reglab/statecodes huggingface dataset:
North Carolina Administrative Code › Title 11 - INSURANCE › Chapter 11 - FINANCIAL EVALUATION DIVISION › Subchapter F - ACTUARIAL › Section .0100 - GENERAL PROVISIONS › Section 11F .0106 - REPEALED - RESERVES FOR PRESENT VALUE OF FUTURE BENEFITS REQUIRED

Current through Register Vol. 39, No. 2, July 15, 2024
Authority
					 G.S.
					 58-9;
Eff. February 1,
					 1976;
Readopted Eff. February 28, 1978;
Repealed Eff.
					 April 1, 1993.
North Carolina Administrative Code › Title 11 - INSURANCE › Chapter 11 - FINANCIAL EVALUATION DIVISION › Subchapter F - ACTUARIAL › Section .0100 - GENERAL PROVISIONS › Section 11F .0107-0110

Current through Register Vol. 39, No. 2, July 15, 2024
Authority
					 G.S.
					 58-9;
					 58-201.1;
Eff.
					 December 1, 1985;
Repealed Eff. April 1,
					 1993.
North Carolina Administrative Code › Title 11 - INSURANCE › Chapter 11 - FINANCIAL EVALUATION DIVISION › Subchapter F - ACTUARIAL › Section .0200 - HEALTH INSURANCE MINIMUM RESERVE STANDARDS › Section 11F .0202 - GENERAL

Current through Register Vol. 39, No. 2, July 15, 2024
(a) This Section
				  applies to all accident and health insurance coverages under G.S. 58, Articles
				  50 through 55.
(b) When an insurer
				  determines that adequacy of its insurance reserves requires reserves in excess
				  of the minimum standards specified in this Section, such increased reserves
				  shall be held and shall be considered the minimum reserves for that
				  insurer.
(c) With respect to any
				  block of contracts, or with respect to an insurer's accident and health
				  business as a whole, a prospective gross premium valuation is the ultimate test
				  of reserve adequacy as of a given valuation date. Such a gross premium
				  valuation shall take into account, for contracts in force, in a claims status,
				  or in a continuation of benefits status on the valuation date, the present
				  value as of the valuation date of: all expected benefits unpaid, all expected
				  expenses unpaid, and all unearned or expected premiums, adjusted for future
				  premium increases reasonably expected to be put into effect. Such a gross
				  premium valuation shall be performed whenever a significant doubt exists as to
				  reserve adequacy with respect to any major block of contracts or with respect
				  to the insurer's accident and health business as a whole. If inadequacy is
				  found to exist, immediate loss recognition shall be made and the reserves
				  restored to adequacy. Adequate reserves (inclusive of claim, premium, and
				  contract reserves, if any) shall be held with respect to all contracts,
				  regardless of whether contract reserves are required for such contracts under
				  this Section.
(d) Whenever minimum
				  reserves, as specified in this Section, exceed reserve requirements as
				  determined by a prospective gross premium valuation, such minimum reserves
				  remain the minimum requirement under this Section.
(e) Adequacy of an insurer's accident and
				  health insurance reserves shall be determined on the basis of claim reserves,
				  premium reserves, and contract reserves, as required in
				  11 NCAC
				  11F .0203 through
				  11 NCAC
				  11F .0205, combined.
Filed as a Temporary
					 Adoption Eff. January 21, 1994 For a Period of 180 Days or Until
					 the
Permanent Rule Becomes Effective, Whichever is
					 Sooner;
Statutory Authority
					 G.S.
					 58-2-40;
					 58-58-50(k);
Eff. April 1, 1994;
Pursuant to
					 G.S.
					 150B-21.3A, rule is necessary without
					 substantive public interest Eff. December 20,
					 2015.
North Carolina Administrative Code › Title 11 - INSURANCE › Chapter 11 - FINANCIAL EVALUATION DIVISION › Subchapter F - ACTUARIAL › Section .0200 - HEALTH INSURANCE MINIMUM RESERVE STANDARDS › Section 11F .0203 - CLAIM RESERVES

Current through Register Vol. 39, No. 2, July 15, 2024
(a) General:
(1) Claim reserves are required for all
				  incurred but unpaid claims on all accident and health insurance
				  contracts.
(2) Appropriate claim
				  expense reserves are required with respect to the estimated expense of
				  settlement of all incurred but unpaid claims.
(3) All such reserves for prior valuation
				  years shall be tested for adequacy and reasonableness along the lines of claim
				  runoff schedules in accordance with the statutory financial statement including
				  consideration of any residual unpaid liability.
North Carolina Administrative Code › Title 11 - INSURANCE › Chapter 11 - FINANCIAL EVALUATION DIVISION › Subchapter F - ACTUARIAL › Section .0200 - HEALTH INSURANCE MINIMUM RESERVE STANDARDS › Section 11F .0204 - PREMIUM RESERVES

Current through Register Vol. 39, No. 2, July 15, 2024
(a) General:
(1) Unearned premium reserves are required
				  for all contracts with respect to the period of coverage for which premiums,
				  other than premiums paid in advance, have been paid beyond the date of
				  valuation.
(2) If premiums due and
				  unpaid are carried as an asset, such premiums must be treated as premiums in
				  force, subject to unearned premium reserve determination. The value of unpaid
				  commissions, premium taxes, and the cost of collection associated with due and
				  unpaid premiums must be carried as an offsetting liability.
(3) The gross premiums paid in advance for a
				  period of coverage commencing after the next premium due date that follows the
				  date of valuation may be appropriately discounted to the valuation date and
				  shall be held either as a separate liability or as an addition to the unearned
				  premium reserve that would otherwise be required as a minimum.
North Carolina Administrative Code › Title 11 - INSURANCE › Chapter 11 - FINANCIAL EVALUATION DIVISION › Subchapter F - ACTUARIAL › Section .0200 - HEALTH INSURANCE MINIMUM RESERVE STANDARDS › Section 11F .0205 - CONTRACT RESERVES

Current through Register Vol. 39, No. 2, July 15, 2024
(a) General:
(1) Contract reserves are required, unless
				  otherwise specified in this Rule for:
(A) All
				  individual and group contracts with which level premiums are used; or
(B) All individual and group contracts with
				  respect to which, due to the gross premium pricing structure at issue, the
				  value of the future benefits at any time exceeds the value of any appropriate
				  future valuation net premiums at that time. This evaluation may be applied on a
				  rating block basis if the total premiums for the block were developed to
				  support the total risk assumed and expected expenses for the block each year,
				  and a qualified actuary certifies the premium development. The actuary shall
				  state in the certification that premiums for the rating block were developed
				  such that each year's premium was intended to cover that year's costs without
				  any prefunding. If the premium is also intended to recover costs for any prior
				  years, the actuary shall also disclose the reasons for and magnitude of such
				  recovery. The values specified in this Subparagraph shall be determined on the
				  basis specified in
				  11 NCAC
				  11F .0205(b).
North Carolina Administrative Code › Title 11 - INSURANCE › Chapter 11 - FINANCIAL EVALUATION DIVISION › Subchapter F - ACTUARIAL › Section .0200 - HEALTH INSURANCE MINIMUM RESERVE STANDARDS › Section 11F .0206 - REINSURANCE

Current through Register Vol. 39, No. 2, July 15, 2024
Increases to, or credits against reserves carried, arising
					 because of reinsurance assumed or reinsurance ceded, must be determined in a
					 manner consistent with the minimum reserve standards set out in
					 11 NCAC
					 11F .0200 and with all applicable provisions
					 of the reinsurance contracts that affect the insurer's
					 liabilities.
Filed as a Temporary
					 Adoption Eff. January 21, 1994 For a Period of 180 Days or Until
					 the
Permanent Rule Becomes Effective, Whichever is
					 Sooner;
Statutory Authority
					 G.S.
					 58-2-40;
					 58-58-50(k);
Eff. April 1, 1994;
Pursuant to
					 G.S.
					 150B-21.3A, rule is necessary without
					 substantive public interest Eff. December 20,
					 2015.
North Carolina Administrative Code › Title 11 - INSURANCE › Chapter 11 - FINANCIAL EVALUATION DIVISION › Subchapter F - ACTUARIAL › Section .0200 - HEALTH INSURANCE MINIMUM RESERVE STANDARDS › Section 11F .0207 - SPECIFIC STANDARDS FOR MORBIDITY, INTEREST AND MORTALITY

Current through Register Vol. 39, No. 2, July 15, 2024
(a) Minimum standard morbidity tables for
				  valuation of specified individual contract accident and health insurance
				  benefits are as follows:
(1) Disability
				  Income Benefits Due to Accident or Sickness.
(A) Contract Reserves:
(i) Contracts issued on or after January 1,
				  1965 and before January 1, 1986: The 1964 Commissioners Disability Table (64
				  CDT).
(ii) Contracts issued on or
				  after January 1, 1994: The 1985 Commissioners Individual Disability Tables A
				  (85CIDA); or The 1985 Commissioners Individual Disability Tables B
				  (85CIDB).
(iii) Contracts issued
				  during the years 1986 through 1993:
Optional use of either the 1964 or the 1985 Tables.
(iv) Each insurer shall elect,
				  with respect to all individual contracts issued in any one statement year,
				  whether it will use Tables A or Tables B as the minimum standard. The insurer
				  may, however, elect to use the other tables with respect to any subsequent
				  statement year.
North Carolina Administrative Code › Title 11 - INSURANCE › Chapter 11 - FINANCIAL EVALUATION DIVISION › Subchapter F - ACTUARIAL › Section .0200 - HEALTH INSURANCE MINIMUM RESERVE STANDARDS › Section 11F .0208 - RESERVES FOR WAIVER OF PREMIUM

Current through Register Vol. 39, No. 2, July 15, 2024
(a) Tabular
				  reserves using the 1964 CDT, 1985 CIDA or 1985 CIDB tables, i.e. disability
				  valuation tables based on exposures that include contracts on premium waiver as
				  in-force contracts, shall value reserves on the following basis:
(1) Claim reserves shall include reserves for
				  premiums expected to be waived, valuing as a minimum the valuation net premium
				  being waived.
(2) Premium reserves
				  shall include contracts on premium waiver as in-force contracts, valuing as a
				  minimum the unearned modal valuation net premium being waived.
(3) Contract reserves shall include
				  recognition of the waiver of premium benefit in addition to other contract
				  benefits provided for, valuing as a minimum the valuation net premium to be
				  waived.
North Carolina Administrative Code › Title 11 - INSURANCE › Chapter 11 - FINANCIAL EVALUATION DIVISION › Subchapter F - ACTUARIAL › Section .0300 - ACTUARIAL OPINION AND MEMORANDUM › Section 11F .0301 - APPLICABILITY AND SCOPE

Current through Register Vol. 39, No. 2, July 15, 2024
(a) This Section
				  applies to all life insurance companies and fraternal benefit societies doing
				  business in this State and to all life insurance companies and fraternal
				  benefit societies that are authorized to reinsure life insurance, annuities, or
				  accident and health insurance business in this State. This Section shall be
				  applied in a manner that allows the appointed actuary to utilize his or her
				  professional judgment in performing the asset analysis and developing the
				  actuarial opinion and supporting memoranda, consistent with relevant Actuarial
				  Standards of Practice. However, the Commissioner may require specific methods
				  of actuarial analysis and actuarial assumptions when these specifications are
				  necessary for an acceptable opinion to be rendered relative to the adequacy of
				  reserves and related items. All cross references to rule numbers are to rules
				  within this Section.
(b) This
				  Section applies to all annual statements filed with the Commissioner after
				  December 31, 2004. A statement of opinion on the adequacy of the reserves and
				  related actuarial items based on an asset adequacy analysis in accordance with
				  Rule .0306 of this Section and a supporting memorandum in accordance with Rule
				  .0307 of this Section are required each year.
Authority
					 G.S.
					 58-2-40;
					 58-24-120;
					 58-58-50(i);
					 58-58-50(j);
Eff. December 1, 1994;
Amended Eff. August 1, 2004;
Pursuant to
					 G.S.
					 150B-21.3A, rule is necessary without
					 substantive public interest Eff. December 20,
					 2015.
North Carolina Administrative Code › Title 11 - INSURANCE › Chapter 11 - FINANCIAL EVALUATION DIVISION › Subchapter F - ACTUARIAL › Section .0300 - ACTUARIAL OPINION AND MEMORANDUM › Section 11F .0302 - DEFINITIONS

Current through Register Vol. 39, No. 2, July 15, 2024
(a) "Annual
				  statement" means that statement required to be filed each year under
				  G.S.
				  58-2-165.
(b) "Appointed actuary" means any individual
				  who is appointed or retained in accordance with Rule .0303(c) of this Section
				  to provide the actuarial opinion and supporting memorandum as required by
				  G.S.
				  58-58-50(i) and this
				  Section.
(c) "Asset adequacy
				  analysis" means an analysis that meets the standards and other requirements
				  referred to in Rule .0303(d) of this Section.
(d) "Board" means the Actuarial Standards
				  Board established by the American Academy of Actuaries to develop and
				  promulgate standards of actuarial practice, and its successors.
(e) "Company" means a life insurance company,
				  fraternal benefit society, or reinsurer subject to this Section.
(f) "Opinion" means the statement of
				  actuarial opinion of an appointed actuary regarding the adequacy of the
				  reserves and related actuarial items based on an asset adequacy analysis in
				  accordance with Rule .0306 of this Section and with applicable actuarial
				  standards of practice.
(g)
				  "Qualified actuary" means any individual who meets the requirements set forth
				  in Rule .0303(b) of this Section.
Authority
					 G.S.
					 58-2-40;
					 58-24-120;
					 58-58-50(i);
					 58-58-50(j);
Eff. December 1, 1994;
Amended Eff. August 1, 2004;
Pursuant to
					 G.S.
					 150B-21.3A, rule is necessary without
					 substantive public interest Eff. December 20,
					 2015.
North Carolina Administrative Code › Title 11 - INSURANCE › Chapter 11 - FINANCIAL EVALUATION DIVISION › Subchapter F - ACTUARIAL › Section .0300 - ACTUARIAL OPINION AND MEMORANDUM › Section 11F .0303 - GENERAL REQUIREMENTS

Current through Register Vol. 39, No. 2, July 15, 2024
(a) Submission of
				  Opinion:
(1) There shall be included on or
				  attached to page 1 of the annual statement for each year beginning with
				  calendar year 2004, the statement of an appointed actuary, entitled "Statement
				  of Actuarial Opinion," setting forth an opinion relating to reserves and
				  related actuarial items held in support of policies and contracts, in
				  accordance with Rule .0306 of this Section.
(2) Upon written request by the company the
				  Commissioner shall grant a 45-day extension of the date for submission of the
				  opinion. In the written request, the company shall state the reason that such
				  extension is needed.
North Carolina Administrative Code › Title 11 - INSURANCE › Chapter 11 - FINANCIAL EVALUATION DIVISION › Subchapter F - ACTUARIAL › Section .0300 - ACTUARIAL OPINION AND MEMORANDUM › Section 11F .0304-.0305

Current through Register Vol. 39, No. 2, July 15, 2024
Authority
					 G.S.
					 58-2-40;
					 58-58-50(i);
					 58-58-50(j);
Eff. December 1, 1994;
Repealed Eff. August 1,
					 2004.
North Carolina Administrative Code › Title 11 - INSURANCE › Chapter 11 - FINANCIAL EVALUATION DIVISION › Subchapter F - ACTUARIAL › Section .0300 - ACTUARIAL OPINION AND MEMORANDUM › Section 11F .0306 - OPINION BASED ON ASSET ADEQUACY ANALYSIS

Current through Register Vol. 39, No. 2, July 15, 2024
(a) The
				  opinion submitted in accordance with this Rule shall consist of:
(1) A paragraph identifying the appointed
				  actuary and his or her qualifications as prescribed by Subparagraph (b)(1) of
				  this Rule;
(2) A scope paragraph
				  identifying the subjects on which an opinion is to be expressed and describing
				  the scope of the appointed actuary's work, including a tabulation delineating
				  the reserves and related actuarial items that have been analyzed for asset
				  adequacy and the method of analysis, as prescribed by Subparagraph (b)(2) of
				  this Rule and identifying the reserves and related actuarial items covered by
				  the opinion that have not been so analyzed;
(3) A reliance paragraph describing those
				  areas, if any, where the appointed actuary has deferred to other experts in
				  developing data, procedures or assumptions, (for example, anticipated cash
				  flows from currently owned assets, including variation in cash flows according
				  to economic scenarios as prescribed by Subparagraph (b)(3) of this Rule),
				  supported by a statement of each such expert in the form prescribed by
				  Paragraph (e) of this Rule; and
(4)
				  An opinion paragraph expressing the appointed actuary's opinion with respect to
				  the adequacy of the supporting assets to mature the liabilities as prescribed
				  by Subparagraph (b)(6) of this Rule;
(5) One or more additional paragraphs shall
				  be needed in individual company cases if the appointed actuary:
(A) Considers it necessary to state a
				  qualification of his or her opinion;
(B) Must disclose an inconsistency in the
				  method of analysis or basis of asset allocation used at the prior opinion date
				  with that used for this opinion.
(C) Must disclose whether additional reserves
				  of the prior opinion date are released as of this opinion date, and the extent
				  of the release.
(D) Chooses to add
				  a paragraph briefly describing the assumptions that form the basis for the
				  actuarial opinion.
North Carolina Administrative Code › Title 11 - INSURANCE › Chapter 11 - FINANCIAL EVALUATION DIVISION › Subchapter F - ACTUARIAL › Section .0300 - ACTUARIAL OPINION AND MEMORANDUM › Section 11F .0308 - REPEALED - ADDITIONAL CONSIDERATIONS FOR ANALYSIS

Current through Register Vol. 39, No. 2, July 15, 2024
Authority
					 G.S.
					 58-2-40;
					 58-58-50(i);
					 58-58-50(j);
Eff. December 1, 1994;
Repealed Eff. August 1,
					 2004.
North Carolina Administrative Code › Title 11 - INSURANCE › Chapter 11 - FINANCIAL EVALUATION DIVISION › Subchapter F - ACTUARIAL › Section .0400 - COMMISSIONER'S RESERVE VALUATION METHOD › Section 11F .0401 - APPLICABILITY

Current through Register Vol. 39, No. 2, July 15, 2024
(a) This Section
				  does not apply to:
(1) Any individual life
				  insurance policy issued on or after January 1, 2000, if the policy is issued in
				  accordance with and as a result of the exercise of a reentry provision
				  contained in the original life insurance policy of the same or greater face
				  amount, issued before January 1, 2000, that guarantees the premium rates of the
				  new policy; nor to subsequent policies issued as a result of the exercise of
				  such a provision, or a derivation of the provision, in the new
				  policy;
(2) Any universal life
				  policy that meets all the following requirements:
(A) The secondary guarantee period, if any,
				  is five years or less.
(B) The
				  specified premium for the secondary guarantee period is not less than the net
				  level reserve premium for the secondary guarantee period based on the CSO
				  valuation tables as defined in
				  11 NCAC
				  11F .0402(6) and the
				  applicable valuation interest rate.
(C) The initial surrender charge is not less
				  than 100% of the first year annualized specified premium for the secondary
				  guarantee period.
(3)
				  Any variable life insurance policy that provides for life insurance, the amount
				  or duration of which varies according to the investment experience of any
				  separate account or accounts;
(4)
				  Any variable universal life insurance policy that provides for life insurance,
				  the amount or duration of which varies according to the investment experience
				  of any separate account or accounts; and
(5) A group life insurance certificate unless
				  the certificate provides for a stated or implied schedule of maximum gross
				  premiums required in order to continue coverage in force for a period in excess
				  of one year.
North Carolina Administrative Code › Title 11 - INSURANCE › Chapter 11 - FINANCIAL EVALUATION DIVISION › Subchapter F - ACTUARIAL › Section .0400 - COMMISSIONER'S RESERVE VALUATION METHOD › Section 11F .0403 - BASIC AND PREMIUM DEFICIENCY RESERVES

Current through Register Vol. 39, No. 2, July 15, 2024
(a) At the
				  election of the company for any one or more specified plans of life insurance,
				  the minimum mortality standard for basic reserves may be calculated using the
				  1980 CSO valuation tables with select mortality factors (or any other valuation
				  mortality table adopted by the NAIC after January 1, 2000, and adopted as a
				  rule by the Commissioner for this purpose). If select mortality factors are
				  elected, they may be:
(1) The ten-year select
				  mortality factors incorporated into the 1980 amendments to the NAIC Standard
				  Valuation Law;
(2) The select
				  mortality factors in the NAIC Model Regulation entitled "Valuation of Life
				  Insurance Policies Model Regulation"; or
(3) Any other table of select mortality
				  factors adopted by the NAIC after January 1, 2000, and adopted as a rule by the
				  Commissioner for the purpose of calculating basic reserves.
North Carolina Administrative Code › Title 11 - INSURANCE › Chapter 11 - FINANCIAL EVALUATION DIVISION › Subchapter F - ACTUARIAL › Section .0400 - COMMISSIONER'S RESERVE VALUATION METHOD › Section 11F .0404 - CALCULATION OF 11 NCAC 11F .0401(B)

Current through Register Vol. 39, No. 2, July 15, 2024
(a) Basic
				  reserves shall be calculated as the greater of the segmented reserves and the
				  unitary reserves. Both the segmented reserves and the unitary reserves for any
				  policy shalluse the same valuation mortality table and selection factors. At
				  the option of the insurer, in calculating segmented reserves and net premiums,
				  either of the following adjustments may be made:
(1) Treat the unitary reserve, if greater
				  than zero, applicable at the end of each segment as a pure endowment; and
				  subtract the unitary reserve, if greater than zero, applicable at the beginning
				  of each segment from the present value of guaranteed life insurance and
				  endowment benefits for each segment; or
(2) Treat the guaranteed cash surrender
				  value, if greater than zero, applicable at the end of each segment as a pure
				  endowment; and subtract the guaranteed cash surrender value, if greater than
				  zero, applicable at the beginning of each segment from the present value of
				  guaranteed life insurance and endowment benefits for each segment.
North Carolina Administrative Code › Title 11 - INSURANCE › Chapter 11 - FINANCIAL EVALUATION DIVISION › Subchapter F - ACTUARIAL › Section .0400 - COMMISSIONER'S RESERVE VALUATION METHOD › Section 11F .0405 - CALCULATION OF 11 NCAC 11F .0401(C)

Current through Register Vol. 39, No. 2, July 15, 2024
(a)
				  General
(1) Policies with a secondary
				  guarantee include:
(A) A policy with a
				  guarantee that the policy will remain in force at the original schedule of
				  benefits, subject only to the payment of specified premiums;
(B) A policy in which the minimum premium at
				  any duration is less than the corresponding one- year valuation premium,
				  calculated using the maximum valuation interest rate and the 1980 CSO valuation
				  tables with or without ten-year select mortality factors, or any other table
				  adopted after January 1, 2000, by the NAIC and adopted as a ruleby the
				  Commissioner for this purpose; or
(C) A policy with any combination of Parts
				  (A) and (B).
North Carolina Administrative Code › Title 11 - INSURANCE › Chapter 11 - FINANCIAL EVALUATION DIVISION › Subchapter F - ACTUARIAL › Section .0400 - COMMISSIONER'S RESERVE VALUATION METHOD › Section 11F .0406 - LIMITED USE OF ANTICIPATED WITHDRAWAL RATES

Current through Register Vol. 39, No. 2, July 15, 2024
(a) This Rule
				  applies to universal life insurance policies and certificates issued after
				  December 31, 2006, and before January 1, 2014, that contain a secondary
				  guarantee that the death benefits will remain in effect as long as the
				  accumulation of premiums paid satisfies the secondary guarantee requirement
				  stated in the policy or certificate.
(b) For purposes of applying
				  11 NCAC
				  11F .0405(b) and
				  11 NCAC
				  11F .0405(c), a withdrawal
				  rate of no more than two percent per year for the first five policy years,
				  followed by no more than one percent per year to the policy anniversary
				  specified in the following table, and zero percent thereafter shall be used. If
				  the duration determined by reference to the table is less than five policy
				  years, a withdrawal rate of no more than two percent per year shall be used
				  through that duration, with zero percent per year used thereafter.
Issue Age
Duration
0-50
Policy Duration 30 years.
51-60
Duration at which policyholder reaches attained age
								80.
61-70
Policy Duration 20 years.
71-89
Duration at which policyholder reaches attained age
								90.
90 and over
No withdrawal rate assumption allowed.
Authority
					 G.S.
					 58-2-40;
					 58-58-50(b);
					 58-58-50(l);
Eff. December 1, 2007;
Amended Eff. March 1, 2011;
Pursuant to
					 G.S.
					 150B-21.3A, rule is necessary without
					 substantive public interest Eff. December 20,
					 2015.
North Carolina Administrative Code › Title 11 - INSURANCE › Chapter 11 - FINANCIAL EVALUATION DIVISION › Subchapter F - ACTUARIAL › Section .0500 - NEW ANNUITY VALUATION MORTALITY TABLES › Section 11F .0501-.0504

Current through Register Vol. 39, No. 2, July 15, 2024
Authority
					 G.S.
					 58-2-40;
					 58-58-50(k);
Temporary Adoption Eff. December 1, 1999;
Eff. July 1,
					 2000;
Repealed Eff. January 1,
					 2015.
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 .0601 - DEFINITIONS

Current through Register Vol. 39, No. 2, July 15, 2024
As used in this Section:
(1) "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 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
				  NAIC in December 2002. The 2001 CSO Mortality Table is included in the
Proceedings of the NAIC (2nd Quarter
				  2002).
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.
(2) "2001 CSO Mortality
				  Table (F)" means that mortality table consisting of the rates of mortality for
				  female lives from the 2001 CSO Mortality Table.
(3) "2001 CSO Mortality Table (M)" means that
				  mortality table consisting of the rates of mortality for male lives from the
				  2001 CSO Mortality Table.
(4)
				  "Composite mortality tables" means mortality tables with rates of mortality
				  that do not distinguish between smokers and nonsmokers.
(5) "Preneed life insurance" means a life
				  insurance policy which, whether by assignment or otherwise, has for a purpose
				  the funding of a preneed funeral contract or an insurance-funded funeral or
				  burial prearrangement, the insured being the person for whose service the funds
				  were paid.
(6) "Smoker and
				  nonsmoker mortality tables" means mortality tables with separate rates of
				  mortality for smokers and nonsmokers.
Authority
					 G.S.
					 58-2-40;
					 58-58-50(k);
					 58-58-50(l);
					 58-58-55(e);
Eff. March 1, 2004;
Amended Eff. December 1, 2008;
Pursuant to
					 G.S.
					 150B-21.3A, rule is necessary without
					 substantive public interest Eff. December 20,
					 2015.
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 .0602 - 2001 CSO MORTALITY TABLE AS MINIMUM STANDARD

Current through Register Vol. 39, No. 2, July 15, 2024
(a) At the
				  election of the company for any one or more specified plans of insurance and
				  subject to the conditions stated in this Section, the 2001 CSO Mortality Table
				  may be used as the minimum standard for policies issued on or after January 1,
				  2005, and before the date specified in Paragraph (b) of this Rule to which
				  G.S.
				  58-58-50(c)(2)(a),
				  G.S.
				  58-58-55(e)(4)h.6,
				  11 NCAC
				  11F .0403(a) or
				  11 NCAC
				  11F .0403(b) are applicable.
				  If the company elects to use the 2001 CSO Mortality Table, it shall do so for
				  both valuation and nonforfeiture purposes.
(b) Subject to the conditions stated in this
				  rule, the 2001 CSO Mortality Table shall be used in determining minimum
				  standards for policies issued on or after January 1, 2009, to which
				  G.S.
				  58-58-50(c)(2)(a),
				  G.S.
				  58-58-55(e)(4)h.6,
				  11 NCAC
				  11F.0403(a) or
				  11 NCAC
				  11F.0403(b) are applicable,
				  except for preneed life insurance as specified in
				  11 NCAC
				  11F .0606.
(c) The 2001 CSO Mortality Table shall be the
				  basis for computation of minimum values related to extended term benefits for
				  policies for which the 2001 CSO Mortality Table is the minimum standard for
				  valuation and nonforfeiture purposes.
Authority
					 G.S.
					 58-2-40;
					 58-58-50(k);
					 58-58-50(l);
					 58-58-55(e);
Eff. March 1, 2004;
Amended Eff. December 1, 2008;
Pursuant to
					 G.S.
					 150B-21.3A, rule is necessary without
					 substantive public interest Eff. December 20,
					 2015.
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 .0603 - CONDITIONS

Current through Register Vol. 39, No. 2, July 15, 2024
(a) For each plan
				  of insurance with separate rates for smokers and nonsmokers an insurer shall
				  use one of the following:
(1) Composite
				  mortality tables to determine minimum reserve liabilities and minimum cash
				  surrender values and amounts of paid-up nonforfeiture benefits;
(2) Smoker and nonsmoker mortality tables to
				  determine the valuation net premiums and additional minimum reserves, if any,
				  required by
				  G.S.
				  58-58-50(g) and use
				  composite mortality tables to determine the basic minimum reserves, minimum
				  cash surrender values and amounts of paid-up nonforfeiture benefits;
				  or
(3) Smoker and nonsmoker
				  mortality to determine minimum reserve liabilities and minimum cash surrender
				  values and amounts of paid-up nonforfeiture benefits.
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 .0604 - APPLICABILITY OF THE 2001 CSO MORTALITY TABLE TO 11 NCAC 11F .0400

Current through Register Vol. 39, No. 2, July 15, 2024
(a) For policies for which the 2001 CSO
				  Mortality Table is the minimum standard for valuation and nonforfeiture
				  purposes, 11F .0400 shall be applied in the following manner:
(1) To comply with
				  11 NCAC
				  11F .0401(a)(2)(B), the net
				  level reserve premium shall be based on the ultimate mortality rates in the
				  2001 CSO Mortality Table;
(2) To
				  comply with
				  11 NCAC
				  11F .0402(2), all
				  calculations shall be made using the 2001 CSO Mortality Rate, and, if elected,
				  the optional minimum mortality standard for deficiency reserves stipulated in
				  Subparagraph (a)(4) of this Rule; 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.
(3) To
				  comply with
				  11 NCAC
				  11F .0403(a), the 2001 CSO
				  Mortality Table shall be the minimum standard for basic reserves;
(4) To comply with
				  11 NCAC
				  11F .0403(b), the 2001 CSO
				  Mortality Table shall be the minimum standard for deficiency reserves. 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
				  11 NCAC
				  11F .0403(b)(3). 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, unless the combination
				  is explicitly required by rule or necessary to be in compliance with relevant
				  Actuarial Standards of Practice;
(5) To comply with
				  11 NCAC
				  11F .0404(c), the valuation
				  mortality table used in determining the tabular cost of insurance shall be the
				  ultimate mortality rates in the 2001 CSO Mortality Table;
(6) To comply with
				  11 NCAC
				  11F .0404(e)(4), the
				  calculations specified in
				  11 NCAC
				  11F .0404(e) shall use the
				  ultimate mortality rates in the 2001 CSO Mortality Table;
(7) To comply with
				  11 NCAC
				  11F .0404(f)(4), the
				  calculations specified in
				  11 NCAC
				  11F .0404(f) shall use the
				  ultimate rates in the 2001 CSO Mortality Table;
(8) To comply with
				  11 NCAC
				  11F .0404(g)(2), the
				  calculations specified in
				  11 NCAC
				  11F .0404(g) shall use the
				  ultimate mortality rates in the 2001 CSO Mortality Table; and
(9) To comply with
				  11 NCAC
				  11F .0405(a)(1)(B), the
				  one-year valuation premium shall be calculated using the ultimate mortality
				  rates in the 2001 CSO Mortality Table.
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 .0605 - GENDER-BLENDED TABLES

Current through Register Vol. 39, No. 2, July 15, 2024
(a) For any
				  ordinary life insurance policy delivered or issued for delivery in this state
				  on or after January 1, 2005 that 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 mortality table that is
				  a blend of the 2001 CSO Mortality Table (M) and the 2001 CSO Mortality Table
				  (F) may, at the option of the company for each plan of insurance, be
				  substituted for the 2001 CSO Mortality Table for use in determining minimum
				  cash surrender values and amounts of paid-up nonforfeiture benefits, except for
				  preneed life insurance policies issued after December 31, 2008, as provided in
				  11 NCAC
				  11F .0606. Notwithstanding this rule, the
				  2001 CSO Mortality Table, consisting of separate rates of mortality for male
				  and female lives, shall be the minimum valuation standard even if blended
				  tables are used in determining minimum cash surrender values and nonforfeiture
				  benefits.
(b) When using a
				  gender-blended table based on the 2001 CSO Mortality Table for determining
				  minimum cash surrender values and amounts of paid-up nonforfeiture benefits,
				  the company shall choose from among the blended tables developed by the
				  American Academy of Actuaries CSO Task Force and adopted by the NAIC in
				  December 2002.
(c) An insurer's
				  issuance of the same kind of policy of life insurance on both a sex-distinct
				  and a sex-neutral basis shall not solely constitute a violation of Article 63
				  of Chapter 58 of the North Carolina General Statutes.
Authority
					 G.S.
					 58-2-40;
					 58-58-50(k);
					 58-58-50(l);
					 58-58-55(e);
Eff. March 1, 2004;
Amended Eff. December 1, 2008;
Pursuant to
					 G.S.
					 150B-21.3A, rule is necessary without
					 substantive public interest Eff. December 20,
					 2015.
North Carolina Administrative Code › Title 11 - INSURANCE › Chapter 11 - FINANCIAL EVALUATION DIVISION › Subchapter F - ACTUARIAL › Section .0700 - DETERMINING MINIMUM RESERVE LIABILITIES FOR CREDIT LIFE INSURANCE › Section 11F .0701 - DETERMINING RESERVE LIABILITIES FOR CREDIT LIFE INSURANCE MODEL REGULATION

Current through Register Vol. 39, No. 2, July 15, 2024
(a) The North Carolina Department of
				  Insurance incorporates by reference, including subsequent amendments and
				  editions, the National Association of Insurance Commissioners Model No. 818,
				  Determining Reserve Liabilities for Credit Life Insurance Model Regulation.
				  Copies of Model No. 818 may be obtained from: The National Association of
				  Insurance Commissioners, 2301 McGee Street, Kansas City, MO 64108-1662; the
				  North Carolina Department of Insurance, Actuarial Services Division, 1201 Mail
				  Service Center, Raleigh, NC 27699-1201; and from the Department of Insurance
				  web page at
http://www.ncdoi.com/
(b) For purposes of this Rule, Section 4.C.
				  of Model No. 818 shall read as follows:
"Credit life insurance" means insurance on the life of a
					 debtor pursuant to or in connection with a specific loan or other credit
					 transaction as defined in
					 G.S.
					 58-58-10.
(c) For purposes of this Rule, Section 6.A.
				  of Model No. 818 shall read as follows:
11 NCAC 11F .0400 shall not apply
					 to credit life insurance.
(d) For purposes of this Rule, Section 6.B.
				  of Model No. 818 shall read as follows:
The interest rates used in determining the minimum standard
					 for valuation shall be the calendar year statutory valuation interest rates as
					 defined in
					 G.S.
					 58-58-50(c)(4).
(e) For purposes of this Rule,
				  Section 6.C. of Model No. 818 shall read as follows:
The method used in determining the minimum standard for
					 valuation shall be the Commissioner's Reserve Valuation Method as defined in
					 G.S.
					 58-58-50(d).
(f) This Rule applies to credit
				  life insurance policies and certificates issued on or after January 1, 2006.
				  For credit life insurance policies and certificates issued prior to January 1,
				  2006, the minimum standard mortality tables and interest rates shall be those
				  provided by the statutes and rules in effect as of the issue date of those
				  policies and certificates.
Authority
					 G.S.
					 58-2-40;
					 58-58-50(k);
Eff. September 1, 2005;
Pursuant to
					 G.S.
					 150B-21.3A, rule is necessary without
					 substantive public interest Eff. December 20,
					 2015.
North Carolina Administrative Code › Title 11 - INSURANCE › Chapter 11 - FINANCIAL EVALUATION DIVISION › Subchapter H - CONTINUING CARE FACILITIES › Section 11H .0101 - DEFINITIONS

Current through Register Vol. 39, No. 2, July 15, 2024
(a) As used in this
				Section, unless the context clearly indicates otherwise:
(1) "Break-even" means confirmation of
				sufficient executed resident's agreements to assure the facility's financial
				stability and which further indicate that projected revenues will at least be
				equal to projected expenses.
(2)
				"Health related services" also means domiciliary (rest home) care or Homes for
				the Aged, skilled or intermediate nursing, nursing home or rest home admission,
				or priority admission into a facility, unit, or bed providing any of the
				above-named services.
(3) "Lodging"
				means independent living without the need or use of health related
				services.
North Carolina Administrative Code › Title 11 - INSURANCE › Chapter 11 - FINANCIAL EVALUATION DIVISION › Subchapter H - CONTINUING CARE FACILITIES › Section 11H .0102 - LICENSE STEPS

Current through Register Vol. 39, No. 2, July 15, 2024
An applicant shall apply for licensure in accordance with the
				  following steps:
(1) For new or
				development stage facilities:
(a) The
				applicant shall initially submit the following items to the Commissioner for
				review:
(i) The applicant's name, address and
				telephone number;
(ii) A copy of a
				non-binding reservation agreement form;
(iii) Escrow agreement;
(iv) Narrative describing the facility, its
				mode of operation, and its location; and
(v) Any advertising materials to be
				used.
North Carolina Administrative Code › Title 11 - INSURANCE › Chapter 11 - FINANCIAL EVALUATION DIVISION › Subchapter H - CONTINUING CARE FACILITIES › Section 11H .0103 - REVOCATION OF LICENSE

Current through Register Vol. 39, No. 2, July 15, 2024
The revocation process, as provided by
				  G.S.
				  58-64-10, shall also apply to the Start-Up
				  Certificate, the Preliminary Certificate, and the Restricted or Conditional
				  License.
Authority
				  G.S.
				  58-2-40;
				  58-64-10;
				  58-64-65;
Eff. April
				  1, 1993;
Pursuant to
				  G.S.
				  150B-21.3A, rule is necessary without
				  substantive public interest Eff. December 20,
				  2015.
North Carolina Administrative Code › Title 11 - INSURANCE › Chapter 11 - FINANCIAL EVALUATION DIVISION › Subchapter H - CONTINUING CARE FACILITIES › Section 11H .0104 - SALE OR TRANSFER OF OWNERSHIP

Current through Register Vol. 39, No. 2, July 15, 2024
The sale or transfer process, as provided by
				  G.S.
				  58-64-15, shall also apply to the Start-Up
				  Certificate, the Preliminary Certificate, and the Restricted or Conditional
				  License.
Authority
				  G.S.
				  58-2-40;
				  58-64-15;
				  58-64-65;
Eff. April
				  1, 1993;
Pursuant to
				  G.S.
				  150B-21.3A, rule is necessary without
				  substantive public interest Eff. December 20,
				  2015.
North Carolina Administrative Code › Title 11 - INSURANCE › Chapter 11 - FINANCIAL EVALUATION DIVISION › Subchapter H - CONTINUING CARE FACILITIES › Section 11H .0105 - STANDARDIZED DISCLOSURE STATEMENT FORMAT

Current through Register Vol. 39, No. 2, July 15, 2024
As per
				  G.S.
				  58-64-20(d), the
				  Commissioner may prescribe a standardized format for the Disclosure Statement.
				  The format shall be maintained by the Commissioner, and may be updated as
				  necessary.
Authority
				  G.S.
				  58-2-40;
				  58-64-20;
				  58-64-65;
Eff. April
				  1, 1993;
Pursuant to
				  G.S.
				  150B-21.3A, rule is necessary without
				  substantive public interest Eff. December 20,
				  2015.
North Carolina Administrative Code › Title 11 - INSURANCE › Chapter 11 - FINANCIAL EVALUATION DIVISION › Subchapter H - CONTINUING CARE FACILITIES › Section 11H .0106 - HEALTH AND FINANCIAL CONDITIONS FOR ACCEPTANCE

Current through Register Vol. 39, No. 2, July 15, 2024
The health and financial conditions for acceptance as a
				  resident shall appear within the Disclosure Statement, as provided by
				  G.S.
				  58-64-20(a)(8). The
				  Disclosure Statement shall also include any conditions related to the
				  acceptance conditions required by the provider or facility, such as age,
				  ability to move or communicate, minimum assistance levels necessary to perform
				  daily activities, prepared wills, and ability to pay under specified
				  conditions.
Authority
				  G.S.
				  58-2-40;
				  58-64-20;
				  58-64-65;
Eff. April
				  1, 1993;
Pursuant to
				  G.S.
				  150B-21.3A, rule is necessary without
				  substantive public interest Eff. December 20,
				  2015.
North Carolina Administrative Code › Title 11 - INSURANCE › Chapter 11 - FINANCIAL EVALUATION DIVISION › Subchapter H - CONTINUING CARE FACILITIES › Section 11H .0107 - FINANCIAL STATEMENTS AND COMPILED FIVE YEAR FORECASTS

Current through Register Vol. 39, No. 2, July 15, 2024
Certified financial statements, as required by
				  G.S.
				  58-64-20(a)(10), and
				  compiled five year forecasts, as required by
				  G.S.
				  58-64-20(a)(12), shall be of
				  the provider's corporation or other legal entity that owns the Continuing Care
				  facility. The Commissioner may also require the provider to supply
				  supplementary financial data or other appropriate disclosure under the
				  requirements of
				  G.S.
				  58-64-20(a)(10) and
				  G.S.
				  58-64-20(a)(12) on
				  individual Continuing Care facilities, where a corporation or other legal
				  entity owns various Continuing Care facilities or is engaged in various
				  enterprises.
Authority
				  G.S.
				  58-2-40;
				  58-64-20;
				  58-64-65;
Eff. April
				  1, 1993;
Pursuant to
				  G.S.
				  150B-21.3A, rule is necessary without
				  substantive public interest Eff. December 20,
				  2015.
North Carolina Administrative Code › Title 11 - INSURANCE › Chapter 11 - FINANCIAL EVALUATION DIVISION › Subchapter H - CONTINUING CARE FACILITIES › Section 11H .0108 - COMPILED FIVE YEAR FORECAST

Current through Register Vol. 39, No. 2, July 15, 2024
(a) The
				compiled five year forecast shall consist of the following:
(1) a balance sheet;
(2) a statement of operations;
(3) a statement of cash flows; and
(4) a narrative detailing all significant
				assumptions.
North Carolina Administrative Code › Title 11 - INSURANCE › Chapter 11 - FINANCIAL EVALUATION DIVISION › Subchapter H - CONTINUING CARE FACILITIES › Section 11H .0109 - PROPOSED OR DEVELOPMENT STAGE FACILITIES

Current through Register Vol. 39, No. 2, July 15, 2024
The Commissioner may apply all or part of
				  G.S.
				  58-64-20(a)(14) to existing
				  Continuing Care facilities that are expanding.
Authority
				  G.S.
				  58-2-40;
				  58-64-20;
				  58-64-65;
Eff. April
				  1, 1993;
Pursuant to
				  G.S.
				  150B-21.3A, rule is necessary without
				  substantive public interest Eff. December 20,
				  2015.
North Carolina Administrative Code › Title 11 - INSURANCE › Chapter 11 - FINANCIAL EVALUATION DIVISION › Subchapter H - CONTINUING CARE FACILITIES › Section 11H .0110 - CONTRACT SPECIFICATION LIVING UNIT

Current through Register Vol. 39, No. 2, July 15, 2024
A "living unit," as described in
				  G.S.
				  58-64-25(a)(2), means an
				  independent living unit or a health care unit/bed, or as otherwise defined by
				  the annual North Carolina State Medical Facilities Plan.
Authority
				  G.S.
				  58-2-40;
				  58-64-25;
				  58-64-65;
Eff. April
				  1, 1993;
Pursuant to
				  G.S.
				  150B-21.3A, rule is necessary without
				  substantive public interest Eff. December 20,
				  2015.