VALUATION MANUAL EXEMPTION; ELIMINATE                                                 H.B. 5241:

                                                                                                    SUMMARY OF BILL

                                                                                     REPORTED FROM COMMITTEE

House Bill 5241 (as reported without amendment)

Sponsor:  Representative Daire Rendon

House Committee:  Insurance

                             Ways and Means

Senate Committee:  Insurance and Banking

CONTENT

The bill would amend Chapter 8 (Assets and Liabilities) of the Insurance Code to do the following:

-- Delete a provision that exempts certain insurers from the principle based-valuation and valuation manual requirements specified in the Code if certain requirements are met.

-- Delete a provision allowing a domestic company that meets the prescribed requirements to elect to be bound by the principle-based valuation and valuation manual requirements for a calendar year.

-- Delete a provision that specifies that the standards prescribed in the valuation manual adopted by the National Association of Insurance Commissioners are the minimum standard of valuation required.

MCL 500.836b                                                       Legislative Analyst:  Stephen Jackson

FISCAL IMPACT

The bill would have no fiscal impact on State or local government.

Date Completed:  1-9-20                                         Fiscal Analyst:  Elizabeth Raczkowski

This analysis was prepared by nonpartisan Senate staff for use by the Senate in its deliberations and does not constitute an official statement of legislative intent.