3 AAC 28.620 - Life mortality tables
(a) Except as provided in (g) of this
section, the 2001 CSO Mortality Tables are adopted by reference and are
recognized for use under (b) and (c) of this section in determining the minimum
standard of valuation for policies for which
AS
21.18.110(b)(1)(A)(iii) and
AS
21.45.300(t)(6)
apply.
(b) Subject to the
conditions under (d), (e), and (f) of this section, an insurer may elect to use
the 2001 CSO Mortality Tables as the minimum standard of valuation for policies
issued on or after January 1, 2005 and before January 1, 2009 for which
AS
21.18.110(b)(1)(A)(iii) and
AS
21.45.300(t)(6)
apply.
(c) Subject to the
conditions under (d), (e), and (f) of this section, an insurer shall use the
2001 CSO Mortality Tables in determining the minimum standard of valuation for
policies issued on or after January 1, 2009 for which
AS
21.18.110(b)(1)(A)(iii),
AS
21.45.300(t)(6), and
3
AAC 21.905(a) - (g) apply.
(d) If an insurance policy contains separate
mortality rates for smokers and nonsmokers, the insurer may use
(1) composite mortality tables to determine
the minimum reserve liabilities, minimum cash surrender values, and amounts of
paid-up nonforfeiture benefits;
(2)
smoker and nonsmoker mortality tables to determine the valuation net premiums
and additional minimum reserves required under
AS
21.18.110(b)(4) and use
composite mortality tables to determine the basic minimum reserves, minimum
cash surrender values, and amounts of paid-up nonforfeiture benefits;
or
(3) smoker and nonsmoker
mortality tables to determine minimum reserve liabilities, minimum cash
surrender values, and amounts of paid-up nonforfeiture benefits.
(e) If an insurance policy does
not contain separate mortality rates for smokers and nonsmokers, the insurer
shall use composite mortality tables to determine minimum reserve liabilities,
minimum cash surrender values, and amounts of paid-up nonforfeiture
benefits.
(f) An insurer may elect
to use the ultimate or the select and ultimate 2001 CSO Mortality Table for
each plan of insurance in determining minimum reserve liabilities, minimum cash
surrender values, and amounts of paid-up nonforfeiture benefits subject to the
restrictions in
3
AAC 21.635 and
3
AAC 21.900 -
3
AAC 21.949 relating to the use of select and ultimate
tables.
(g) For pre-need insurance
policies that are issued on or after January 1, 2012 and similar policies and
contracts, the Commissioner's 1980 Standard Ordinary Mortality Table without
10-year selection factors is, subject to (h) of this section, the minimum
mortality standard for determining reserve liabilities and nonforfeiture
values.
(h) An insurer may use the
2001 CSO Mortality Tables for pre-need insurance policies until January 1, 2012
as the minimum standard of valuation for determining reserve liabilities and
nonforfeiture values if, as part of the insurer's actuarial opinion memorandum
prepared under
AS
21.18.110(q), the insurer
submits an annual notification that includes
(1) a list of all pre-need policy forms that
use the 2001 CSO Mortality Tables as the minimum standard;
(2) a certification signed by the appointed
actuary stating that the reserve methodology employed by the company in
determining reserves for pre-need policies using the 2001 CSO Mortality Tables
as a minimum standard results in adequate reserves for the pre-need policies on
a stand-alone basis; and
(3)
supporting information regarding the adequacy of reserves for pre-need
insurance policies using the 2001 CSO Mortality Tables as the minimum standard
for reserve liabilities.
(i) For purposes of this section, a pre-need
insurance policy is a life insurance policy or certificate that is issued in
combination with, in support of, with an assignment to, or as a guarantee for a
prearrangement for goods and services to be provided at the time of and
immediately following the death of the insured. Goods and services may include
embalming, cremation, body preparation, viewing or visitation, a coffin or urn,
a memorial stone, and transportation of the deceased.
(j) If the 2001 CSO Mortality Table is the
minimum reserve standard for a policy, the actuarial opinion in the annual
statement filed with the director must be based on an asset adequacy analysis
set out in 3 AAC 21.830. The director may
exempt a company from the requirement of this subsection if the company writes
insurance only in this state.
Notes
The 2001 CSO Mortality Tables referenced in 3 AAC 28.620 may be obtained from the Society of Actuaries, 475 N. Martingale Road, Suite 600, Schaumburg, Illinois 60173; telephone number (847) 706-3500.
Authority:AS 21.06.090
AS 21.18.110
AS 21.18.160
AS 21.45.300
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