West Virginia 2019 Regular Session Status: Enacted 2 R cosponsors

HB 2474 — Relating to a reserving methodology for health insurance and annuity contracts

Last action — Chapter 148, Acts, Regular Session, 2019

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  1. ✓
    Introduced
  2. ✓
    In Committee
  3. ✓
    Passed House of Delegates
  4. ✓
    Passed Senate
  5. ✓
    To Executive
  6. 6
    Enacted

This bill has been enacted into law. Introduced January 17, 2019. Enacted.

Prognosis

Likely to advance 82% · moderate confidence

Where this bill stands today.

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High

How often bills like it became law.

  • Enacted

    Current position in the legislative process.

  • 9 sponsors

    1 primary, 8 co-sponsors signed on.

  • Single-party support

    Sponsorship is currently within one party (2 R).

  • Cleared a recorded vote

    Passed 3 recorded votes so far.

Prognosis reads this bill's own signals — stage, sponsorship breadth, committee status, recorded votes and cross-state momentum. Odds come from a model trained on which bills have become law.

Bill Text

What changed in the latest version

429 added · 394 removed

Plain-language change summary

The recent amendment to HB 2474 clarifies the regulations surrounding insurance policies by removing certain technical language and focusing on the essential aspects of benefits related to mortality or morbidity. Additionally, the amendment specifies the requirements for opinions by actuaries, ensuring that only qualified individuals, in good standing with the American Academy of Actuaries, provide these opinions. This simplification of wording is important as it makes the bill easier to understand and ensures that only knowledgeable professionals are involved in critical assessments, enhancing consumer protection in the insurance industry.

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HB2474 S JUD AM #1 3-6 Aubel 7888   The Committee on the Judiciary moved to amend the bill by striking out everything after the enacting clause and inserting in lieu thereof the following:
HB 2474 Text skip navigation SENATE PRESIDENT SENATORS COMMITTEES VIDEO/AUDIO DISTRICT MAPS SENATE CLERK SENATE RULES HOUSE SPEAKER DELEGATES COMMITTEES VIDEO/AUDIO DISTRICT MAPS HOUSE CLERK HOUSE RULES HOUSE STAFF JOINT INTERIM COMMITTEES LEGISLATIVE ADMINISTRATOR LEGISLATIVE SERVICES DIVISION PUBLIC INFORMATION LEGISLATIVE AUTOMATED SYSTEMS DIVISION LEGISLATIVE AUDITOR'S OFFICE PERFORMANCE EVALUATION & RESEARCH DIVISION POST AUDIT DIVISION BUDGET DIVISION REGULATORY AND FISCAL AFFAIRS DIVISION CLAIMS COMMISSION CRIME VICTIMS RULE-MAKING REVIEW SPECIAL INVESTIGATIONS JUDICIAL COMP.
COMMISSION JOINT RULES STAFF INFO BILL STATUS BILL STATUS BILL TRACKING STATE LAW WEST VIRGINIA CODE ACTS OF THE LEGISLATURE CODE OF 1931 WV CONSTITUTION US CONSTITUTION REPORTS AGENCY REPORTS AGENCY GRANT AWARDS PERFORMANCE EVALUATIONS POST AUDITS EDUCATIONAL CITIZEN’S GUIDE INTERNSHIP PROGRAM PAGE PROGRAM PUBLICATIONS PHOTO GALLERY CAPITOL HISTORY HOW A BILL BECOMES LAW CONTACT SENATE ROSTER HOUSE ROSTER PUBLIC INFO.
NEWS RELEASES HELPFUL LINKS Enrolled Version - Final Version « House Bill 2474 History OTHER VERSIONS  —  Introduced Version  |   |  Email Key:
Green = existing Code.
Red = new code to be enacted WEST virginia legislature regular session ENROLLED House Bill 2474 By Delegate Westfall, Azinger, Criss, D.
Jeffries,  Hamrick, Mandt, Nelson, Espinosa and Porterfield [Passed March 9, 2019;
in effect ninety days from passage.] A BILL to amend and reenact §33-7-9 of the Code of West Virginia, 1931, as amended, relating to a reserving methodology for health insurance and annuity contracts;
describing how the calendar year statutory valuation interest rate should be calculated regarding certain annuities and guaranteed interest contracts;
and prescribing the minimum standard of valuation for health insurance contracts.
Be it enacted by the Legislature of West Virginia:
— Every opinion subject to required by this subdivision is governed by the following:
— Every opinion required by this subdivision is governed by the following:
(v) For the purposes of this section subsection, “qualified actuary” means a member in good standing of the American Academy of Actuaries who meets the requirements set forth in such regulations.
(v) For the purposes of this subsection, “qualified actuary” means a member in good standing of the American Academy of Actuaries who meets the requirements set forth in such regulations.
and (III) May enter into agreements governing sharing and use of information consistent with this subparagraph and subparagraphs (viii) and (ix) and this subparagraph of this paragraph.
and (III) May enter into agreements governing sharing and use of information consistent with this subparagraph and subparagraphs (viii) and (ix) of this paragraph.
(xi) No waiver of any applicable privilege or claim of confidentiality in the documents, materials, or information occurs as a result of disclosure to the commissioner under this section subsection or as a result of sharing as authorized in subparagraph (ix) (x) of this paragraph.
(xi) No waiver of any applicable privilege or claim of confidentiality in the documents, materials, or information occurs as a result of disclosure to the commissioner under this subsection or as a result of sharing as authorized in subparagraph  (x) of this paragraph.
(C) Requirements for Opinions Subject to paragraph (B), subdivision (2), subsection (c) Requirement for opinion under paragraph (B) of this subdivision.
(C) Requirement for opinion under paragraph (B) of this subdivision.
— Each opinion required by subdivision (2), subsection (c) of this section paragraph (B) of this subdivision shall be governed by the following:
— Each opinion required by paragraph (B) of this subdivision shall be governed by the following:
(D) Requirement for All Opinions Subject to subdivision (2), subsection (c) of this section Requirement for all opinions subject to this subdivision.
(D) Requirement for all opinions subject to this subdivision.
(ii) The opinion shall be submitted with the annual statement reflecting the valuation of such the reserve liabilities for each year ending on or after the operative date of the valuation manual.
(ii) The opinion shall be submitted with the annual statement reflecting the valuation of the reserve liabilities for each year ending on or after the operative date of the valuation manual.
(iii) The opinion shall apply to all policies and contracts subject to paragraph (B) subdivision (2), subsection (c) of this section of this subdivision, plus other actuarial liabilities as may be specified in the valuation manual.
(iii) The opinion shall apply to all policies and contracts subject to paragraph (B) of this subdivision, plus other actuarial liabilities as may be specified in the valuation manual.
or (iii) Any ordinary mortality table adopted after the year 1980 by the national association of Insurance Commissioners NAIC that is approved by rule promulgated by the commissioner for use in determining the minimum standard of valuation for the policies.
or (iii) Any ordinary mortality table adopted after the year 1980 by the NAIC that is approved by rule promulgated by the commissioner for use in determining the minimum standard of valuation for the policies.
the 1941 standard industrial mortality table for policies issued prior to the operative date of §33-13-30(f) of this code and for policies issued on or after the operative date, the commissioner’s 1961 standard industrial mortality table or any industrial mortality table adopted after the year 1980 by the national association of Insurance Commissioners NAIC that is approved by rule promulgated by the commissioner for use in determining the minimum standard of valuation for the policies.
the 1941 standard industrial mortality table for policies issued prior to the operative date of §33-13-30(f) of this code and for policies issued on or after the operative date, the commissioner’s 1961 standard industrial mortality table or any industrial mortality table adopted after the year 1980 by the NAIC that is approved by rule promulgated by the commissioner for use in determining the minimum standard of valuation for the policies.
for policies or contracts issued on or after January 1, 1966, the tables of period two disablement rates and the 1930 to 1950 termination rates of the 1952 disability study of the society of actuaries, with due regard to the type of benefit or any tables of disablement rates and termination rates adopted after the year 1980 by the national association of Insurance Commissioners NAIC that are approved by rule promulgated by the commissioner for use in determining the minimum standard of valuation for the policies;
for policies or contracts issued on or after January 1, 1966, the tables of period two disablement rates and the 1930 to 1950 termination rates of the 1952 disability study of the society of actuaries, with due regard to the type of benefit or any tables of disablement rates and termination rates adopted after the year 1980 by the NAIC that are approved by rule promulgated by the commissioner for use in determining the minimum standard of valuation for the policies;
(6) For accidental death benefits in or supplementary to policies issued on or after January 1, 1966, the 1959 accidental death benefits table or any accidental death benefits table adopted after the year 1980 by the national association of Insurance Commissioners NAIC that is approved by rules promulgated by the commissioner for use in determining the minimum standard of valuation for such the policies, for policies issued on or after January 1, 1961, and prior to January 1, 1966, either such table or, at the option of the company, the intercompany double indemnity mortality table;
(6) For accidental death benefits in or supplementary to policies issued on or after January 1, 1966, the 1959 accidental death benefits table or any accidental death benefits table adopted after the year 1980 by the NAIC that is approved by rules promulgated by the commissioner for use in determining the minimum standard of valuation for the policies, for policies issued on or after January 1, 1961, and prior to January 1, 1966, either such table or, at the option of the company, the intercompany double indemnity mortality table;
(2) For individual single premium immediate annuity contracts issued on or after April 6, 1977, excluding any disability and accidental death benefits in such the contracts:
(2) For individual single premium immediate annuity contracts issued on or after April 6, 1977, excluding any disability and accidental death benefits in the contracts:
The 1971 individual annuity mortality table or any individual annuity mortality table adopted after the year 1980 by the national association of Insurance Commissioners NAIC that is approved by rule promulgated by the commissioner for use in determining the minimum standard of valuation for the contracts or any modification of these tables approved by the commissioner and seven and one-half percent interest;
The 1971 individual annuity mortality table or any individual annuity mortality table adopted after the year 1980 by the NAIC that is approved by rule promulgated by the commissioner for use in determining the minimum standard of valuation for the contracts or any modification of these tables approved by the commissioner and seven and one-half percent interest;
The 1971 individual annuity mortality table or any individual annuity mortality table adopted after the year 1980 by the national association of Insurance Commissioners NAIC that is approved by rule promulgated by the commissioner for use in determining the minimum standard of valuation for the contracts or any modification of these tables approved by the commissioner and five and one-half percent interest for single premium deferred annuity and pure endowment contracts and four and one-half percent interest for all other individual annuity and pure endowment contracts;
The 1971 individual annuity mortality table or any individual annuity mortality table adopted after the year 1980 by the NAIC that is approved by rule promulgated by the commissioner for use in determining the minimum standard of valuation for the contracts or any modification of these tables approved by the commissioner and five and one-half percent interest for single premium deferred annuity and pure endowment contracts and four and one-half percent interest for all other individual annuity and pure endowment contracts;
The 1971 group annuity mortality table or any group annuity mortality table adopted after the year 1980 by the national association of Insurance Commissioners NAIC that is approved by rule promulgated by the commissioner for use in determining the minimum standard of valuation for annuities and pure endowments or any modification of these tables approved by the commissioner and seven and one-half percent interest.
The 1971 group annuity mortality table or any group annuity mortality table adopted after the year 1980 by the NAIC that is approved by rule promulgated by the commissioner for use in determining the minimum standard of valuation for annuities and pure endowments or any modification of these tables approved by the commissioner and seven and one-half percent interest.
I =.03 + W(R1)-.03) I = .03 + W(R - .03) Where R1 is the lesser of R and .09;
I = .03 + W(R - .03) Where R1 is the lesser of R and .09;
and W is the weighting factor defined in this section subsection;
and W is the weighting factor defined in this subsection;
(B) However, if the calendar year statutory valuation interest rate for any life insurance policies issued in any calendar year determined without reference to this sentence differs from the corresponding actual rate for similar policies issued in the immediately preceding calendar year by less than one half of one percent, the calendar year statutory valuation interest rate for such the life insurance policies shall be equal to the corresponding actual rate for the immediately preceding calendar year.
(B) However, if the calendar year statutory valuation interest rate for any life insurance policies issued in any calendar year determined without reference to this sentence differs from the corresponding actual rate for similar policies issued in the immediately preceding calendar year by less than one half of one percent, the calendar year statutory valuation interest rate for the life insurance policies shall be equal to the corresponding actual rate for the immediately preceding calendar year.
Guarantee Duration Weighting (Years) Factors or less .50 More than 10, but not more than 20 .45 More than 20 .35 Guarantee duration of 10 years or less:
Guarantee duration of 10 years or less:
.50 Guarantee duration of more than 10 years but not more than 20 years:
.50 Guarantee duration of more than years but not more than 20 years:
Guarantee Weighting Factor Duration for Plan Type (Years) A B C or less:
.80.
60.
50 More than 5, but not more than 10:
.75 60.
50 More than 10, but not more than 20:
.65.
50.
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45 More than 20:
.45 .35.
Weighting Factor for Plan Type A B C1 .15 .25 .05 Plan Type A - .15;
  Plan Type A - .15;
Weighting Factor for Plan Type A B C1 .05 .05 .05 Plan Type A - .05;
  Plan Type A - .05;
Plan Type C - .05 (IV) For other annuities with cash settlement options and guaranteed interest contracts with cash settlement options, the guarantee duration is the number of years for which the contract guarantees interest rates in excess of the calendar year statutory valuation interest rate for life insurance policies with guarantee duration in excess of years.
Plan Type C - .05 (IV) For other annuities with cash settlement options and guaranteed interest contracts with cash settlement options, the guarantee duration is the number of years for which the contract guarantees interest rates in excess of the calendar year statutory valuation interest rate for life insurance policies with guarantee duration in excess of 20 years.
— In the event that the monthly average of the composite yield on seasoned corporate bonds is no longer published by Moody’s Investors Service, Inc., or in the event that the national association of Insurance Commissioners NAIC determines that the monthly average of the composite yield on seasoned corporate bonds as published by Moody’s Investors Service, Inc., is no longer appropriate for the determination of the reference interest rate, then an alternative method for determination of the reference interest rate, which is adopted by the national association of Insurance Commissioners NAIC and approved by rule promulgated by the commissioner, may be substituted.
— In the event that the monthly average of the composite yield on seasoned corporate bonds is no longer published by Moody’s Investors Service, Inc., or in the event that the NAIC determines that the monthly average of the composite yield on seasoned corporate bonds as published by Moody’s Investors Service, Inc., is no longer appropriate for the determination of the reference interest rate, then an alternative method for determination of the reference interest rate, which is adopted by the NAIC and approved by rule promulgated by the commissioner, may be substituted.
The modified net premiums for any such policy shall be the uniform percentage of the respective contract premiums for the benefits that the present value, at the date of issue of the policy, of all the modified net premiums shall be equal to the sum of the then present value of the benefits provided by the policy and the excess of subdivision (1) paragraph (A) of this subsection subdivision over subdivision (2) paragraph (B) of this subsection subdivision, as follows:
The modified net premiums for any such policy shall be the uniform percentage of the respective contract premiums for the benefits that the present value, at the date of issue of the policy, of all the modified net premiums shall be equal to the sum of the then present value of the benefits provided by the policy and the excess of paragraph (A) of this subdivision over paragraph (B) of this subdivision, as follows:
(1) (A) A net level annual premium equal to the present value, at the date of issue, of such benefits provided for after the first policy year, divided by the present value, at the date of issue, of an annuity of one per annum payable on the first and each subsequent anniversary of such policy on which a premium falls due:
(A) A net level annual premium equal to the present value, at the date of issue, of such benefits provided for after the first policy year, divided by the present value, at the date of issue, of an annuity of one per annum payable on the first and each subsequent anniversary of such policy on which a premium falls due:
(2) (B) A net one-year term premium for such benefits provided for in the first policy year.
(B) A net one-year term premium for such benefits provided for in the first policy year.
Provided, That for (2) For any life insurance policy issued on or after January 1, 1985, for which the contract premium in the first policy year exceeds that of the second year and for which no comparable additional benefit is provided in the first year for such excess and which provides an endowment benefit or a cash surrender value or a combination thereof in an amount greater than such excess premium, the reserve according to the commissioners’ commissioner’s reserve valuation method as of any policy anniversary occurring on or before the assumed ending date defined herein as the first policy anniversary on which the sum of any endowment benefit and any cash surrender value then available is greater than such excess premium shall, except as otherwise provided in subsection (k) of this section, be the greater of the reserve as of such policy anniversary calculated as described in the preceding paragraph subdivision (1) of this subsection and the reserve as of the policy anniversary calculated as described in that paragraph subdivision, but with:
(2) For any life insurance policy issued on or after January 1, 1985, for which the contract premium in the first policy year exceeds that of the second year and for which no comparable additional benefit is provided in the first year for such excess and which provides an endowment benefit or a cash surrender value or a combination thereof in an amount greater than such excess premium, the reserve according to the  commissioner’s reserve valuation method as of any policy anniversary occurring on or before the assumed ending date defined herein as the first policy anniversary on which the sum of any endowment benefit and any cash surrender value then available is greater than such excess premium shall, except as otherwise provided in subsection (k) of this section, be the greater of the reserve as of such policy anniversary calculated as described in subdivision (1) of this subsection and the reserve as of the policy anniversary calculated as described in that subdivision, but with:
(i) The value defined in subdivision (1) of that paragraph this subsection being reduced by fifteen 15 percent of the amount of such excess first-year premium;
(i) The value defined in subdivision (1) of this subsection being reduced by 15 percent of the amount of such excess first-year premium;
(3) Reserves according to the commissioners’ commissioner’s reserve valuation method shall be calculated by a method consistent with the principles of the preceding paragraphs subdivisions (1) and (2) of this section subsection for:
(3) Reserves according to the  commissioner’s reserve valuation method shall be calculated by a method consistent with the principles of subdivisions (1) and (2) of this subsection for:
(i) (A) Life insurance policies providing for a varying amount of insurance or requiring the payment of varying premiums;
(A) Life insurance policies providing for a varying amount of insurance or requiring the payment of varying premiums;
(ii) (B) Group annuity and pure endowment contracts purchased under a retirement plan or plan of deferred compensation, established or maintained by an employer (including a partnership or sole proprietorship) or by an employee organization, or by both, other than a plan providing individual retirement accounts or individual retirement annuities under section of the Internal Revenue Code (26 U.S.C.
(B) Group annuity and pure endowment contracts purchased under a retirement plan or plan of deferred compensation, established or maintained by an employer (including a partnership or sole proprietorship) or by an employee organization, or by both, other than a plan providing individual retirement accounts or individual retirement annuities under section 408 of the Internal Revenue Code (26 U.S.C.
(iii) (C) Disability and accidental death benefits in all policies and contracts;
(C) Disability and accidental death benefits in all policies and contracts;
and (iv) (D) All other benefits, except life insurance and endowment benefits in life insurance policies and benefits provided by all other annuity and pure endowment contracts.
and (D) All other benefits, except life insurance and endowment benefits in life insurance policies and benefits provided by all other annuity and pure endowment contracts.
shall be calculated by a method consistent with the principles of the preceding paragraphs of this section (h) Reserve valuation method:
(h) Reserve valuation method:
(2) Reserves according to the commissioners’ commissioner’s annuity reserve method for benefits under annuity or pure endowment contracts, excluding any disability and accidental death benefits in such the contracts, shall be the greatest of the respective excesses of the present values, at the date of valuation, of the future guaranteed benefits, including guaranteed nonforfeiture benefits, provided by such the contracts at the end of each respective contract year over the present value, at the date of valuation, of any future valuation considerations derived from future gross considerations, required by the terms of such the contract, that become payable prior to the end of the respective contract year.
(2) Reserves according to the  commissioner’s annuity reserve method for benefits under annuity or pure endowment contracts, excluding any disability and accidental death benefits in the contracts, shall be the greatest of the respective excesses of the present values, at the date of valuation, of the future guaranteed benefits, including guaranteed nonforfeiture benefits, provided by the contracts at the end of each respective contract year over the present value, at the date of valuation, of any future valuation considerations derived from future gross considerations, required by the terms of the contract, that become payable prior to the end of the respective contract year.
The valuation considerations are the portions of the respective gross considerations applied under the terms of such the contracts to determine nonforfeiture values.
The valuation considerations are the portions of the respective gross considerations applied under the terms of the contracts to determine nonforfeiture values.
— (1) Reserves for all policies and contracts issued prior to the effective date of this section January 1, 1958 may be calculated, at the option of the company, according to any standards which produce greater aggregate reserves for all policies and contracts than the minimum reserves required by the laws in effect immediately prior to such date.
— (1) Reserves for all policies and contracts issued prior to January 1, 1958 may be calculated, at the option of the company, according to any standards which produce greater aggregate reserves for all policies and contracts than the minimum reserves required by the laws in effect immediately prior to such date.
(3) Any such company which at any time shall have adopted any standard of valuation producing greater aggregate reserves than those calculated according to the minimum standard herein provided may, with the approval of the commissioner, adopt any lower standard of valuation, but not lower than the minimum herein provided:
(3) Any company which at any time shall have adopted any standard of valuation producing greater aggregate reserves than those calculated according to the minimum standard herein provided may, with the approval of the commissioner, adopt any lower standard of valuation, but not lower than the minimum herein provided:
— (1) If in any contract year the gross premium charged by any life insurance company on any policy or contract is less than the valuation net premium for the policy or contract calculated by the method used in calculating the reserve thereon but using the minimum valuation standards of mortality and rate of interest, the minimum reserve required for such the policy or contract shall be the greater of either the reserve calculated according to the mortality table, rate of interest, and method actually used for such the policy or contract or the reserve calculated by the method actually used for such the policy or contract but using the minimum valuation standards of mortality and rate of interest and replacing the valuation net premium by the actual gross premium in each contract year for which the valuation net premium exceeds the actual gross premium.
— (1) If in any contract year the gross premium charged by any life insurance company on any policy or contract is less than the valuation net premium for the policy or contract calculated by the method used in calculating the reserve thereon but using the minimum valuation standards of mortality and rate of interest, the minimum reserve required for the policy or contract shall be the greater of either the reserve calculated according to the mortality table, rate of interest, and method actually used for the policy or contract or the reserve calculated by the method actually used for the policy or contract but using the minimum valuation standards of mortality and rate of interest and replacing the valuation net premium by the actual gross premium in each contract year for which the valuation net premium exceeds the actual gross premium.
Provided, That for any life insurance policy issued on or after January 1, 1985, for which the gross premium in the first policy year exceeds that of the second year and for which no comparable additional benefit is provided in the first year for such excess and which provides an endowment benefit or a cash surrender value or a combination thereof in an amount greater than such the excess premium, the foregoing provisions of this subsection shall be applied as if the method actually used in calculating the reserve for such the policy were the method described in subsection (g) of this section, ignoring the second paragraph subdivision (2) of said subsection.
Provided, That for any life insurance policy issued on or after January 1, 1985, for which the gross premium in the first policy year exceeds that of the second year and for which no comparable additional benefit is provided in the first year for such excess and which provides an endowment benefit or a cash surrender value or a combination thereof in an amount greater than the excess premium, the foregoing provisions of this subsection shall be applied as if the method actually used in calculating the reserve for the policy were the method described in subsection (g) of this section, ignoring subdivision (2) of said subsection.
(2) The minimum reserve at each policy anniversary of such a policy shall be the greater of the minimum reserve calculated in accordance with subsection (g) of this section, including the second paragraph subdivision (2) of said section subsection, and the minimum reserve calculated in accordance with this subsection.
(2) The minimum reserve at each policy anniversary of such a policy shall be the greater of the minimum reserve calculated in accordance with subsection (g) of this section, including subdivision (2) of said subsection, and the minimum reserve calculated in accordance with this subsection.
(m) The commissioner may, by rule, establish alternative methods of calculating reserve liabilities, which methods shall be used to calculate reserve liabilities for the types of policies, annuities or other contracts identified in the rule:
(m) Minimum standard for accident and health insurance contracts.
Provided, That the method specified in the rule shall be one which, in the opinion of the commissioner and in light of the methods applied to the contracts by the insurance regulators of other states, is appropriate to the contracts.
This power shall be in addition to, and in no way diminish, rule-making power granted to the commissioner elsewhere in this code Minimum standard for accident and health insurance contracts.
For accident and sickness insurance contracts issued on or after January 1, 1958 and prior to the operative date of the valuation manual, the minimum standard of valuation is the standard adopted by the commissioner by rule.
For accident and sickness insurance contracts issued on or after January 1, and prior to the operative date of the valuation manual, the minimum standard of valuation is the standard adopted by the commissioner by rule.
— (1) The commissioner shall promulgate emergency rules adopting a valuation manual that is substantially similar to the valuation manual approved by the National Association of Insurance Commissioners NAIC and any amendments to such the manual as may be subsequently approved by the National Association of Insurance Commissioners NAIC, and such the rules shall be effective in accordance with subdivisions (2) and (3) of this subsection.
— (1) The commissioner shall promulgate emergency rules adopting a valuation manual that is substantially similar to the valuation manual approved by the NAIC and any amendments to the manual as may be subsequently approved by the NAIC, and the rules shall be effective in accordance with subdivisions (2) and (3) of this subsection.
(A) The valuation manual has been adopted by the National Association of Insurance Commissioners NAIC by an affirmative vote of at least 42 members, or three-fourths of the members voting, whichever is greater;
(A) The valuation manual has been adopted by the NAIC by an affirmative vote of at least 42 members, or three-fourths of the members voting, whichever is greater;
(B) The Standard Valuation Law, as amended by the National Association of Insurance Commissioners NAIC in 2009, or legislation including substantially similar terms and provisions, has been enacted by states representing greater than 75 percent of the direct premiums written as reported in the following annual statements submitted for 2008:
(B) The Standard Valuation Law, as amended by the NAIC in 2009, or legislation including substantially similar terms and provisions, has been enacted by states representing greater than 75 percent of the direct premiums written as reported in the following annual statements submitted for 2008:
and (C) The Standard Valuation Law, as amended by the National Association of Insurance Commissioners NAIC in 2009, or legislation including substantially similar terms and provisions, has been enacted by at least 42 of the following 55 jurisdictions:
and (C) The Standard Valuation Law, as amended by the NAIC in 2009, or legislation including substantially similar terms and provisions, has been enacted by at least 42 of the following jurisdictions:
(3) Unless a change in the valuation manual specifies a later effective date, changes to the valuation manual shall be effective on January 1 following the date when such the changes have been adopted by the National Association of Insurance Commissioners NAIC by an affirmative vote representing:
(3) Unless a change in the valuation manual specifies a later effective date, changes to the valuation manual shall be effective on January 1 following the date when the changes have been adopted by the NAIC by an affirmative vote representing:
(A) At least three-fourths of the members of the National Association of Insurance Commissioners NAIC voting, but not less than a majority of the total membership;
(A) At least three-fourths of the members of the NAIC voting, but not less than a majority of the total membership;
and (B) Members of the National Association of Insurance Commissioners NAIC representing jurisdictions totaling greater than 75 percent of the direct premiums written, as reported in the following annual statements most recently available prior to the vote in paragraph (A) of this subdivision:
and (B) Members of the NAIC representing jurisdictions totaling greater than 75 percent of the direct premiums written, as reported in the following annual statements most recently available prior to the vote in paragraph (A) of this subdivision:
Such The minimum valuation standards shall be:
The minimum valuation standards shall be:
and (iii) Procedures for corporate governance and oversight of the actuarial function and a process for appropriate waiver or modification of such the procedures.
and (iii) Procedures for corporate governance and oversight of the actuarial function and a process for appropriate waiver or modification of the procedures.
(6) 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 commissioner, in compliance with this section, then the company shall, with respect to such the requirements, comply with minimum valuation standards prescribed by rule.
(6) 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 commissioner, in compliance with this section, then the company shall, with respect to the requirements, comply with minimum valuation standards prescribed by rule.
Such The controls shall be designed to assure that all material risks inherent in the liabilities and associated assets subject to such the valuation are included in the valuation, and that valuations are made in accordance with the valuation manual.
The controls shall be designed to assure that all material risks inherent in the liabilities and associated assets subject to the valuation are included in the valuation, and that valuations are made in accordance with the valuation manual.
(A) A memorandum in support of an opinion submitted under subsection (c) of this section and any other documents, materials, and other information, including, but not limited to, all working papers, and copies thereof, created, produced or obtained by, or disclosed to the commissioner or any other person in connection with such the memorandum;
(A) A memorandum in support of an opinion submitted under subsection (c) of this section and any other documents, materials, and other information, including, but not limited to, all working papers, and copies thereof, created, produced or obtained by, or disclosed to the commissioner or any other person in connection with the memorandum;
(B) All documents, materials, and other information, including, but not limited to, all working papers, and copies thereof, created, produced or obtained by, or disclosed to the commissioner or any other person in the course of an examination made under subdivision (7), subsection (n) of this section, but only to the same extent as such the documents, materials, and other information would be held confidential were they created, produced or obtained in connection with an examination made under the general examination law set forth in §33-2-9 of this code;
(B) All documents, materials, and other information, including, but not limited to, all working papers, and copies thereof, created, produced or obtained by, or disclosed to the commissioner or any other person in the course of an examination made under subdivision (7), subsection (n) of this section, but only to the same extent as the documents, materials, and other information would be held confidential were they created, produced or obtained in connection with an examination made under the general examination law set forth in §33-2-9 of this code;
(C) Any reports, documents, materials, and other information developed by a company in support of, or in connection with, an annual certification by the company under paragraph (B), subdivision (2), subsection (o) of this section evaluating the effectiveness of the company’s internal controls with respect to a principle-based valuation and any other documents, materials, and other information, including, but not limited to, all working papers, and copies thereof, created, produced or obtained by, or disclosed to the commissioner or any other person in connection with such the reports, documents, materials, and other information;
(C) Any reports, documents, materials, and other information developed by a company in support of, or in connection with, an annual certification by the company under paragraph (B), subdivision (2), subsection (o) of this section evaluating the effectiveness of the company’s internal controls with respect to a principle-based valuation and any other documents, materials, and other information, including, but not limited to, all working papers, and copies thereof, created, produced or obtained by, or disclosed to the commissioner or any other person in connection with the reports, documents, materials, and other information;
(D) Any principle-based valuation report developed under paragraph (C), subdivision (2), subsection (o) of this section and any other documents, materials, and other information, including, but not limited to, all working papers, and copies thereof, created, produced or obtained by, or disclosed to the commissioner or any other person in connection with such the report;
(D) Any principle-based valuation report developed under paragraph (C), subdivision (2), subsection (o) of this section and any other documents, materials, and other information, including, but not limited to, all working papers, and copies thereof, created, produced or obtained by, or disclosed to the commissioner or any other person in connection with the report;
and (E) Any documents, materials, data, and other information submitted by a company under subsection (p) of this section (collectively, “experience data”) and any other documents, materials, data, and other information, including, but not limited to, all working papers, and copies thereof, created or produced in connection with such the experience data, in each case that include any potentially company-identifying or personally identifiable information, that is provided to or obtained by the commissioner (together with any “experience data”, the “experience materials”) and any other documents, materials, data, and other information, including, but not limited to, all working papers, and copies thereof, created, produced or obtained by, or disclosed to the commissioner or any other person in connection with such the experience materials.
and (E) Any documents, materials, data, and other information submitted by a company under subsection (p) of this section (collectively, “experience data”) and any other documents, materials, data, and other information, including, but not limited to, all working papers, and copies thereof, created or produced in connection with the experience data, in each case that include any potentially company-identifying or personally identifiable information, that is provided to or obtained by the commissioner (together with any “experience data”, the “experience materials”) and any other documents, materials, data, and other information, including, but not limited to, all working papers, and copies thereof, created, produced or obtained by, or disclosed to the commissioner or any other person in connection with the experience materials.
(i) With other state, federal, and international regulatory agencies and with the National Association of Insurance Commissioners NAIC and its affiliates and subsidiaries;
(i) With other state, federal, and international regulatory agencies and with the NAIC and its affiliates and subsidiaries;
and (iii) In the case of subparagraphs (i) and (ii) of this paragraph, provided that such the recipient agrees and has the legal authority to agree, to maintain the confidentiality and privileged status of such the documents, materials, data, and other information in the same manner and to the same extent as required for the commissioner.
and (iii) In the case of subparagraphs (i) and (ii) of this paragraph, provided that the recipient agrees and has the legal authority to agree, to maintain the confidentiality and privileged status of the documents, materials, data, and other information in the same manner and to the same extent as required for the commissioner.
(D) The commissioner may receive documents, materials, data, and other information, including otherwise confidential and privileged documents, materials, data, or information, from the National Association of Insurance Commissioners NAIC and its affiliates and subsidiaries, from regulatory or law-enforcement officials of other foreign or domestic jurisdictions, and from the Actuarial Board for Counseling and Discipline or its successor, and he or she shall maintain as confidential or privileged any document, material, data, or other information received with notice or the understanding that it is confidential or privileged under the laws of the jurisdiction that is the source of the document, material or other information.
(D) The commissioner may receive documents, materials, data, and other information, including otherwise confidential and privileged documents, materials, data, or information, from the NAIC and its affiliates and subsidiaries, from regulatory or law-enforcement officials of other foreign or domestic jurisdictions, and from the Actuarial Board for Counseling and Discipline or its successor, and he or she shall maintain as confidential or privileged any document, material, data, or other information received with notice or the understanding that it is confidential or privileged under the laws of the jurisdiction that is the source of the document, material or other information.
(G) A privilege established under the law of any state or jurisdiction that is substantially similar to the privilege established under this subdivision is available and may been forced be enforced in any proceeding in, and in any court of, this state.
(G) A privilege established under the law of any state or jurisdiction that is substantially similar to the privilege established under this subdivision is available and may be enforced in any proceeding in, and in any court of, this state.
and (C) Once any portion of a memorandum in support of an opinion submitted under subsection (c) of this section or a principle-based valuation report developed under paragraph (C), subdivision (2), subsection (o) of this section is cited by the company in its marketing or is publicly volunteered to or before a governmental agency other than a state insurance department or is released by the company to the news media, all portions of such the memorandum or report are no longer be confidential.
and (C) Once any portion of a memorandum in support of an opinion submitted under subsection (c) of this section or a principle-based valuation report developed under paragraph (C), subdivision (2), subsection (o) of this section is cited by the company in its marketing or is publicly volunteered to or before a governmental agency other than a state insurance department or is released by the company to the news media, all portions of the memorandum or report are no longer confidential.
  Adopted Rejected
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Action History

  1. Chapter 148, Acts, Regular Session, 2019

  2. Approved by Governor 3/26/19

  3. To Governor 3/25/19

  4. Approved by Governor 3/26/19 - House Journal

  5. Approved by Governor 3/26/19 - Senate Journal

  6. To Governor 3/25/19 - Senate Journal

  7. To Governor 3/25/19 - House Journal

  8. House Message received

  9. Completed legislative action

  10. Communicated to Senate

  11. House concurred in Senate amendment and passed bill (Roll No. 730)

  12. House received Senate message

  13. Senate requests House to concur

  14. Passed Senate (Roll No. 491)

  15. Read 3rd time

  16. On 3rd reading

  17. Committee amendment adopted (Voice vote)

  18. Read 2nd time

  19. On 2nd reading

  20. Read 1st time

  21. On 1st reading

  22. Reported do pass, with amendment

  23. To Judiciary

  24. To Judiciary

  25. Introduced in Senate

  26. House Message received

  27. Communicated to Senate

  28. Passed House (Roll No. 62)

  29. Read 3rd time

  30. On 3rd reading, Special Calendar

  31. Read 2nd time

  32. On 2nd reading, Special Calendar

  33. Read 1st time

  34. On 1st reading, Special Calendar

  35. Do pass

  36. To House Judiciary

  37. Do pass, but first to Judiciary

  38. To House Banking and Insurance

  39. Introduced in House

  40. To Banking and Insurance then Judiciary

  41. Filed for introduction

Sponsors

  • Westfall · Primary
  • Porterfield · Cosponsor
  • Mandt · Cosponsor
  • Espinosa · Cosponsor
  • Vernon Criss · Cosponsor
  • Hamrick · Cosponsor
  • Azinger · Cosponsor
  • Nelson · Cosponsor
  • Dean Jeffries · Cosponsor

Sponsorship breakdown

Export CSV (upgrade) →

1 sponsors · 8 co-sponsors · 143 not signed on

Sponsors (1)

  • Westfall

Co-sponsors (8)

Not signed on (143)

143 members have not signed on to this bill.

Show all 143 →

"Not signed on" means a member has not sponsored or co-sponsored this bill — it does not imply opposition. Members flagged Voted No have a recorded No vote on this bill.

Whip count is in markup. Polling the chamber and every recorded vote this session. Only the first open is slow. It’s instant for you after this. Calling the roll · Tallying · Engrossing

Votes

Passage

Passed 34 Yea · 0 Nay
Party YeaNayPresentNot Voting
Republican 2000
Unaffiliated 32000
Total 34000
% of votes cast 100%0%0%0%
How each member voted (34)
Member Party Vote
JEFFRIES — Yea
SMITH — Yea
BALDWIN — Yea
LINDSAY — Yea
STOLLINGS — Yea
BEACH — Yea
MANN — Yea
SWOPE — Yea
BLAIR — Yea
MARONEY — Yea
SYPOLT — Yea
BOLEY — Yea
MAYNARD — Yea
TAKUBO — Yea
BOSO — Yea
PALUMBO — Yea
TARR — Yea
PLYMALE — Yea
TRUMP — Yea
CLINE — Yea
PREZIOSO — Yea
UNGER — Yea
FACEMIRE — Yea
ROBERTS — Yea
WELD — Yea
HAMILTON — Yea
ROMANO — Yea
WOELFEL — Yea
HARDESTY — Yea
RUCKER — Yea
MR PRESIDENT — Yea
IHLENFELD — Yea
Charles H. Clements Republican Yea
Mike Azinger Republican Yea

Official roll call →

PASSAGE-SENATE AMENDED HB

Passed 98 Yea · 1 Nay · 1 Other
Party YeaNayPresentNot Voting
Republican 23001
Unaffiliated 70100
Democrat 5000
Total 98101
% of votes cast 98%1%0%1%
How each member voted (100)
Member Party Vote
Foster — Yea
Brown, S. — Yea
Maynard — Yea
Hartman — Yea
Sypolt — Yea
Thompson, C. — Yea
Thompson, R. — Yea
Nelson — Yea
Tomblin — Yea
Atkinson — Yea
Bates — Yea
Bibby — Yea
Boggs — Yea
Byrd — Yea
Cadle — Yea
Fast — Yea
Graves — Yea
Hanna — Yea
Harshbarger — Yea
Hicks — Yea
Higginbotham — Yea
Hill — Yea
Kump — Yea
Linville — Yea
Longstreth — Yea
Lovejoy — Yea
Malcolm — Yea
Rowan — Yea
Shott — Yea
Skaff — Yea
Sponaugle — Yea
Storch — Yea
Swartzmiller — Yea
Walker — Yea
Phillips — Yea
Diserio — Yea
Jeffries, J. — Yea
Evans — Yea
Brown, N. — Nay
Cowles — Yea
Doyle — Yea
Espinosa — Yea
Estep-Burton — Yea
Pack — Yea
Paynter — Yea
Porterfield — Yea
Robinson — Yea
Waxman — Yea
Westfall — Yea
Wilson — Yea
Zukoff — Yea
Angelucci — Yea
Canestraro — Yea
Capito — Yea
Caputo — Yea
Fleischauer — Yea
Hamrick — Yea
Hardy — Yea
Hollen — Yea
Householder — Yea
Kessinger — Yea
Lavender-Bowe — Yea
Mandt — Yea
Miley — Yea
Pethtel — Yea
Pyles — Yea
Rodighiero — Yea
Rowe — Yea
Staggers — Yea
Steele — Yea
Summers — Yea
Evan Hansen Democrat Yea
John Williams Democrat Yea
Mike Pushkin Democrat Yea
Sean Hornbuckle Democrat Yea
Shawn Fluharty Democrat Yea
Ben Queen Republican Yea
Betsy Kelly Republican Yea
Betsy Kelly Republican Yea
Carl Martin Republican Yea
Christopher W. Toney Republican Yea
D. Rolland Jennings Republican Yea
Dean Jeffries Republican Yea
Evan Worrell Republican Yea
Gary G. Howell Republican Yea
George Miller Republican Yea
Jason Barrett Republican Yea
Jeff Campbell Republican Yea
Jim Butler Republican Yea
Joe Ellington Republican Yea
John Paul Hott Republican Yea
Mark Dean Republican Yea
Matthew Rohrbach Republican Yea
Mike Azinger Republican Yea
Pat McGeehan Republican Yea
Patrick Martin Republican Yea
Roger Hanshaw Republican Yea
Roy Cooper Republican Not Voting
Vernon Criss Republican Yea
William Anderson Republican Yea

Official roll call →

PASSAGE

Passed 97 Yea · 0 Nay · 3 Other
Party YeaNayPresentNot Voting
Republican 22002
Unaffiliated 70001
Democrat 5000
Total 97003
% of votes cast 97%0%0%3%
How each member voted (100)
Member Party Vote
Foster — Yea
Brown, N. — Yea
Maynard — Yea
Brown, S. — Yea
Sypolt — Yea
Hartman — Yea
Thompson, C. — Yea
Thompson, R. — Yea
Nelson — Yea
Tomblin — Yea
Walker — Yea
Phillips — Yea
Bates — Yea
Bibby — Yea
Boggs — Yea
Cadle — Yea
Canestraro — Yea
Caputo — Yea
Cowles — Yea
Fleischauer — Yea
Graves — Yea
Hamrick — Yea
Hardy — Yea
Hicks — Yea
Higginbotham — Yea
Hollen — Yea
Householder — Yea
Lavender-Bowe — Yea
Linville — Yea
Lovejoy — Yea
Malcolm — Yea
Pack — Yea
Paynter — Yea
Pethtel — Yea
Rowe — Yea
Sponaugle — Yea
Staggers — Yea
Storch — Yea
Swartzmiller — Yea
Waxman — Yea
Westfall — Yea
Wilson — Yea
Diserio — Yea
Jeffries, J. — Yea
Evans — Yea
Espinosa — Yea
Kessinger — Yea
Pyles — Yea
Rodighiero — Yea
Rowan — Yea
Zukoff — Yea
Angelucci — Yea
Atkinson — Yea
Byrd — Yea
Capito — Yea
Doyle — Yea
Estep-Burton — Yea
Fast — Yea
Hanna — Yea
Harshbarger — Yea
Hill — Yea
Kump — Not Voting
Longstreth — Yea
Mandt — Yea
Miley — Yea
Porterfield — Yea
Robinson — Yea
Shott — Yea
Skaff — Yea
Steele — Yea
Summers — Yea
Evan Hansen Democrat Yea
John Williams Democrat Yea
Mike Pushkin Democrat Yea
Sean Hornbuckle Democrat Yea
Shawn Fluharty Democrat Yea
Ben Queen Republican Yea
Betsy Kelly Republican Yea
Betsy Kelly Republican Yea
Carl Martin Republican Yea
Christopher W. Toney Republican Yea
D. Rolland Jennings Republican Yea
Dean Jeffries Republican Yea
Evan Worrell Republican Yea
Gary G. Howell Republican Yea
George Miller Republican Yea
Jason Barrett Republican Yea
Jeff Campbell Republican Yea
Jim Butler Republican Yea
Joe Ellington Republican Not Voting
John Paul Hott Republican Yea
Mark Dean Republican Yea
Matthew Rohrbach Republican Yea
Mike Azinger Republican Yea
Pat McGeehan Republican Yea
Patrick Martin Republican Yea
Roger Hanshaw Republican Yea
Roy Cooper Republican Not Voting
Vernon Criss Republican Yea
William Anderson Republican Yea

Official roll call →

Subjects

finance health-insurance
Cross-referencing the record. Reading this bill against every other bill in the corpus by meaning, not keywords. Only the first open is slow. It’s instant for you after this. Matching · Ranking · Engrossing

Frequently asked questions

Who sponsors HB 2474?
HB 2474 is sponsored by Westfall, Porterfield, Mandt, Espinosa, Vernon Criss (Republican), Hamrick, Azinger, Nelson, and Dean Jeffries (Republican).
What is the current status of HB 2474?
This bill has been enacted into law. Introduced January 17, 2019. Enacted.
Where can I track HB 2474?
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