N.J. Admin. Code § 11:4-27A.4 - Conditions

Current through Register Vol. 54, No. 7, April 4, 2022

(a) For each plan of insurance with separate rates for Preferred and Standard Nonsmoker lives, an insurer may use the Super Preferred Nonsmoker, Preferred Nonsmoker, and Residual Standard Nonsmoker tables to substitute for the Nonsmoker mortality table found in the 2001 CSO Mortality Table to determine minimum reserves. At the time of election and annually thereafter, except for business valued under the Residual Standard Nonsmoker Table, the appointed actuary shall certify that:
1. The present value of death benefits over the next 10 years after the valuation date, using the anticipated mortality experience without recognition of mortality improvement beyond the valuation date for each class, is less than the present value of death benefits using the valuation basic table corresponding to the valuation table being used for that class; and
2. The present value of death benefits over the future life of the contracts, using anticipated mortality experience without recognition of mortality improvement beyond the valuation date for each class, is less than the present value of death benefits using the valuation basic table corresponding to the valuation table being used for that class.
(b) For each plan of insurance with separate rates for Preferred and Standard Smoker lives, an insurer may use the Preferred Smoker and Residual Standard Smoker tables to substitute for the Smoker mortality table found in the 2001 CSO Mortality Table to determine minimum reserves. At the time of election and annually thereafter, for business valued under the Preferred Smoker Table, the appointed actuary shall certify that:
1. The present value of death benefits over the next 10 years after the valuation date, using the anticipated mortality experience without recognition of mortality improvement beyond the valuation date for each class, is less than the present value of death benefits using the Preferred Smoker valuation basic table corresponding to the valuation table being used for that class; and
2. The present value of death benefits over the future life of the contracts, using anticipated mortality experience without recognition of mortality improvement beyond the valuation date for each class, is less than the present value of death benefits using the Preferred Smoker valuation basic table.
(c) Unless the Commissioner finds that the use of it will have no material financial impact on the insurer, every authorized insurer using the 2001 CSO Preferred Class Structure Table shall annually file with the Commissioner statistical reports showing mortality and such other information as the Commissioner may specify as necessary for the administration of the provisions of this subchapter (that is, information related to a mortality study, including exposed lives and amounts of insurance, policy size, type of product, age and gender, underwriting criteria used to determine preferred mortality, and the number of people applying and rejected for preferred underwriting). The form of the reports shall be established by the Commissioner. The Commissioner shall annually post on the Department's website the instructions for and format of this report, specifying the information to be provided in the report and identifying the party with whom the report is to be filed and the address where the filing is to be made.

Notes

N.J. Admin. Code § 11:4-27A.4

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