1. A. All calculations are made using:

   1. (1) For policies issued before January 1, 2009, the 1980 CSO valuation table or the 2001 CSO Mortality Table;
   2. (2) For policies issued on or after January 1, 2009, the 2001 CSO Mortality Table; and
   3. (3) If elected, the optional minimum mortality standard for deficiency reserves stipulated in Regulation .10B—D of this chapter.

2. B. The length of a particular contract segment shall be set equal to the minimum of the value t, for which G_t is greater than R_t (if G_t never exceeds R_t the segment length is deemed to be the number of years from the beginning of the segment to the mandatory expiration date of the policy), where G_t and R_t are defined as follows:

   1. (1) G_t = (GP_x+k+t/GP_x+k+t-l) where x = original issue age; k = The number of years from the date of issue to the beginning of the segment; t = 1, 2, . . .; t is reset to 1 at the beginning of each segment; GP_x+k+t-l = Guaranteed gross premium per thousand of face amount, ignoring policy fees only if level for the premium paying period of the policy, for year t of the segment. R_t = q_x+k+t/q_x+k+t-1 However, R_t may be increased or decreased by 1 percent in any policy year, at the company's option, but R_t may not be less than one; where: x, k, and t are as defined above, and q_x+k+t = valuation mortality rate for deficiency reserves in policy year k+t but using the mortality of Regulation.10C(2) of this chapter if Regulation.10C(3) of this chapter is elected for deficiency reserves. If GP_x+k+t is greater than 0 and GP_x+k+t-l is equal to 0, G_t shall be deemed to be 1,000. If GP_x+k+t and GP_x+k+t-1 are both equal to 0, G_t shall be deemed to be 0.
   2. (2) When the 2001 CSO Mortality Table is elected or required to be used, the value of “q_x+k+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.

Authority: Insurance Article, §2-109, Title 5, Subtitle 3, and §16-309, Annotated Code of Maryland

Effective date: May 5, 1997 (24:9 Md. R. 656)

Annotation: Implementation of this chapter is described in Regulation .02D. Notice that this chapter is being implemented will be published in the Maryland Register.

Chapter recodified from COMAR 09.31.16 to COMAR 31.05.03 effective September 7, 1998 (25:18 Md. R. 1439)

Chapter revised as an emergency provision effective January 1, 2000 (27:3 Md. R. 326); revised permanently effective May 15, 2000 (27:8 Md. R. 860)

Chapter revised effective January 1, 2004 (30:24 Md. R. 1746)

Regulation .03B amended effective March 26, 2007 (34:6 Md. R. 630); December 15, 2008 (35:25 Md. R. 2151)

Regulation .04C adopted effective March 26, 2007 (34:6 Md. R. 630)

Regulation .05B amended effective December 15, 2008 (35:25 Md. R. 2151)

Regulation .05C adopted effective December 15, 2008 (35:25 Md. R. 2151)

Regulation .05C amended effective December 28, 2009 (36:26 Md. R. 1999)

Regulation .06 amended effective March 26, 2007 (34:6 Md. R. 630)

Regulation .06 amended as an emergency provision effective January 25, 2010 (37:4 Md. R. 336); amended permanently effective May 3, 2010 (37:9 Md. R. 674)

Regulation .10C, H amended as an emergency provision effective January 25, 2010 (37:4 Md. R. 336); amended permanently effective May 3, 2010 (37:9 Md. R. 674)

Regulation .15 adopted effective March 26, 2007 (34:6 Md. R. 630)

Regulation .15 amended as an emergency provision effective January 25, 2010 (37:4 Md. R. 336); amended permanently effective May 3, 2010 (37:9 Md. R. 674)