Missouri Code of State Regulations › Title 20 - DEPARTMENT OF COMMERCE AND INSURANCE › Division 400 - Life, Annuities and Health › Chapter 1 - Life Insurance and Annuity Standards › Section 20 CSR 400-1.175 - Minimum Standards for Determining Reserve Liabilities and Nonforfeiture Values for Life Insurance Sold with a Preneed Contract

Current through Register Vol. 49, No. 14, July 15, 2024
PURPOSE: The purpose of this regulation is to
				  establish minimum mortality standards for reserves and nonforfeiture values,
				  and to require the use of the 1980 Commissioners' Standard Ordinary (CSO) Life
				  Valuation Mortality Table for use in determining the minimum standard of
				  valuation of reserves and the minimum standard nonforfeiture values for
				  insurance products sold in conjunction with a preneed contract. The purpose of
				  this regulation is not to regulate the sale or contract of a preneed
				  arrangement, but rather, to regulate the values of the insurance sold in
				  conjunction with the preneed contract.
PUBLISHER'S NOTE: The secretary of state has
				  determined that the publication of the entire text of the material which is
				  incorporated by reference as a portion of this rule would be unduly cumbersome
				  or expensive. This material as incorporated by reference in this rule shall be
				  maintained by the agency at its headquarters and shall be made available to the
				  public for inspection and copying at no more than the actual cost of
				  reproduction. This note applies only to the reference material. The entire text
				  of the rule is printed here.
(1) Definitions.
(A) The term "2001 CSO Mortality Table" means
				that mortality table, consisting of separate rates of mortality for male and
				female lives, developed by the American Academy of Actuaries Commissioners'
				Standard Ordinary (CSO) Task Force from the Valuation Basic Mortality Table
				developed by the Society of Actuaries Individual Life Insurance Valuation
				Mortality Task Force, and adopted by the National Association of Insurance
				Commissioners (NAIC), located at 2301 McGee Street, Suite 800, Kansas City, MO
				64108, in December 2002. The 2001 CSO Mortality Table is incorporated by
				reference and included in the
Proceedings of the NAIC (2nd Quarter
				2002)
and does not include any later amendments. Unless the context
				indicates otherwise, the 2001 CSO Mortality Table includes both the ultimate
				form of that table and the select and ultimate form of that table and includes
				both the smoker and nonsmoker mortality tables and the composite mortality
				tables. It also includes both the age-nearest-birthday and age-last-birthday
				bases of the mortality tables. The 2001 CSO Mortality Table is available for
				public inspection at the department's office or by mailing a written request to
				the Department of Commerce and Insurance, PO Box 690, Jefferson City, MO 65102.
(B) The term "Ultimate 1980 CSO"
				means the Commissioners' 1980 Standard Ordinary Life Valuation Mortality Tables
				(1980 CSO) without ten (10) year selection factors, incorporated into the 1980
				amendments to the NAIC Standard Valuation Law approved in December 1983. The
				Ultimate 1980 CSO is incorporated by reference, published by the National
				Association of Insurance Commissioners, located at 2301 McGee Street, Suite
				800, Kansas City, MO 64108, and does not include any later amendments. The
				Ultimate 1980 CSO is available for public inspection at the department's office
				or by mailing a written request to the Department of Commerce and Insurance, PO
				Box 690, Jefferson City, MO 65102.
(C) The term "preneed insurance" shall
				include a life insurance contract sold in conjunction with a preneed contract
				as defined in section
				436.005(5),
				RSMo.