Utah Admin. Code R590-251-5 - Transition Rules

(1) Preneed policies subject to this rule issued before January 1, 2012, may use the 2001 CSO Mortality Table as the minimum mortality standard for reserves and minimum standard for nonforfeiture values for both male and female insureds.

(2)

(a) If an insurer elects to use the 2001 CSO Mortality Table as a minimum standard for a policy subject to this rule issued before January 1, 2012, the insurer shall provide, as a part of the actuarial opinion memorandum submitted in support of the insurer's asset adequacy testing, an annual written notification to the commissioner of its domiciliary state.

(b) The notification shall include:

(i) a complete list of all policy forms that use the 2001 CSO Mortality Table as a minimum mortality standard;

(ii) a certification signed by the appointed actuary stating that the reserve methodology used by the insurer to determine reserve liabilities for the policies subject to this rule and using the 2001 CSO Mortality Table as a minimum mortality standard, develop adequate reserves; and

(iii) supporting information regarding the adequacy of reserves for policies subject to this rule and using the 2001 CSO Mortality Table as a minimum mortality standard for reserve liabilities.

(3) When determining the adequacy of the reserves required under Subsection (2)(b), the policies subject to this rule and using the 2001 CSO Mortality Table as a minimum mortality standard may not be aggregated with other policies.

(4) A policy subject to this rule issued on or after January 1, 2012, shall use the Ultimate 1980 CSO to calculate minimum reserve liabilities and minimum nonforfeiture values.

Notes

Utah Admin. Code R590-251-5

Amended by Utah State Bulletin Number 2022-23, effective 11/22/2022