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

1. (1) Composite mortality tables to determine:

   1. (A) Minimum reserve liabilities;
   2. (B) Minimum cash surrender values; and
   3. (C) Amounts of paid-up nonforfeiture benefits;

2. (2) Smoker and nonsmoker mortality tables to determine the valuation net premiums and additional minimum reserves, if any, required by Arkansas Code § 23-81-211 and use composite mortality tables to determine the:

   1. (A) Basic minimum reserves;
   2. (B) Minimum cash surrender values; and
   3. (C) Amounts of paid-up nonforfeiture benefits; or

3. (3) Smoker and nonsmoker mortality tables to determine:

   1. (A) Minimum reserve liabilities;
   2. (B) Minimum cash surrender values; and
   3. (C) Amounts of paid-up nonforfeiture benefits.