New York Codes, Rules and Regulations › Title 11 - INSURANCE › Chapter IV - Financial Condition Of Insurer and Reports to Superintendent › Subchapter B - Life Insurers › Part 100 - Recognition of The 2001 Cso Mortality Table and the 2017 Cso Mortality Table for Use in Determining Minimum Reserve Liabilities And Nonforfeiture Benefits and Recognition and Application of Preferred Mortality Tables for Use in Determining Minimum Reserve Liabilities › Section 100.11 - Varying Premium Term Life Insurance Mortality Improvement

Current through Register Vol. 46, No. 28, July 10, 2024
(a) This section applies to varying premium
				  term life insurance policies issued on or after January 1, 2015 and prior to
				  January 1, 2017, or on or after January 1, 2015 and prior to January 1, 2020 if
				  optionally elected under subdivision (b) of this section.
(b) An insurer that as of December 31, 2016
				  utilized the provisions of this section for any varying premium term life
				  insurance policies issued on or after January 1, 2015 and prior to January 1,
				  2017, may elect to continue to apply the provisions of this section to varying
				  premium term life insurance policies issued on or after January 1, 2017 and
				  prior to January 1, 2020, provided that the insurer provides written
				  notification to the superintendent by February 28, 2020.
(c) An insurer shall use the methodology for
				  applying mortality improvement scale LT in conjunction with either the 2001 CSO
				  Mortality Table, or for preferred lives meeting the conditions of section
				  100.9 
				  of this Part, the 2001 CSO Preferred Class Structure Mortality Table. The
				  resulting mortality adjusted table shall be the minimum mortality standard for
				  policies issued on or after January 1, 2015 and prior to January 1, 2017, or on
				  or after January 1, 2015 and prior to January 1, 2020 if optionally elected
				  under subdivision (b) of this section.
(d)
(1) The
				  annual improvement rates, LT1 and LT2, from mortality improvement scale LT
				  shall be applied only within the first segment. The length of each segment
				  shall be determined at issue by the Contract Segmentation Method as described
				  in section
				  98.5 
				  of this Title. The value, t, shall be the number of policy years after the year
				  2008. The annual year improvement rates and the formula for applying the rates
				  are shown in paragraph (2) of this subdivision.
(2) The mortality rate for a person age x in
				  year (2008 + t) is calculated as follows, where
				  q2008 is the appropriate rate from the 2001 CSO
				  Mortality Table, or for preferred lives meeting the conditions of section
				  100.9 
				  of this Part, the 2001 CSO Preferred Class Structure Mortality Table:
(i) qx2008+t=
				  qx2008 * (1 - LT1) 
				  t for t = 1 through 40;
(ii) qx2008+t=
				  qx2008 * (1 - LT1) 
				  40* (1 - LT2) 
				  (t-40) for t = 41 through policy year
				  30;
(iii) LT1 equals
				  0.01;
(iv) LT2 equals 0.005;
				  and
(v) The resulting
				  qx2008+t shall be rounded to two decimal places per
				  1,000,
e.g.,
0.68 deaths per 1,000. After the first segment,
				  the rates revert to the qx2008 rates.