New Mexico Administrative Code
Title 13 - INSURANCE
Chapter 9 - LIFE INSURANCE AND ANNUITIES
Part 16 - USE OF 2001 COMMISSIONERS STANDARD ORDINARY MORTALITY TABLE
Section 13.9.16.10 - APPLICABILITY OF THE 2001 CSO MORTALITY TABLE TO 13.9.13 NMAC
Universal Citation: 13 NM Admin Code 13.9.16.10
Current through Register Vol. 35, No. 6, March 26, 2024
A. The 2001 CSO mortality table may be used in applying 13.9.13 NMAC in the following manner, subject to the transition dates for use of the 2001 CSO mortality table in Section 4 of this rule (unless otherwise noted, the references in this section are to 13.9.13 NMAC):
(1)
Subparagraph
(b) of Paragraph (2) of Subsection B of Section 2: The net level reserve
premium is based on the ultimate mortality rates in the 2001 CSO Mortality
Table.
(2)
Subsection B of
Section 7: All calculations are made using the 2001 CSO mortality rate,
and, if elected, the optional minimum mortality standard for deficiency
reserves stipulated in Paragraph 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)
Section 12: The 2001 CSO
mortality table is the minimum standard for basic reserves.
(4)
Section 13: 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 Sections 5B(3)(a) to
(i). 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)
Section 17: 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)
Subsection E of Section 19:
The calculations specified in Section 19 shall use the ultimate mortality rates
in the 2001 CSO mortality table.
(7)
Subsection E of Section 20:
The calculations specified in Section 20 shall use the ultimate mortality rates
in the 2001 CSO mortality table.
(8)
Subsection B of Section 21:
The calculations specified in Section 21 shall use the ultimate mortality rates
in the 2001 CSO mortality table.
(9)
Subparagraph (b) of Paragraph (1)
of Subsection A of Section 23: 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 13.9.13 NMAC to include life insurance policies exempted by Subsection B of 13.9.13.2 NMAC.
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