La. Admin. Code tit. 37 § XIII-10711
Current through Register Vol. 50, No. 11, November 20, 2024
Section XIII-10711 - Applicability of the 2001 CSO Mortality Table or Its Successor Table to Regulation 85A. The 2001 CSO Mortality Table, or its successor table adopted by the NAIC and detailed in VM-20, may be used in applying Regulation 85 in the following manner, subject to the transition dates for use of the 2001 CSO Mortality Table, or its successor table adopted by the NAIC and detailed in VM-20, in §10707 of this regulation. 1.Section 10905.A (2).(b). The net level reserve premium is based on the ultimate mortality rates in the 2001 CSO Mortality Table, or its successor table adopted by the NAIC and detailed in VM-20.2.Section 10907 All calculations are made using the 2001 CSO Mortality Table, or its successor table adopted by the NAIC and detailed in VM-20, and, if elected, the optional minimum mortality standard for deficiency reserves stipulated in §10909.B of this regulation. The value of "qx+k+t+1" is the valuation mortality rate for deficiency reserves in policy year k+t, using the unmodified select mortality rates if modified select mortality rates are used in the computation of deficiency reserves.3.Section 10909.A The 2001 CSO Mortality Table, or its successor table adopted by the NAIC and detailed in VM-20, is the minimum standard for basic reserves.4.Section 10909.B The 2001 CSO Mortality Table, or its successor table adopted by the NAIC and detailed in VM-20, 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 §10909.B.3.a through i. 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, or its successor table adopted by the NAIC and detailed in VM-20, unless the combination is explicitly required by regulation or necessary to be in compliance with relevant actuarial standards of practice.5.Section 10911.C The valuation mortality table used in determining the tabular cost of insurance shall be the ultimate mortality rates in the 2001 CSO Mortality Table, or its successor table adopted by the NAIC and detailed in VM-20.6.Section 10911.E.4 The calculations specified in §10911.E shall use the ultimate mortality rates in the 2001 CSO Mortality Table or its successor table adopted by the NAIC and detailed in VM-20.7.Section 10911.F.4 The calculations specified in §10911.F shall use the ultimate mortality rates in the 2001 CSO Mortality Table or its successor table adopted by the NAIC and detailed in VM-20.8.Section 10911.G.2 The calculations specified in §10911.G shall use the ultimate mortality rates in the 2001 CSO Mortality Table or its successor table adopted by the NAIC and detailed in VM-20.9.Section 10913.A.1.b The one-year valuation premium shall be calculated using the ultimate mortality rates in the 2001 CSO Mortality Table or its successor table adopted by the NAIC and detailed in VM-20.B. Nothing in this Section shall be construed to expand the applicability of Regulation 85 to include life insurance policies exempted under §10905. A of Regulation 85.La. Admin. Code tit. 37, § XIII-10711
Promulgated by the Department of Insurance, Office of the Commissioner, LR 31:2542 (October 2005), Amended LR 482297 (9/1/2022).AUTHORITY NOTE: Promulgated in accordance with R.S.22:11, 22:753, 22:936 and the Administrative Procedure Act, R.S. 49:950 et seq.