North Carolina Administrative Code › Title 11 - INSURANCE › Chapter 11 - FINANCIAL EVALUATION DIVISION › Subchapter F - ACTUARIAL › Section .0800 - PREFERRED CLASS STRUCTURE MORTALITY TABLE › Section 11F .0801 - MODEL REGULATION PERMITTING THE RECOGNITION OF PREFERRED MORTALITY TABLES FOR USE IN DETERMINING MINIMUM RESERVE LIABILITIES

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. 815,
				  Model Regulation Permitting the Recognition of Preferred Mortality Tables for
				  Use in Determining Minimum Reserve Liabilities. Copies of Model No. 815 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 2 of
				  Model No. 815 shall read as follows:
The purpose of this regulation 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
					 G.S.
					 58-58-50(c)(2)(a),
					 11 NCAC
					 11F .0403(a), and
					 11 NCAC
					 11F .0403(b).
(c) For purposes of this Rule,
				  Section 4 of Model No. 815 shall read as follows:
At the election of the company, for each calendar year of
					 issue, for any one or more specified plans of insurance and subject to
					 satisfying the conditions stated in this regulation, 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. For policies issued on or after
					 January 1, 2005 and before January 1, 2007, these tables may be substituted
					 with the consent of the Commissioner and subject to the conditions of Section
					 5. In determining such consent, the Commissioner shall consider the consent of
					 the insurance regulator of the company's state of domicile. No such election
					 shall be made until the company demonstrates that at least 20% 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 regulation,
					 shall be treated as part of the 2001 CSO Mortality Table only for purposes of
					 reserve valuation pursuant to the requirements of
					 11 NCAC
					 11F .0601,
					 11 NCAC
					 11F .0602,
					 11 NCAC
					 11F .0603, and
					 11 NCAC
					 11F .0604.
(d) For purposes of this Rule, Paragraph C of
				  Section 3, and Paragraph C of Section 5 of Model No. 815 are not
				  applicable.
(e) For purposes of
				  this Rule, Sections 1 and 7 of Model No. 815 are not applicable.
Authority
					 G.S.
					 58-2-40;
					 58-58-50(k);
Eff. April 1, 2007;
Amended Eff. March 1, 2010;
Pursuant to
					 G.S.
					 150B-21.3A, rule is necessary without
					 substantive public interest Eff. December 20,
					 2015.