28 Tex. Admin. Code § 3.1303 - Standard
(a) For any policy of insurance on the life
of either a male or female insured, delivered, or issued for delivery in this
state after the operative date of former Insurance Code Article 3.44a, §8
(recodified in Insurance Code Chapter 1105, Subchapter B, §§1105.051 -
1105.057), and before January 1, 2017, for that policy form, the following
tables described in paragraphs (1) and (2) of this subsection may be used as
specified in subsection (b) of this section in determining minimum cash
surrender values, amounts of paid up nonforfeiture benefits, or benefits under
extended term insurance provisions included in the policy. For policies issued
on or after January 1, 2017, the valuation manual, adopted under Insurance Code
Chapter 425, Subchapter B, provides the tables to be used.
(1) A mortality table which is a blend of the
1980 CSO Table (M) and 1980 CSO Table (F), with or without Ten-Year Select
Mortality Factors, may, at the option of the company, be substituted for the
1980 CSO Table, with or without Ten-Year Select Mortality Factors.
(2) A mortality table which is of the same
blend as used in paragraph (1) of this subsection, but applied to form a blend
of the 1980 CET Table (M) and the 1980 CET Table (F), may, at the option of the
company, be substituted for the 1980 CET Table.
(b) The following tables are to be considered
as the basis for acceptable tables:
(1) 100%
male, 0% female for tables to be designated as the "1980 CSO-A" and "1980
CET-A" Tables;
(2) 80% male, 20%
female for tables to be designated as the "1980 CSO-B" and "1980 CET-B"
Tables;
(3) 60% male, 40% female
for tables to be designated as the "1980 CSO-C" and "1980 CET-C"
Tables;
(4) 50% male, 50% female
for tables to be designated as the "1980 CSO-D" and "1980 CET-D"
Tables;
(5) 40% male, 60% female
for tables to be designated as the "1980 CSO-E" and "1980 CET-E"
Tables;
(6) 20% male, 80% female
for tables to be designated as the "1980 CSO-F" and "1980 CET-F" Tables;
and
(7) 0% male, 100% female for
tables to be designated as the "1980 CSO-G" and "1980 CET-G" Tables.
(c) Values of 1,000 qx for the
blended tables as specified in subsection (b)(2) - (6) of this section can be
found in "Proceedings of the NAIC," Volume 1, 1984, pages 396 - 400.
"Proceedings of the NAIC," Volume 1, 1984, page 457, shows the method by which
ten-year select mortality factors may be obtained. The tables specified in
subsection (b)(1) of this section are the same as the 1980 CSO Table (M) or the
1980 CET Table (M), as applicable. The tables specified in subsection (b)(7) of
this section are the same as the 1980 CSO Table (F) or the 1980 CET Table (F),
as applicable. The tables specified in subsection (b)(2) - (6) of this section
are adopted herein by reference. Copies of those tables may be obtained by
contacting Texas Department of Insurance, Life and Health Actuarial, MC-LH-ACT,
P.O. Box 12030,, Austin, Texas 78711-2030. The tables in subsection (b)(1) and
(7) of this section are already adopted by statutory law under alternate
names.
(d) The tables specified in
subsection (b)(1) and (7) of this section may not be used with respect to
policies issued on or after January 1, 1985, except where the proportion of
persons insured is anticipated to be 90% or more of one sex or the other or
except for certain policies converted from group insurance. Such group
conversions issued on or after January 1, 1986, must use mortality tables based
on the blend of lives by sex expected for such policies if such group
conversions are considered as extensions of the decision in Arizona
Governing Committee for Tax Deferred Annuity and Deferred Compensation Plans v.
Norris, 103 S. Ct. 3492 (1983). This consideration has not been
clearly defined by court or legislative action in all jurisdictions, as of the
date of promulgation of this section.
(e) Notwithstanding any other provision of
this subchapter, an insurer may not use these blended tables unless the
Norris decision is known to apply to the policies involved, or
unless there exists a bona fide concern on the part of the insurer that the
Norris decision might reasonably be construed to apply by a
court having jurisdiction.
Notes
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