reglab/statecodes huggingface dataset:
New Jersey Administrative Code › Title 11 - INSURANCE › Chapter 4 - ACTUARIAL SERVICES › Subchapter 25 - FUNERAL INSURANCE POLICIES › Section 11:4-25.5 - Loss ratio standard

Current through Register Vol. 56, No. 14, July 15, 2024
(a) A funeral insurance policy shall be identified in the policy form as a life insurance policy or annuity contract.
(b) Funeral insurance policies identified as life insurance shall provide, at a minimum, the following benefits in relation to premiums:
1. The guaranteed death benefit shall not be less than the death benefit required by the limited death benefits forms rule at N.J.A.C. 11:4-21;
2. During the first seven policy years, the guaranteed death benefit shall not be less than the insurance adjusted premium fund;
3. The guaranteed death benefit in any policy year after the limited death benefit period defined at N.J.A.C. 11:4-21 shall not be less than the death benefit required at the end of that period by (b)1 above, and the death benefit for any policy year after the first seven policy years shall not be less than the death benefit required at the end of the seventh policy year by (b)2 above;
4. The minimum nonforfeiture benefits shall be those specified by the standard nonforfeiture law for life insurance at 17B:25-19, except that if the provision of the guaranteed death benefits required by (b)1, 2 and 3 above would cause a policy to be disqualified as life insurance for purposes of federal income tax treatment, a smaller nonforfeiture benefit, consisting of the maximum benefit possible while still maintaining qualification, may be provided. The actuarial memorandum certifying compliance with 17B:25-19 shall demonstrate that lower values are required and that the values provided are the maximum possible; and
5. A funeral insurance policy not meeting the standards of (b)1 to 4 above shall be considered an annuity contract and shall be so designated. It will be subject to the standards of (c) below.
New Jersey Administrative Code › Title 11 - INSURANCE › Chapter 4 - ACTUARIAL SERVICES › Subchapter 25 - FUNERAL INSURANCE POLICIES › Section 11:4-25.6 - Severability

Current through Register Vol. 56, No. 14, July 15, 2024
If any provision of this subchapter, or its application to any person or circumstances, is held invalid, the remainder of this subchapter and its application to other persons or circumstances shall not be affected.
New Jersey Administrative Code › Title 11 - INSURANCE › Chapter 4 - ACTUARIAL SERVICES › Subchapter 25 - FUNERAL INSURANCE POLICIES › Section 11:4-25.7 - Penalties

Current through Register Vol. 56, No. 14, July 15, 2024
If after notice and an opportunity for hearing, the Commissioner of Insurance finds that a person has violated this regulation or the enabling legislation, a penalty, in addition to any other penalty, not exceeding $ 2,000 for each violation, may be imposed and shall be collected and enforced pursuant to law including, but not limited to, N.J.S.A. 2A:58-1 et seq.
New Jersey Administrative Code › Title 11 - INSURANCE › Chapter 4 - ACTUARIAL SERVICES › Subchapter 26 - ANNUITY MORTALITY TABLES › Section 11:4-26.1 - Purpose

Current through Register Vol. 56, No. 14, July 15, 2024
The purpose of this subchapter is to recognize the following mortality tables: the 1983 Table "a", the 1983 GAM Table, the Annuity 2000 Mortality Table, the 2012 IAR Table, and the 1994 GAR Table, for use in determining the minimum standard of valuation for annuity and pure endowment contracts.
New Jersey Administrative Code › Title 11 - INSURANCE › Chapter 4 - ACTUARIAL SERVICES › Subchapter 26 - ANNUITY MORTALITY TABLES › Section 11:4-26.2 - Definitions

Current through Register Vol. 56, No. 14, July 15, 2024
The following words and terms, when used in this subchapter, have the following meanings, unless the context clearly indicates otherwise.
"Annuity 2000 Mortality Table" means that mortality table developed by the Society of Actuaries Committee on Life Insurance Research and shown on page 240 of Volume XLVII of the Transactions of the Society of Actuaries (1995).
"Generational mortality table" means a mortality table containing a set of mortality rates that decrease for a given age from one year to the next based on a combination of a period table and a projection scale containing rates of mortality improvement.
"NAIC" means the National Association of Insurance Commissioners.
"Period table" means a table of mortality rates applicable to a given calendar year (the period).
"Projection Scale G2 (Scale G2)" means a table of annual rates, G2##, of mortality improvement by age for projecting future mortality rates beyond calendar year 2012. This table was developed by the Society of Actuaries Committee on Life Insurance Research and adopted as a recognized mortality table for annuities in December 2012 by the National Association of Insurance Commissioners (see
2012-1 Proceedings of the NAIC
, pages 33-40).
"1983 Table 'a' " means that mortality table developed by the Society of Actuaries Committee to Recommend a New Mortality Basis for Individual Annuity Valuation and adopted as a recognized mortality table for annuities in June 1982 by the National Association of Insurance Commissioners (see 1982 Proceedings of the NAIC II, page 454).
"1983 GAM Table" means that mortality table developed by the Society of Actuaries Committee on Annuities and adopted as a recognized mortality table for annuities in December 1983 by the National Association of Insurance Commissioners (see 1984 Proceedings of the NAIC I, pages 414 to 415).
"1994 GAR Table" means that mortality table developed by the Society of Actuaries Group Annuity Valuation Table Task Force and shown on pages 866-867 of Volume XLVII of the Transactions of the Society of Actuaries (1995).
"2012 IAR Table" means that generational mortality table developed by the Society of Actuaries Committee on Life Insurance Research and containing rates, q[x] 2012+n >, derived from a combination of the 2012 IAM Period Table and Projection Scale G2, using the methodology stated in 11:4-26.4. This table was adopted as a recognized mortality table for annuities in December 2012 by the National Association of Insurance Commissioners (see
2012-1 Proceedings of the NAIC
, pages 33-40).
New Jersey Administrative Code › Title 11 - INSURANCE › Chapter 4 - ACTUARIAL SERVICES › Subchapter 26 - ANNUITY MORTALITY TABLES › Section 11:4-26.3 - Individual annuity or pure endowment contracts

Current through Register Vol. 56, No. 14, July 15, 2024
(a) Except as provided in (b) and (c) below, the 1983 Table "a" is recognized and approved as an individual annuity mortality table for valuation and, at the option of the company, may be used for purposes of determining the minimum standard of valuation for any individual annuity or pure endowment contract issued on or after September 11, 1981.
(b) Except as provided in (c) below, either the 1983 Table "a" or the Annuity 2000 Mortality Table shall be used for determining the minimum standard of valuation for any individual annuity or pure endowment contract issued on or after January 1, 1987.
(c) Except as provided in (e) below, the Annuity 2000 Mortality Table shall be used for determining the minimum standard of valuation for any individual annuity or pure endowment contract issued on or after January 1, 2001.
(d) Except as provided in (e) below, the 2012 IAR Mortality Table shall be used for determining the minimum standard of valuation for any individual annuity or pure endowment contract issued on or after January 1, 2015.
(e) The 1983 Table "a" without projection is to be used for determining the minimum standard of valuation for an individual annuity or pure endowment contract issued on or after January 1, 2001, solely when the contract is based on life contingencies and is issued to fund periodic benefits arising from:
1. Settlements of various forms of claims pertaining to court settlements or out of court settlements from tort actions;
2. Settlements involving similar actions such as worker's compensation claims; or
3. Settlements of long term disability claims where a temporary or life annuity has been used in lieu of continuing disability payments.
New Jersey Administrative Code › Title 11 - INSURANCE › Chapter 4 - ACTUARIAL SERVICES › Subchapter 26 - ANNUITY MORTALITY TABLES › Section 11:4-26.4 - Application of the 2012 IAR Mortality Table

Current through Register Vol. 56, No. 14, July 15, 2024
(a) In using the 2012 IAR Mortality Table, the mortality rate for a person age x in year (2012 + n) is calculated as follows:
q[x]<2012+n> = q[x]<2012> (1 - G2[x])<n>.
The resulting q[x]<2012+n> shall be rounded to three decimal places per 1,000 (for example, 0.741 deaths per 1,000). Also, the rounding shall occur according to the formula above, starting at the 2012 period table rate.
For example, for a male age 30, q[x]<2012> = 0.741. q[x]<2013> = 0.741 * (1 - 0.010) 1 = 0.73359, which is rounded to 0.734. q[x]<2014> = 0.741 * (1 - 0.010) 2 = 0.7262541, which is rounded to 0.726.
A method leading to incorrect rounding would be to calculate q[x]<2014> as q[x]<2013> * (1 - 0.010), or 0.734 * 0.99 = 0.727. It is incorrect to use the already rounded q[x]<2013> to calculate q[x]2014>.
New Jersey Administrative Code › Title 11 - INSURANCE › Chapter 4 - ACTUARIAL SERVICES › Subchapter 26 - ANNUITY MORTALITY TABLES › Section 11:4-26.5 - Group annuity or pure endowment contracts

Current through Register Vol. 56, No. 14, July 15, 2024
(a) Except as provided in (b) and (c) below, the 1983 GAM Table, the 1983 Table "a" and the 1994 GAR Table are recognized and approved as group annuity mortality tables for valuation and, at the option of the company, any one of these tables may be used for purposes of valuation for any annuity or pure endowment purchased on or after September 11, 1981 under a group annuity or pure endowment contract.
(b) Except as provided in (c) below, either the 1983 GAM Table or the 1994 GAR Table shall be used for determining the minimum standard of valuation for any annuity or pure endowment purchased on or after January 1, 1987 under a group annuity or pure endowment contract.
(c) The 1994 GAR Table shall be used for determining the minimum standard of valuation for any annuity or pure endowment purchased on or after January 1, 2001 under a group annuity or pure endowment contract.
New Jersey Administrative Code › Title 11 - INSURANCE › Chapter 4 - ACTUARIAL SERVICES › Subchapter 26 - ANNUITY MORTALITY TABLES › Section 11:4-26.6 - Application of the 1994 GAR Table

Current through Register Vol. 56, No. 14, July 15, 2024
(a) In using the 1994 GAR Table, the mortality rate for a person age x in year (1994+n) is calculated as follows:
q[x]<1994> + n = q[x]<1994> (1 - AA[x])<n>
where the q[x]<1994> and AA[x]s are as specified in the 1994 GAR Table.
New Jersey Administrative Code › Title 11 - INSURANCE › Chapter 4 - ACTUARIAL SERVICES › Subchapter 26 - ANNUITY MORTALITY TABLES › Section 11:4-26.7 - Separability

Current through Register Vol. 56, No. 14, July 15, 2024
If any provision of this subchapter or the application thereof to any person or circumstances is for any reason held to be invalid, the remainder of the subchapter and the application of such provision to other persons or circumstances shall not be affected thereby.
New Jersey Administrative Code › Title 11 - INSURANCE › Chapter 4 - ACTUARIAL SERVICES › Subchapter 27 - THE 2001 COMMISSIONER'S STANDARD ORDINARY (CSO) MORTALITY TABLE FOR USE IN DETERMINING MINIMUM RESERVE LIABILITIES AND NONFORFEITURE BENEFITS › Section 11:4-27.1 - Purpose and scope

Current through Register Vol. 56, No. 14, July 15, 2024
This subchapter sets forth the requirements for the use of the 2001 Commissioner's Standard Ordinary (CSO) Mortality Table in accordance with N.J.S.A. 17B:19-8a(i), N.J.S.A. 17B:25-19h(viii), 11:4-32.3(a)  and 11:4-32.3(b).
New Jersey Administrative Code › Title 11 - INSURANCE › Chapter 4 - ACTUARIAL SERVICES › Subchapter 27 - THE 2001 COMMISSIONER'S STANDARD ORDINARY (CSO) MORTALITY TABLE FOR USE IN DETERMINING MINIMUM RESERVE LIABILITIES AND NONFORFEITURE BENEFITS › Section 11:4-27.2 - Definitions

Current through Register Vol. 56, No. 14, July 15, 2024
The following words and terms, when used in this subchapter, shall have the following meanings, unless the context clearly indicates otherwise.
"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 reproduced in subchapter Appendices 1 through 7, incorporated herein by reference, and is included in the Proceedings of the NAIC (2nd Quarter 2002). See
www.naic.org
and
www.actuary.org/life/cso
0702.htm. 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.
"2001 CSO Mortality Table (F)" means that mortality table consisting of the rates of mortality for female lives from the 2001 CSO Mortality Table.
"2001 CSO Mortality Table (M)" means that mortality table consisting of the rates of mortality for male lives from the 2001 CSO Mortality Table.
"Composite mortality tables" means mortality tables with rates of mortality that do not distinguish between smokers and nonsmokers.
"Smoker and nonsmoker mortality tables" means mortality tables with separate rates of mortality for smokers and nonsmokers.
New Jersey Administrative Code › Title 11 - INSURANCE › Chapter 4 - ACTUARIAL SERVICES › Subchapter 27 - THE 2001 COMMISSIONER'S STANDARD ORDINARY (CSO) MORTALITY TABLE FOR USE IN DETERMINING MINIMUM RESERVE LIABILITIES AND NONFORFEITURE BENEFITS › Section 11:4-27.3 - 2001 CSO Mortality Table effective dates

Current through Register Vol. 56, No. 14, July 15, 2024
(a) At the election of the insurer for any one or more specified plans of insurance and subject to the conditions stated in this subchapter, the 2001 CSO Mortality Table may be used as the minimum standard for policies issued on or after January 1, 2005 and before January 1, 2009 to which N.J.S.A. 17B:19-8a(i), N.J.S.A. 17B:25-19h(viii) and 11:4-32.3(a) and (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 subchapter, the 2001 CSO Mortality Table shall be used in determining minimum standards for policies issued on or after January 1, 2009, to which N.J.S.A. 17B:19-8a(i), N.J.S.A. 17B:25-19h(viii) and 11:4-32.3(a) and (b) are applicable.
New Jersey Administrative Code › Title 11 - INSURANCE › Chapter 4 - ACTUARIAL SERVICES › Subchapter 27 - THE 2001 COMMISSIONER'S STANDARD ORDINARY (CSO) MORTALITY TABLE FOR USE IN DETERMINING MINIMUM RESERVE LIABILITIES AND NONFORFEITURE BENEFITS › Section 11:4-27.4 - Conditions

Current through Register Vol. 56, No. 14, July 15, 2024
(a) For each plan of insurance with separate rates for smokers and nonsmokers, an insurer may use:
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 17B:19-8(e)  and may 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 tables to determine minimum reserve liabilities and minimum cash surrender values and amounts of paid-up nonforfeiture benefits.
New Jersey Administrative Code › Title 11 - INSURANCE › Chapter 4 - ACTUARIAL SERVICES › Subchapter 27 - THE 2001 COMMISSIONER'S STANDARD ORDINARY (CSO) MORTALITY TABLE FOR USE IN DETERMINING MINIMUM RESERVE LIABILITIES AND NONFORFEITURE BENEFITS › Section 11:4-27.5 - Applicability of the 2001 CSO Mortality Table to N.J.A.C 11:4-32

Current through Register Vol. 56, No. 14, July 15, 2024
(a) Subject to the transition dates for use of the 2001 CSO Mortality table in 11:4-27.3, the 2001 CSO Mortality Table may be used in applying N.J.A.C. 11:4-32 in the following manner.
1. The net level reserve premium is based on the ultimate mortality rates in the 2001 CSO Mortality Table in 11:4-32.1(c)2  ii.
2. In the definition of contract segmentation at 11:4-32.2, all calculations are made using the 2001 CSO Mortality Rate, and, if elected, the optional minimum mortality standard for deficiency reserves stipulated in 11:4-32.3 and 32.4. Where the definition of contract segmentation refers to a mortality rate for issue age x and policy year k+t, the mortality rate to be used 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. The 2001 CSO Mortality Table is the minimum standard for basic reserves in 11:4-32.3(a).
4. In 11:4-32.3(b), the 2001 CSO Mortality Table is 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 11:4-32.3(b)3  i through viii. 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. The valuation mortality table used in determining the tabular cost of insurance shall be the ultimate mortality rates in the 2001 CSO Mortality Table in 11:4-32.4(c).
6. The calculations specified in 11:4-32.4(e)  shall use the ultimate mortality rates in the 2001 CSO Mortality Table in 11:4-32.4(e)4.
7. The calculations specified in 11:4-32.4(f)  shall use the ultimate mortality rates in the 2001 CSO Mortality Table in 11:4-32.4(f)4.
8. The calculations specified in 11:4-32.4(g)  shall use the ultimate mortality rates in the 2001 CSO Mortality Table in 11:4-32.4(g)2.
9. The one-year valuation premium shall be calculated using the ultimate mortality rates in the 2001 CSO Mortality Table in 11:4-32.5(a)  2.
New Jersey Administrative Code › Title 11 - INSURANCE › Chapter 4 - ACTUARIAL SERVICES › Subchapter 27 - THE 2001 COMMISSIONER'S STANDARD ORDINARY (CSO) MORTALITY TABLE FOR USE IN DETERMINING MINIMUM RESERVE LIABILITIES AND NONFORFEITURE BENEFITS › Section 11:4-27.6 - Gender-blended tables

Current through Register Vol. 56, No. 14, July 15, 2024
(a) For any ordinary life insurance policy delivered or issued for delivery in this State on and after January 1, 2005 that uses 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 insurer 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. No change in minimum valuation standards is implied by this subsection of the regulation.
(b) The insurer may choose from among the blended tables developed by the American Academy of Actuaries CSO Task Force and adopted by the NAIC on December 8, 2002.
(c) It shall not, in and of itself, be a violation of 17B:30-1 et seq. for an insurer to issue the same kind of policy of life insurance on both a sex-distinct and sex-neutral basis.
New Jersey Administrative Code › Title 11 - INSURANCE › Chapter 4 - ACTUARIAL SERVICES › Subchapter 27 - THE 2001 COMMISSIONER'S STANDARD ORDINARY (CSO) MORTALITY TABLE FOR USE IN DETERMINING MINIMUM RESERVE LIABILITIES AND NONFORFEITURE BENEFITS › Section 11:4-27.7 - Juvenile insureds

Current through Register Vol. 56, No. 14, July 15, 2024
(a) Because the smoker and nonsmoker mortality tables do not extend below age 15, the Department shall permit the following uses of the composite and smoker and nonsmoker mortality tables for juvenile insureds, as hereafter provided:
1. Insurers may use the composite mortality table for juvenile issues and continue to use such table for all future attained ages; or
2. Insurers may use the composite mortality table for juvenile issues and change to use of a smoker and nonsmoker mortality table when the insured's attained age is a specified age between 15 and 23.
i. When the insured reaches the attained age, the insurer shall notify the insured in writing at least 30 days prior to the effective date of the change in mortality tables of his or her option to elect smoker or nonsmoker status.
ii. Each insurer shall adopt a uniform default classification of either smoker or nonsmoker to which the insurer shall assign an insured who fails to respond to the notice described in (a)2i above.
iii. An insurer may only apply a default classification of smoker pursuant to ii above to an insured whose attained age is at least 18.
iv. The insurer shall identify such adopted uniform default classification in the notice described in (a)2i above and advise the insured therein that the insured shall be assigned the uniform default classification if the insured fails to respond to the notice.
v. Alternatively, at the insurer's option, the insurer may reclassify the insured as a nonsmoker upon reaching the attained age.
3. Insurers may use a reasonable extrapolation of the smoker and nonsmoker mortality tables for ages 15 and below. The submission shall include an actuarial memorandum which describes the basis for the extrapolation.
New Jersey Administrative Code › Title 11 - INSURANCE › Chapter 4 - ACTUARIAL SERVICES › Subchapter 27 - THE 2001 COMMISSIONER'S STANDARD ORDINARY (CSO) MORTALITY TABLE FOR USE IN DETERMINING MINIMUM RESERVE LIABILITIES AND NONFORFEITURE BENEFITS › Section 11:4-27.8 - Separability

Current through Register Vol. 56, No. 14, July 15, 2024
If any provision of this subchapter or its application to any person or circumstance is, for any reason, held to be invalid, the remainder of the subchapter and the application of the provision in question to other persons or circumstances shall not be affected.
New Jersey Administrative Code › Title 11 - INSURANCE › Chapter 4 - ACTUARIAL SERVICES › Subchapter 27 - THE 2001 COMMISSIONER'S STANDARD ORDINARY (CSO) MORTALITY TABLE FOR USE IN DETERMINING MINIMUM RESERVE LIABILITIES AND NONFORFEITURE BENEFITS › Appendix 1

Current through Register Vol. 56, No. 14, July 15, 2024
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New Jersey Administrative Code › Title 11 - INSURANCE › Chapter 4 - ACTUARIAL SERVICES › Subchapter 27 - THE 2001 COMMISSIONER'S STANDARD ORDINARY (CSO) MORTALITY TABLE FOR USE IN DETERMINING MINIMUM RESERVE LIABILITIES AND NONFORFEITURE BENEFITS › Appendix 2

Current through Register Vol. 56, No. 14, July 15, 2024
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New Jersey Administrative Code › Title 11 - INSURANCE › Chapter 4 - ACTUARIAL SERVICES › Subchapter 27 - THE 2001 COMMISSIONER'S STANDARD ORDINARY (CSO) MORTALITY TABLE FOR USE IN DETERMINING MINIMUM RESERVE LIABILITIES AND NONFORFEITURE BENEFITS › Appendix 3

Current through Register Vol. 56, No. 14, July 15, 2024
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New Jersey Administrative Code › Title 11 - INSURANCE › Chapter 4 - ACTUARIAL SERVICES › Subchapter 27 - THE 2001 COMMISSIONER'S STANDARD ORDINARY (CSO) MORTALITY TABLE FOR USE IN DETERMINING MINIMUM RESERVE LIABILITIES AND NONFORFEITURE BENEFITS › Appendix 4

Current through Register Vol. 56, No. 14, July 15, 2024
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New Jersey Administrative Code › Title 11 - INSURANCE › Chapter 4 - ACTUARIAL SERVICES › Subchapter 27 - THE 2001 COMMISSIONER'S STANDARD ORDINARY (CSO) MORTALITY TABLE FOR USE IN DETERMINING MINIMUM RESERVE LIABILITIES AND NONFORFEITURE BENEFITS › Appendix 5

Current through Register Vol. 56, No. 14, July 15, 2024
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New Jersey Administrative Code › Title 11 - INSURANCE › Chapter 4 - ACTUARIAL SERVICES › Subchapter 27 - THE 2001 COMMISSIONER'S STANDARD ORDINARY (CSO) MORTALITY TABLE FOR USE IN DETERMINING MINIMUM RESERVE LIABILITIES AND NONFORFEITURE BENEFITS › Appendix 6

Current through Register Vol. 56, No. 14, July 15, 2024
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New Jersey Administrative Code › Title 11 - INSURANCE › Chapter 4 - ACTUARIAL SERVICES › Subchapter 27 - THE 2001 COMMISSIONER'S STANDARD ORDINARY (CSO) MORTALITY TABLE FOR USE IN DETERMINING MINIMUM RESERVE LIABILITIES AND NONFORFEITURE BENEFITS › Appendix 7

Current through Register Vol. 56, No. 14, July 15, 2024
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New Jersey Administrative Code › Title 11 - INSURANCE › Chapter 4 - ACTUARIAL SERVICES › Subchapter 27A - PREFERRED MORTALITY TABLES FOR USE IN DETERMINING MINIMUM RESERVE LIABILITIES › Section 11:4-27A.1 - Purpose and scope

Current through Register Vol. 56, No. 14, July 15, 2024
(a) The purpose of this subchapter is to recognize, permit and prescribe the use of mortality tables that reflect differences in mortality between Preferred and Standard lives in determining minimum reserve liabilities in accordance with 17B:19-8, N.J.A.C. 11:4-27 and N.J.A.C. 11:4-32.
(b) This subchapter applies to all annual valuations of reserves for calendar years beginning on or after January 1, 2007.
New Jersey Administrative Code › Title 11 - INSURANCE › Chapter 4 - ACTUARIAL SERVICES › Subchapter 27A - PREFERRED MORTALITY TABLES FOR USE IN DETERMINING MINIMUM RESERVE LIABILITIES › Section 11:4-27A.2 - Definitions

Current through Register Vol. 56, No. 14, July 15, 2024
The following words and terms, when used in this subchapter, shall have the following meanings unless the context clearly indicates otherwise:
"Commissioner" means the Commissioner of Banking and Insurance.
"Department" means the New Jersey Department of Banking and Insurance.
"2001 CSO Mortality Table" means that mortality table adopted for use at N.J.A.C. 11:4-27 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) and supplemented by the 2001 CSO Preferred Class Structure Mortality Table defined below. 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. It also 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:
1. "2001 CSO Mortality Table (F)" means that mortality table consisting of the rates of mortality for female lives from the 2001 CSO Mortality Table;
2. "2001 CSO Mortality Table (M)" means that mortality table consisting of the rates of mortality for male lives from the 2001 CSO Mortality Table;
3. "Smoking-Status-Composite mortality tables" means mortality tables with rates of mortality that do not distinguish between smokers and nonsmokers; and
4. "Smoker and nonsmoker mortality tables" means mortality tables with separate rates of mortality for smokers and nonsmokers.
"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 Proceedings of the NAIC (3rd Quarter 2006), incorporated herein by reference. See
www.naic.org
and
www.soa.org/research/individual-life/intl-2001-cso-preferred-class-structure-mortality-tables.aspx
. 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 also 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.
New Jersey Administrative Code › Title 11 - INSURANCE › Chapter 4 - ACTUARIAL SERVICES › Subchapter 27A - PREFERRED MORTALITY TABLES FOR USE IN DETERMINING MINIMUM RESERVE LIABILITIES › Section 11:4-27A.3 - 2001 CSO Preferred Class Structure Mortality Table

Current through Register Vol. 56, No. 14, July 15, 2024
(a) At the election of the insurer, for each calendar year of issue, for any one or more specified plans of insurance and subject to satisfying the conditions stated in this subchapter, the 2001 CSO Preferred Class Structure Mortality Table may be substituted in place of the 2001 CSO Smoker or Nonsmoker Mortality Table as the minimum valuation standard for policies issued on or after January 1, 2007. The 2001 CSO Preferred Class Structure Mortality Table is available on the NAIC's website at
www.soa.org/research/individual-life/intl-2001-cso-preferred-class-structure-mortality-tables.aspx
. The Department shall notify insurers of any changes to the 2001 CSO Preferred Class Structure Mortality Table by Bulletin. For policies issued on or after January 1, 2005, and prior to January 1, 2007, these tables may be substituted with the consent of the Commissioner and subject to the conditions of 11:4-27A.4. In determining such consent, the Commissioner may rely on the consent of the Commissioner of the company's state of domicile.
(b) No such election as described in (a) above shall be made until the insurer demonstrates to the Commissioner that at least 20 percent of the business to be valued on this table is in one or more of the preferred classes. A table from the 2001 CSO Preferred Class Structure Mortality Table used in place of a 2001 CSO Mortality Table, pursuant to the requirements of this subchapter, shall be treated as part of the 2001 CSO Mortality Table only for purposes of reserve valuation pursuant to the requirements of N.J.A.C. 11:4-27.
(c) If an insurer elects to use the 2001 CSO Preferred Class Structure Mortality Table for a plan of insurance in a particular calendar year of issue, the insurer shall use this table for that plan of insurance in all future calendar years of issue unless discontinuance is approved pursuant to rules promulgated by the Commissioner.
(d) The use of the 2001 CSO Preferred Class Structure Table for the valuation of policies issued prior to January 1, 2007 shall not be permitted in any statutory financial statement in which a company reports, with respect to any policy or portion of a policy coinsured, either of the following:
1. In cases where the mode of payment of the reinsurance premium is less frequent than the mode of payment of the policy premium, a reserve credit that exceeds, by more than the amount specified in this paragraph as Y, the gross reserve calculated before reinsurance. Y shall be the amount of the gross reinsurance premium that:
i. Provides coverage for the period from the next policy premium due date to the earlier of the end of the policy year and the next reinsurance premium due date; and
ii. Would be refunded to the ceding entity upon the termination of the policy.
New Jersey Administrative Code › Title 11 - INSURANCE › Chapter 4 - ACTUARIAL SERVICES › Subchapter 27A - PREFERRED MORTALITY TABLES FOR USE IN DETERMINING MINIMUM RESERVE LIABILITIES › Section 11:4-27A.4 - Conditions

Current through Register Vol. 56, No. 14, July 15, 2024
(a) For each plan of insurance with separate rates for Preferred and Standard Nonsmoker lives, an insurer may use the Super Preferred Nonsmoker, Preferred Nonsmoker, and Residual Standard Nonsmoker tables to substitute for the Nonsmoker mortality table found in the 2001 CSO Mortality Table to determine minimum reserves. At the time of election and annually thereafter, except for business valued under the Residual Standard Nonsmoker Table, the appointed actuary shall certify that:
1. The present value of death benefits over the next 10 years after the valuation date, using the anticipated mortality experience without recognition of mortality improvement beyond the valuation date for each class, is less than the present value of death benefits using the valuation basic table corresponding to the valuation table being used for that class; and
2. The present value of death benefits over the future life of the contracts, using anticipated mortality experience without recognition of mortality improvement beyond the valuation date for each class, is less than the present value of death benefits using the valuation basic table corresponding to the valuation table being used for that class.
New Jersey Administrative Code › Title 11 - INSURANCE › Chapter 4 - ACTUARIAL SERVICES › Subchapter 27A - PREFERRED MORTALITY TABLES FOR USE IN DETERMINING MINIMUM RESERVE LIABILITIES › Section 11:4-27A.5 - Separability

Current through Register Vol. 56, No. 14, July 15, 2024
If any provision of this subchapter or its application to any person or circumstance is for any reason held to be invalid, the remainder of the rule and the application of the provision to other persons or circumstances shall not be affected.
New Jersey Administrative Code › Title 11 - INSURANCE › Chapter 4 - ACTUARIAL SERVICES › Subchapter 27A - PREFERRED MORTALITY TABLES FOR USE IN DETERMINING MINIMUM RESERVE LIABILITIES › Section 11:4-27A.6 - Effective date

Current through Register Vol. 56, No. 14, July 15, 2024
This subchapter shall become effective on March 17, 2008.
New Jersey Administrative Code › Title 11 - INSURANCE › Chapter 4 - ACTUARIAL SERVICES › Subchapter 28 - GROUP COORDINATION OF BENEFITS › Section 11:4-28.1 - Purpose and scope

Current through Register Vol. 56, No. 14, July 15, 2024
(a) The purpose of this subchapter is to:
1. Discourage overinsurance and avoid duplication of benefits by permitting a reduction of benefits when a person is covered by more than one plan providing benefits or services for medical, dental, or other care or treatment;
2. Avoid claims payment delays and misunderstandings that result from the use of inconsistent or incompatible nonduplication provisions; and
3. Establish uniformity in the order in which plans pay their claims, and provide the authority for the orderly transfer of information needed to pay claims promptly.
New Jersey Administrative Code › Title 11 - INSURANCE › Chapter 4 - ACTUARIAL SERVICES › Subchapter 28 - GROUP COORDINATION OF BENEFITS › Section 11:4-28.3 - Coordination permissive

Current through Register Vol. 56, No. 14, July 15, 2024
(a) The use of COB provisions in group contracts providing health care benefits shall be permissive; any plan may elect to be always "primary". Where COB is used, it shall be included in group contracts providing health care benefits subject to the following conditions:
1. If a group contract includes a COB provision, it shall be consistent with the requirements of this subchapter.
2. A plan that does not include a COB provision shall not take the benefits of another plan into account in determining its benefits.
New Jersey Administrative Code › Title 11 - INSURANCE › Chapter 4 - ACTUARIAL SERVICES › Subchapter 28 - GROUP COORDINATION OF BENEFITS › Section 11:4-28.4 - Model COB contract provision

Current through Register Vol. 56, No. 14, July 15, 2024
(a) Appendix A of this subchapter contains Model COB Provisions that may be used in group contracts, and is incorporated herein by reference as part of this subchapter. The use of the Model COB Provisions shall be subject to (b) below, 11:4-28.5 and 28.6.
(b) A group contract's COB provision shall not be required to use the words and format shown in Appendix A of this subchapter. Changes may be made to fit the language and style of the rest of the group contract or to reflect the differences among plans which provide services, pay benefits for expenses incurred, and which indemnify. No other changes to the Model COB Provisions in Appendix A shall be permitted.
New Jersey Administrative Code › Title 11 - INSURANCE › Chapter 4 - ACTUARIAL SERVICES › Subchapter 28 - GROUP COORDINATION OF BENEFITS › Section 11:4-28.5 - Prohibited coordination; benefit design

Current through Register Vol. 56, No. 14, July 15, 2024
(a) A group contract shall not reduce benefits on the basis that:
1. Another plan exists;
2. A person is or could have been covered under another plan, except with respect to Part B of Medicare; or
3. A person has elected an option under another plan providing a lower level of benefits than another option which could have been elected.
New Jersey Administrative Code › Title 11 - INSURANCE › Chapter 4 - ACTUARIAL SERVICES › Subchapter 28 - GROUP COORDINATION OF BENEFITS › Section 11:4-28.6 - Rules for coordination of benefits

Current through Register Vol. 56, No. 14, July 15, 2024
(a) The general order of benefit determination shall be as follows:
1. The primary plan shall pay or provide its benefits as if the secondary plan or plans did not exist.
2. A secondary plan shall take the benefits of another plan into account only when, under this subchapter, it is secondary to that other plan.
3. The benefits of the plan which covers the person as an employee, member, subscriber or retiree (that is, other than as a dependent) shall be determined before those of the plan which covers the person as a dependent.
New Jersey Administrative Code › Title 11 - INSURANCE › Chapter 4 - ACTUARIAL SERVICES › Subchapter 28 - GROUP COORDINATION OF BENEFITS › Section 11:4-28.8 - Notice to covered persons

Current through Register Vol. 56, No. 14, July 15, 2024
An explanation of benefits provided to covered persons under a plan shall include the following language: "If you are covered by more than one health benefit plan, you should file all your claims with each plan and provide each plan with information regarding the other plans under which you are covered."
New Jersey Administrative Code › Title 11 - INSURANCE › Chapter 4 - ACTUARIAL SERVICES › Subchapter 28 - GROUP COORDINATION OF BENEFITS › Section 11:4-28.9 - Excess and other nonconforming provisions

Current through Register Vol. 56, No. 14, July 15, 2024
(a) A plan with order of benefit determination rules which comply with this subchapter (complying plan) shall coordinate its benefits with a plan that declares itself "excess" or "always secondary" or which uses order of benefit determination rules which are inconsistent with those contained in this subchapter (noncomplying plan) on the following basis:
1. If the complying plan is the primary plan, it shall pay or provide its benefits on a primary basis;
2. If the complying plan is the secondary plan, it shall:
i. Attempt to secure the necessary information from the noncomplying plan to make the determination of the complying plan's liability as the secondary plan; or
ii. Assume the primary position and pay its benefits as the primary plan, if the noncomplying plan is unwilling to act as the primary plan or does not supply the information necessary for the complying plan to determine its benefits as a secondary plan.
New Jersey Administrative Code › Title 11 - INSURANCE › Chapter 4 - ACTUARIAL SERVICES › Subchapter 28 - GROUP COORDINATION OF BENEFITS › Section 11:4-28.10 - Substitute terminology in contracts

Current through Register Vol. 56, No. 14, July 15, 2024
A term such as "usual and customary", "usual and prevailing", or "reasonable and customary", may be substituted for the term "necessary, reasonable and customary" in a contract. Terms such as "medical care" or "dental care" may be substituted for "health care" in a contract to describe the coverages to which the COB provisions apply.
New Jersey Administrative Code › Title 11 - INSURANCE › Chapter 4 - ACTUARIAL SERVICES › Subchapter 28 - GROUP COORDINATION OF BENEFITS › Section 11:4-28.11 - Compliance

Current through Register Vol. 56, No. 14, July 15, 2024
(a) Administration of coordination of benefits provisions for all plans shall be in compliance with this subchapter by January 1, 2003.
(b) All plans shall include the notice required pursuant to 11:4-28.8 in their explanation of benefits forms by January 1, 2003.
(c) Explanations of coordinations of benefits provisions using the model language set forth in Appendix A to this subchapter issued to contractholders, certificateholders and covered persons on or after January 1, 2003 shall comply with the language of Appendix A as amended effective April 1, 2002.
New Jersey Administrative Code › Title 11 - INSURANCE › Chapter 4 - ACTUARIAL SERVICES › Subchapter 28 - GROUP COORDINATION OF BENEFITS › Section 11:4-28.12 - Severability

Current through Register Vol. 56, No. 14, July 15, 2024
If any provision of this subchapter or the application thereof to any person or circumstance is held invalid, the remainder of the subchapter and the application of such provision to other persons or circumstances shall not be affected thereby.
New Jersey Administrative Code › Title 11 - INSURANCE › Chapter 4 - ACTUARIAL SERVICES › Subchapter 30 - ACCELERATED DEATH BENEFITS › Section 11:4-30.1 - Purpose

Current through Register Vol. 56, No. 14, July 15, 2024
The purpose of these rules is to regulate the content, filing and disclosure of information to individual policy owners and group certificate holders with respect to accelerated death benefit provisions of life insurance policies.
New Jersey Administrative Code › Title 11 - INSURANCE › Chapter 4 - ACTUARIAL SERVICES › Subchapter 30 - ACCELERATED DEATH BENEFITS › Section 11:4-30.2 - Application and scope

Current through Register Vol. 56, No. 14, July 15, 2024
These rules shall apply to all accelerated death benefit provisions of individual and group life insurance policies delivered or issued for delivery in this State.
New Jersey Administrative Code › Title 11 - INSURANCE › Chapter 4 - ACTUARIAL SERVICES › Subchapter 30 - ACCELERATED DEATH BENEFITS › Section 11:4-30.3 - Definitions

Current through Register Vol. 56, No. 14, July 15, 2024
The following terms, when used in this subchapter, shall have the following meanings:
"Accelerated death benefits" means the advance payment of some or all of the death proceeds payable under a life insurance policy or group certificate:
1. To the owner or certificate holder, during the lifetime of the insured, at the time of a qualifying event;
2. That reduces the death benefit otherwise payable under the policy or certificate; and
3. That is payable upon the occurrence of a single qualifying event resulting in the payment of a benefit amount fixed at the time of acceleration.
"Commissioner" means the Commissioner of the Department of Banking and Insurance, State of New Jersey.
"Department" means the Department of Banking and Insurance, State of New Jersey.
"Qualifying event" means the following:
1. A medical condition that is reasonably expected to result in a drastically limited life span for the insured. The definition of a drastically limited life span shall have a minimum of "six months or less" and a maximum of "24 months or less" and shall be specified in the policy or certificate; and
2. At the option of the insurer, the policy or certificate may also include one or more of the following:
i. A medical condition that requires extraordinary medical intervention, such as a major organ transplant or continuous artificial life support, without which the insured would die;
ii. A condition that is reasonably expected to require continuous confinement in an institution, as defined in the policy or certificate, and the insured is expected to remain there for the rest of his or her life;
iii. A specified medical condition that, in the absence of extensive or extraordinary medical treatment, would result in a drastically limited life span;
iv. A chronic illness as defined in 26 U.S.C. §
										7702B(c)(2)(A), that is, a permanent inability to perform, without substantial assistance from another individual, a specified number of activities of daily living (bathing, continence, dressing, eating, toileting and transferring) and/or permanent severe cognitive impairment and similar forms of dementia; and
v. Any other qualifying events which the Commissioner may approve.
New Jersey Administrative Code › Title 11 - INSURANCE › Chapter 4 - ACTUARIAL SERVICES › Subchapter 30 - ACCELERATED DEATH BENEFITS › Section 11:4-30.4 - Permitted forms of accelerated death benefit provisions

Current through Register Vol. 56, No. 14, July 15, 2024
Accelerated death benefit provisions will be permitted in the form of either a surrender of the policy or a lien on the death benefits.
New Jersey Administrative Code › Title 11 - INSURANCE › Chapter 4 - ACTUARIAL SERVICES › Subchapter 30 - ACCELERATED DEATH BENEFITS › Section 11:4-30.5 - Surrender (total or partial)

Current through Register Vol. 56, No. 14, July 15, 2024
(a) Under the surrender approach, the owner of a policy or certificate is permitted to accelerate the payment of all or part of the death benefit, as specified in the policy or certificate, through the acceleration of (all or part) of the death benefit. Under this approach, the cash value, if any, is reduced by the same percentage as the death benefit.
(b) The following requirements apply to accelerated death benefit provisions which utilize the surrender approach.
1. The amount of the accelerated death benefit may be applied to repay an outstanding policy or certificate loan but only up to the amount of the outstanding loan multiplied by the percentage of the death benefits which have been accelerated. For example, where an owner has a death benefit of $ 100,000 with an outstanding policy loan of $ 20,000 and seeks to accelerate the payment of $ 25,000 or 25 percent of the death benefit, the $ 25,000 may be applied to repay up to 25 percent of the outstanding loan of $ 20,000. Thus, of the $ 25,000 accelerated payment, $ 5,000 may be applied to repayment of the loan and $ 20,000 may be paid to the owner.
2. The premium is proportionately reduced to reflect the amount of insurance remaining in effect and may be further reduced according to some specified formula, or become paid-up.
3. The insurer may pay the owner a present value of the death benefit which is being accelerated. The interest rate or interest rate methodology used in the calculation shall be disclosed in the policy or certificate and actuarial memorandum. The maximum interest rate shall not exceed the greater of:
i. The yield on the 90-day Treasury bills available on the date of application or of the accelerated payment, whichever is greater; or
ii. The maximum adjustable policy loan interest rate based on the Moody's Corporate Bond Yield Averages-Monthly Average Corporates published by Moody's Investment Services, Inc., or successor thereto, for the calendar month ending two months before the date of application for an accelerated payment. The policy loan interest rate is that which is permitted under the NAIC Model Policy Loan Interest Rate Bill, Model #590.