Bill > H2969

This bill proposes to amend the existing law on principle-based reserving for life insurance in Massachusetts. The key provisions of the bill are: 1) It establishes a new section 9 1/2 in Chapter 175 of the General Laws that requires life insurance companies to use principle-based valuation methods to calculate reserves for life insurance, accident and health insurance, and deposit-type contracts issued on or after the effective date of the bill. This includes requirements for the appointed actuary, corporate governance, and confidentiality of certain information submitted to the insurance commissioner. 2) It adds a new section 9B 1/2 that requires life insurance companies to submit an annual opinion from the appointed actuary on the adequacy of reserves, as well as a supporting memorandum. 3) It amends section 144 to update the requirements for nonforfeiture benefits and cash surrender values for life insurance policies issued on or after the effective date of the bill. 4) The bill aims to align Massachusetts' laws on principle-based reserving with the NAIC Valuation Manual, which sets national standards in this area.

Budget and Finance, Business and Industry, Health and Social Services

https://malegislature.gov/Bills/190/H2969