Florida Administrative Code
69 - DEPARTMENT OF FINANCIAL SERVICES
69O - OIR - Insurance Regulation
Chapter 69O-162 - ANNUITY CONTRACTS
Section 69O-162.202 - Adoption of 2001 Commissioners Standard Ordinary (CSO) Ultimate Mortality Tables for Determining Reserve Liabilities for Credit Life Insurance

(a) Recognize the 2001 CSO Male Composite Ultimate Mortality Table for use in determining the minimum standard of valuation.

(b) Specify the interest rate and method to be used in determining the minimum standard of valuation.

(a) "2001 CSO Mortality Table" means that mortality table, consisting of separate rates of mortality for male and female lives, developed by the American Academy of Actuaries CSO Task Force from the Valuation Basic Mortality Table developed by the Society of Actuaries Individual Life Insurance Valuation Mortality Task Force, and adopted by the NAIC in December 2002. The 2001 CSO Mortality Table is included in the Proceedings of the NAIC (2nd Quarter 2002), which is adopted and incorporated herein by reference. Unless the context indicates otherwise, the "2001 CSO Mortality Table" includes both the ultimate form of that table and the select and ultimate form of that table and includes both the smoker and nonsmoker mortality tables and the composite mortality tables. It also includes both the age-nearest-birthday and age-last-birthday bases of the mortality tables.

(b) "Composite mortality tables" means mortality tables with rates of mortality that do not distinguish between smokers and nonsmokers.

(c) "Credit Life Insurance" means life insurance as defined in Section 627.677, F.S.

(a) The minimum standard for both male and female insureds shall be 2001 CSO Male Composite Ultimate Mortality Table.

(b) Where the credit life insurance policy or certificate insures two lives, the minimum standard shall be twice the mortality in the 2001 CSO Male Composite Ultimate Mortality Table based on the age of the older insured.

(a) Rule 69O-164.020, F.A.C., shall not apply to credit life insurance.

(b) The interest rates used in determining the minimum standard for valuation shall be the calendar year statutory valuation interest rates as defined in Section 625.121(6), F.S.

(c) The method used in determining the minimum standard for valuation shall be the commissioners' reserve valuation method as defined in Section 625.121(7), F.S.

(a) For policies not issued in this state, the 2001 CSO Mortality Table may be used as the minimum standard for valuation purposes on valuation dates on or after the date this rule becomes effective for policies issued on or after January 1, 2005, and prior to the date this rule becomes effective.

(b) Subject to the conditions stated in this rule, the 2001 CSO Mortality Table shall be used in determining minimum standards for policies issued on and after the date this rule becomes effective.