Compilation of Rules and Regulations of the State of Georgia › Department 120 - OFFICE OF COMMISSIONER OF INSURANCE, SAFETY FIRE COMMISSIONER AND INDUSTRIAL LOAN COMMISSIONER › Chapter 120-2 - RULES OF COMMISSIONER OF INSURANCE › Subject 120-2-90 - STANDARD NONFORFEITURE AND VALUATION FOR USE IN DETERMINING MINIMUM RESERVE LIABILITIES AND NONFORFEITURE BENEFITS REGULATION › Rule 120-2-90-.06 - Applicability of the 2001 CSO Mortality Table and 2001 CSO Preferred Class Structure Mortality Table to Life Insurance Policies Valued Pursuant to Appendix A-830 of the NAIC Accounting Practices and Procedures Manual

Current through Rules and Regulations filed through June 27, 2024
(1) The 2001 CSO
				Mortality Table and 2001 CSO Preferred Class Structure Mortality Table may be
				used in valuing a life policy pursuant to Appendix A-830 in the following
				manner, subject to the transition dates for use of the 2001 CSO Mortality Table
				in §120-2-90-04;
(a) In determining the
				applicability of Appendix A-830 to any universal life policy, the net level
				reserve premium for the secondary guarantee period is based on the ultimate
				mortality rates in the 2001 CSO Mortality Table or the ultimate mortality rates
				in the 2001 CSO Preferred Class Structure Mortality Table.
(b) All calculations under the contract
				segmentation method are made using the 2001 CSO Mortality Rate, and, if
				elected, the optional minimum mortality standard for deficiency reserves
				stipulated in
				120-2-90-.06(1)(d)
				of this regulation. 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.
(c) For
				purposes of general calculation requirements for basic reserves, the 2001 CSO
				Mortality Table or 2001 CSO Preferred Class Structure Mortality Table is the
				minimum standard.
(d) For purposes
				of general calculation requirements for deficiency reserves, the 2001 CSO
				Mortality Table or 2001 CSO Preferred Class Structure Mortality Table is the
				minimum standard. 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 § 17c of Appendix A-830. 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 or 2001 CSO Preferred Class Structure Mortality Table, unless
				the combination is explicitly required by regulation or necessary to be in
				compliance with relevant Actuarial Standards of Practice.
(e) For calculating the minimum value of
				basic reserves for policies with guaranteed nonlevel gross premiums or
				guaranteed nonlevel benefits (other than universal life policies), the
				valuation mortality table used in determining the tabular cost of insurance
				shall be the ultimate mortality rates in the 2001 CSO Mortality Table or 2001
				CSO Preferred Class Structure Mortality Table.
(f) For determining the optional exemption
				for yearly renewable term reinsurance for policies with guaranteed nonlevel
				gross premiums or guaranteed nonlevel benefits (other than universal life
				policies), the calculations shall use the maximum valuation interest rate and
				the ultimate mortality rates in the 2001 CSO Mortality Table or 2001 CSO
				Preferred Class Structure Mortality Table.
(g) For determining the optional exemption
				for attained-age-based yearly renewable term life policies with guaranteed
				nonlevel gross premiums or guaranteed nonlevel benefits (other than universal
				life policies), the calculations shall use the maximum valuation interest rate
				and the ultimate mortality rates in the 2001 CSO Mortality Table or 2001 CSO
				Preferred Class Structure Mortality Table.
(h) For determining the exemption for unitary
				reserves for certain n-year renewable term life polices with guaranteed
				nonlevel gross premiums or guaranteed nonlevel benefits (other than universal
				life policies), the calculations shall use the ultimate mortality rates in the
				2001 CSO Mortality Table or 2001 CSO Preferred Class Structure Mortality
				Table.
(i) For flexible premium and
				fixed premium universal life policies that contain provisions resulting in the
				ability of a policyholder to keep a policy in force over a secondary guarantee
				period, the one-year valuation premium for purposes of identifying policies
				with a secondary guarantee shall be calculated using the ultimate mortality
				rates in the 2001 CSO Mortality Table or 2001 CSO Preferred Class Structure
				Mortality Table.