R590. Insurance, Administration.R590-95. Minimum Nonforfeiture Standards for Men and Women Insureds Under the 1980 CSO and 1980 CET Mortality Tables.
R590-95-1. Authority.
This rule is promulgated by the commissioner pursuant to Sections 31A-2-201 and 31A-22-408.
R590-95-2. Purpose and Scope.
(1) The purpose of this rule is to permit an individual life insurance policy to provide the same cash surrender values and paid-up nonforfeiture benefits to both a man and a woman.
(2) This rule applies to an insurer offering a life insurance policy.
R590-95-3. Definitions.
Terms used in this rule are defined in Section 31A-1-301. Additional terms are defined as follows:
(1) "1980 CSO Table, with or without Ten-Year Select Mortality Factors" means the mortality table, consisting of separate rates of mortality for male and female lives, developed by the Society of Actuaries Committee to Recommend New Mortality Tables for Valuation of Standard Individual Ordinary Life Insurance, incorporated in the 1980 NAIC Amendments to the Model Standard Valuation Law and Standard Nonforfeiture Law for Life Insurance, and referred to in those models as the Commissioners 1980 Standard Ordinary Mortality Table, with or without Ten-Year Select Mortality Factors.
(2) "1980 CSO Table (M), with or without Ten-Year Select Mortality Factors" means the mortality table consisting of the rates of mortality for male lives from the 1980 CSO Table, with or without Ten-Year Select Mortality Factors.
(3) "1980 CSO Table (F), with or without Ten-Year Select Mortality Factors means the mortality table consisting of the rates of mortality for female lives from the 1980 CSO Table with or without Ten-Year Select Mortality Factors.
(4) "1980 CET Table" means the mortality table consisting of separate rates of mortality for male and female lives, developed by the Society of Actuaries Committee to Recommend New Mortality Tables for Valuation of Standard Individual Ordinary Life Insurance, incorporated in 1980 NAIC Amendments to the Model Standard Valuation Law and Standard Nonforfeiture Law for Life Insurance, and referred to in those models as the Commissioners 1980 Extended Term Insurance Table.
(5) "1980 CET Table (M)" means the mortality table consisting of the rates of mortality for male lives from the 1980 CET Table.
(6) "1980 CET Table (F)" means the mortality table consisting of the rates of mortality for female lives from the 1980 CET Table.
(7) "1980 CSO and 1980 CET Smoker and Nonsmoker Mortality Tables" mean the mortality tables with separate rates of mortality for smokers and nonsmokers derived from the 1980 CSO and 1980 CET Mortality Tables by the Society of Actuaries Task Force on Smoker/Nonsmoker Mortality and adopted by the NAIC in December 1983.
(8) "NAIC" means the National Association of Insurance Commissioners.
R590-95-4. Rule A.
For any life insurance policy on either a male or female delivered or issued for delivery in this state after the operative date under Subsection 31A-22-408(6)(d) for that policy form, at the option of the company, the following substitutions are allowed:
(1) a mortality table that is a blend of the 1980 CSO Table (M) and the 1980 CSO Table (F) with or without Ten-Year Select Mortality Factors may be substituted for the 1980 CSO Table, with or without Ten-Year Select Mortality Factors; and
(2) a mortality table that is of the same blend as used in Subsection (1) but applied to form a blend of the 1980 CET Table (M) and the 1980 CET Table (F) may be substituted for the 1980 CET Table for use in determining minimum cash surrender values and amounts of paid-up nonforfeiture benefits.
(3) The following tables are acceptable:
(a) 100% Male 0% Female for tables to be designated as "the 1980 CSO-A" and "1980 CET-A" tables.
(b) 80% Male 20% Female for tables to be designated as the "1980 CSO-B" and "1980 CET-B" tables.
(c) 60% Male 40% Female for tables to be designated as the "1980 CSO-C" and "1980 CET-C" tables.
(d) 50% Male 50% Female for tables to be designated as the "1980 CSO-D" and "1980 CET-D" tables.
(e) 40% Male 60% Female for tables to be designated as the "1980 CSO-E" and "1980 CET-E" tables.
(f) 20% Male 80% Female for tables to be designated as the "1980 CSO-F" and "1980 CET-F" tables.
(g) 0% Male 100% Female for tables to be designated as the "1980 CSO-G" and "1980 CET-G" tables.
(4) Tables (a) and (g) may not be used with policies issued on or after January 1, 1985 except where the proportion of persons insured is anticipated to be 90% or more of one sex or the other or except for certain policies converted from group insurance. Such group conversions issued on or after January 1, 1986 must use mortality tables based on the blend of lives by sex expected for such policies if such group conversions are considered as extensions of the Norris decision.
R590-95-5. Rule B.
In determining minimum cash surrender values and amounts of paid-up nonforfeiture benefits for any life insurance policy on either a male or female on a policy form with separate rates for smokers and nonsmokers delivered or issued for delivery in this state after the operative date under Subsection 31A-22-408-(6)(d) for that policy form, at the option of the company, in addition to substitutions allowed under Section R590-95-4, the following substitutions are allowed:
