North Carolina Administrative Code › Title 11 - INSURANCE › Chapter 11 - FINANCIAL EVALUATION DIVISION › Subchapter F - ACTUARIAL › Section .0600 - RECOGNITION OF THE 2001 CSO MORTALITY TABLE FOR USE IN DETERMINING MINIMUM RESERVE LIABILITIES AND NONFORFEITURE BENEFITS › Section 11F .0606 - MINIMUM STANDARDS FOR PRENEED LIFE INSURANCE

Current through Register Vol. 39, No. 2, July 15, 2024
(a) For
				  preneed life insurance, the minimum mortality standard for determining reserve
				  liabilities and nonforfeiture values for policies issued after December 31,
				  2008, shall be the Commissioners' 1980 Standard Ordinary Life Valuation
				  Mortality Tables (1980 CSO), without ten-year selection factors, incorporated
				  into the 1980 amendments to the NAIC Standard Valuation Law approved in
				  December 1983. If the policy utilizes the same premium rates and charges for
				  male and female lives or is issued in circumstances where applicable law does
				  not permit distinctions on the basis of gender, a table that is a blend of the
				  1980 CSO Table (M) and the 1980 CSO Table (F), without ten-year selection
				  factors may, at the option of the insurer, be substituted for the 1980 CSO
				  Table to determine minimum cash surrender values and nonforfeiture benefits.
				  For the Commissioners' 1980 Extended Term Insurance Table (1980 CET), a
				  mortality table which is the same blend of the 1980 CET Table (M) and 1980 CET
				  Table (F) may be substituted. The blended tables must be selected from those
				  published in the 1984 Proceedings of the NAIC, Vol. I., or in the 1987
				  Proceedings of the NAIC, Volume I.
(b) Notwithstanding
				  11 NCAC
				  11F .0606(a), for preneed
				  life insurance policies issued after December 31, 2008 and before January 1,
				  2012, the 2001 CSO Mortality Table may be used as the minimum standard for
				  reserves and nonforfeiture values. If an insurer elects to use the 2001 CSO
				  Mortality Table as a minimum standard for any preneed life insurance policy
				  issued after December 31, 2008 and before January 1, 2012, the insurer shall
				  provide, as a part of the actuarial memorandum submitted in support of the
				  insurer's asset adequacy testing, an annual written notification to the
				  domiciliary commissioner. The notification shall include:
(1) A complete list of all preneed policy
				  forms that use the 2001 CSO Mortality Table as a minimum standard;
(2) A certification signed by the appointed
				  actuary stating that the reserve methodology employed by the insurer in
				  determining reserves for the preneed life insurance policies issued after
				  December 31, 2008 and using the 2001 CSO Mortality Table as a minimum standard,
				  develops adequate reserves for these policies without being aggregated with any
				  other policies; and
(3) Supporting
				  information regarding the adequacy of reserves for preneed life insurance
				  policies issued after December 31, 2008 and using the 2001 CSO Mortality Table
				  as a minimum standard for reserves. The supporting information shall include
				  documentation of the actuarial assumptions and methods used in testing these
				  reserves for adequacy.