S.D. Admin. R. 20:06:51:01

Current through Register Vol. 51, page 67, December 16, 2024

Section 20:06:51:01 - Definitions

Terms used in §§ 20:06:51:01 to 20:06:51:06, inclusive, mean:

(1) "2001 CSO Mortality Table," that mortality table, consisting of separate rates of mortality for male and female lives, developed by the American Academy of Actuaries CSO Task Force from the Valuation Basic Mortality Table developed by the Society of Actuaries Individual Life Insurance Valuation Mortality Task Force, and adopted by the NAIC in December 2002. The 2001 CSO Mortality Table is included in the Proceedings of the NAIC (2nd Quarter 2002) and supplemented by the 2001 CSO Preferred Class Structure Mortality Table. Unless the context indicates otherwise, the "2001 CSO Mortality Table" includes both the ultimate form of that table and the select and ultimate form of that table and includes both the smoker and nonsmoker mortality tables and the composite mortality tables. It also includes both the age-nearest-birthday and age-last-birthday bases of the mortality tables. Mortality tables in the 2001 CSO Mortality Table include the following:

(a) 2001 CSO Mortality Table (F), means that mortality table consisting of the rates of mortality for female lives from the 2001 CSO Mortality Table;

(b) 2001 CSO Mortality Table (M) means that mortality table consisting of the rates of mortality for male lives from the 2001 CSO Mortality Table;

(c) Composite mortality tables means mortality tables with rates of mortality that do not distinguish between smokers and nonsmokers;

(d) Smoker and nonsmoker mortality tables means mortality tables with separate rates of mortality for smokers and nonsmokers;

(2) "2001 CSO Preferred Class Structure Mortality Table," mortality tables with separate rates of mortality for Super Preferred Nonsmokers, Preferred Nonsmokers, Residual Standard Nonsmokers, Preferred Smokers, and Residual Standard Smokers splits of the 2001 CSO Nonsmoker and Smoker tables as adopted by the NAIC at the September, 2006, national meeting and published in the NAIC Proceedings (3rd Quarter 2006). Unless the context indicates otherwise, the 2001 CSO Preferred Class Structure Mortality Table includes both the ultimate form of that table and the select and ultimate form of that table. It includes both the smoker and nonsmoker mortality tables. It includes both the male and female mortality tables and the gender composite mortality tables. It also includes both the age-nearest-birthday and age-last-birthday bases of the mortality table;

(3) "Preneed insurance policy," any 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 agreement 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, coffin or urn, memorial stone, and transportation of the deceased. The status of the policy or contract as preneed insurance is determined at the time of issue in accordance with the policy form filing;

(4) "Statistical agent," an entity with proven systems for protecting the confidentiality of individual insured and insurer information; demonstrated resources for and history of ongoing electronic communications and data transfer ensuring data integrity with insurers, which are its members or subscribers; and a history of and means for aggregation of data and accurate promulgation of the experience modifications in a timely manner;

(5) "Ultimate 1980 CSO," the Commissioners' 1980 Standard Ordinary Life Valuation Mortality Tables (1980 CSO) without ten-year selection factors, incorporated into the 1980 amendments to the NAIC Standard Valuation Law approved in December 1983.

S.D. Admin. R. 20:06:51:01

33 SDR 107, adopted December 6, 2006, effective 1/1/2007; 35 SDR 88, effective 10/27/2008.

General Authority: SDCL 58-26-83.

Law Implemented: SDCL 58-26-45, 58-2-6 -83.

2002-2 NAIC Proceedings. 1153.