The Interstate Insurance Product Regulation Commission (IIPRC) had some impressive news in their June 13th press release. Not only are they celebrating 10 years since their inaugural meeting, they welcomed the 45th state to join the Commission - Connecticut! We have some time to plan to add CT to our IIPRC filings though; their law doesn’t go into effect until July 1, 2017. Per the IIPRC’s Operating Procedures, Connecticut has until such date to opt out of any specific standards, so we will be on the lookout for news on that front.
2017 CSO Mortality Table Updates
The IIPRC released Filing Information Notice (FIN) 2016-1 in April, describing the steps an insurer can take to file new products or amending previously approved products to reflect the 2017 CSO table. The IIPRC cannot be used to update policies to the 2017 CSO table that were originally filed with the states individually. It can only be used for policies previously approved by the IIPRC. Updates to IIPRC approved policies can be made via replacement pages, updated specification pages or statements of variability and/or an endorsement. The FIN is full of detailed information outlining exactly how to make this change.
Updates to Individual Annuity MVA Standards
After going through their 5-year review, the MVA Standards have been updated, effective July 18, 2016. The most notable change is a revision to Appendix B of such Standard. In the previous version, many contracts with an MVA were limited to a 7% maximum surrender charge schedule in year 1, decreasing by 1% each year. This requirement has been removed in the updated standards.