For each plan of insurance with separate rates for smokers and nonsmokers an insurer may

1. (a) use composite mortality tables to determine minimum reserve liabilities and minimum cash surrender values and amounts of paid-up nonforfeiture benefits,
2. (b) use smoker and nonsmoker mortality tables to determine the valuation net premiums and additional minimum reserves, if any, required by Section 27-36A-12 and use composite mortality tables to determine the basic minimum reserves, minimum cash surrender values and amounts of paid-up nonforfeiture benefits, or
3. (c) use smoker and nonsmoker mortality to determine minimum reserve liabilities and minimum cash surrender values and amounts of paid-up nonforfeiture benefits.

Author: Commissioner of Insurance

Statutory Authority: Code of Ala. 1975, §§27-15-70 - 27-15-83.

History: New: November 4, 1985; effective November 15, 1985. Filed for codification in the Alabama Administrative Code by the Department of Insurance on December 16, 2003, pursuant to the Code of Ala. 1975, §27-7-43. Amended: Published June 28, 2024; effective July 1, 2024. Published with LSA June 28, 2024. Rule is not subject to the Alabama Administrative Procedure Act.