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 7 of the NAIC Model Standard Valuation Law 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.

   [12/1/85; Recompiled 11/30/01]

   HISTORY OF 13.9.10 NMAC:

   Pre-NMAC History: The material in this part was derived from that previously filed with the State Records Center as:

   SCC-85-21, Insurance Department Regulation 20-4 - Regulations Permitting Smorker/Nonsmoker Mortality Tables for Use in Determining Minimum Reserve Liabilities and Nonforfeiture Benefits, filed 11/5/85.

   History of Repealed Material: [RESERVED]