Oklahoma Administrative Code › Title 365 - Insurance Department › Chapter 10 - Life, Accident and Health › Subchapter 21 - Recognition of the 2001 CSO Mortality Table for Use in Determining Minimum Reserve Liabilities and Nonforfeiture Benefits Regulation › Section 365:10-21-6 - Applicability of the 2001 CSO Mortality Table to Oklahoma Valuation of Life Insurance Policies Regulation, O.A.C. 365:10-17-1, et seq

Current through Vol. 41, No. 20, July 1, 2024
(a) The 2001 CSO Mortality Table may be used
				in applying the Oklahoma Valuation of Life Insurance Policies Regulation,
				O.A.C.
				365:10-17-4,
				in the following manner, subject to the transition dates for use of the 2001
				CSO Mortality Table in Section
				365:10-21-4
				of this regulation (unless otherwise noted, the references in this section are
				to the Oklahoma Valuation of Life Insurance Policies Regulation, O.A.C.
				365:10-17-1, et seq.):
(1) O.A.C.
				365:10-17-2(1)(B)(ii):
				The net level reserve premium is based on the ultimate mortality rates in the
				2001 CSO Mortality Table.
(2)
				"Contract segmentation method" as defined at O.A.C.
				365:10-17-3: All
				calculations are made using the 2001 CSO Mortality Rate, and, if elected, the
				optional minimum mortality standard for deficiency reserves stipulated in O.A.C
				365:10-21-6(a)(4) of this regulation. 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) O.A.C.
				365:10-17-4(a):
				The 2001 CSO Mortality Table is the minimum standard for basic
				reserves.
(4) O.A.C.
				365:10-17-4(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 O.A.C.
				365:10-17-4(b)(3)(A)
				to (I). 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 regulation or
				necessary to be in compliance with relevant Actuarial Standards of
				Practice.
(5) O.A.C.
				365:10-17-5(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) O.A.C.
				365:10-17-5(e)(4):
				The calculations specified in O.A.C.
				365:10-17-5(e)
				shall use the ultimate mortality rates in the 2001 CSO Mortality
				Table.
(7) O.A.C.
				365:10-17-4(f)(4):
				The calculations specified in O.A.C.
				365:10-17-5(f)
				shall use the ultimate mortality rates in the 2001 CSO Mortality
				Table.
(8) O.A.C.
				365:10-17-5(g)(2):
				The calculations specified in O.A.C.
				365:10-17-5(g)
				shall use the ultimate mortality rates in the 2001 CSO Mortality
				Table.
(9) O.A.C.
				365:10-17-6(a)(1)(B):
				The one-year valuation premium shall be calculated using the ultimate mortality
				rates in the 2001 CSO Mortality Table.