WSR 03-07-005

PREPROPOSAL STATEMENT OF INQUIRY

OFFICE OF THE

INSURANCE COMMISSIONER

[ Insurance Commissioner Matter No. R 2003-02 -- Filed March 6, 2003, 4:25 p.m. ]

Subject of Possible Rule Making: The National Association of Insurance Commissioner[s] (NAIC) recently adopted in the 2001 commissioner's standard ordinary (CSO) mortality tables. Commissioner Kreidler will consider rules regarding the NAIC model.

Statutes Authorizing the Agency to Adopt Rules on this Subject: RCW 48.02.060, 48.74.030, 48.76.050.

Reasons Why Rules on this Subject may be Needed and What They Might Accomplish: The 2001 CSO mortality table is a new mortality table developed by the American Academy of Actuaries to reflect changes in mortality since the development of the 1980 CSO table. The 1980 CSO table is the current mortality table; the 2001 table would provide a new minimum valuation standard of mortality for life insurance products. The new table addresses plans of insurance that have separate rates for nonsmokers and smokers. The new table addresses plans of insurance that have the same rates for males and females. The commissioner will review the new table and determine if it should be adopted and any changes are necessary for clarity or to fit within the Washington regulatory scheme.

Other Federal and State Agencies that Regulate this Subject and the Process Coordinating the Rule with These Agencies: No other federal or state agency regulates this subject.

Process for Developing New Rule: Agency study.

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 40255, Olympia, WA 98504-0255, e-mail Kacys@oic.wa.gov, phone (360) 725-7041, fax (360) 586-3109.

March 5, 2003

Mike Kreidler

Insurance Commissioner

Legislature Code Reviser 

Register

Washington State Code Reviser's Office