Insurers: Life Insurance Policy Form Filings Due to 2013 Statutory Valuation Interest Rate Change
TO: All Insurance Companies Writing Life Insurance in California
DATE: September 21, 2012
RE: Life Insurance Policy Form Filings Due to 2013 Statutory Valuation Interest Rate Change
California Insurance Code (CIC) 10160 specifies mandatory policy provisions for life insurance policies issued in California which are subject to the Standard Nonforfeiture Law for Life Insurance. CIC 10160(e) requires, among other things, that the mortality table and interest rate used in calculating the cash surrender values and the paid-up nonforfeiture benefits be included in the policy.
This letter provides requirements for the continued use of existing policy forms, approved prior to 1/1/2013 that may require interest rate modification due to the decrease in the statutory valuation interest rate for 2013 life insurance issues.
A 2013 Statutory Valuation Interest Rate Change filing is required only if the valuation interest rate and/or the nonforfeiture interest rate will change as of 1/1/2013 and the interest rate(s) is (are) explicitly stated in the policy form. A new form, or policy endorsement or a revised contract page may be filed.
A revised actuarial memorandum must be submitted when there is a change to the nonforfeiture interest rate.
If you must submit a 2013 Statutory Valuation Interest Change filing, please include the following information in the cover letter to expedite our review:
- Identify the filing as a 2013 Statutory Valuation Interest Rate Change filing made to comply with the reduction in the statutory valuation interest rates for 2013 life insurance issues.
- That other than those interest rate changes specified (valuation interest rate and/or the nonforfeiture interest rate) there are no other changes to the policy form.
- The SERFF filing number of the original policy that is being modified by this filing. If the original filing was a paper filing, include a copy of the original policy in the "Supporting Documentation" tab in SERFF and include the Department's matter number (PF number), if available.
- When the filing is submitted using SERFF, the "Filing Description" field in the "General Information" tab should say, "2013 Statutory Valuation Interest Rate Change".
Filings that do not include this information will be subject to the Department's regular review process. For questions regarding this letter, please contact Sarvjit.Samra@insurance.ca.gov.