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Old 06-06-2017, 11:42 AM
bmg bmg is offline
 
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Default 1976 SVL Amendments Effective Date

When generally were the 1976 amendments to the SVL approved? As part of a conversion, we're looking at when we can make the change to calculate deficiency reserves using minimum standards rather than using what was used for basic reserves. I can't find much in googling the topic (for our state of domicile or for any state). Thanks in advance.
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Old 06-06-2017, 01:23 PM
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I can't answer your question directly, but I can provide some context. Until about 1983, when the 1980 CSO was introduced, the 1958 CSO was the valuation standard. Tax reserves equaled stat reserves, and the tax code had effectively not changed since 1959. Interest rates hadn't yet spiked, so reserve calculations still used around 3% - 4%. Single premium products had not yet become widespread (they were used to take advantage of the tax code in the mid 1980's), and there was no such thing as "the definition of life insurance", so you could have cash values equal to 99% of the face amount, and still get full tax deferral of the inside buildup. Universal Life had not yet been invented - the first policy was sold by EF Hutton Life in 1979. Smoker-distinct premiums, although introduced by Standard Life in 1969 were not widespread, and smoker-distinct reserves were not available until a smoker-distinct version of the 1980 CSO came out in about 1986. (The original 1980 CSO was groundbreaking in 1983 because it was sex-distinct; the smoker differentiation came a bit later.)

Umm, what was the question you asked again, sonny?
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Old 06-06-2017, 04:18 PM
Steve Grondin Steve Grondin is online now
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You are throwing a weakening in with a conversion? I thought no one else was that crazy.

Are you saying you think computing deficiency reserves under one basis at a prior YE and a different one the next YE isn't a weakening? Or that the weakening of def res basis isn't permitted independently of the basic reserve basis on pre 1976 SVL business?

It is hard for me to imagine a regulator wouldn't permit a weakening to CSO58 minimum standards, either on materiality or conservatism considerations.
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Old 06-08-2017, 01:25 PM
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Default Model laws have state adoption history

http://www.naic.org/store/free/MDL-820.pdf

See page ST-820-3. Select a state and check its Standard Valuation Law. At the end of sections of laws are date references. For example, for California, see below Article 3a repealed and added by Stats. 1981, Ch. 767, Sec. 13.

-----------------------

http://leginfo.legislature.ca.gov/fa...=5.&article=3a.


Insurance Code - INS

DIVISION 2. CLASSES OF INSURANCE [1880 - 12880.5] ( Division 2 enacted by Stats. 1935, Ch. 145. )

PART 2. LIFE AND DISABILITY INSURANCE [10110 - 11549] ( Part 2 enacted by Stats. 1935, Ch. 145. )

CHAPTER 5. General Regulation of Life Insurers [10430 - 10509.938] ( Chapter 5 enacted by Stats. 1935, Ch. 145. )

ARTICLE 3a. Standard Valuation Law [10489.1 - 10489.992] ( Article 3a repealed and added by Stats. 1981, Ch. 767, Sec. 13. )
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