Subject of Possible Rule Making: The Valuation of Life Insurance Policies Regulation adopted by the National Association of Insurance Commissioners. This regulation is also known as "Triple X" or "XXX."

Statutes Authorizing the Agency to Adopt Rules on this Subject: RCW 48.02.060, 48.74.030, 47.74.040, 47.74.070, and 48.74.080.

Reasons Why Rules on this Subject may be Needed and What They Might Accomplish: The National Association of Insurance Commissioners (NAIC) adopted a model regulation on the Valuation of Life Insurance Policies, known as "Triple X" or "XXX." The purpose of the model regulation is to provide a better method of ensuring adequate and realistic reserves for life insurance policies. Reserves are the funds set aside by the insurer for payment of claims.

The model regulation includes tables of select mortality factors and rules for their use; rules concerning a minimum standard for valuation of plans with nonlevel premiums or benefits; and rules concerning a minimum standard for the valuation of plans with secondary guarantees.

The commissioner will review the NAIC model regulation and determine if the regulation, all or in part, will benefit the consumers of the state of Washington.

Other Federal and State Agencies that Regulate this Subject and the Process Coordinating the Rule with These Agencies: None.

Process for Developing New Rule: Agency study; and send comments by July 23, 1999, to Kacy Brandeberry, P.O. Box 40255, Olympia, WA 98504-0255, fax (360) 664-2782, Internet KacyB@oic.wa.gov.

Interested parties can participate in the decision to adopt the new rule and formulation of the proposed rule before publication by contacting Kacy Brandeberry, P.O. Box 40255, Olympia, WA 98504-0255, phone (360) 664-3784, fax (360) 664-2782, Internet KacyB@oic.wa.gov.

June 23, 1999

Robert A. Harkins

Chief Deputy Commissioner

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