July 08, 2020
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Amendment CaShTmL-372192.HTM
                                                  SENATE AMENDMENT
    Bill No. CS for CS for SB 2994, 1st Eng.
    Amendment No. ___   Barcode 372192
                            CHAMBER ACTION
              Senate                               House
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       04/27/2004 11:46 AM         .                    
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11  Senator Alexander moved the following amendment:
12  
13         Senate Amendment (with title amendment) 
14         On page 83, between lines 11 and 12,
15  
16  insert:  
17         Section 76.  Section 625.081, Florida Statutes, is
18  amended to read:
19         625.081  Reserve for health insurance.--For all health
20  insurance policies, the insurer shall maintain an active life
21  reserve which places a sound value on the insurer's
22  liabilities under such policies; is not less than the reserve
23  according to appropriate standards set forth in rules issued
24  by the commission; and, with the exception of credit
25  disability insurance, in no event, is less in the aggregate
26  than the pro rata gross unearned premiums for such policies.
27         Section 77.  Paragraphs (a), (e), and (f) of subsection
28  (5) and subsection (13) of section 625.121, Florida Statutes,
29  are amended, and paragraphs (k) and (l) are added to
30  subsection (5) of that section, to read:
31         625.121  Standard Valuation Law; life insurance.--
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    7:37 AM   04/27/04                              s2994c2c-17ta2

SENATE AMENDMENT Bill No. CS for CS for SB 2994, 1st Eng. Amendment No. ___ Barcode 372192 1 (5) MINIMUM STANDARD FOR VALUATION OF POLICIES AND 2 CONTRACTS ISSUED ON OR AFTER OPERATIVE DATE OF STANDARD 3 NONFORFEITURE LAW.--Except as otherwise provided in paragraph 4 (h) and subsections (6), (11), and (14), the minimum standard 5 for the valuation of all such policies and contracts issued on 6 or after the operative date of s. 627.476 (Standard 7 Nonforfeiture Law for Life Insurance) shall be the 8 commissioners' reserve valuation method defined in subsections 9 (7), (11), and (14); 5 percent interest for group annuity and 10 pure endowment contracts and 3.5 percent interest for all 11 other such policies and contracts, or in the case of life 12 insurance policies and contracts, other than annuity and pure 13 endowment contracts, issued on or after July 1, 1973, 4 14 percent interest for such policies issued prior to October 1, 15 1979, and 4.5 percent interest for such policies issued on or 16 after October 1, 1979; and the following tables: 17 (a) For all ordinary policies of life insurance issued 18 on the standard basis, excluding any disability and accidental 19 death benefits in such policies: 20 1. For policies issued prior to the operative date of 21 s. 627.476(9), the commissioners' 1958 Standard Ordinary 22 Mortality Table; except that, for any category of such 23 policies issued on female risks, modified net premiums and 24 present values, referred to in subsection (7), may be 25 calculated according to an age not more than 6 years younger 26 than the actual age of the insured.; and 27 2. For policies issued on or after the operative date 28 of s. 627.476(9), the commissioners' 1980 Standard Ordinary 29 Mortality Table or, at the election of the insurer for any one 30 or more specified plans of life insurance, the commissioners' 31 1980 Standard Ordinary Mortality Table with Ten-Year Select 2 7:37 AM 04/27/04 s2994c2c-17ta2
SENATE AMENDMENT Bill No. CS for CS for SB 2994, 1st Eng. Amendment No. ___ Barcode 372192 1 Mortality Factors. 2 3. For policies issued on or after July 1, 2004, 3 ordinary mortality tables, adopted after 1980 by the National 4 Association of Insurance Commissioners, adopted by rule by the 5 commission for use in determining the minimum standard of 6 valuation for such policies. 7 (e) For total and permanent disability benefits in or 8 supplementary to ordinary policies or contracts: 9 1. For policies or contracts issued on or after 10 January 1, 1966, the tables of period 2 disablement rates and 11 the 1930 to 1950 termination rates of the 1952 disability 12 study of the Society of Actuaries, with due regard to the type 13 of benefit; 14 2. For policies or contracts issued on or after 15 January 1, 1961, and prior to January 1, 1966, either those 16 tables or, at the option of the insurer, the class three 17 disability table (1926); and 18 3. For policies issued prior to January 1, 1961, the 19 class three disability table (1926); and. 20 4. For policies or contracts issued on or after July 21 1, 2004, tables of disablement rates and termination rates 22 adopted after 1980 by the National Association of Insurance 23 Commissioners, adopted by rule by the commission for use in 24 determining the minimum standard of valuation for those 25 policies or contracts. 26 27 Any such table for active lives shall be combined with a 28 mortality table permitted for calculating the reserves for 29 life insurance policies. 30 (f) For accidental death benefits in or supplementary 31 to policies: 3 7:37 AM 04/27/04 s2994c2c-17ta2
SENATE AMENDMENT Bill No. CS for CS for SB 2994, 1st Eng. Amendment No. ___ Barcode 372192 1 1. For policies issued on or after January 1, 1966, 2 the 1959 Accidental Death Benefits Table; 3 2. For policies issued on or after January 1, 1961, 4 and prior to January 1, 1966, either that table or, at the 5 option of the insurer, the Intercompany Double Indemnity 6 Mortality Table; and 7 3. For policies issued prior to January 1, 1961, the 8 Intercompany Double Indemnity Mortality Table; and. 9 4. For policies issued on or after July 1, 2004, 10 tables of accidental death benefits adopted after 1980 by the 11 National Association of Insurance Commissioners, adopted by 12 rule by the commission for use in determining the minimum 13 standard of valuation for those policies. 14 15 Either table shall be combined with a mortality table 16 permitted for calculating the reserves for life insurance 17 policies. 18 (k) For individual annuity and pure endowment 19 contracts issued on or after July 1, 2004, excluding any 20 disability and accidental death benefits purchased under those 21 contracts, individual annuity mortality tables adopted after 22 1980 by the National Association of Insurance Commissioners, 23 adopted by rule by the commission for use in determining the 24 minimum standard of valuation for those contracts. 25 (l) For all annuities and pure endowments purchased on 26 or after July 1, 2004, under group annuity and pure endowment 27 contracts, excluding any disability and accidental death 28 benefits purchased under those contracts, group annuity 29 mortality tables adopted after 1980 by the National 30 Association of Insurance Commissioners, adopted by rule by the 31 commission for use in determining the minimum standard of 4 7:37 AM 04/27/04 s2994c2c-17ta2
SENATE AMENDMENT Bill No. CS for CS for SB 2994, 1st Eng. Amendment No. ___ Barcode 372192 1 valuation for those contracts. 2 (13) APPLICABILITY TO CREDIT LIFE AND DISABILITY 3 INSURANCE POLICIES.-- 4 (a) For policies issued prior to January 1, 2004: 5 1. The minimum reserve for single-premium credit 6 disability insurance, monthly premium credit life insurance 7 and monthly premium credit disability insurance shall be the 8 unearned gross premium. 9 2. As to single-premium credit life insurance 10 policies, the insurer shall establish and maintain reserves 11 that are not less than the value, at the valuation date, of 12 the risk for the unexpired portion of the period for which the 13 premium has been paid as computed on the basis of the 14 commissioners' 1980 Standard Ordinary Mortality Table and 3.5 15 percent interest. At the discretion of the office, the insurer 16 may make a reasonable assumption as to the ages at which net 17 premiums are to be determined. In lieu of the foregoing basis, 18 reserves based upon unearned gross premiums may be used at the 19 option of the insurer. 20 (b) For policies issued on or after January 1, 2004: 21 1. The minimum reserve for single-premium credit 22 disability insurance shall be either: 23 a. The unearned gross premium, or 24 b. Based upon a morbidity table that is adopted by the 25 National Association of Insurance Commissioners and is 26 specified in a rule the commission adopts pursuant to 27 subsection (14). 28 2. The minimum reserve for monthly premium credit 29 disability insurance shall be the unearned gross premium. 30 3. The minimum reserve for monthly premium credit life 31 insurance shall be the unearned gross premium. 5 7:37 AM 04/27/04 s2994c2c-17ta2
SENATE AMENDMENT Bill No. CS for CS for SB 2994, 1st Eng. Amendment No. ___ Barcode 372192 1 4. As to single-premium credit life insurance 2 policies, the insurer shall establish and maintain reserves 3 that are not less than the value, at the valuation date, of 4 the risk for the unexpired portion of the period for which the 5 premium has been paid as computed on the basis of the 6 commissioners' 1980 Standard Ordinary Mortality Table or any 7 ordinary mortality table, adopted after 1980 by the National 8 Association of Insurance Commissioners, that is approved by 9 rule adopted by the commission for use in determining the 10 minimum standard of valuation for such policies; and an 11 interest rate determined in accordance with subsection (6). At 12 the discretion of the office, the insurer may make a 13 reasonable assumption as to the ages at which net premiums are 14 to be determined. In lieu of the foregoing basis, reserves 15 based upon unearned gross premiums may be used at the option 16 of the insurer. This section does not apply as to those credit 17 life insurance policies for which reserves are computed and 18 maintained as required under s. 625.131. 19 Section 78. Section 625.131, Florida Statutes, is 20 repealed. 21 22 (Redesignate subsequent sections.) 23 24 25 ================ T I T L E A M E N D M E N T =============== 26 And the title is amended as follows: 27 On page 4, line 4, after the semicolon, 28 29 insert: 30 amending s. 625.081, F.S.; providing an 31 exception for credit disability insurance from 6 7:37 AM 04/27/04 s2994c2c-17ta2
SENATE AMENDMENT Bill No. CS for CS for SB 2994, 1st Eng. Amendment No. ___ Barcode 372192 1 a health insurance active life reserve 2 requirement; amending s. 625.121, F.S.; 3 providing for valuation of life insurance 4 policies; repealing s. 625.131, F.S., relating 5 to the minimum reserve basis for single-premium 6 credit disability insurance; 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 7 7:37 AM 04/27/04 s2994c2c-17ta2
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