Effective Date of Changes Made to the Principle-Based Reserving Valuation Manual

STATE OF CONNECTICUT INSURANCE DEPARTMENT www.ct.gov/cid P.O. Box 816 Hartford, CT 06142-0816 Affirmative Action/Equal Employment Opportunity Employer BULLETIN No. FS-43 December 21, 2021 TO: All Insurance Companies Writing Life Insurance, Accident and Health Insurance and Deposit-Type Contracts RE: Effective Date of Changes Made to the Principle-Based Reserving Valuation Manual Pursuant to Conn. Gen. Stat. §38a-78a(b)(1), unless a later effective date has been specified, a change to the Valuation Manual shall apply on January first of the first calendar year following the date as of which both of the following have occurred: (A) The change to the Valuation Manual has been adopted by NAIC by an affirmative vote of at least three-quarters of NAIC members voting but not less than a majority of the total NAIC membership; and (B) The change to the Valuation Manual has been adopted by NAIC members representing jurisdictions totaling greater than seventy-five per cent of the direct written premiums, as reported in the most recent annual statements submitted to NAIC prior to the vote in subparagraph (A) of this subdivision, for the following: Life insurance, accident and health insurance, health insurance or fraternal annual statements. On August 17, 2021, 51 of the 56 NAIC jurisdictions (including Connecticut) participated in votes of the Executive (EX) Committee and Plenary to make changes to the Valuation Manual effective for January 1, 2022. These jurisdictions represented over 75% of the 2020 applicable premium as reported in the relevant 2020 annual statements. At this meeting, the NAIC Executive (EX) Committee and Plenary voted to adopt a package of 15 amendments to the Valuation Manual. A motion to adopt the package of amendments, excluding the APF 2020-10 amendment, was passed by 51 jurisdictions representing 97.81% of the applicable premiums written over 75% of the 2020 applicable premium as reported in the relevant 2020 annual statements. At this meeting, the NAIC Executive (EX) Committee and Plenary voted to adopt a package of 15 amendments to the Valuation Manual. A motion to adopt the package of amendments, excluding the APF 2020-10 amendment, was passed by 51 jurisdictions representing 97.81% of the applicable premiums written. A second motion to adopt the APF 2020-10 amendment specifically, was passed by 48 jurisdictions representing 88.75% of the applicable premiums written. This motion was opposed by Louisiana, New Mexico, and New York. A copy of the 2022 edition of the Valuation Manual (which includes the adopted amendments) has been posted on the NAIC webpage and may be viewed at the following link: https://content.naic.org/sites/default/files/pbr_data_valuation_manual_future_edition.pdf Through this Bulletin, I, Andrew N. Mais, Insurance Commissioner for the State of Connecticut, hereby certify that the conditions described by Conn. Gen. Stat. §38a-78a(b)(1), which are necessary for the changes to the Valuation Manual to become operative, have been met. Therefore, pursuant to Conn. Gen. Stat. §38a-78a(b)(1), the effective date of said changes in Connecticut is January 1, 2022. ________________________________ Andrew N. Mais Insurance Commissioner Insurance Commissioner's signature