Rules & Regulations of the State of Tennessee
Title 0780 - Commerce and Insurance
Subtitle 0780-01 - Insurance Division
Chapter 0780-01-52 - Mortality Tables
Section 0780-01-52-.02 - SMOKER/NON-SMOKER MORTALITY TABLES
Universal Citation: TN Comp Rules and Regs 0780-01-52-.02
Current through September 24, 2024
(1) Purpose - The purpose of rule 0780-01-52-.02 is to permit the use of mortality tables that reflect differences in mortality between smokers and non-smokers in determining minimum reserve liabilities and minimum cash surrender values and amounts of paid-up non-forfeiture benefits for plans of insurance with separate premium rates for smokers and non-smokers.
(2) Definitions.
(a) As used in rule 0780-01-52-.02, "1980 CSO
Table, with or without Ten-Year Select Mortality Factor" means that mortality
table, consisting of separate rates of mortality for male and female lives,
developed by the Society of Actuaries Committee to Recommend New Mortality
Tables for Valuation of Standard Individual Ordinary Life Insurance,
incorporated in the 1980 NAIC Amendments to the Model Standard Valuation Law
and Standard Non-forfeiture Law for Life Insurance, and referred to in those
models as the Commissioners 1980 Standard Mortality Table, with or without
Ten-Year Select Mortality Factors. The same select factors will be used for
both smokers and non-smokers tables.
(b) As used in rule 0780-01-52-.02, "1980 CET
Table" means that mortality table consisting of separate rates of mortality for
male and female lives, developed by the Society of Actuaries Committee to
Recommend New Mortality Tables for Valuation of Standard Individuals Ordinary
Life Insurance, incorporated in the 1980 NAIC Amendments to the Model Standard
Non-forfeiture Law for Life Insurance, and referred to in those models as the
Commissioners 1980 Extended Term Insurance Table.
(c) As used in rule 0780-01-52-.02, "1958 CSO
Table" means that mortality table developed by the Society of Actuaries Special
Committee on New Mortality Tables, incorporated in the NAIC Model Standard
Non-forfeiture Law for Life Insurance, and referred to in that model as the
Commissioners 1958 Standard Ordinary Mortality Table.
(d) As used in rule 0780-01-52-.02, "1958 CET
Table" means that mortality table developed by the Society of Actuaries Special
Committee on New Mortality Tables, incorporated in the NAIC Model Standard
Non-forfeiture Law for Life Insurance, and referred to in that model as the
Commissioners 1958 Extended Term Insurance Table.
(e) As used in rule 0780-01-52-.02, the
phrase "smoker and non-smoker mortality tables" refers to the mortality tables
with separate rates of mortality for smokers and non-smokers derived from the
tables defined in (a) through (d) of this section.
(f) As used in rule 0780-01-52-.02, the
phrase "composite mortality tables" refers to the mortality tables defined in
(a) through (d) of this section as they were originally published with rates of
mortality that do not distinguish between smokers and non-smokers.
(3) Alternate Tables.
(a) For any policy of insurance delivered or
issued for delivery in this state after the operative date of T.C.A.
§56-7-401(h)(11), for that policy form and before January
1, 1989, at the option of the company and subject to the conditions stated in
section 4 of rule 0780-01-52-.02,
1. the 1958
CSO Smoker and Non-smoker Mortality Tables may be substituted for the 1980 CSO
Table, with or without Ten-Year Select Mortality Factors, and
2. the 1958 CET Smoker and Non-smoker
Mortality Tables may be substituted for the 1980 CET Table, for use in
determining minimum reserve liabilities and minimum cash surrender values and
amounts of paid-up non-forfeiture 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 non-forfeiture benefits determined
using the 1958 CSO or 1958 CET Smoker and Non-smoker 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 1958 CSO or 1958 CET Smoker and Non-smoker 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.
(b) For any policy of insurance delivered or
issued for delivery in this state after the operative date of T.C.A.
§56-7-401(h)(11), for that policy form, at the option of
the company and subject to the conditions stated in section 4 of rule
0780-01-52-.02,
1. the 1980 CSO Smoker and
Non-smoker Mortality Tables, with or without Ten-Year Select Mortality Factors,
may be substituted for the 1980 CSO Table, with or without Ten-Year Select
Mortality Factors, and
2. the 1980
CET Smoker and Non-smoker Mortality Tables may be substituted for the 1980 CET
Table for use in determining minimum reserve liabilities and minimum cash
surrender values and amounts of paid-up non-forfeiture benefits.
(4) Conditions - For each plan of insurance with separate rates for smokers and non-smokers an insurer may:
(a) use composite mortality
tables to determine minimum reserve liabilities and minimum cash surrender
values and amounts of paid-up non-forfeiture benefits,
(b) use smoker and non-smoker mortality
tables to determine the valuation net premiums and additional minimum reserves,
if any, required by T.C.A. §56-1-403(d)(5), and use
composite mortality tables to determine the basic minimum reserves, minimum
cash surrender values and amounts of paid-up non-forfeiture benefits,
or
(c) use smoker and non-smoker
mortality to determine minimum reserve liabilities and minimum cash surrender
values and amounts of paid-up non-forfeiture benefits.
Authority: T.C.A. §§ 56-1-403, 56-2-301, and 56-7-401.
Disclaimer: These regulations may not be the most recent version. Tennessee may have more current or accurate information. We make no warranties or guarantees about the accuracy, completeness, or adequacy of the information contained on this site or the information linked to on the state site. Please check official sources.
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