2017 Operative Date of the Principle-Based Valuation Manual

State of Idaho

DEPARTMENT OF INSURANCE

C.L. “BUTCH” OTTER

Governor

700 West State Street, 3rd Floor

P.O. Box 83720

Boise, Idaho 83720-0043

Phone (208)334-4250

Fax (208)334-4398

Website: http://www.doi.idaho.gov

DEAN L. CAMERON

Director

Equal Opportunity Employer

B U L L E T I N NO. 16-06

DATE:

September 26, 2016

TO:

All Idaho Insurance Companies Writing Life Insurance Contracts, Accident and

Health Insurance Contracts, and Deposit-Type Contracts

FROM:

Dean L. Cameron

Director

SUBJECT:

2017 Operative Date of the Principle-Based Valuation Manual

The Idaho Standard Valuation Law (SVL), Idaho Code § 41-612, establishes a principle-based

methodology applicable, subject to specified exemptions, to life, accident and health, and

deposit-type insurance contracts following the “operative date” of the uniform valuation manual,

as adopted by the National Association of Insurance Commissioners (NAIC).

To ensure uniform and simultaneous implementation by participating states, the SVL instructs

that the evaluation manual will only become operative once a sufficient number of states have

adopted substantially similar valuation laws prior to July 1 of the year preceding the operative

date. Pursuant to Idaho Code § 41-612(14)(b), the operative date shall be the first day of January

of the first calendar year after the first July 1 following the occurrence of all of the following

events:

i.

The valuation manual has been adopted by the NAIC by an affirmative vote of at

least forty-two (42) members, or three-fourths (3/4) of the members voting,

whichever is greater;

ii.

The Standard Valuation Law, as amended by the NIAC in 2009, or legislation

including substantially similar terms and provisions, has been enacted by states

representing greater than seventy-five percent (75%) of the direct premiums written

as reported in the following annual statements submitted for 2008: life, accident and

e-fourths (3/4) of the members voting,

whichever is greater;

ii.

The Standard Valuation Law, as amended by the NIAC in 2009, or legislation

including substantially similar terms and provisions, has been enacted by states

representing greater than seventy-five percent (75%) of the direct premiums written

as reported in the following annual statements submitted for 2008: life, accident and

health annual statements; health annual statements; or fraternal annual statements;

iii.

The Standard Valuation Law, as amended by the NAIC in 2009, or legislation

including substantially similar terms and provisions, has been enacted by at least

forty-two (42) of the following fifty-five (55) jurisdictions: the fifty (50) states of the

United States, American Samoa, the American Virgin Islands, the District of

Columbia, Guam and Puerto Rico.

The NAIC adopted the valuation manual on December 2, 2012, with forty-three (43) member

jurisdictions voting affirmatively. In 2016, the number of states adopting principle-based

valuation laws at the state level reached the requisite supermajority. As of today, forty-five (45)

states, including Idaho, enacted laws substantially similar to the model SVL, including language

using the same three (3) triggers to define the operative date. These states represent more than

seventy-nine percent (79%) of the applicable premium volume. On Friday, June 10, 2016, after

conducting an extensive analysis of these states’ laws, the state and jurisdictional members of the

NAIC voted unanimously to recognize all three (3) triggers defining the operative date have been

satisfied.

Accordingly, I hereby determine the operative date of the uniform valuation manual, for

purposes of the Idaho Standard Valuation Law, Idaho Code § 41-612, is January 1, 2017.