insurance compact update - association of insurance ... compact update ... • revisions allowed by...
TRANSCRIPT
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Click to edit Presenter Name
Insurance Compact
Update AICP Mid-Atlantic Chapter
Education Day 2017
Anne Marie Narcini, CIE, CPCU
Regulatory Consultant - IIPRC
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Session Overview
Updates on Product Operations
Updates on Filing Guidance
Updates on Uniform Standards
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Overview of Insurance Compact
• Compact filings submitted through the System
for Electronic Rate and Form Filing (SERFF)
• File one submission under one set of standards
for one review and approval valid in all Compact
jurisdictions
• No state opt-outs of individual life or annuity
standards
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Compacting Jurisdictions –
What’s New
Connecticut – Newest Compact member
• Effective July 1, 2017
• Effective for filings July 18, 2017
District of Columbia and New York – Pending
legislation
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The IIPRC Team Karen Schutter – Executive Director
Becky McElduff – Assistant Director of Product Operations
Sara Dubsky – Senior Operations Manager
Ed Charbonnier – Life Reviewer
Mindy Bradford – Life Reviewer
Karen Givens – Primary Annuity Reviewer
Maureen Perry – Primary LTC/DI Reviewer
Jeanne Daharsh – Actuary (Life, LTC, DI)
Katie Campbell – Actuary (Life & Annuities)
Anne Marie Narcini – Regulatory Consultant
Aimee Lawson – Product Filing Support Coordinator
Lucy Smoucha – Administrative Assistant
Karla Coellner – Administrative Assistant
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Compact Filing Trends and Stats (as of May 1, 2017)
• 177 Companies Registered
• 226 Companies Registered in 2016
• 1761 forms for 339 products filed
• 494 products approved
• Mix and Match level to 2016 at 50%
• Average approval time 27 business days*
* excludes company response time to objection letters
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58% 29%
3%
10% Life
Annuity
Disability Income
Long-term Care
Breakdown of 2016 Filings
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Using the Insurance Compact
Website for Guidance
Instructions on
Associated
Filings
Filing Fee
Schedule
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Weekly Tip
Archive
Using the Insurance Compact
Website for Guidance
FINs
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Filing Information Notices
• Find on www.insurancecompact.org
• Home page > Filing Information Notices
• Insurer Resources page > Reference Materials block >
Filing Information Notices
Using the Insurance Compact
Website for Guidance
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FIN 2016-1
Using the Insurance Compact
Website for Guidance
FIN 2017-1
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Filing Guidance: FIN 2016-1
FIN 2016-1 – Filing Process to Effectuate the 2017 Commissioners Standard Ordinary (CSO) Mortality Table
• The Compact makes updating Compact-approved products for mortality table changes seamless through a variety of options:
• New Specification Pages
• Updated Statement of Variability
• Replacement pages and/or
• Endorsement.
• An updated Actuarial Memorandum is required under each of these options.
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Filing Guidance: FIN 2017-1
FIN 2017-1 Process for Revisions to Forms and Supporting Documentation in Compact Filings:
• Issued 3/9, effective 4/1.
• Adding states, updating SOI and translation certifications still do not require Compact review fee
• Not changing what we have been applying. Rather, reducing our process/procedure to writing to provide consistency, uniformity and predictability for filers
• New Filing Type – Supporting Documentation Update
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Filing Guidance: FIN 2017-1
FIN 2017-1 Process for Revisions to Forms and
Supporting Documentation in Compact Filings:
Pending Filings:
• Objections not issued – free to revise forms or submit
new forms. Be mindful of fees.
• Objections issued – revisions allowed if in response to
an objection. Otherwise, revisions require amended
filing fee. New forms not permitted – submit as a new
filing.
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Filing Guidance: FIN 2017-1
FIN 2017-1 Process for Revisions to Forms and Supporting Documentation in Compact Filings:
“Closed-Approved” Filings:
• Closed < 90 days and forms not issued or marketed:
• Revisions allowed by sending a Note to Reviewer requesting the filing be re-opened. Include the reason for the request and describe the revisions. Once re-opened, submit revisions in an amendment and pay amended filing fee.
• Closed > 90 days or forms have been issued:
• Submit revisions in a new filing
• New filing type – Supporting Documentation Update
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FIN 2017-1 Process for Revisions to Forms and
Supporting Documentation in Compact Filings:
• “Closed-Withdrawn” or “Closed-Disapproved” Filings –
always requires new filing
• In-Force Products – call Compact office to discuss
individual situation in order to best advise how to proceed
Filing Guidance: FIN 2017-1
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• Appendix A – Flow Chart
• Appendix B – State Fees for new filing type
• FAQ posted to Insurer Resources page of Insurance
Compact website
• A Series of Weekly Tips issued in March & April provide
in-depth detail on FIN 2017-1
Filing Guidance: FIN 2017-1
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Supporting Documentation Update Filing Type:
• Update material originally submitted on the Supporting
Documentation tab
• Select TOI and sub-TOI of original filing, then SDU
Filing Type
• Associate to filing(s) being updated
• Provide detailed description of update in Filing
Description on General Information tab
• NO FORMS PERMITTED ON FORM SCHEDULE TAB
Filing Guidance: FIN 2017-1
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Supporting Documentation Update Filing Type Cont’d:
• New Submission Requirements
• Leave Form Schedule Tab empty and confirm
Filing Guidance: FIN 2017-1
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Supporting Documentation Update Filing Type Cont’d:
• Leave Statement of Intent empty and confirm. SOI
updates should be made in original filing.
Filing Guidance: FIN 2017-1
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Supporting Documentation Update Filing Type, Cont’d
• Submit Compact Product Filing Fee for new filing depending on whether uniform standards for item being updated require actuarial review. Same fee amounts as new product filing.
• Submit applicable state filing fees per Appendix B. State fees apply per submission only.
• Provide complete Statement of Variability including updated/new items
• Provide new certification of variability
• If making non-variable item variable, include approved form with complete, revised bracketing on the Supporting Documentation tab—not the Form Schedule
Filing Guidance: FIN 2017-1
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Uniform Standards Update
Product Standards Committee (PSC)
• 20 Regulators from Member States
• Develop and amend Uniform Standards
• Input from industry, consumer representatives, legislators, other regulators
• Uniform Standards approved by a 2/3 super majority of Member States
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New Uniform Standards
Group Disability Income Insurance
• Suite of Uniform Standards covering Policy Standards, Enrollment Forms, Statement of Insurability Forms, Rate Filings and Rate Changes
• Policyholder application for all group products that can be filed with the Compact
• Mix and Match: Only in combination with state-approved group life or annuity contracts if the DI rider and all DI components are filed with the Compact
• Standards available for filings effective 6/8/2016
• FIN 2016-2 addresses filing requirements for Group DI Standards
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Five-Year Review of Uniform
Standards
• Adopted standards reviewed on a rolling five-year basis
• Did circumstances or underlying assumptions change
since the last time the rule was amended?
• Substantive changes, clarification, conforming
amendments, technical corrections
• PSC provides recommendations to Management
Committee, then exposed for public comment
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Five-Year Review of Uniform
Standards – Phase 6
Includes all Individual LTC Standards
• Substantive changes include:
• Dollar-for-dollar benefit riders in rate review
• Update Uniform Standards to most include recent
changes to LTC Model Regulation
• Management Committee will consider adoption of
revisions at a joint call of the Management Committee
and Commission on 6/26
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Five-Year Review of Uniform
Standards – Phase 7 Uniform Standards:
Graded Death Benefits – Whole Life
Longevity Annuities
Private Placement – Deferred Variable Annuities
Private Placement – Variable Adjustable Life
Change of Insurance Benefit – Life
Overloan Protection Benefit – Life
• Comment period expired 5/22. You can view proposals on the Docket, under Amendments to Uniform Standards
• Public hearing June 26, 2017
• Consider for adoption at Summer meeting
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Five-Year Review of Uniform
Standards – Phase 8 Includes all Individual Disability Income Uniform Standards
• Comment period ended 3/31
• Compact office preparing a report summarizing comments and proposed revisions for PSC consideration
• Plan to expose with Public call late June/Early July
• PSC discussions through Summer into Fall
• Goal is to have recommendations to Management Committee later in Fall
• Consideration of which Group DI standards should also be in iDI
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Other Items on PSC Workload
• June 6 – Public meeting to receive comments on request
by Industry Advisory Committee to amend annuity
standards to address interest on death benefits
• You can view the materials on the Event Calendar
• Additional Standards for Incidental and Ancillary Benefits
for Life Insurance Products in drafting stage. Anticipate
exposure for public comment late June/ early July
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Uniform Standards: How You
Can Help
• Follow the PSC meetings; If a
product doesn’t have standards, let
us know
• Consider best practices that can be
incorporated into new standards
• Offer to assist with drafting or
product education
• Balance consumer protections and
Industry initiatives
PSC Call Summaries on
About the IIPRC page
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Five-Year Review Information
Amended Standards under review are found on the
Docket
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Five-Year Review Information
Adopted Standards contain Standard History, including
comments and redlined proposal(s)
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Link to Redlined
Proposed
Amendments for
Five-Year Review
Original
Standards
Other
Amendments
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Questions? Contact
Anne Marie Narcini
(609) 901- 4113
Insurance Compact
(202) 471-3962