Kentucky Administrative Regulations › Title 806 - PUBLIC PROTECTION CABINET - DEPARTMENT OF INSURANCE › Chapter 6 - Assets and Liabilities › Section 806 KAR 6:060 - Reserve liabilities, cash surrender values, and nonforfeiture benefits for plans of life insurance with separate rates for smokers and nonsmokers

Current through Register Vol. 51, No. 1, July 1, 2024
RELATES TO:
				KRS 304.6-140,
				304.6-145,
				304.6-180,
				304.15-342,
				304.15-410
NECESSITY, FUNCTION, AND CONFORMITY: EO 2004-731, signed July
				9, 2004, created the Office of Insurance.
				KRS
				304.2-110(1) authorizes the
				Commissioner of Insurance to make reasonable administrative regulations
				necessary for or as an aid to the effectuation of any provision of the Kentucky
				Insurance Code as defined in
				KRS
				304.1-010.
				KRS 304.6-140
				authorizes the commissioner to promulgate administrative regulations for the
				use of ordinary mortality tables adopted after 1980 by the National Association
				of Insurance Commissioners (NAIC).
				KRS 304.15-410
				states that where minimum reserves cannot be determined by the methods
				described in
				KRS
				304.6-150,
				304.6-155,
				and
				304.6-180,
				they shall be determined by a method consistent with the principals of these
				sections, but as determined by administrative regulations issued by the
				commissioner. This administrative regulation permits the use of mortality
				tables that reflect differences in mortality between smokers and nonsmokers in
				determining minimum reserve liabilities and minimum cash surrender values and
				amounts of paid-up nonforfeiture benefits for plans of insurance with separate
				premium rates for smokers and nonsmokers.
Section
			 1. Definitions.
(1) "1958 CET
			 Table" means that mortality table developed by the Society of Actuaries Special
			 Committee on New Mortality Tables, referenced in
			 KRS
			 304.15-340.
(2) "1958 CSO Table" means a mortality table
			 developed by the Society of Actuaries Special Committee on New Mortality
			 Tables, referenced in
			 KRS
			 304.15-340.
(3) "1980 CET Table" means a 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, referenced in
			 KRS
			 304.15-342.
(4) "1980 CSO Table, with or without Ten (10)
			 Year Select Mortality Factor" means that 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, referenced in
			 KRS 304.6-140
			 and
			 304.15-342.
(5) "Composite mortality tables" refers to
			 the mortality tables defined in subsections (1) through (4) of this section as
			 they were originally published with rates of mortality that do not distinguish
			 between smokers and nonsmokers.
(6)
			 "Smoker and nonsmoker mortality tables" refers to the mortality tables with
			 separate rates of mortality for smokers and nonsmokers derived from the tables
			 defined in 1 through 4 of this section which were developed by the Society of
			 Actuaries Task Force on Smoker/Nonsmoker Mortality and the California Insurance
			 Department staff and recommended by the NAIC Technical Staff Actuarial
			 Group.