Current through Supplement No. 394, October, 2024
1. For each plan of insurance with separate
rates for preferred and standard nonsmoker lives, an insurer may use the super
preferred nonsmoker, preferred nonsmoker, and residual standard nonsmoker
tables to substitute for the nonsmoker mortality table found in the 2001 CSO
mortality table to determine minimum reserves. At the time of election and
annually after that, except for business valued under the residual standard
nonsmoker table, the appointed actuary of the insurer shall certify to the
commissioner that:
a. The present value of
death benefits over the next ten years after the valuation date using the
anticipated mortality experience without recognition of mortality improvement
beyond the valuation date for each class is less than the present value of
death benefits using the valuation basic mortality table corresponding to the
valuation table being used for that class.
b. The present value of death benefits over
the future life of the contracts using anticipated mortality experience without
recognition of mortality improvement beyond the valuation date for each class
is less than the present value of death benefits using the valuation basic
mortality table corresponding to the valuation table being used for that class.
2. For each plan of
insurance with separate rates for preferred and standard smoker lives, an
insurer may use the preferred smoker and residual standard smoker tables to
substitute for the smoker mortality table found in the 2001 CSO mortality table
to determine minimum reserves. At the time of election and annually thereafter
for business valued under the preferred smoker table, the appointed actuary of
an insurer shall certify to the commissioner that:
a. The present value of death benefits over
the next ten years after the valuation date using the anticipated mortality
experience without recognition of mortality improvement beyond the valuation
date for each class is less than the present value of death benefits using the
preferred smoker valuation basic mortality table corresponding to the valuation
table being used for that class.
b. The present value of death benefits over
the future life of the contracts using anticipated mortality experience without
recognition of mortality improvement beyond the valuation date for each class
is less than the present value of death benefits using the preferred smoker
valuation basic mortality table.
c. Unless exempted by the commissioner, every
authorized insurer using the 2001 CSO preferred class structure table shall
annually file with the commissioner, with the national association of insurance
commissioners, or with a statistical agent designated by the national
association of insurance commissioners and acceptable to the commissioner,
statistical reports showing mortality and such other information as the
commissioner may deem necessary or expedient for the administration of the
provisions of this regulation. The form of the reports shall be established by
the commissioner or the commissioner may require the use of a form established
by the national association of insurance commissioners or by a statistical
agent designated by the national association of insurance commissioners and
acceptable to the commissioner.
General Authority: NDCC 28-32-02
Law Implemented: NDCC
26.1-35-02
