The 2001 CSO Mortality Tables may be used in complying with
3
AAC 21.900 -
3
AAC 21.949 subject to the following:
(1) the net level reserve premium under
3
AAC 21.900(2) (B) must be based on
the ultimate mortality rates in the 2001 CSO Mortality Tables;
(2) calculations under
3
AAC 21.920(a) are
made using the 2001 CSO Mortality Tables; and
(B) if elected by the insurer, the optional
minimum mortality standard for deficiency reserves under (4) of this section
with q
x+k+t-1 equal to 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 computation of
deficiency reserves; in this subparagraph, "q
x+k+t-1," "k," "t" and "x" have the meanings given in
3
AAC 21.925(d);
(3) the minimum standard for calculating
basic reserves under
3
AAC 21.905(a) and (d) is the 2001 CSO
Mortality Tables;
(4) the minimum
standard for calculating deficiency reserves under
3
AAC 21.905(f) and (g) is the 2001 CSO
Mortality Tables subject to the following:
if select mortality factors are used, the factors may be
multiplied by X percent as described under
3
AAC 21.905(g) (3) in the first
segment subject to the conditions specified in
3
AAC 21.905(g) (3);
(B) an insurer may not combine the results of
tests that utilize the Commissioner's 1980 Standard Ordinary Mortality Tables
referenced in
AS
21.18.110 with the tests that utilize the
2001 CSO Mortality Tables in demonstrating compliance with the conditions
specified in
3
AAC 21.905(g) (3), unless the
combination is necessary for compliance with relevant actuarial standards of
practice as adopted by the Actuarial Standards Board;
(5) the valuation mortality table used in
determining the tabular cost of insurance under
3
AAC 21.910(d) and (e) is the 2001 CSO
Mortality Tables;
(7) the one-year valuation premium under
3
AAC 21.920(e) (2)(B) must use the
ultimate mortality rates in the 2001 CSO Mortality Tables.
