Ala. Admin. Code r. 482-1-130-.06

Current through Register Vol. 43, No. 1, October 31, 2024

Section 482-1-130-.06 - Applicability Of The 2001 CSO Mortality Table To Chapter 482-1-120

(1) The 2001 CSO Mortality Table may be used in applying Chapter 482-1-120 in the following manner, subject to the transition dates for use of the 2001 CSO Mortality Table in Rule 482-1-130-. 04.

(a) Rule 482-1-120-.03(2)(b): The net level reserve premium is based on the ultimate mortality rates in the 2001 CSO Mortality Table.

(b) Rule 482-1-120-.04(b): All calculations are made using the 2001 CSO Mortality Rate, and, if elected, the optional minimum mortality standard for deficiency reserves stipulated in Subparagraph (d) of Paragraph (1) of Rule 482-1-130-.06. The value of "qx+k+t-1" is the valuation mortality rate for deficiency reserves in policy year k+t, but using the unmodified select mortality rates if modified select mortality rates are used in the computation of deficiency reserves.

(c) Rule 482-1-120-.05(1): The 2001 CSO Mortality Table is the minimum standard for basic reserves.

(d) Rule 482-1-120-.05(2): The 2001 CSO Mortality Table is the minimum standard for deficiency reserves. If select mortality rates are used, they may be multiplied by X percent for durations in the first segment, subject to the conditions specified in Subparagraph (c) of Paragraph (2) of Rule 482-1-120-.05. In demonstrating compliance with those conditions, the demonstrations may not combine the results of tests that utilize the 1980 CSO Mortality Table with those tests that utilize the 2001 CSO Mortality Table, unless the combination is explicitly required by regulation or necessary to be in compliance with relevant Actuarial Standards of Practice.

(e) Rule 482-1-120-.06(3): The valuation mortality table used in determining the tabular cost of insurance shall be the ultimate mortality rates in the 2001 CSO Mortality Table.

(f) Rule 482-1-120-.06(5)(d): The calculations specified in Paragraph (5) of Rule 482-1-120-.06 shall use the ultimate mortality rates in the 2001 CSO Mortality Table.

(g) Rule 482-1-120-.06(6)(d): The calculations specified in Paragraph (6) of Rule 482-1-120-.06 shall use the ultimate mortality rates in the 2001 CSO Mortality Table.

(h) Rule 482-1-120-.06(7)(b): The calculations specified in Paragraph (7) of Rule 482-1-120-.06 shall use the ultimate mortality rates in the 2001 CSO Mortality Table.

(i) Rule 482-1-120-.07(1)(a)(2): The one-year valuation premium shall be calculated using the ultimate mortality rates in the 2001 CSO Mortality Table.

(2) Nothing in this rule shall be construed to expand the applicability of Chapter 482-1-120 to include life insurance policies exempted under Paragraph (2) of Rule 482-1-120-.03.

Ala. Admin. Code r. 482-1-130-.06

New Rule: December 1, 2003; effective January 1, 2004. Filed with LRS November 15, 2003. Rule is not subject to the Alabama Administrative Procedure Act.

Amended by Alabama Administrative Monthly Volume XLII, Issue No. 09, June 28, 2024, eff. 7/1/2024.

Author: Commissioner of Insurance

Statutory Authority:Code of Ala. 1975, §§ 27-2-17, 27-15-70 to 27-15-83, 27-15-28.1, and 27-36A-1 to 27-36A-20.