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 100.12 - Universal Life Policies That Guarantee That Coverage Will Remain In Force As Long As The Accumulation Of Premiums Paid Satisfies The Secondary Guarantee Requirement Mortality Improvement

Current through Register Vol. 46, No. 28, July 10, 2024
(a) This section applies to universal life
				  policies that guarantee that coverage will remain in force as long as the
				  accumulation of premiums paid satisfies the secondary guarantee requirement,
				  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 universal life policies that
				  guarantee that coverage will remain in force as long as the accumulation of
				  premiums paid satisfies the secondary guarantee requirement 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 universal life policies that guarantee that
				  coverage will remain in force as long as the accumulation of premiums paid
				  satisfies the secondary guarantee requirement 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 Part 98.5 of this Title. The value, t, shall be the number of policy years
				  after the year 2008. The annual improvement rates and the formula for applying
				  the rate 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
q
x2008 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)
q
x2008+t =
q
x2008 * (1
				  - LT1) 
				  t for t = 1 through 40;
(ii)
q
x2008+t =
q
x2008 * (1
				  -LT1) 
				  40* (1 -LT2) 
				  (t-40) for t = 41 and
				  greater;
(iii) LT1 equals
				  0.01;
(iv) LT2 equals
				  0.005;
(v) the mortality rate for
				  attained ages 81 through 90 shall be linearly graded from the adjusted
				  qx 2008+t rates back to the
				  unadjusted qx2008 rates;
				  and
(vi) the resulting
q
x2008+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
q
x2008
				  rates.