Utah Admin. Code R590-223-7 - Applicability of the 2001 CSO Mortality Table to Rule R590-198

(1) The 2001 CSO Mortality Table may be used in applying Rule R590-198 in the following manner, subject to the transition dates for use of the 2001 CSO Mortality Table in Section R590-223-5:

(a) Subsection R590-198-2(4)(c)(ii), the net level reserve premium is based on the ultimate mortality rates in the 2001 CSO Mortality Table.

(b) Subsection R590-198-3(3), all calculations are made using the 2001 CSO Mortality Table, and, if elected, the optional minimum mortality standard for deficiency reserves stipulated in Subsection R590-223-7(1)(d). The value of "qx+k+t-1" is the valuation mortality rate for deficiency reserves in policy year k+t, but using the unmodified select mortality rates if modified select mortality rates are used in the computation of deficiency reserves.

(c) Subsection R590-198-4(1), the 2001 CSO Mortality Table is the minimum standard for basic reserves.

(d) Subsection R590-198-4(2), the 2001 CSO Mortality Table is the minimum standard for deficiency reserves. If select mortality rates are used, they may be multiplied by X percent for durations in the first segment, subject to the conditions specified in Subsections R590-198-4(2)(c)(i) through (vii). In demonstrating compliance with those conditions, the demonstrations may not combine the results of tests that utilize the 1980 CSO Mortality Table with those tests that utilize the 2001 CSO Mortality Table, unless the combination is explicitly required by rule or necessary to be in compliance with relevant Actuarial Standards of Practice.

(e) Subsection R590-198-5(3), the valuation mortality table used in determining the tabular cost of insurance shall be the ultimate mortality rates in the 2001 CSO Mortality Table.

(f) Subsection R590-198-5(5)(d), the calculations specified in Subsection R590-198-5(5) shall use the ultimate mortality rates in the 2001 CSO Mortality Table.

(g) Subsection R590-198-5(6)(d), the calculations specified in Subsection R590-198-5(6) shall use the ultimate mortality rates in the 2001 CSO Mortality Table.

(h) Subsection R590-198-5(7)(b), the calculations specified in Subsection R590-198-5(7) shall use the ultimate mortality rates in the 2001 CSO Mortality Table.

(i) Subsection R590-198-6(1)(b), the one-year valuation premium shall be calculated using the ultimate mortality rates in the 2001 CSO Mortality Table.

(2) Nothing in this section shall be construed to expand the applicability of Rule R590-198 to include life insurance policies exempted under Subsection R590-198-2(4).

Notes

Utah Admin. Code R590-223-7

Amended by Utah State Bulletin Number 2023-23, effective 11/21/2023