| 1 | Representative Stargel offered the following: |
| 2 |
|
| 3 | Amendment (with title amendment) |
| 4 | On page 209, between lines 5 and 6, insert: |
| 5 | Section 167. Paragraph (h) of subsection (9) of section |
| 6 | 627.476, Florida Statutes, is amended to read: |
| 7 | 627.476 Standard Nonforfeiture Law for Life Insurance.-- |
| 8 | (9) CALCULATION OF ADJUSTED PREMIUMS AND PRESENT VALUES |
| 9 | FOR POLICIES ISSUED AFTER OPERATIVE DATE OF THIS SUBSECTION.-- |
| 10 | (h) All adjusted premiums and present values referred to |
| 11 | in this section shall for all policies of ordinary insurance be |
| 12 | calculated on the basis of the Commissioners' 1980 Standard |
| 13 | Ordinary Mortality Table or, at the election of the insurer for |
| 14 | any one or more specified plans of life insurance, the |
| 15 | Commissioners' 1980 Standard Ordinary Mortality Table with Ten- |
| 16 | Year Select Mortality Factors; shall for all policies of |
| 17 | industrial insurance be calculated on the basis of the |
| 18 | Commissioners' 1961 Standard Industrial Mortality Table; and |
| 19 | shall for all policies issued in a particular calendar year be |
| 20 | calculated on the basis of a rate of interest not exceeding the |
| 21 | nonforfeiture interest rate as defined in this subsection for |
| 22 | policies issued in that calendar year. However: |
| 23 | 1. At the option of the insurer, calculations for all |
| 24 | policies issued in a particular calendar year may be made on the |
| 25 | basis of a rate of interest not exceeding the nonforfeiture |
| 26 | interest rate, as defined in this subsection, for policies |
| 27 | issued in the immediately preceding calendar year. |
| 28 | 2. Under any paid-up nonforfeiture benefit, including any |
| 29 | paid-up dividend additions, any cash surrender value available, |
| 30 | whether or not required by subsection (2), shall be calculated |
| 31 | on the basis of the mortality table and rate of interest used in |
| 32 | determining the amount of such paid-up nonforfeiture benefit and |
| 33 | paid-up dividend additions, if any. |
| 34 | 3. An insurer may calculate the amount of any guaranteed |
| 35 | paid-up nonforfeiture benefit, including any paid-up additions |
| 36 | under the policy, on the basis of an interest rate no lower than |
| 37 | that specified in the policy for calculating cash surrender |
| 38 | values. |
| 39 | 4. In calculating the present value of any paid-up term |
| 40 | insurance with accompanying pure endowment, if any, offered as a |
| 41 | nonforfeiture benefit, the rates of mortality assumed may be not |
| 42 | more than those shown in the Commissioners' 1980 Extended Term |
| 43 | Insurance Table for policies of ordinary insurance and not more |
| 44 | than the Commissioners' 1961 Industrial Extended Term Insurance |
| 45 | Table for policies of industrial insurance. |
| 46 | 5. In lieu of the mortality tables specified in this |
| 47 | section, at the option of the insurance company and subject to |
| 48 | rules adopted by the commission, the insurance company may |
| 49 | substitute: |
| 50 | a. The 1958 CSO or CET Smoker and Nonsmoker Mortality |
| 51 | Tables, whichever is applicable, for policies issued on or after |
| 52 | the operative date of this subsection and before January 1, |
| 53 | 1989; |
| 54 | b. The 1980 CSO or CET Smoker and Nonsmoker Mortality |
| 55 | Tables, whichever is applicable, for policies issued on or after |
| 56 | the operative date of this subsection; |
| 57 | c. A mortality table that is a blend of the sex-distinct |
| 58 | 1980 CSO or CET mortality table standard, whichever is |
| 59 | applicable, or a mortality table that is a blend of the sex- |
| 60 | distinct 1980 CSO or CET smoker and nonsmoker mortality table |
| 61 | standards, whichever is applicable, for policies that are |
| 62 | subject to the United States Supreme Court decision in Arizona |
| 63 | Governing Committee v. Norris to prevent unfair discrimination |
| 64 | in employment situations. |
| 65 | 6. Ordinary mortality tables, adopted after 1980 by the |
| 66 | National Association of Insurance Commissioners, adopted by rule |
| 67 | by the commission for use in determining the minimum |
| 68 | nonforfeiture standard may be substituted for the Commissioners' |
| 69 | 1980 Standard Ordinary Mortality Table with or without Ten-Year |
| 70 | Select Mortality Factors or for the Commissioners' 1980 Extended |
| 71 | Term Insurance Table. |
| 72 | 7.6. For insurance issued on a substandard basis, the |
| 73 | calculation of any such adjusted premiums and present values may |
| 74 | be based on appropriate modifications of the aforementioned |
| 75 | tables. |
| 76 |
|
| 77 | ================= T I T L E A M E N D M E N T ================= |
| 78 | On page ?????, line(s) ?????, |
| 79 | remove: ????? |
| 80 |
|
| 81 | and insert: ????? |
| 82 | amending s. 627.476, F.S.; providing an additional criterion for |
| 83 | adjusting certain premiums and present values for certain |
| 84 | policies; |
| 85 |
|
| 86 | Section 2. Paragraph (h) of subsection (9) of section |
| 87 | 627.476, Florida Statutes, is amended to read: |
| 88 | 627.476 Standard Nonforfeiture Law for Life Insurance.-- |
| 89 | (9) CALCULATION OF ADJUSTED PREMIUMS AND PRESENT VALUES |
| 90 | FOR POLICIES ISSUED AFTER OPERATIVE DATE OF THIS SUBSECTION.-- |
| 91 | (h) All adjusted premiums and present values referred to |
| 92 | in this section shall for all policies of ordinary insurance be |
| 93 | calculated on the basis of the Commissioners' 1980 Standard |
| 94 | Ordinary Mortality Table or, at the election of the insurer for |
| 95 | any one or more specified plans of life insurance, the |
| 96 | Commissioners' 1980 Standard Ordinary Mortality Table with Ten- |
| 97 | Year Select Mortality Factors; shall for all policies of |
| 98 | industrial insurance be calculated on the basis of the |
| 99 | Commissioners' 1961 Standard Industrial Mortality Table; and |
| 100 | shall for all policies issued in a particular calendar year be |
| 101 | calculated on the basis of a rate of interest not exceeding the |
| 102 | nonforfeiture interest rate as defined in this subsection for |
| 103 | policies issued in that calendar year. However: |
| 104 | 1. At the option of the insurer, calculations for all |
| 105 | policies issued in a particular calendar year may be made on the |
| 106 | basis of a rate of interest not exceeding the nonforfeiture |
| 107 | interest rate, as defined in this subsection, for policies |
| 108 | issued in the immediately preceding calendar year. |
| 109 | 2. Under any paid-up nonforfeiture benefit, including any |
| 110 | paid-up dividend additions, any cash surrender value available, |
| 111 | whether or not required by subsection (2), shall be calculated |
| 112 | on the basis of the mortality table and rate of interest used in |
| 113 | determining the amount of such paid-up nonforfeiture benefit and |
| 114 | paid-up dividend additions, if any. |
| 115 | 3. An insurer may calculate the amount of any guaranteed |
| 116 | paid-up nonforfeiture benefit, including any paid-up additions |
| 117 | under the policy, on the basis of an interest rate no lower than |
| 118 | that specified in the policy for calculating cash surrender |
| 119 | values. |
| 120 | 4. In calculating the present value of any paid-up term |
| 121 | insurance with accompanying pure endowment, if any, offered as a |
| 122 | nonforfeiture benefit, the rates of mortality assumed may be not |
| 123 | more than those shown in the Commissioners' 1980 Extended Term |
| 124 | Insurance Table for policies of ordinary insurance and not more |
| 125 | than the Commissioners' 1961 Industrial Extended Term Insurance |
| 126 | Table for policies of industrial insurance. |
| 127 | 5. In lieu of the mortality tables specified in this |
| 128 | section, at the option of the insurance company and subject to |
| 129 | rules adopted by the commission, the insurance company may |
| 130 | substitute: |
| 131 | a. The 1958 CSO or CET Smoker and Nonsmoker Mortality |
| 132 | Tables, whichever is applicable, for policies issued on or after |
| 133 | the operative date of this subsection and before January 1, |
| 134 | 1989; |
| 135 | b. The 1980 CSO or CET Smoker and Nonsmoker Mortality |
| 136 | Tables, whichever is applicable, for policies issued on or after |
| 137 | the operative date of this subsection; |
| 138 | c. A mortality table that is a blend of the sex-distinct |
| 139 | 1980 CSO or CET mortality table standard, whichever is |
| 140 | applicable, or a mortality table that is a blend of the sex- |
| 141 | distinct 1980 CSO or CET smoker and nonsmoker mortality table |
| 142 | standards, whichever is applicable, for policies that are |
| 143 | subject to the United States Supreme Court decision in Arizona |
| 144 | Governing Committee v. Norris to prevent unfair discrimination |
| 145 | in employment situations. |
| 146 | 6. Ordinary mortality tables, adopted after 1980 by the |
| 147 | National Association of Insurance Commissioners, adopted by rule |
| 148 | by the commission for use in determining the minimum |
| 149 | nonforfeiture standard may be substituted for the Commissioners' |
| 150 | 1980 Standard Ordinary Mortality Table with or without Ten-Year |
| 151 | Select Mortality Factors or for the Commissioners' 1980 Extended |
| 152 | Term Insurance Table. |
| 153 | 7.6. For insurance issued on a substandard basis, the |
| 154 | calculation of any such adjusted premiums and present values may |
| 155 | be based on appropriate modifications of the aforementioned |
| 156 | tables. |
| 157 |
|
| 158 | ================= T I T L E A M E N D M E N T ================= |
| 159 | On page 16, line 1, after the semicolon, insert: |
| 160 | amending s. 627.476, F.S.; providing an additional criterion for |
| 161 | adjusting certain premiums and present values for certain |
| 162 | policies; |