200x CSO?

[urysohn]

Anyone know what the official story on 200x CSO is? I thought it had been approved by LHATF and was waiting on a vote at the NAIC's December meeting. But I didn't see it while I was peering through the winter NAIC meeting agenda. Had it already been approved, or delayed for another quarter?

[kazh]

LHATF is done. The NAIC votes this week -- maybe today?

[urysohn]

Anybody here any official updates. I can't seem to find anything online. (a link would be great if it's available. Not that I don't trust you all, but I'd hate to tell my boss I know 200x CSO was approved because Anon123 said so :) )

[Han Solo]

Adopted 12/8 - is that what you are looking for?

http://www.naic.org/1papers/models/models.html

[urysohn]

perfect! (hmmm, I'm not sure how I had missed that page :duh: apparently I don't look at the NAIC site often enough).

[kazh]

As I understand, most states will do this by rule; only in Florida does the legislature have to make the change. Any guesses on when Florida's law will change?

Are they likely to fix anything else? :crazy:

[JMO Fan]

As I understand, most states will do this by rule; only in Florida does the legislature have to make the change. Any guesses on when Florida's law will change?

Are they likely to fix anything else? :crazy:

I hope so -- but it will probably have to be pushed by the industry. :)

Hurricanes, HMOs, and Health Insurance dominate the DOI agenda. :roll:

[Take 2]

I heard a rumor that they might try to update the UL model -- if the industry will back the change. RPU, anyone?

[JMO Fan]

I just learned that the Florida legislature has decided not to sponsor a bill (proposed by the Department) to permit the 2001 CSO to be adopted. It seems the Democrat who usually sponsors such things was not re-elected. :cry:

It appears the industry has some work to do if there's to be any kind of uniformity with the rest of the country. Perhaps the Republican legislature would respond better to business than to regulators. It might be a good time to get the legislature to authorize changes to the UL model, RPU, and illustration requirements as well.

[urysohn]

I believe the industry (via the ACLI) haslobbied extensively in Florida, but to no avail. Could be wrong, however.

[JMO Fan]

The rejected proposal was from the Dept. The ACLI had expressed some support to the Dept. actuary, but not to the legislature. Although the ACLI has lobbied on other issues, they had apparently not weighed in on 2001 CSO, maybe (falsely) assuming it was routine.

The Florida legislature continues to resist any effort to expand Dept authority, including adoption of NAIC rules and mortality tables by the Dept (now the Office of Insurance Regulation in the Department of Financial Services).

[JMO Fan]

In 2005, assuming Bush has been reelected and the economy is less dismal, the upturn will probably inspire some large banks to try issuing insurance (as enabled by GLB, but still requiring state licensing & filing). They'll find fifty different state rules to be intolerable. They'll want federal charters.

About the same time, 2001 CSO will become the prevailing mortality table for tax reserves on life insurance. But a large number of states still won't permit it for statutory reserves, perhaps until 2009. An interstate compact is unlikely to solve the problem, so industry will also be more in favor of federal regulation.

I believe the combination could rapidly escalate the fight for a Federal Department of Insurance.