N.H. Admin. Code § Ins 3505.06

Current through Register No. 45, November 7, 2024

Section Ins 3505.06 - Optional Exemption for Attained-Age-Based Yearly Renewable Term Life Insurance Policies

(a) At the option of the company, the following approach for reserves for attained-age-based YRT life insurance policies may be used:

(1) Calculate the valuation net premium for each future policy year as the tabular cost of insurance for that future year;

(2) Basic reserves shall never be less than the tabular cost of insurance for the appropriate period, as defined in Ins 3505.03;

(3) Deficiency reserves:

a. For each policy year, calculate the excess, if greater than zero, of the valuation net premium over the respective maximum guaranteed gross premium; and

b. Deficiency reserves shall never be less than the sum of the present values, at the date of valuation, of the excesses determined in accordance with subparagraph a. above;

(4) For purposes of this subsection, the calculations use the maximum valuation interest rate and the 1980 CSO valuation tables with or without ten-year select mortality factors, or any other table adopted after the 2017 effective date of this rule by the NAIC and promulgated by rule by the commissioner for this purpose;

(5) A policy shall be considered an attained-age-based YRT life insurance policy for purposes of this subsection if:

a. The premium rates (on both the initial current premium scale and the guaranteed maximum premium scale) are based upon the attained age of the insured such that the rate for any given policy at a given attained age of the insured is independent of the year the policy was issued; and

b. The premium rates (on both the initial current premium scale and the guaranteed maximum premium scale) are the same as the premium rates for policies covering all insureds of the same sex, risk class, plan of insurance and attained age;

(6) For policies that become attained-age-based YRT policies after an initial period of coverage, the approach of this subsection may be used after the initial period if:

a. The initial period is constant for all insureds of the same sex, risk class and plan of insurance; or

b. The initial period runs to a common attained age for all insureds of the same sex, risk class and plan of insurance; and

c. After the initial period of coverage, the policy meets the conditions of subparagraph (5) above; and

(7) If this election is made, this approach shall be applied in determining reserves for all attained-age-based YRT life insurance policies issued on or after the 2017 effective date of this rule.

N.H. Admin. Code § Ins 3505.06

#7419, eff 7-1-01; ss by #9516, eff 7-25-09

Amended by Volume XXXVII Number 28, Filed July 13, 2017, Proposed by #12228, Effective 7/25/2017, Expires 7/25/2027.