1. (1)(a) An insurer offering an insurance plan with separate rates for preferred and standard nonsmoker lives may substitute Super Preferred Nonsmoker, Preferred Nonsmoker, and Residual Standard Nonsmoker tables for the Nonsmoker mortality table found in the 2001 CSO Mortality Table to determine minimum reserves.

   1. (b) At the time of substitution and annually thereafter, except for business valued under the Residual Standard Nonsmoker Table, an appointed actuary shall certify that:

      1. (i) the present value of death benefits over the next ten 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; and
      2. (ii) 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.

2. (2)(a) An insurer offering an insurance plan with separate rates for preferred and standard smoker lives may substitute the Preferred Smoker and Residual Standard Smoker tables for the 2001 CSO Mortality Table to determine minimum reserves.

   1. (b) At the time of substitution and annually thereafter, for business valued under the Preferred Smoker Table, an appointed actuary shall certify that:

      1. (i) the present value of death benefits over the next ten 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; and
      2. (ii) 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.

3. (3)(a) Unless exempted by the commissioner, an insurer using the 2001 CSO Preferred Class Structure Table shall annually file with the commissioner or, at the direction of the commissioner, with the NAIC or a statistical agent designated by the NAIC and acceptable to the commissioner, statistical reports showing mortality and other information required by the commissioner.

   1. (b) The reports shall be in a form approved by the commissioner.

KEY: life insurance mortality tables

Date of Last Change: May 26, 2022

Notice of Continuation: June 30, 2022

Authorizing, and Implemented or Interpreted Law: 31A-2-201; 31A-17-402