Ohio Administrative Code › Title 3901 - Department of Insurance › Chapter 3901-6 - Life Insurance › Section 3901-6-12 - Permitting the recognition of preferred mortality tables for use in determining minimum reserve liabilities

Current through all regulations passed and filed through July 1, 2024
(A) Purpose
The purpose of this rule is to provide authorized companies an
				alternative to rule
				3901-6-11
				of the Administrative Code, by recognizing, permitting and prescribing the use
				of mortality tables that reflect differences in mortality between preferred and
				standard lives in determining minimum reserve liabilities in accordance with
				sections 
									
										3903.723
									 and
				3915.071 of the Revised Code and
				rule
				3901-6-10
				of the Administrative Code (valuation of insurance policies).
(B) Authority
This rule is promulgated 
									pursuant to the authority vested in the
				superintendent  under sections
				3901.041,
				
									
										3903.723
									 and
				3915.071 of the Revised Code
				.
(C)
			 Definitions
(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 national association of insurance commissioners (NAIC) in December 2002.
			 The 2001 CSO mortality table is included in the "Proceedings of the NAIC" (2nd
			 quarter 2002) and supplemented by the 2001 CSO preferred class structure
			 mortality table defined in paragraph (C)(6) of this rule. 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. 
									Mortality tables in the 2001 CSO mortality table
			 include the following:
(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) "Smoker and nonsmoker mortality tables"
			 means mortality tables with separate rates of mortality for smokers and
			 nonsmokers.
(6) "2001 CSO preferred
			 class structure mortality table" means mortality tables with separate rates of
			 mortality for super preferred nonsmokers, preferred nonsmokers, residual
			 standard nonsmokers, preferred smokers, and residual standard smoker splits of
			 the 2001 CSO nonsmoker and smoker tables as adopted by the NAIC at the
			 September 2006 national meeting and published in the NAIC proceedings (3rd
			 quarter 2006). Unless the context indicates otherwise, the "2001 CSO preferred
			 class structure mortality table" includes both the ultimate form of that table
			 and the select and ultimate form of that table. It includes both the smoker and
			 nonsmoker mortality tables. It includes both the male and female mortality
			 tables and the gender composite mortality tables. It also includes both the
			 age-nearest-birthday and age-last-birthday bases of the mortality
			 table.
(7) "Statistical agent"
			 means an entity with proven systems for protecting the confidentiality of
			 individual insured and insurer information; demonstrated resources for and
			 history of ongoing electronic communications and data transfer ensuring data
			 integrity with insurers, which are its members or subscribers; and a history of
			 and means for aggregation of data and accurate promulgation of the experience
			 modifications in a timely manner.