(a) Unitary basic reserves and unitary deficiency reserves need not be calculated for a policy if the following conditions are met:
- (1) The policy consists of a series of n-year periods, including the first period and all renewal periods, where n is the same for each period, except that for the final renewal period, n may be truncated or extended to reach the expiry age, provided that this final renewal period is less than 10 years and less than twice the size of the earlier n-year periods, and for each period, the premium rates on both the initial current premium scale and the guaranteed maximum premium scale are level;
- (2) The guaranteed gross premiums in all n-year periods are not less than the corresponding net premiums based upon the 1980 CSO Table with or without the ten-year select mortality factors; and
- (3) There are no cash surrender values in any policy year.
Source. #7419, eff 7-1-01; ss by #9516, eff 7-25-09; ss by #12219, eff 7-25-17