NOTICE IS HEREBY GIVEN That pursuant to the authority granted under s.
601.41 (3), Stats., and the procedures set forth under s.
227.18, Stats., the Office of the Commissioner of Insurance (OCI) will hold a public hearing to consider the adoption of rules revising section
Ins 2.81, Wis. Adm. Code, relating to use of the 1980 CSO Standard Ordinary Life Valuation Mortality Table in determining the minimum standard of valuation reserves and the minimum standard nonforfeiture values for preneed funeral life insurance products.
Hearing Information
Date: May 7, 2009
Time: 10:00 a.m., or as soon thereafter as
the matter may be reached
Place: OCI, Room 227, 2nd Floor
125 South Webster Street
Madison, WI
Submission of Written Comments
Written comments can be mailed to:
James W. Harris
Legal Unit - OCI Rule Comment for Rule Ins 281
Office of the Commissioner of Insurance
PO Box 7873
Madison WI 53707-7873
Written comments can be hand delivered to:
James W. Harris
Legal Unit - OCI Rule Comment for Rule Ins 281
Office of the Commissioner of Insurance
125 South Webster St – 2nd Floor
Madison WI 53703-3474
Comments can be emailed to:
James W. Harris
The deadline for submitting comments is 4:00 p.m. on the 14th day after the date for the hearing stated in this Notice of Hearing.
Analysis Prepared by the Office of the Commissioner of Insurance (OCI)
Statutes interpreted
Statutory authority
Explanation of agency authority
The proposed rule is promulgated under the commissioner's authority to prescribe valuation and reserve liabilities and accounting standards and reporting for insurers.
Related statutes or rules
The proposed rule relates to existing rules prescribing valuation of liabilities, nonforfeiture values, and actuarial reporting and analysis under ss.
601.42,
623.06 and
632.43, Stats., and ss.
Ins 2.80 and ch.
Ins 50, Wis. Adm. Code.
Plain language analysis
Section
Ins 2.81, Wis. Adm. Code, sets forth the requirements for use of the 2001 commissioners standard ordinary (CSO) mortality table by insurers, meeting prescribed conditions, in determining minimum reserve liabilities and minimum nonforfeiture values, which may be used for policies issued on or after January 1, 2005, and before January 1, 2009, and which shall be used for policies issued on or after January 1, 2009. Research completed by the Deloitte University of Connecticut Actuarial Center commissioned by the Society of Actuaries as a part of a study of preneed mortality, determined that the 2001 CSO Mortality Table produces inadequate reserves for policies issued to fund funeral services and expenses. The proposed rule provides that for determining the minimum mortality standard for determining reserve liabilities and nonforfeiture values for funeral policies as defined in s.
632.415, Stats., insurers shall use the 1980 commissioners standard ordinary (CSO) mortality table. Insurers may elect to use the 2001 CSO mortality table for funeral policies issued on or after January 1, 2009, and before January 1, 2012, provided the insurer certifies to the commissioner with supporting information that the reserve methodology employed by the insurer using the 2001 CSO mortality table as a minimum standard develops adequate reserves.
Comparison with federal regulations
There are no federal regulations which address use of mortality tables to establish reserve liabilities and nonforfeiture values for insurers doing business in Wisconsin.
Comparison of rules in adjacent states
Illinois:
Ill. Ch.
215 ILCS 5/223, ff., permits use of the 1980 CSO Standard Ordinary Life Valuation Mortality Table, with apparent permissive authority to use later tables adopted by the NAIC. The regulation does not differentiate for funeral policies.
Iowa:
Iowa Adm. Code 191-94.3, permits the use for purposes of reserve valuation, under prescribed conditions, of the 2001 CSO Preferred Class Structure Mortality Table. The regulation does not differentiate for funeral policies.
Michigan:
Mich. Comp. Laws, s.
500.838a, permits the use for purposes of reserve valuation, under prescribed conditions, of the 2001 CSO Preferred Class Structure Mortality Table. The regulation does not differentiate for funeral policies.
Minnesota:
Minn. Stat. Ch. 61A.257, permits the use for purposes of reserve valuation, under prescribed conditions, of the 2001 CSO Preferred Class Structure Mortality Table. The regulation does not differentiate for funeral policies.
Summary of factual data and analytical methodologies
OCI review of NAIC models and recommendations based upon preneed mortality studies with respect to the adequacy of financial reserves, and insurer's financial information.
Analysis and supporting documentation used to determine rule's effect on small businesses
This rule relates to insurer determination of minimum reserves and there is no significant effect on small businesses.
Small Business Impact
This rule will have little or no effect on small businesses.
Small business regulatory coordinator
The OCI small business coordinator is Eileen Mallow and may be reached at phone number (608) 266-7843 or at email address
eileen.mallow@wisconsin.gov
Fiscal Estimate
Summary
There will be no state or local government fiscal effect.
This rule change will have no significant effect on the private sector regulated by OCI.
State fiscal effect
None.
Local government fiscal effect
None.
Long-range fiscal implications
None.
Copies of Proposed Rule and Agency Contact Person
A copy of the full text of the proposed rule changes, analysis and fiscal estimate may be obtained from the Web site at:
http://oci.wi.gov/ocirules.htm or by contacting:
Inger Williams, OCI Services Section
Phone: (608) 264-8110
Address: 125 South Webster Street, 2nd Floor
PO Box 7873, Madison WI 53707-7873
Notice of Proposed Rulemaking
Labor and Industry Review Commission
NOTICE IS HEREBY GIVEN That pursuant to s.
103.04 (2), Stats., and according to the procedure set forth in s.
227.16 (2) (e), Stats., the Labor and Industry Review Commission
will adopt the following rule as proposed in this notice, without public hearing unless, within 30 days after publication of this notice on April 15, 2009, the Labor and Industry Review Commission is petitioned for a public hearing by 25 natural persons who will be affected by the rule; a municipality that will be affected by the rule; or an association that is representative of a farm, labor, business or professional group that will be affected by the rule.
The Wisconsin Labor and Industry Review Commission proposes an order to amend sections
LIRC 1.025 (3) and
(4),
2.05,
3.05, and
4.04, relating to the rules of practice and procedure before the commission.
Submission of Written Comments
Written comments pertaining to the proposed rules should be submitted to the Wisconsin Labor and Industry Review Commission, P.O. Box 8126, Madison WI 53708-8126. Facsimile: (608) 267-4409.
The deadline for submission is 30 days from the date of the publication of the 30 day notice in this Register.
Copies of Proposed Rules
A copy of the proposed rules and the full fiscal estimate may be obtained from the Labor and Industry Review Commission upon request.
Analysis Prepared by Labor and Industry Review Commission
Statutes interpreted
Statutory authority
Explanation of agency authority
The Labor and Industry Review commission reviews and decides appeals of decisions of administrative law judges of the Department of Workforce Development in cases arising under Wisconsin's unemployment insurance, workers compensation, employment discrimination and public accommodations discrimination laws. The commission's rules govern procedure in such appeals.
Related statute or rule
No federal statute or regulation requires adoption of the proposed rules or are relevant to the substance of the proposed rules. Wisconsin Statutes ss.
102.23(1)(a),
227.53(1)(a)3. and
801.50(2)(a) establish the circuit court venue provisions clarified in the rule amendments at LIRC 2.05, 3.05 and 4.04.
Plain language analysis
