Current through August 26, 2024
(1) PURPOSE. This
section implements ss.
623.06(2) (am) 3 and
632.43(6m) (e) 3 f., Stats., by permitting the use of
mortality tables that reflect differences in mortality between smokers and
nonsmokers. These mortality tables are used 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.
(2)
DEFINITIONS. In this section:
(a) "1980 CSO
table, with or without 10-year select mortality factor" means that mortality
table, consisting of separate rates of mortality for male and female lives,
incorporated in ss.
623.06(2) (am) 3 and
632.43(6m) (e) 3 f., Stats., and referred to in those
statutes as the commissioner's 1980 standard ordinary mortality table, with or
without 10-year select mortality factors.
(b) "1980 CET table" means that mortality
table consisting of separate rates of mortality for male and female lives
incorporated in ss.
623.06(2) (am) 3 and
632.43(6m) (e) 3 f., Stats., and referred to in those
statutes as the commissioner's 1980 extended term insurance table.
(c) "1980 CSO smoker and nonsmoker mortality
tables" means the mortality tables with separate rates of mortality for smokers
and nonsmokers derived from the tables defined in par. (a), and adopted by the
National Association of Insurance Commissioners in December 1983.
Note: Mortality rates for these tables are published on pp.
406-413, Proceedings of the National Association of Insurance Commissioners,
1984 Vol. I.
(d) "1980 CET
smoker and nonsmoker mortality tables" means the mortality tables with separate
rates of mortality for smokers and nonsmokers derived from the tables defined
in par. (b), and adopted by the National Association of Insurance Commissioners
in December 1983.
Note: Mortality rates for these tables are published on pp.
406-413, Proceedings of the National Association of Insurance Commissioners,
1984 Vol. I.
(e) "Composite
mortality tables" means the mortality tables defined in pars. (a) and (b), as
originally published with rates of mortality that do not distinguish between
smokers and nonsmokers.
(3) ALTERNATE TABLES. At the option of the
company and subject to the condition that the company use the same select
factors for both smoker and nonsmoker tables, and the conditions stated in sub.
(4), for any policy of insurance delivered or issued for delivery in this state
after the operative date of s.
632.43(6m) (h), Stats., for that policy form:
(a) The company may substitute the 1980 CSO
smoker and nonsmoker mortality tables, with or without 10-year select mortality
factors for the 1980 CSO table, with or without 10-year select mortality
factors, for use in determining minimum reserve liabilities, minimum cash
surrender values and amounts of paid-up nonforfeiture benefits; and
(b) The company may substitute the 1980 CET
smoker and nonsmoker mortality tables for the 1980 CET Table for use in
determining minimum reserve liabilities, minimum cash surrender values and
amounts of paid-up nonforfeiture benefits.
(4) CONDITIONS. For each plan of insurance
with separate rates for smokers and nonsmokers the company may:
(a) Use composite mortality tables to
determine minimum reserve liabilities, minimum cash surrender values and
amounts of paid-up nonforfeiture benefits;
(b) Use 1980 CSO or 1980 CET smoker and
nonsmoker mortality tables to determine the valuation net premiums and
additional minimum reserves, if any, required by s.
623.06(7),
Stats., and use composite mortality tables to determine the basic minimum
reserves, minimum cash surrender values and amounts of paid-up nonforfeiture
benefits; or
(c) Use 1980 CSO or
1980 CET smoker and nonsmoker mortality tables to determine minimum reserve
liabilities and minimum cash surrender values and amounts of paid-up
nonforfeiture benefits.