurers.

Ohio Administrative Code Section 3901-6-12 was revised to allow life insurance companies, with the consent of the Ohio Department of Insurance, to use the 2001 CSO preferred mortality tables for contracts issued on or after September 18, 2003. Ohio Administrative Code Section 3901-6-10 was revised to eliminate the constraints on the X factors used in determining deficiency reserves.

The revisions made to both of these rules were part of a transition to principle-based reserving. The revised rules were adopted on an emergency basis and took effect on January 21, 2009.

In addition, on February 3, 2009, the Ohio Department of Insurance issued three bulletins outlining "permitted accounting practices" that outline additional reserving flexibility that may be available to Ohio-domiciled insurers. Specifically, Bulletin 2009-04 provides that the Department will consider requests from life and property & casualty insurers for permitted accounting practices for calculations related to Deferred Tax Assets. Bulletin 2009-03 provides that the Department will consider request from life insurance companies for permitted accounting practices for reserves for variable annuities providing guaranteed living benefits. Bulletin 2009-02 clarifies that the 2001 non-preferred mortality tables may be used by life insurers for determining reserving segments within Actuarial Guideline 38.

The Department's approach to these issue is consistent with proposals offered by the American Council of Life Insurers (ACLI).