HB 5932 Summary

• Adopts the NAIC Valuation Manual as Michigan's standard for calculating life insurance reserves beginning January 1 of the first calendar year following NAIC adoption by 42+ members and enactment by states representing 75%+ of direct premiums written.

• Establishes principle-based valuation requirements allowing insurers to use company-specific assumptions and methods (rather than fixed formulas) for certain life insurance policies, subject to director oversight and qualified actuary certification.

• Creates exemptions for smaller domestic insurers with less than $500 million in ordinary life premiums (or $1 billion if part of a group) and 450%+ risk-based capital ratios, allowing them to continue using current valuation standards unless they elect otherwise.

• Requires confidentiality protections for actuarial memorandums, principle-based valuation reports, and experience data submitted to the director, while allowing disclosure to other state regulators and the NAIC under specified conditions.

• Updates mortality tables and interest rate calculations for life insurance policies, including optional use of the 2001 CSO mortality table for policies issued after July 1, 2004.