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AL HB552
Bill
Status
5/26/2015
Primary Sponsor
Ken Johnson
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AI Summary
HB552 Summary
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Standard Nonforfeiture Law for Life Insurance: Establishes minimum cash value requirements and nonforfeiture benefits for life insurance policies issued after January 1, 1972, requiring insurers to provide paid-up benefits or cash surrender values upon premium default.
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Consistent Minimum Standards: Implements consistent cash value requirements across various life insurance products and increases allowances for acquisition expenses through the Nonforfeiture Net Level Premium Method.
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Group Life Insurance Coverage: Removes the exemption for group life insurance products, making them subject to the same nonforfeiture requirements as individual policies.
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Standard Valuation Law Modernization: Adopts a substantially similar Standard Valuation Law to the National Association of Insurance Commissioners (NAIC) model, establishing reserve valuation methods and requiring actuarial opinions from qualified actuaries.
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Effective Date and Repeal: Becomes effective January 1, 2016, and repeals prior conflicting provisions (Sections 27-15-28 and 27-36-7) while providing transition rules and exemptions for small companies and single-state insurers.
Legislative Description
Insurance Department and life insurance companies, Standard Nonforfeiture Law, reserves, Standard Valuation Law, Secs. 27-15-70 to 27-15-83, inclusive, 27-36A-1 to 27-36A-19, inclusive; Secs. 27-15-28, 27-36-7 repealed
Insurance
Last Action
Read for the first time and referred to the Senate committee on Banking and Insurance
5/28/2015