Texas Administrative Code
Title 28 - INSURANCE
Part 1 - TEXAS DEPARTMENT OF INSURANCE
Chapter 3 - LIFE, ACCIDENT, AND HEALTH INSURANCE AND ANNUITIES
Subchapter JJ - 2001 CSO MORTALITY TABLE
Section 3.9105 - Applicability of the 2001 CSO Mortality Table to Chapter 3, Subchapter EE of this Title
Universal Citation: 28 TX Admin Code § 3.9105
Current through Reg. 50, No. 13; March 28, 2025
(a) The 2001 CSO Mortality Table may be used in applying Chapter 3, Subchapter EE of this title (relating to Valuation of Life Insurance Policies) in the following manner, subject to the transition dates for use of the 2001 CSO Mortality Table in § 3.9103 of this title (relating to 2001 CSO Mortality Table):
(1) Section
3.4503(1)(B)(ii)
of this title (relating to Applicability): The net level reserve premium is
based on the ultimate mortality rates in the 2001 CSO Mortality
Table.
(2) Section
3.4504(2) of
this title (relating to Definitions). All calculations are made using the 2001
CSO Mortality Rate, and, if elected, the optional minimum mortality standard
for deficiency reserves stipulated in paragraph (4) of this subsection. The
value of "qx+k+t-1" is the valuation mortality rate for deficiency reserves in
policy year k+t, but using the unmodified select mortality rates if modified
select mortality rates are used in the computation of deficiency
reserves.
(3) Section
3.4505(a) of
this title (relating to General Calculation Requirements for Basic Reserves and
Premium Deficiency Reserves). The 2001 CSO Mortality Table is the minimum
standard for basic reserves.
(4)
Section 3.4505(b) of
this title. The 2001 CSO Mortality Table is the minimum standard for deficiency
reserves. If select mortality rates are used, they may be multiplied by X
percent for durations in the first segment, subject to the conditions specified
in §
3.4505(b)(3)(A) to
(I) of this title. In demonstrating
compliance with those conditions, the demonstrations may not combine the
results of tests that utilize the 1980 CSO Mortality Table with those tests
that utilize the 2001 CSO Mortality Table, unless the combination is explicitly
required by regulation or necessary to be in compliance with relevant Actuarial
Standards of Practice.
(5) Section
3.4506(c) of
this title (relating to Calculation of Minimum Valuation Standard for Policies
with Guaranteed Nonlevel Gross Premiums or Guaranteed Nonlevel Benefits (Other
than Universal Life Policies)). The valuation mortality table used in
determining the tabular cost of insurance shall be the ultimate mortality rates
in the 2001 CSO Mortality Table.
(6) Section
3.4506(e)(4) of
this title. The calculations specified in §
3.4506(e) of
this title shall use the ultimate mortality rates in the 2001 CSO Mortality
Table.
(7) Section
3.4506(f)(4) of
this title. The calculations specified in §
3.4506(f) of
this title shall use the ultimate mortality rates in the 2001 CSO Mortality
Table.
(8) Section
3.4506(g)(2) of
this title. The calculations specified in §
3.4506(g) of
this title shall use the ultimate mortality rates in the 2001 CSO Mortality
Table.
(9) Section
3.4507(a)(1)(B)
of this title (relating to Calculation of Minimum Valuation Standard for
Flexible Premium and Fixed Premium Universal Life Insurance Policies That
Contain Provisions Resulting in the Ability of a Policyowner to Keep a Policy
in Force Over a Second Guarantee Period). The one-year valuation premium shall
be calculated using the ultimate mortality rates in the 2001 CSO Mortality
Table.
(b) Nothing in this section shall be construed to expand the applicability of Chapter 3, Subchapter EE to include life insurance policies exempted under § 3.4503(1) of this title.
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