N.Y. Comp. Codes R. & Regs. tit. 11, § 100.9 – Conditions for using the 2001 CSO Preferred Class Structure Mortality Table and the 2017 CSO Preferred Class Structure Mortality Table.

(a) The 2001 CSO Preferred Class Structure Mortality Table or the 2017 CSO Preferred Class Structure Mortality Table, subject to the transition dates specified in section 100.8 of this Part, may be used for valuation purposes for individual life insurance and group life insurance products sold to individuals by certificate with premium rates guaranteed from issue for at least two years. No such election shall be made until the insurer demonstrates at least 20 percent of the business to be valued on this table is in one or more of the preferred classes.
(b) For each plan of insurance with separate rates for preferred and standard nonsmoker lives, an insurer may use the super preferred nonsmoker, preferred nonsmoker, and residual standard nonsmoker tables to substitute for nonsmoker mortality in the corresponding CSO mortality table to determine minimum reserve liabilities. At the time of election and annually thereafter, except for business valued under the residual standard nonsmoker table, the appointed actuary shall certify that the following tests of sufficiency were passed:
1. (1) for each class, the present value of death benefits over the next 10 years after the valuation date, using the anticipated mortality experience without recognition of mortality improvement beyond the valuation date for each class, is less than the present value of death benefits using the Valuation Basic Table corresponding to the valuation table being used for that class;
2. (2) for each class, the present value of death benefits over the future life of the contracts, using anticipated mortality experience without recognition of mortality improvement beyond the valuation date for each class, is less than the present value of death benefits using the Valuation Basic Table corresponding to the valuation table being used for that class; and
3. (3) in the event that the class does not contain any policies with expiry dates 10 or more years into the future, the appointed actuary shall only be required to certify that the test of sufficiency defined in paragraph (2) of this subdivision was passed.
(c) For each plan of insurance with separate rates for preferred and standard smoker lives, an insurer may use the preferred smoker and residual standard smoker tables to substitute for smoker mortality in the corresponding CSO mortality table to determine minimum reserve liabilities. At the time of election and annually thereafter, for business valued under the preferred smoker table, the appointed actuary shall certify that:
1. (1) for each class, the present value of death benefits over the next 10 years after the valuation date, using the anticipated mortality experience without recognition of mortality improvement beyond the valuation date for each class, is less than the present value of death benefits using the preferred smoker Valuation Basic Table corresponding to the valuation table being used for that class;
2. (2) for each class, the present value of death benefits over the future life of the contracts, using anticipated mortality experience without recognition of mortality improvement beyond the valuation date for each class, is less than the present value of death benefits using the preferred smoker Valuation Basic Table; and
3. (3) in the event that the class does not contain any policies with expiry dates 10 or more years into the future, the appointed actuary shall only be required to certify that the test of sufficiency defined in paragraph (2) of this subdivision was passed.
(d) Calculation of present value. The annual tests of sufficiency, as described in subdivisions (b) and (c) of this section, require that four present value calculations be made for each class. Two are based on anticipated mortality and two are based on the Valuation Basic Table corresponding to the table within the applicable preferred class structure mortality table being used for that class. The calculation of the present value of death benefits shall be based on a projection of death benefits, without the effect of lapse, at the valuation interest rate used to calculate basic reserves for the class. If the class contains policies with several valuation interest rates, the lowest valuation interest rate used for the basic reserves for any policy within the class shall be used for that class.
(e) Tests of sufficiency. After the anticipated mortality is established, each class must be tested for sufficiency. If a class fails either of the two annual tests of sufficiency, as described in subdivisions (b) and (c) of this section, the class must be re-valued using a different table within the applicable preferred class structure mortality table. An insurer shall choose a table under which both tests of sufficiency can be passed.
(f) Every insurer using the 2001 CSO Preferred Class Structure Mortality Table or the 2017 CSO Preferred Class Structure Mortality Table, shall annually file on or before July 1 with the superintendent, or at the direction of the superintendent, with either the National Association of Insurance Commissioners or with a statistical agent designated by the superintendent, statistical reports, in a form specified by the superintendent, showing mortality and such other company experience information as the superintendent may deem necessary or expedient for the administration of the provisions of the Insurance Law or this Part, with respect to individual life insurance policies and group life insurance products sold to individuals by certificate with premium rates guaranteed from issue for at least two years.
(g) If an insurer chooses to use a table within the 2001 CSO Preferred Class Structure Mortality Table, or the 2017 CSO Preferred Class Structure Mortality Table, then the same table must be used for the calculation of both basic and deficiency reserves.