Iowa Administrative Code › Agency 191 - Insurance Division › Insurance Coverage for Pediatric Preventive Services › Chapter 94 - Preferred Mortality Tables for Use in Determining Minimum Reserve Liabilities › Rule 191-94.4 - Conditions

Current through Register Vol. 47, No. 3, July 24, 2024
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 pursuant to the residual standard nonsmoker table,
				  the appointed actuary shall certify that:
a. 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.
b. 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.
For each plan of insurance with separate rates for preferred
				  and standard smoker lives, an insurer may use the preferred smoker and residual
				  standard smoker tables to substitute for the smoker mortality table found in
				  the 2001 CSO Mortality Table to determine minimum reserves. At the time of
				  election and annually thereafter, for business valued under the preferred
				  smoker table, the appointed actuary shall certify that:
a. 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
				preferred smoker valuation basic table corresponding to the valuation table
				being used for that class.
b. 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 preferred smoker valuation basic table corresponding
				to the valuation table being used for that class.
Unless exempted by the commissioner, every authorized
				  insurer using the 2001 CSO Preferred Class Structure Mortality Table shall
				  annually file with the commissioner, with the National Association of Insurance
				  Commissioners, or with a statistical agent designated by the National
				  Association of Insurance Commissioners and acceptable to the commissioner,
				  statistical reports showing mortality and such other information as the
				  commissioner may deem necessary or expedient for the administration of the
				  provisions of this chapter. The form of the reports shall be established by the
				  commissioner, or the commissioner may require the use of a form established by
				  the National Association of Insurance Commissioners or by a statistical agent
				  designated by the National Association of Insurance Commissioners and
				  acceptable to the commissioner.