Md. Code Regs. 31.05.03.05

Current through Register Vol. 51, No. 24, December 2, 2024

Section 31.05.03.05 - Application of Mortality Tables

A. Policies Issued Before January 1, 2009.

(1) At the election of an insurer for any one or more specified plans of insurance, an insurer may use the 1980 CSO valuation table or the 2001 CSO Mortality Table as the minimum standard for a policy issued before January 1, 2009.

(2) If an insurer elects to use the 2001 CSO Mortality Table as the minimum standard, the insurer shall do so for both valuation and nonforfeiture purposes.

B. Policies Issued on or After January 1, 2009. Except as set forth in §C of this regulation, for a policy issued on or after January 1, 2009, an insurer shall use the 2001 CSO Mortality Table as the minimum standard.

C. Preneed Insurance Contracts.

(1) For a preneed insurance contract issued on or after January 1, 2009, and before January 1, 2012, an insurer may elect to use either the ultimate form of the 1980 CSO valuation tables or the 2001 CSO Mortality Table as the minimum standard for valuation and nonforfeiture purposes.

(2) If an insurer elects to use the 2001 CSO Mortality Table as the minimum standard for a preneed insurance contract issued on or after January 1, 2009, the insurer shall provide, as a part of the actuarial opinion memorandum submitted in support of the company's asset adequacy testing, an annual written notification to the domiciliary commissioner.

(3) The notification required by §C(2) of this regulation shall include:

(a) A complete list of all preneed insurance contract forms that use the 2001 CSO Mortality Table as the minimum standard;

(b) A certification signed by the appointed actuary stating that the reserve methodology employed by the company in determining reserves for the preneed insurance contracts issued after January 1, 2009, and using the 2001 CSO Mortality Table as the minimum standard develops adequate reserves; and

(c) Supporting information regarding the adequacy of reserves for preneed insurance contracts issued after January 1, 2009, and using the 2001 CSO Mortality Table as the minimum standard.

(4) For the purposes of the certification required in §C(3)(b) of this regulation, the preneed insurance contracts using the 2001 CSO Mortality Table as the minimum standard may not be aggregated with any other policies.

(5) For a preneed insurance contract issued on or after January 1, 2012, an insurer shall use the ultimate form of the 1980 CSO valuation tables as the minimum standard for valuation and nonforfeiture purposes.

(6) The status of a policy or contract as a preneed insurance contract is determined at the time of issue in accordance with the policy form filing.

Md. Code Regs. 31.05.03.05

Regulation .05B amended effective December 15, 2008 (35:25 Md. R. 2151)
Regulation .05C adopted effective December 15, 2008 (35:25 Md. R. 2151)
Regulation .05C amended effective December 28, 2009 (36:26 Md. R. 1999)