(c) An insurer shall use the methodology for applying mortality improvement scale LT in conjunction with either the 2001 CSO Mortality Table, or for preferred lives meeting the conditions of section 100.9 of this Part, the 2001 CSO Preferred Class Structure Mortality Table. The resulting mortality adjusted table shall be the minimum mortality standard for policies issued on or after January 1, 2015 and prior to January 1, 2017, or on or after January 1, 2015 and prior to January 1, 2020 if optionally elected under subdivision (b) of this section.

1. (1) The annual improvement rates, LT1 and LT2, from mortality improvement scale LT shall be applied only within the first segment. The length of each segment shall be determined at issue by the Contract Segmentation Method, as described in Part 98.5 of this Title. The value, t, shall be the number of policy years after the year 2008. The annual improvement rates and the formula for applying the rate are shown in paragraph (2) of this subdivision.

2. (2) The mortality rate for a person age x in year (2008+t) is calculated as follows, where q_x²⁰⁰⁸ is the appropriate rate from the 2001 CSO Mortality Table, or for preferred lives meeting the conditions of section 100.9 of this Part, the 2001 CSO Preferred Class Structure Mortality Table:

   1. (i) q_x^2008+t = q_x²⁰⁰⁸ * (1–LT1)^t for t = 1 through 40;
   2. (ii) q_x^2008+t = q_x²⁰⁰⁸ * (1–LT1)⁴⁰ * (1–LT2)^(t-40) for t = 41 and greater;
   3. (iii) LT1 equals 0.01;
   4. (iv) LT2 equals 0.005;
   5. (v) the mortality rate for attained ages 81 through 90 shall be linearly graded from the adjusted q_x^2008+t rates back to the unadjusted q_x²⁰⁰⁸ rates; and
   6. (vi) the resulting q_x^2008+t shall be rounded to two decimal places per 1,000, e.g., 0.68 deaths per 1,000. After the first segment, the rates revert to the q_x²⁰⁰⁸ rates.

(d)

(e) A numerical example of applying the annual improvement rates and formulas from subdivision (d) of this section follows. The example assumes a super-preferred 45 year old male non-smoker with issue year 2015. The unadjusted mortality table, q_x²⁰⁰⁸, is the 2001 CSO M NS Super Preferred ANB Select & Ultimate Mortality Table. The first segment has a length of 75 years. Select mortality rates shall be used only for the first segment and the Ultimate rates of the 2001 CSO M NS Super Preferred ANB table must be used thereafter. The rates of mortality per 1,000 lives based on age nearest birthday through attained age 90 are shown below.