In early 2013, Indiana became one of the first states in the country to pass legislation (HEA 1321) enacting the principled-based reserving method for calculating life insurance policy reserves (i.e., the Standard Valuation Manual). However, before the law could become effective, it had to be adopted in at least 42 U.S. jurisdictions that account for at least 75 percent of U.S. insurance premiums combined.
Today, there are 44 states that have adopted the Standard Valuation Manual representing more than 75 percent of insurance premiums combined. Now that the thresholds have been met, states have begun issuing guidance on the effective date of their respective standard valuation law.
Recently, the Indiana Department of Insurance published Bulletin 230 (Notice of Implementation of Standard Valuation Law) wherein it specifies that Indiana’s standard valuation law will become effective January 1, 2017.