North Dakota Administrative Code
Title 45 - Insurance, Commissioner of
Article 45-04 - Life Insurance
Chapter 45-04-07.3 - Pre-Need Life Insurance Minimum Standards for Determining Reserve Liabilities and Nonforfeiture Values
Section 45-04-07.3-05 - Transition rules

Universal Citation: ND Admin Code ยง 45-04-07.3-05

Current through Supplement No. 394, October, 2024

1. For pre-need life insurance policies issued on or after the effective date of this chapter and before January 1, 2012, the 2001 CSO may be used as the minimum standard for reserves and minimum standard for nonforfeiture benefits for both male and female insureds.

2. If an insurer elects to use the 2001 CSO as a minimum standard for any policy issued on or after the effective date of this chapter and before January 1, 2012, the insurer shall provide, as a part of the actuarial opinion memorandum submitted in support of the company's asset adequacy testing, an annual written notification to the domiciliary commissioner. The notification shall include:

a. A complete list of all pre-need life insurance policy forms that use the 2001 CSO as a minimum standard;

b. A certification signed by the appointed actuary stating that the reserve methodology employed by the company in determining reserves for the pre-need life insurance policies issued after the effective date and using the 2001 CSO as a minimum standard, develops adequate reserves. For the purposes of this certification, the pre-need life insurance policies using the 2001 CSO as a minimum standard cannot be aggregated with any other policies; and

c. Supporting information regarding the adequacy of reserves for pre-need life insurance policies issued after the effective date of this chapter and using the 2001 CSO as a minimum standard for reserves.

3. Pre-need life insurance policies issued on or after January 1, 2012, must use the ultimate 1980 CSO in the calculation of minimum nonforfeiture values and minimum reserves.

General Authority: NDCC 28-32-02

Law Implemented: NDCC 26.1-35-02

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