Update of insurer reserves approved

Lawmakers gave final approval March 24 to a bill that updates 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, adopts the National Association of Insurance Commissioners (NAIC) Standard Valuation Act.

Under the bill, the department director is required to adopt a valuation manual by July 1, 2017, that conforms substantially to the manual adopted by the NAIC. The bill also requires 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;
• deposit-type;
• accident and health; and
• annuity and pure endowment.

LB755 passed on a 48-0 vote.