Current through all regulations passed and filed through September 16, 2024
(A) Purpose
The purpose of this rule is to implement sections
3915.07,
3915.071, and
3903.72 of the Revised Code by
permitting the use of mortality tables that reflect differences in mortality
between smokers and nonsmokers in determining minimum reserve liabilities and
minimum cash surrender values and amounts of paid-up nonforfeiture benefits for
plans of insurance with separate premium rates for smokers and
nonsmokers.
(B) Authority
This rule is promulgated pursuant to the authority vested in
the superintendent under section
3901.041 of the Revised
Code.
(C) Definitions
(1) "Commissioners 1980 standard ordinary
mortality tables (1980 "CSO"), with or without ten-year select mortality
factors" means those tables referred to in divisions (E) and (F) of section
3915.071 of the Revised
Code.
(2) "Commissioners 1980
extended term insurance table (1980 "CET")" means the table referred to in
division (I) of section
3915.071 of the Revised
Code.
(3) "Commissioners 1958
standard ordinary mortality table (1958 "CSO")" means that table referred to in
division (E)(1) of section
3915.07 of the Revised
Code.
(4) "Commissioners 1958
extended term insurance table (1958 "CET")" means that table referred to in
division (E)(1) of section
3915.07 of the Revised
Code.
(5) "Smoker and nonsmoker
mortality tables" means those mortality tables with separate rates of mortality
for smokers and nonsmokers derived from the tables defined in paragraphs (C)(1)
to (C)(4) of this rule.
(6)
"Composite mortality tables" means those tables defined in paragraphs (C)(1) to
(C)(4) of this rule.
(D)
Alternate tables
(1) For any policy of
insurance delivered or issued for delivery in this state after the operative
date of section 3915.071 of the Revised Code for
that policy form and before January 1, 1989, at the option of the company and
subject to the conditions stated in paragraph (E) of this rule:
(a) The commissioners 1958 standard ordinary
smoker and nonsmoker mortality tables may be substituted for the commissioners
1980 standard ordinary mortality table, with or without ten-year select
mortality factors; and
(b) The
commissioners 1958 extended term smoker and nonsmoker mortality tables may be
substituted for the commissioners 1980 extended term table,
For use in determining minimum reserve liabilities and minimum
cash surrender values and amounts of paid-up nonforfeiture benefits.
Provided that for any category of insurance issued on female
lives with minimum reserve liabilities and minimum cash surrender values and
amounts of paid-up nonforfeiture benefits determined using the commissioners
1958 standard ordinary or extended term smoker and nonsmoker mortality tables,
such minimum values may be calculated according to an age not more than six
years younger than the actual age of the insured.
Provided further that the substitution of the commissioners
1958 standard ordinary or extended term smoker and nonsmoker mortality tables
is available only if made for each policy of insurance on a policy form
delivered or issued for delivery on or after the operative date for that policy
form and before a date not later than January 1, 1989.
(2) For any policy of insurance
delivered or issued for delivery in this state after the operative date of
section 3915.071 of the Revised Code for
that policy form at the option of the company and subject to the conditions
stated in paragraph (E) of this rule:
(a) The
commissioners 1980 standard ordinary smoker and nonsmoker mortality tables,
with or without ten-year select mortality factors, may be substituted for the
commissioners 1980 standard ordinary mortality table, with or without ten-year
select mortality factors; and
(b)
The commissioners 1980 extended term smoker and nonsmoker mortality table may
be substituted for the commissioners 1980 extended term mortality table,
For use in determining minimum reserve liabilities and minimum
cash surrender values and amounts of paid-up nonforfeiture benefits.
(E) Conditions
For each plan of insurance with separate rates for smokers and
nonsmokers an insurer may:
(1) Use
composite mortality tables to determine minimum reserve liabilities and minimum
cash surrender values and amounts of paid-up nonforfeiture benefits;
(2) Use smoker and nonsmoker mortality tables
to determine the valuation net premiums and additional minimum reserves, if
any,
pursuant to section
3903.72 of the Revised Code and
use composite mortality tables to determine the basic minimum reserves, minimum
cash surrender values and amounts of paid-up nonforfeiture benefits;
(3) Use smoker and nonsmoker mortality tables
to determine minimum reserve liabilities and minimum cash surrender values and
amounts of paid-up nonforfeiture benefits; or
(4) Use smoker and nonsmoker mortality
tables, without electing the 1980 "CSO" as a valuation basis, to determine
valuation net premium and additional minimum reserves for plans of term
insurance which have no cash values and which are reserved on the 1958 "CSO"
mortality table.
(F)
Severability
If any portion of this rule
or the application thereof to any person or circumstance is held invalid, the
invalidity does not affect other provisions or applications of the rule or
related rules which can be given effect without the invalid portion or
application, and to this end the provisions of this rule are
severable.
