211 CMR 32.06 - Rule for Smoker/Nonsmoker Mortality Tables

Current through Register 1466, April 1, 2022

(1) Alternate Tables.
(a) For any policy of insurance delivered or issued for delivery in this state after the effective date of former 211 CMR 33.00 in 1985,
1. the 1980 CSO Smoker and Nonsmoker Mortality Tables, with or without Ten-Year Select Mortality Factors, may be substituted for the 1980 CSO Table, with or without Ten-Year Select Mortality Factors, or for the 1958 CSO Table, and
2. the 1980 CET Smoker and Nonsmoker Mortality Tables may be substituted for the 1980 CET Table or for the 1958 CET Table.
(b) For any policy of insurance delivered or issued for delivery in this state after May 22, 1985 and prior to January 1, 1989, the 1958 CSO or 1958 CET Smoker and Nonsmoker Mortality Tables may be substituted for the 1958 CSO or 1958 CET Tables; provided that for any category of insurance issued on female lives with minimum reserve liabilities, minimum cash surrender values and the paid-up nonforfeiture benefits determined using the 1958 CSO or 1958 CET Smoker and Nonsmoker Mortality Tables, such minimum values may be calculated according to an age not more than six years younger than the actual age of the insured.
(c) For any policy of life insurance issued in conjunction with an employer pension plan subject to the decision of the United States Supreme Court in Arizona Governing Committee for Tax Deferred Annuity and Deferred Compensation Plans v. Norris, 103 S. Ct. 3492 (1983), the life insurer may file with the Division:
1. gender-blended, smoker/nonsmoker mortality tables based on the 1980 CSO smoker/nonsmoker mortality tables.
2. mortality tables obtained by applying the 1980 CET loading formula to the respective gender-blended 1980 CSO smoker/nonsmoker mortality tables. Gender-blended CSO tables shall be calculated according to the following formula:

The ratio to be applied to all male lives is:

Click to view image

where Z is the ratio of male lives to total lives at pivotal age of 45.

Acceptable values of Z are .2, .4, .5, .6, and .8. Z values of 0 and 1.0 may be used for certain policies converted from group insurance and for other policies issued after January 1, 1985, only if the proportion of persons insured is 90% or more of one sex or the other.

The ratio to be applied to female lives is Click to view image

(2) Conditions. For each plan of insurance with separate rates for smokers and nonsmokers an insurer may:
(a) use composite mortality tables to determine minimum reserve liabilities, minimum cash surrender values and the paid-up nonforfeiture benefits,
(b) use smoker and nonsmoker mortality tables to determine the valuation net premiums and additional minimum reserves, if any, required by M.G.L. c. 175, ยง 9, and use composite mortality tables to determine the basic minimum reserves, minimum cash surrender values and the paid-up nonforfeiture benefits, or
(c) use smoker and nonsmoker mortality tables to determine minimum reserve liabilities, minimum cash surrender values and the paid-up nonforfeiture benefits.

Notes

211 CMR 32.06

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