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Virginia Administrative Code (Last Updated: January 10, 2017) |
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Title 14. Insurance |
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Agency 5. State Corporation Commission, Bureau of Insurance |
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Chapter 321. Use of the 2001 CSO Mortality Table in Determining Reserve Liabilities Andnonforfeiture Benefits |
Section 50. Applicability of the 2001 CSO Mortality Table to 14VAC5-319
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A. The 2001 CSO Mortality Table may be used in applying rules at 14VAC5-319, concerning life insurance reserves, in the following manner, subject to the transition dates for use of the 2001 CSO Mortality Table in 14VAC5-321-30.
1. When applying 14VAC5-319-30 B 2, the net level reserve premium is based on the ultimate mortality rates in the 2001 CSO Mortality Table.
2. When determining "contract segmentation method" as defined by 14VAC5-319-10, all calculations are made using the 2001 CSO mortality rate, and, if elected, the optional minimum mortality standard for deficiency reserves stipulated in subdivision 4 of this subsection. The value of "qx+k+t-1" is the valuation mortality rate for deficiency reserves in policy year k+t, but using the unmodified select mortality rates if modified select mortality rates are used in the computation of deficiency reserves.
3. When applying 14VAC5-319-40 A, the 2001 CSO Mortality Table is the minimum standard for basic reserves.
4. When applying 14VAC5-319-40 B, the 2001 CSO Mortality Table 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 subdivisions 1 c, 1 d, 2, and 3 of 14VAC5-319-40 B. 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, unless the combination is explicitly required by regulation or necessary to be in compliance with relevant Actuarial Standards of Practice.
5. When applying 14VAC5-319-50 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.
6. When applying 14VAC5-319-50 E 4, the calculations specified in 14VAC5-319-50 E shall use the ultimate mortality rates in the 2001 CSO Mortality Table.
7. When applying 14VAC5-319-50 F 4, the calculations specified in 14VAC5-319-50 F shall use the ultimate mortality rates in the 2001 CSO Mortality Table.
8. When applying 14VAC5-319-50 G 2, the calculations specified in 14VAC5-319-50 G shall use the ultimate mortality rates in the 2001 CSO Mortality Table.
9. When applying 14VAC5-319-60 A 1 b, the one-year valuation premium shall be calculated using the ultimate mortality rates in the 2001 CSO Mortality Table.
B. Nothing in this section shall be construed to expand the applicability of 14VAC5-319 to include life insurance policies excepted from regulation pursuant to 14VAC5-319-30 B.
Historical Notes
Derived from Volume 20, Issue 16, eff. July 1, 2004.