28 Tex. Admin. Code § 4.1703 - 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, concerning
Computation of Adjusted Premiums Using Nonforfeiture Net Level Premium Method),
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, concerning Standard Valuation Law, provides the tables to be
used.
(1) A mortality table that 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 that
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 by
reference. Copies of those tables may be obtained by contacting Life and Health
Division, Life and Health Actuarial, MC: LH-ACT, Texas Department of Insurance,
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, 463 U.S. 1073 (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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