S.D. Admin. R. 20:06:51:03

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

Section 20:06:51:03 - Separate rates for preferred and standard nonsmoker lives

For each plan of insurance with separate rates for preferred and standard nonsmoker lives, an insurer may use the Super Preferred Nonsmoker, Preferred Nonsmoker, and Residual Standard Nonsmoker tables to substitute for the Nonsmoker Mortality Table found in the 2001 CSO Mortality Table to determine minimum reserves. At the time of election and annually thereafter, except for business valued under the Residual Standard Nonsmoker Table, the appointed actuary shall certify that:

(1) The present value of death benefits over the next ten years after the valuation date, using the anticipated mortality experience without recognition of mortality improvement beyond the valuation date for each class, is less than the present value of death benefits using the valuation basic table corresponding to the valuation table being used for that class;

(2) The present value of death benefits over the future life of the contracts, using anticipated mortality experience without recognition of mortality improvement beyond the valuation date for each class, is less than the present value of death benefits using the valuation basic table corresponding to the valuation table being used for that class.

S.D. Admin. R. 20:06:51:03

33 SDR 107, adopted December 6, 2006, effective 1/1/2007.

General Authority: SDCL 58-26-83.

Law Implemented: SDCL 58-26-83.