Wyo. Code R. 044-0002-58
General Agency, Board or Commission Rules
Chapter 58: Recognition of the 2001 Mortality Table
Effective Date: 01/09/2006 to Current
Rule Type: Current Rules & Regulations
Reference Number: 044.0002.58.01092006
This regulation is promulgated by the Commissioner of Insurance pursuant to Wyo. Stat. §§ 26-2-110(a), 26-6-205(b)(i)(C)(III), 26-16-209(j)(vi) and Chapter 6 of the Wyoming Insurance Regulations.
The purpose of this regulation is to recognize, permit and prescribe the use of the 2001 Commissioners Standard Ordinary (CSO) Mortality Table in accordance with Wyo. Stat. §§ 26-6-205(b)(i)(C)(III) and 26-16-209(j)(vi).
(a) '2001 CSO Mortality Table' means that mortality table, consisting of separate rates of mortality for male and female lives, developed by the American Academy of Actuaries CSO Task Force from the Valuation Basic Mortality Table developed by the Society of Actuaries Individual Life Insurance Valuation Mortality Task Force, and adopted by the NAIC in December 2002. The 2001 CSO Mortality Table is included in the Proceedings of the NAIC (2nd Quarter 2002). Unless the context indicates otherwise, the '2001 CSO Mortality Table' includes both the ultimate form of that table and the select and ultimate form of that table and includes both the smoker and nonsmoker mortality tables and the composite mortality tables. It also includes both the age-nearest-birthday and age-last-birthday bases of the mortality tables.
(b) '2001 CSO Mortality Table (F)' means that mortality table consisting of the rates of mortality for female lives from the 2001 CSO Mortality Table.
(c) '2001 CSO Mortality Table (M)' means that mortality table consisting of the rates of mortality for male lives from the 2001 CSO Mortality Table.
(d) 'Composite mortality tables' means mortality tables with rates of mortality that do not distinguish between smokers and nonsmokers.
(e) 'Smoker and nonsmoker mortality tables' means mortality tables with separate rates of mortality for smokers and nonsmokers.
(a) At the election of the company for any one or more specified plans of insurance and subject to the conditions stated in this regulation, the 2001 CSO Mortality Table may be used as the minimum standard for policies issued on or after January 1, 2005, and before the date specified in Subsection (b) to which Wyo. Stat. §§ 26-6-205(b)(i)(C)(III) and 26-16-209(j)(vi) are applicable. If the company elects to use the 2001 CSO Mortality Table, it shall do so for both valuation and nonforfeiture purposes.
(b) Subject to the conditions stated in this regulation, the 2001 CSO Mortality Table shall be used in determining minimum standards for policies issued on and after January 1, 2009, to which Wyo. Stat. § 26-6-205(b)(i)(C)(III) and 26-16-290(j)(vi) are applicable.
(a) For each plan of insurance with separate rates for smokers and nonsmokers an insurer may use:
(i) Composite mortality tables to determine minimum reserve liabilities and minimum cash surrender values and amounts of paid-up nonforfeiture benefits;
(ii) Smoker and nonsmoker mortality tables to determine the valuation net premiums and additional minimum reserves, if any, required by Wyo. Stat. § 26-6-205 and use composite mortality tables to determine the basic minimum reserves, minimum cash surrender values and amounts of paid-up nonforfeiture benefits; or
(iii) Smoker and nonsmoker mortality to determine minimum reserve liabilities and minimum cash surrender values and amounts of paid-up nonforfeiture benefits.
(b) For plans of insurance without separate rates for smokers and nonsmokers the composite mortality tables shall be used.
(c) For the purpose of determining minimum reserve liabilities and minimum cash surrender values and amounts of paid-up nonforfeiture benefits, the 2001 CSO Mortality Table may, at the option of the company for each plan of insurance, be used in its ultimate or select and ultimate form.
(d) When the 2001 CSO Mortality Table is the minimum reserve standard for any plan for a company, the actuarial opinion in the annual statement filed with the commissioner shall be based on an asset adequacy analysis as specified in Wyo. Stat. § 26-6-208 and Chapter 53 of the Wyoming Insurance Regulations. A commissioner may exempt a company from this requirement if it only does business in this state and in no other state.
(a) For any ordinary life insurance policy delivered or issued for delivery in this state on and after January 1, 2005, that utilizes the same premium rates and charges for male and female lives or is issued in circumstances where applicable law does not permit distinctions on the basis of gender, a mortality table that is a blend of the 2001 CSO Mortality Table (M) and the 2001 CSO Mortality Table (F) may, at the option of the company for each plan of insurance, be substituted for the 2001 CSO Mortality Table for use in determining minimum cash surrender values and amounts of paid-up nonforfeiture benefits. No change in minimum valuation standards is implied by this subsection of the regulation.
(b) The company may choose from among the blended tables developed by the American Academy of Actuaries CSO Task Force and adopted by the NAIC in December 2002.
(c) It shall not, in and of itself, be a violation of Wyo. Stat. § 26-13-109 for an insurer to issue the same kind of policy of life insurance on both a sex-distinct and sex-neutral basis.
If any provision of this regulation or its application to any person or circumstance is for any reason held to be invalid, the remainder of the regulation and the application of the provision to other persons or circumstances shall not be affected.
The effective date of this regulation is upon filing with the Secretary of State.