Current through Register Vol. 63, No. 9, September 1, 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 thereafter, except for business valued under the residual standard
nonsmoker table, the appointed actuary shall certify 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 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 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 shall certify 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
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 table.
(3) Unless exempted by the director, each
authorized insurer using the 2001 CSO Preferred Class structure Table shall
annually file with the director, with the NAIC or with a statistical agent
designated by the NAIC and acceptable to the director, statistical reports
showing mortality an such other information ask the director may deem necessary
or expedient for the administration of the provisions of OAR 836-031-0800 to
836-031-0815. The form of the reports shall be established by the director or
the director may require the use of a form established by the NAIC or by a
statistical agent designated by the NAIC and acceptable to the
director.
(4)
(a) The use of the 2001 CSO Preferred Class
Structure Table for the valuation of policies issued prior to January 1, 2007
is not permitted in any statutory financial statement in which a company
reports, with respect to any policy or portion of a policy coinsured, either of
the following:
(A) In cases where the mode of
payment of the reinsurance premium is less frequent than the mode of payment of
the policy premium, a reserve credit that exceeds, by more than the amount
specified in the paragraph as Y, the gross reserve calculated before
reinsurance. Y is the amount of the gross reinsurance premium that:
(i) Provides coverage for the period from the
next policy premium due date to the earlier of the end of the policy year and
the next reinsurance premium due date; and
(ii) Would be refunded to the ceding entity
upon the termination of the policy.
(B) In cases where the mode of payment of the
reinsurance premium is more frequent than the mode of payment of the policy
premium, a reserve credit that is less than the gross reserve, calculated
before reinsurance, by an amount that is less than the amount specified in this
paragraph as Z. Z is the amount of the gross reinsurance premium that the
ceding entity would need to pay the assuming company to provide reinsurance
coverage from the period of the next reinsurance premium due date to the next
policy premium due date minus any liability established for the proportionate
amount not remitted to the reinsurer.
(b) A company may estimate and adjust its
accounting on an aggregate basis in order to meet the conditions to use the
2001 CSO Preferred Class Structure Table. For purposes of this condition, but
the reserve credit and the gross reserve before reinsurance:
(A) For the mean reserve method defined as
the mean reserve minus the deferred premium asset; and
(B) For the mid-terminal reserve method which
includes the unearned premium reserve.
(5) Tables referenced in this rule are
available from the Division of Financial Regulation of the Department of
Consumer and Business Services.
Tables referenced are available from the
agency.
Statutory/Other Authority: ORS 731.244 & 733.306
Statutes/Other Implemented: ORS
733.306
