§ 44-8908 — Valuation manual; director prescribe; designate operative date; when effective; contents; director; powers

Nebraska § 44-8908

• Jurisdiction: Nebraska
• Ch. 44: Insurance

Text

(1) For policies issued on
or after the operative date of the valuation manual designated in subsection
(2) of this section, the standard prescribed in the valuation manual is the
minimum standard of valuation required under section 44-8905 except as provided
under subsections (5) and (7) of this section.
(2) The director shall prescribe
the valuation manual no later than July 1, 2017. The director shall designate
the operative date of the valuation manual as of January 1 after the date
on which the director prescribes the valuation manual.
(3) Unless a change in the
valuation manual specifies a later effective date, the changes adopted by
the director to the valuation manual shall be effective on January 1 following
the adoption of the change by the director.
(4) The valuation manual must specify all of the following:
(a) Minimum valuation standards
for and definitions of the policies or contracts subject to section 44-8904 .
Such minimum valuation standards shall be:
(i) The director's reserve valuation method for life
insurance contracts, other than annuity contracts, subject to section 44-8904 ;
(ii) The director's annuity
reserve valuation method for annuity contracts subject to section 44-8904 ;
and
(iii)
Minimum reserves for all other policies or contracts subject to section 44-8904 ;
(b) Which policies or contracts
or types of policies or contracts are subject to the requirements of a principle-based
valuation in subsection (1) of section 44-8909 and the minimum valuation standards
consistent with those requirements;
(c) For policies and contracts subject to a principle-based
valuation under section 44-8909 :
(i) Requirements for the format of reports to the
director under subdivision (2)(c) of section 44-8909 which shall include information
necessary to determine if the valuation is appropriate and in compliance with
the Standard Valuation Act;
(ii)
Assumptions shall be prescribed for risks over which the company does not
have significant control or influence; and
(iii) Procedures for corporate governance and oversight
of the actuarial function, and a process for appropriate waiver or modification
of such procedures;
(d)
For policies not subject to a principle-based valuation under section 44-8909 ,
the minimum valuation standard shall either:
(i) Be consistent with the minimum standard
of valuation prior to the operative date of the valuation manual designated
in subsection (2) of this section; or
(ii) Develop reserves that quantify the benefits and
guarantees, and the funding, associated with the contracts and their risks
at a level of conservatism that reflects conditions that include unfavorable
events that have a reasonable probability of occurring;
(e) Other requirements, including,
but not limited to, those relating to reserve methods, models for measuring
risk, generation of economic scenarios, assumptions, margins, use of company
experience, risk measurement, disclosure, certifications, reports, actuarial
opinions and memorandums, transition rules, and internal controls; and
(f) The data and form of
the data required under section 44-8910 and with whom the data must be submitted.
The valuation manual may
specify other requirements, including data analyses and reporting of analyses.
(5) In the absence of a specific
valuation requirement or if a specific valuation requirement in the valuation
manual is not, in the opinion of the director, in compliance with the act,
then the company shall, with respect to such requirements, comply with minimum
valuation standards prescribed by the director by rule and regulation.
(6) The director may employ
or contract with a qualified actuary, at the expense of the company, to perform
an actuarial examination of the company and opine on the appropriateness of
any reserve assumption or method used by the company or to review and opine
on a company's compliance with any requirement set forth in the act. The director
may rely upon the opinion, regarding provisions contained within the act,
of a qualified actuary engaged by the insurance commissioner of another state,
district, or territory of the United States.
(7) The director may require a company
to change any assumption or method that in the opinion of the director is
necessary in order to comply with the requirements of the valuation manual
or the act and the company shall adjust the reserves as required by the director.
The director may take other disciplinary action pursuant to law.

Legislative History

Source: Laws 2014, LB755, § 8.