1. (1) For each life insurance policy form 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 31A-17-511, 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 tables to determine minimum reserve liabilities and minimum cash surrender values and amounts of paid-up nonforfeiture benefits.
2. (2) For life insurance issued on female lives with minimum reserve liabilities and minimum cash surrender values and amounts of paid-up nonforfeiture benefits determined using the 1958 CSO or 1958 CET Smoker and Nonsmoker Mortality Tables, these minimum values may be calculated according to an age not more than six years younger than the actual age of the insured.
3. (3) The substitution of the 1958 CSO or 1958 CET Smoker and Nonsmoker Mortality Tables is available only if made for each life insurance policy on a policy form delivered or issued for delivery on or after the operative date for that policy form and before a date not later than January 1, 1989.

KEY: insurance law

Date of Last Change: September 22, 2021

Notice of Continuation: March 13, 2023

Authorizing, and Implemented or Interpreted Law: 31A-2-201; 31A-22-408