Illinois Administrative Code
Title 50 - INSURANCE
Part 1412 - RECOGNITION OF THE 2001 CSO MORTALITY TABLE FOR USE IN DETERMINING MINIMUM RESERVE LIABILITIES AND NONFORFEITURE BENEFITS
Section 1412.50 - Applicability of the 2001 CSO Mortality Table to 50 Ill. Adm. Code 1409
Universal Citation: 50 IL Admin Code ยง 1412.50
Current through Register Vol. 48, No. 12, March 22, 2024
a) The 2001 CSO Mortality Table may be applied to 50 Ill. Adm. Code 1409 in the following manner, subject to the transition dates for use found in Section 1412.30:
1) 50 Ill. Adm. Code
1409.20(a)(2)(B):
The net level reserve premium is based on the ultimate mortality rates in the
2001 CSO Mortality Table.
2) 50
Ill. Adm. Code
1409.30:
All calculations are made using the 2001 CSO Mortality Rate and, if elected,
the optional minimum mortality standard for deficiency reserves stipulated in
subsection (a)(4). The value of "qx+k+t-1" is the
valuation mortality rate for deficiency reserves in policy year k+t, but using
the unmodified select mortality rates if modified select mortality rates are
used in the computation of deficiency reserves.
3) 50 Ill. Adm. Code
1409.40(a):
The 2001 CSO Mortality Table is the minimum standard for basic
reserves.
4) 50 Ill. Adm. Code
1409.40(b):
The 2001 CSO Mortality Table is the minimum standard for deficiency reserves.
If select mortality rates are used, they may be multiplied by X percent for
durations in the first segment, subject to the conditions specified in 50 Ill.
Adm. Code
1409.40(b)(3).
In demonstrating compliance with those conditions, the demonstrations may not
combine the results of tests that utilize the 1980 CSO Mortality Table with
those tests that utilize the 2001 CSO Mortality Table, unless the combination
is explicitly required by regulation or necessary to be in compliance with
relevant Actuarial Standards of Practice.
5) 50 Ill. Adm. Code
1409.50(c):
The valuation mortality table used in determining the tabular cost of insurance
shall be the ultimate mortality rates in the 2001 CSO Mortality
Table.
6) 50 Ill. Adm. Code
1409.50(e)(4):
The calculations specified in 50 Ill. Adm. Code
1409.50(e)
shall use the ultimate mortality rates in the 2001 CSO Mortality
Table.
7) 50 Ill. Adm. Code
1409.50(f)(4):
The calculations specified in 50 Ill. Adm. Code
1409.50(f)
shall use the ultimate mortality rates in the 2001 CSO Mortality
Table.
8) 50 Ill. Adm. Code
1409.50(g)(2):
The calculations specified in 50 Ill. Adm. Code
1409.50(g)
shall use the ultimate mortality rates in the 2001 CSO Mortality
Table.
9) 50 Ill. Adm. Code
1409.60(a)(1)(B):
The one-year valuation premium shall be calculated using the ultimate mortality
rates in the 2001 CSO Mortality Table.
b) Nothing in this Section shall be construed to expand the applicability of 50 Ill. Adm. Code 1409 to include life insurance policies exempted under 50 Ill. Adm. Code 1409.20(a).
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