PREPROPOSAL STATEMENT OF INQUIRY
INSURANCE COMMISSIONER
Subject of Possible Rule Making: Rules relating to the possible adoption of the 2001 CSO preferred class structure mortality table, or some variation in the table, in determining reserve liabilities.
Statutes Authorizing the Agency to Adopt Rules on this Subject: RCW 48.02.060.
Reasons Why Rules on this Subject may be Needed and What They Might Accomplish: This rule making is commenced in response to a petition for rule making submitted by the American Council of Life Insurers (ACLI) on June 27, 2007 (Commissioner's file Number P.40). The 2001 CSO preferred class structure mortality table was adopted as a model regulation by the National Association of Insurance Commissioners (NAIC) at its meeting in June of 2007. More than forty United States states and the District of Columbia have either adopted or begun proceedings to adopt this table. According to the ACLI, the use of this table will allow insurers to deliver products to the marketplace at a lower cost than would otherwise be possible. The ACLI further states that if Washington does not adopt the table, it could negatively affect the cost of insurance in this state.
The office of the insurance commissioner (OIC) agreed to commence rule making in response to ACLI's petition. During the development of a possible rule, the OIC will consider the NAIC model regulation and suggestions from insurers who would use the table and from the public before deciding on adoption of a regulation permitting use of this table.
Other Federal and State Agencies that Regulate this Subject and the Process Coordinating the Rule with These Agencies: None.
Process for Developing New Rule: During the development of a possible rule, the OIC will consider the NAIC model regulation and suggestions from insurers who would use the table and from the public before deciding on adoption of a regulation permitting use of this table. Interested persons are urged to contact the OIC, by submitting written comments by September 24, 2007, to Kacy Scott, P.O. Box 40260, Olympia, WA 98504-0260, e-mail Kacys@oic.wa.gov, fax (360) 586-3109.
Interested parties can participate in the decision to adopt the new rule and formulation of the proposed rule before publication by contacting Kacy Scott, P.O. Box 40260, Olympia, WA 98504-0260, e-mail Kacys@oic.wa.gov, fax (360) 586-3109.
August 22, 2007
Mike Kreidler
Insurance Commissioner