Insurance contracts; principle-based reserve basis, use of valuation manual. (HB631)

Introduced By

Del. Terry Kilgore (R-Gate City)

Progress

Introduced
Passed Committee
Passed House
Passed Senate
Signed by Governor
Became Law

Description

Insurance contracts; principle-based reserve basis; use of valuation manual. Requires insurance companies to use (i) a principle-based reserve basis for life, annuity, and accident and health insurance contracts and (ii) a Valuation Manual adopted by the National Association of Insurance Commissioners (NAIC). The measure implements the NAIC's revised Standard Valuation Law model (SVL). The revised model authorizes a principle-based reserve (PBR) basis for life, annuity, and accident and health contracts. A PBR valuation is a reserve valuation that uses one or more methods or one or more assumptions determined by the insurer pursuant to requirements contained in the SVL and the Valuation Manual. The NAIC's Valuation Manual contains both PBR and non-PBR requirements and requirements regarding actuarial opinions and corporate governance. The Valuation Manual will become effective on January 1 of the first calendar year for which certain requirements have been met by July 1 of that year, including a condition that at least 42 states or other U.S. jurisdictions have enacted the revised SVL or substantially similar terms and provisions. The measure has a delayed effective date of January 1, 2015. Read the Bill »

Outcome

Bill Has Passed

History

DateAction
01/07/2014Prefiled and ordered printed; offered 01/08/14 14101484D
01/07/2014Referred to Committee on Commerce and Labor
01/16/2014Reported from Commerce and Labor with amendments (21-Y 0-N) (see vote tally)
01/20/2014Impact statement from SCC (HB631)
01/20/2014Read first time
01/21/2014Read second time
01/21/2014Committee amendments agreed to
01/21/2014Engrossed by House as amended HB631E
01/21/2014Printed as engrossed 14101484D-E
01/22/2014Read third time and passed House BLOCK VOTE (97-Y 0-N)
01/22/2014VOTE: BLOCK VOTE PASSAGE (97-Y 0-N) (see vote tally)
01/23/2014Impact statement from SCC (HB631)
01/23/2014Constitutional reading dispensed
01/23/2014Referred to Committee on Commerce and Labor
01/23/2014Impact statement from SCC (HB631E)
02/24/2014Reported from Commerce and Labor (16-Y 0-N) (see vote tally)
02/26/2014Constitutional reading dispensed (38-Y 0-N)
02/27/2014Read third time
02/27/2014Passed Senate (40-Y 0-N)
03/04/2014Enrolled
03/04/2014Bill text as passed House and Senate (HB631ER)
03/04/2014Signed by Speaker
03/05/2014Impact statement from SCC (HB631ER)
03/07/2014Signed by President
04/04/2014G Approved by Governor-Chapter 571 (effective 1/1/15)
04/04/2014G Acts of Assembly Chapter text (CHAP0571)