SB 2764 Summary

• Amends Illinois Insurance Code Sections 223 and 229.2 to establish separate valuation standards for life insurance policies issued before and after the operative date of the Valuation Manual, distinguishing between legacy policies and those subject to new standards.

• For policies issued prior to the Valuation Manual's operative date, retains existing valuation methods including Commissioners reserve valuation using specified mortality tables and interest rates; for policies issued on or after the operative date, incorporates the new Valuation Manual standards as the minimum valuation requirement.

• Establishes requirements for principle-based valuation for certain policies issued after the Valuation Manual's operative date, requiring companies to use assumptions based on available company experience and to include margins for uncertainty, with specific governance and oversight procedures.

• Requires companies to submit annual actuarial opinions from qualified actuaries certifying that reserves are computed appropriately and comply with applicable laws; establishes confidentiality protections for actuarial memorandums and working papers submitted to the Director.

• Provides exemptions for small domestic insurance companies and allows the Director to grant exemptions for specific product forms, provided companies maintain adequate reserves and meet specified financial and operational criteria.