New Hampshire Code of Administrative Rules
Ins - Commissioner, Insurance Department
Chapter Ins 3500 - VALUATION OF LIFE INSURANCE POLICIES
Part Ins 3505 - CALCULATION OF MINIMUM VALUATION STANDARD FOR POLICIES WITH GUARANTEED NONLEVEL GROSS PREMIUMS OR GUARANTEED NONLEVEL BENEFITS (OTHER THAN UNIVERSAL LIFE POLICIES)
Section Ins 3505.06 - Optional Exemption for Attained-Age-Based Yearly Renewable Term Life Insurance Policies
Universal Citation: NH Admin Rules Ins 3505.06
Current through Register No. 12, March 21, 2024
(a) At the option of the company, the following approach for reserves for attained-age-based YRT life insurance policies may be used:
(1)
Calculate the valuation net premium for each future policy year as the tabular
cost of insurance for that future year;
(2) Basic reserves shall never be less than
the tabular cost of insurance for the appropriate period, as defined in
Ins
3505.03;
(3) Deficiency reserves:
a. For each policy year, calculate the
excess, if greater than zero, of the valuation net premium over the respective
maximum guaranteed gross premium; and
b. Deficiency reserves shall never be less
than the sum of the present values, at the date of valuation, of the excesses
determined in accordance with subparagraph a. above;
(4) For purposes of this subsection, the
calculations use the maximum valuation interest rate and the 1980 CSO valuation
tables with or without ten-year select mortality factors, or any other table
adopted after the 2017 effective date of this rule by the NAIC and promulgated
by rule by the commissioner for this purpose;
(5) A policy shall be considered an
attained-age-based YRT life insurance policy for purposes of this subsection
if:
a. The premium rates (on both the initial
current premium scale and the guaranteed maximum premium scale) are based upon
the attained age of the insured such that the rate for any given policy at a
given attained age of the insured is independent of the year the policy was
issued; and
b. The premium rates
(on both the initial current premium scale and the guaranteed maximum premium
scale) are the same as the premium rates for policies covering all insureds of
the same sex, risk class, plan of insurance and attained age;
(6) For policies that become
attained-age-based YRT policies after an initial period of coverage, the
approach of this subsection may be used after the initial period if:
a. The initial period is constant for all
insureds of the same sex, risk class and plan of insurance; or
b. The initial period runs to a common
attained age for all insureds of the same sex, risk class and plan of
insurance; and
c. After the initial
period of coverage, the policy meets the conditions of subparagraph (5) above;
and
(7) If this election
is made, this approach shall be applied in determining reserves for all
attained-age-based YRT life insurance policies issued on or after the 2017
effective date of this rule.
#7419, eff 7-1-01; ss by #9516, eff 7-25-09
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