Life Insurance Industry and OIC Representatives Urge Passage of OIC Request Legislation Modernizing Life Insurance Reserve Requirements
Although the House Appropriations Committee failed to consider and approve SB 5180 before the April 7 deadline for passage, House leaders have advised the OIC that the bill is not dead. The House Business & Financial Services Committee previously approved a "Do Pass" recommendation for SB 5180, and the bill was referred to the House Appropriations Committee for consideration of fiscal issues. With a deadline for fiscal committee approval on Tuesday, April 7, industry representatives, together with the OIC unsuccessfully urged key members of the House Appropriations Committee to put the bill on an agenda in time for it to be approved before Tuesday’s deadline. Unfortunately, the bill was not scheduled for a hearing before the committee, nor was it brought to a vote. The OIC expressed concern about this development to House leaders, and they were advised that the bill is not dead. House leaders have the option to simply "relieve the committee" of the bill and place it in the House Rules Committee or directly on the House Floor Calendar. The OIC believes that is exactly what will happen in the next day or two.
The measure was introduced at the request of Insurance Commissioner Mike Kreidler to adopt the NAIC updates to the Standard Valuation and Standard Nonforfeiture laws, including a new approach based on principle-based reserves, and passed the Senate on March 5 on a final vote of 49-0. At the hearing on the measure the American Council of Life Insurers, Allstate, American Family Insurance, and USAA testified in support of the bill. The OIC also spoke in favor of the bill.