COMMITTEE ON LEGISLATIVE RESEARCH
OVERSIGHT DIVISION
FISCAL NOTE
L.R. NO.: 3513-01
BILL NO.: SB 808
SUBJECT: Insurance - Life; Uniform Laws
TYPE: Original
DATE: February 15, 2000
FISCAL SUMMARY
| FUND AFFECTED | FY 2001 | FY 2002 | FY 2003 |
| None | |||
| Total Estimated
Net Effect on All State Funds |
$0 | $0 | $0 |
| FUND AFFECTED | FY 2001 | FY 2002 | FY 2003 |
| None | |||
| Total Estimated
Net Effect on All Federal Funds |
$0 | $0 | $0 |
| FUND AFFECTED | FY 2001 | FY 2002 | FY 2003 |
| Local Government | $0 | $0 | $0 |
Numbers within parentheses: ( ) indicate costs or losses.
This fiscal note contains 3 pages.
ASSUMPTION
Officials from the Department of Insurance (INS) state the proposal would cause INS to increase actuarial review because of the new reserving requirement. INS anticipate that current appropriations and staff would be able to absorb the work for implementation of this single proposal. However, if additional proposals are approved during the legislative session, INS may need to request an increase in appropriations due to the combined effect of multiple proposals.
| FISCAL IMPACT - State Government | FY 2001
(6 Mo.) |
FY 2002 | FY 2003 |
| $0 | $0 | $0 |
| FISCAL IMPACT - Local Government | FY 2001
(6 Mo.) |
FY 2002 | FY 2003 |
| $0 | $0 | $0 |
FISCAL IMPACT - Small Business
Small life insurance companies that handle term life insurance policies would be fiscally impacted to the extent they would incur additional administrative costs as a result of the requirements in this proposal.
DESCRIPTION
This proposal would govern the required amounts of reserves that an insurance company must maintain to ensure that it has the resources to pay future life insurance claims. This proposal would provide tables of select mortality factors for use in valuing life insurance reserves. The proposal would also set forth methodology for valuing reserves on policies with nonlevel premiums or benefits or with secondary guarantees. This proposal would provide tables of select mortality factors and rules for their use; rules concerning the minimum standard for the valuation of plans with nonlevel premiums or benefits; and rules concerning the minimum standard for the
valuation of plans with secondary guarantees.
This legislation is not federally mandated, would not duplicate any other program and would not require additional capital improvements or rental space.
SOURCES OF INFORMATION
Department of Insurance
Jeanne Jarrett, CPA
Director
February 15, 2000