Weekly Tip: Nonforfeiture Rate Change Filings

 

Weekly Tips

Nonforfeiture Rate Change Filings

10/15/2013

The Insurance Compact wanted to remind you to file soon if you still need make nonforfeiture rate changes to be effective by January 1, 2014.  If you have not done so already for your Insurance Compact filings, then this Weekly Tip is for you. 

On September 20, 2012, the Insurance Compact issued Filing Information Notice 2012-3 (FIN 2012-3): New, Amended and Refiled Product Filings due to Changes in Interest Rates for Nonforfeiture Values in Life Insurance Products.   This FIN may now be found on the Insurance Compact's website, notably the Filing Information Notices page

In FIN 2012-3 guidance is provided for filers who wish to update the interest rates for Nonforfeiture values.  The Uniform Standards require prior approval of a change to the interest rate for nonforfeiture benefits. If the interest rate is in the specifications page, a filer can make a new product filing or reopen and amend a previously-approved Compact filing. If the interest rate is in a Compact-approved policy, a filer should make a new filing with the applicable endorsement or amendment or new or replacement policy. A new or updated actuarial memo must be submitted which includes a nonforfeiture demonstration based on the new rate as well as all the other information required by the applicable life standard.

Please note that endorsements or changes to state-approved policy forms that change the interest rate on nonforfeiture values in the state-approved policy cannot be submitted to the Insurance Compact under mix and match. Please review FIN 2012-3 as it provides a list of information that should be provided when making new, amended, or refiled product filings due to changes in interest rates for nonforfeiture values in life insurance products. Please note amended or new IIPRC filing fees may apply.

To ensure that your changes are approved before the end of the year, please do not wait much longer before making your new or amended filing.   

If you have questions about this Weekly Tip, please contact the IIPRC Office.