Emergency Rule-1 for Annuity Minimum Nonforfeiture Interest Rate
The Compact Office wanted to provide notice of an emergency rule that affects deferred annuities products. During its meeting on December 4th, the Insurance Compact Commission adopted an emergency rule (ER-1) to stay for a period of 120 days the immediate effectiveness of the proposed amendment to NAIC Model #805, Section 4(B)(3) where applicable in the Uniform Standards. This amendment to NAIC Model #805 is pending adoption at the NAIC Plenary meeting on December 9th. For purposes of deferred annuity contracts filed with the Compact, the minimum nonforfeiture interest rate remains 1.0% while this emergency rule is pending.
ER-1 was adopted by the Commission to provide additional time for the Commission to determine if, when, and how the amendment to Section 4(B)(3), if adopted by the NAIC, should become effective for purposes of the Uniform Standards. This timeframe is expected to coincide with efforts by states to study and consider legislation to amend their statute. The Commission?s Product Standards Committee will review the Model 805 amendment and provides its recommendation. During its consideration process, the Commission and Product Standards Committee will issue notice for input on this matter and conduct public conference calls to discuss the recommended approach for incorporating this amendment to Model 805.
ER-1 is effective immediately and is posted on the Record page of the Insurance Compact Commission website with the non-variable and variable annuity product lines. It applies to product filing submissions subject to any of the following Uniform Standards.
- Individual Deferred Non-Variable Annuity Contract Standards
- Individual Deferred Variable Annuity Contract Standards
- Additional Standards for Index-Linked Crediting Feature for Deferred Non-Variable Annuities and the General Account Portion of Individual Deferred Variable Annuity Contracts
- Additional Standards for Bonus Benefits for Individual Deferred Variable Annuity Contracts
- Additional Standards for Bonus Benefits (for Individual Deferred Non-Variable Annuities)
- Additional Standards for Market Value Adjustment Feature Provided Through the General Account
If you have any questions regarding submitting an annuity filing, please reach out to the Insurance Compact Office.
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