4. Detailed explanation of statutory authority for the rule (including the statutory citation and language):
Section 623.04, Stats., requires the Commissioner to promulgate any rules “specifying the liabilities required to be reported in the financial statements submitted under s. 601.42 (1g) (a), and the methods of valuing them. In the case of life insurance such methods shall be consistent with s. 623.06, Stats.” Additionally, s. 601.41 (3) (a), Stats., grants the Commissioner “rule-making authority under s. 227.11 (2).” Further, s. 601.42 (1g), Stats., gives the Commissioner the authority to require from those subject to regulation, among other things, “statements, reports, answers to questionnaires, and other information, and evidence thereof, in whatever reasonable form the commissioner designates, and at such reasonable intervals as the commissioner chooses, or from time to time.” Finally, s. 601.42 (2), Stats., states that [T]he commissioner may prescribe forms from the reports under subs. (1g) and (1r) and specify who shall execute or certify such reports.” 5. Estimate of amount of time that state employees will spend developing the rule and of other resources necessary to develop the rule:
200 hours
6. List with description of all entities that may be affected by the proposed rule:
The proposed rule will positively impact insurers offering individual disability income and group long-term disability policies. Consumers and small businesses will not be affected by the proposed rule.
7. Summary and preliminary comparison with any existing or proposed federal regulation that is intended to address the activities to be regulated by the proposed rule:
Illinois: 215 ILCS 5/223 (8), automatically updates valuation tables on January 1 after the NAIC Valuation Manual is adopted by the NAIC.
Iowa: I.C.A. § 508.36 (14) (c), automatically updates valuation tables on January 1 after the NAIC Valuation Manual is adopted by the NAIC. Michigan: MI ST § 500.836b (1) (c), automatically updates valuation tables on January 1 after the NAIC Valuation Manual is adopted by the NAIC. Minnesota: M.S.A. § 61A.25 Subd. 10 (c), automatically updates valuation tables on January 1 after the NAIC Valuation Manual is adopted by the NAIC.
8. Anticipated economic impact of implementing the rule (note if the rule is likely to have a significant economic impact on small businesses):
The anticipated economic impact of the rule is minimal as it relates to reserve requirements for insurers on policies already written.
