SB 185 Summary

• Adopts the National Association of Insurance Commissioners (NAIC) Valuation Manual as the standard for valuing life insurance policy reserves, replacing prior statutory methods for policies issued on or after the manual's operative date

• Establishes operative date for Valuation Manual as January 1st following the first July 1st when NAIC adopts the manual by specified vote, states representing 75% of direct written premiums enact similar legislation, and at least 42 of 55 specified jurisdictions adopt comparable laws

• Requires appointed actuaries to submit annual opinions on reserve adequacy and supporting memoranda for policies subject to the Valuation Manual, with confidentiality protections and exceptions for professional disciplinary proceedings

• Implements principle-based valuation requirements for specified policies under the Valuation Manual, requiring companies to establish reserves reflecting company-specific experience, risk analysis, and appropriate conservatism for tail risks

• Updates nonforfeiture law standards to reference the Valuation Manual for policies issued after its operative date while maintaining existing standards for policies issued prior to that date