Lawmakers gave first-round approval Feb. 20 to a bill that would update laws governing the establishment of reserves by life and health insurers in Nebraska.
LB755, introduced by Grand Island Sen. Mike Gloor at the request of the state Department of Insurance, would adopt the National Association of Insurance Commissioners (NAIC) Standard Valuation Act.
Under the bill, the department director would be required to adopt a valuation manual by July 1, 2017, that conforms substantially to the manual adopted by the NAIC. The bill also would require the director annually to value the reserves of every company issued on or after the operative date of the valuation manual for the following outstanding contracts:
• life insurance;
• accident and health; and
• annuity and pure endowment.
Gloor said the bill would move the state to a principle-based valuation standard for insurer reserves and is model legislation that reflects approximately 10 years of research by the NAIC.
LB755 advanced to select file on a 29-0 vote.