Section 3 AAC 28.635 - Applicability of the 2001 CSO Mortality Tables to 3 AAC 21.900 - 3 AAC 21.949The 2001 CSO Mortality Tables may be used in complying with 3 AAC 21.900 - 3 AAC 21.949 subject to the following:
(1) the net level reserve premium under 3 AAC 21.900(2) (B) must be based on the ultimate mortality rates in the 2001 CSO Mortality Tables;(2) calculations under 3 AAC 21.920(a) are made using the 2001 CSO Mortality Tables; and
(B) if elected by the insurer, the optional minimum mortality standard for deficiency reserves under (4) of this section with q x+k+t-1 equal to 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 computation of deficiency reserves; in this subparagraph, "q x+k+t-1," "k," "t" and "x" have the meanings given in 3 AAC 21.925(d);(3) the minimum standard for calculating basic reserves under 3 AAC 21.905(a) and (d) is the 2001 CSO Mortality Tables;(4) the minimum standard for calculating deficiency reserves under 3 AAC 21.905(f) and (g) is the 2001 CSO Mortality Tables subject to the following: if select mortality factors are used, the factors may be multiplied by X percent as described under 3 AAC 21.905(g) (3) in the first segment subject to the conditions specified in 3 AAC 21.905(g) (3);
(B) an insurer may not combine the results of tests that utilize the Commissioner's 1980 Standard Ordinary Mortality Tables referenced in AS 21.18.110 with the tests that utilize the 2001 CSO Mortality Tables in demonstrating compliance with the conditions specified in 3 AAC 21.905(g) (3), unless the combination is necessary for compliance with relevant actuarial standards of practice as adopted by the Actuarial Standards Board;(5) the valuation mortality table used in determining the tabular cost of insurance under 3 AAC 21.910(d) and (e) is the 2001 CSO Mortality Tables;(6) calculations under 3 AAC 21.915(c) (4) and 3 AAC 21.915(e) (4) must use the ultimate mortality rates in the 2001 CSO Mortality Tables;(7) the one-year valuation premium under 3 AAC 21.920(e) (2)(B) must use the ultimate mortality rates in the 2001 CSO Mortality Tables.Eff. 12/28/2008, Register 188; am 1/1/2010, Register 196The 2001 CSO Mortality Tables referenced in 3 AAC 28.635 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