Filing Information Notice 2020 - 1 Issued
This week, the Insurance Compact Office issues a new Filing Information Notice ? FIN 2020-1: New, Amended and Refiled Product Filings due to Changes in Interest Rates for Nonforfeiture Values in Life Insurance Products. This FIN will help filers navigate filing procedures to reflect the new nonforfeiture interest rate for life insurance that may be used beginning 1/1/2021. FINs are published on our website on the Industry Resources page under Filing Reference Materials, and the Insurance Compact home page in the Links section.
Please also note:
- FIN 2020-1 addresses changes to life insurance nonforfeiture interest rates. It is not related to annuity nonforfeiture or NAIC Model #805.
- NAIC Model Regulation 808, which governs minimum nonforfeiture values for life insurance products filed with the Insurance Compact, allows use of the previous calendar year?s nonforfeiture interest rate in determining nonforfeiture values (see section 5.c.H.1 of the model regulation). As a result, filers may opt to use the 2020 nonforfeiture interest rate for policies issued in 2021.
- The Expedited Review Process is generally available for an update to a previously approved product?s Statement of Variability and/or actuarial memorandum in accordance with FIN 2020-1. If your company is aiming for approval of new or updated products to reflect the new nonforfeiture interest rate for life insurance by year-end 2020, the Expedited Review Process is your best bet.
If you have any questions regarding the FIN or the Weekly Tip, please contact the Insurance Compact Office.