760 IAC 1-76-5 - Transition rules
Authority: IC 27-1-3-7
Affected: IC 27-1-12-10
Sec. 5.
(a) For
preneed insurance policies issued on or after the effective date of this rule
and before January 1, 2012, the 2001 CSO Mortality Table may be used as the
minimum standard for reserves and minimum standard for nonforfeiture benefits
for both male and female insureds.
(b) If an insurer elects to use the 2001 CSO
Mortality Table as a minimum standard for any policy issued on or after the
effective date of this regulation and before January 1, 2012, the insurer shall
provide, as a part of the actuarial opinion memorandum submitted in support of
the company's asset adequacy testing, an annual written notification to the
domiciliary commissioner. The notification shall include the following:
(1) A complete list of all preneed policy
forms that use the 2001 CSO Mortality Table as a minimum standard.
(2) A certification signed by the appointed
actuary stating that the reserve methodology employed by the company in
determining reserves for the preneed policies issued after the effective date
and using the 2001 CSO Mortality Table as a minimum standard, develops adequate
reserves. For the purposes of this certification, the preneed insurance
policies using the 2001 CSO Mortality Table as a minimum standard cannot be
aggregated with any other policies.
(3) Supporting information regarding the
adequacy of reserves for preneed insurance policies issued after the effective
date of this regulation and using the 2001 CSO Mortality Table as a minimum
standard for reserves.
(c) Preneed insurance policies issued on or
after January 1, 2012, must use the Ultimate 1980 CSO in the calculation of
minimum nonforfeiture values and minimum reserves.
Notes
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