Section 3 AAC 28.620 - Life mortality tables(a) Except as provided in (g) of this section, the 2001 CSO Mortality Tables are adopted by reference and are recognized for use under (b) and (c) of this section in determining the minimum standard of valuation for policies for which AS 21.18.110(b)(1)(A)(iii) and AS 21.45.300(t)(6) apply.(b) Subject to the conditions under (d), (e), and (f) of this section, an insurer may elect to use the 2001 CSO Mortality Tables as the minimum standard of valuation for policies issued on or after January 1, 2005 and before January 1, 2009 for which AS 21.18.110(b)(1)(A)(iii) and AS 21.45.300(t)(6) apply.(c) Subject to the conditions under (d), (e), and (f) of this section, an insurer shall use the 2001 CSO Mortality Tables in determining the minimum standard of valuation for policies issued on or after January 1, 2009 for which AS 21.18.110(b)(1)(A)(iii), AS 21.45.300(t)(6), and 3 AAC 21.905(a) - (g) apply.(d) If an insurance policy contains separate mortality rates for smokers and nonsmokers, the insurer may use (1) composite mortality tables to determine the minimum reserve liabilities, minimum cash surrender values, and amounts of paid-up nonforfeiture benefits;(2) smoker and nonsmoker mortality tables to determine the valuation net premiums and additional minimum reserves required under AS 21.18.110(b)(4) and use composite mortality tables to determine the basic minimum reserves, minimum cash surrender values, and amounts of paid-up nonforfeiture benefits; or(3) smoker and nonsmoker mortality tables to determine minimum reserve liabilities, minimum cash surrender values, and amounts of paid-up nonforfeiture benefits.(e) If an insurance policy does not contain separate mortality rates for smokers and nonsmokers, the insurer shall use composite mortality tables to determine minimum reserve liabilities, minimum cash surrender values, and amounts of paid-up nonforfeiture benefits.(f) An insurer may elect to use the ultimate or the select and ultimate 2001 CSO Mortality Table for each plan of insurance in determining minimum reserve liabilities, minimum cash surrender values, and amounts of paid-up nonforfeiture benefits subject to the restrictions in 3 AAC 21.635 and 3 AAC 21.900 - 3 AAC 21.949 relating to the use of select and ultimate tables.(g) For pre-need insurance policies that are issued on or after January 1, 2012 and similar policies and contracts, the Commissioner's 1980 Standard Ordinary Mortality Table without 10-year selection factors is, subject to (h) of this section, the minimum mortality standard for determining reserve liabilities and nonforfeiture values.(h) An insurer may use the 2001 CSO Mortality Tables for pre-need insurance policies until January 1, 2012 as the minimum standard of valuation for determining reserve liabilities and nonforfeiture values if, as part of the insurer's actuarial opinion memorandum prepared under AS 21.18.110(q), the insurer submits an annual notification that includes (1) a list of all pre-need policy forms that use the 2001 CSO Mortality Tables as the minimum standard;(2) a certification signed by the appointed actuary stating that the reserve methodology employed by the company in determining reserves for pre-need policies using the 2001 CSO Mortality Tables as a minimum standard results in adequate reserves for the pre-need policies on a stand-alone basis; and(3) supporting information regarding the adequacy of reserves for pre-need insurance policies using the 2001 CSO Mortality Tables as the minimum standard for reserve liabilities.(i) For purposes of this section, a pre-need insurance policy is a life insurance policy or certificate that is issued in combination with, in support of, with an assignment to, or as a guarantee for a prearrangement for goods and services to be provided at the time of and immediately following the death of the insured. Goods and services may include embalming, cremation, body preparation, viewing or visitation, a coffin or urn, a memorial stone, and transportation of the deceased.(j) If the 2001 CSO Mortality Table is the minimum reserve standard for a policy, the actuarial opinion in the annual statement filed with the director must be based on an asset adequacy analysis set out in 3 AAC 21.830. The director may exempt a company from the requirement of this subsection if the company writes insurance only in this state.Eff. 1/1/2005, Register 172; am 12/28/2008, Register 188; am 1/1/2011, Register 196The 2001 CSO Mortality Tables referenced in 3 AAC 28.620 may be obtained from the Society of Actuaries, 475 N. Martingale Road, Suite 600, Schaumburg, Illinois 60173; telephone number (847) 706-3500.
Authority:AS 21.06.090
AS 21.18.110
AS 21.18.160
AS 21.45.300