Texas Administrative Code › Title 28 - INSURANCE › Part 1 - TEXAS DEPARTMENT OF INSURANCE › Chapter 4 - LIFE AND ANNUITY › Subchapter AA - MORTALITY TABLES › Division 3 - 2001 CSO MORTALITY TABLE › Section 4.2725 - Applicability of the 2001 CSO Mortality Table to Chapter 4, Subchapter BB, Division 3 of this Title

Current through Reg. 49, No. 28; July 12, 2024
(a) The 2001 CSO
					 Mortality Table may be used in applying Chapter 4, Subchapter BB, Division 3 of
					 this title (relating to Valuation of Life Insurance Policies) in the following
					 manner, subject to the transition dates for use of the 2001 CSO Mortality Table
					 in §
											4.2723 of this title (relating to
					 2001 CSO Mortality Table).
(1) Section
					 4.2823(1)(B)(ii)
					 of this title (relating to Applicability): The net level reserve premium is
					 based on the ultimate mortality rates in the 2001 CSO Mortality
					 Table.
(2) Section
					 4.2824(2) of this
					 title (relating to Definitions). All calculations are made using the 2001 CSO
					 Mortality Rate, and, if elected, the optional minimum mortality standard for
					 deficiency reserves stipulated in paragraph (4) of this subsection. 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) Section
					 4.2825(a) of this
					 title (relating to General Calculation Requirements for Basic Reserves and
					 Premium Deficiency Reserves). The 2001 CSO Mortality Table is the minimum
					 standard for basic reserves.
(4)
					 Section 4.2825(b) of this
					 title. 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 §4.2825(b)(3)(A) to (I) of this title. 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) Section
					 4.2826(c) of this
					 title (relating to Calculation of Minimum Valuation Standard for Policies with
					 Guaranteed Nonlevel Gross Premiums or Guaranteed Nonlevel Benefits (Other than
					 Universal Life Policies)). The valuation mortality table used in determining
					 the tabular cost of insurance is the ultimate mortality rates in the 2001 CSO
					 Mortality Table.
(6) Section
					 4.2826(e)(4) of
					 this title. The calculations specified in §
												4.2826(e) of this
					 title use the ultimate mortality rates in the 2001 CSO Mortality
					 Table.
(7) Section
					 4.2826(f)(4) of
					 this title. The calculations specified in §
												4.2826(f) of this
					 title use the ultimate mortality rates in the 2001 CSO Mortality
					 Table.
(8) Section
					 4.2826(g)(2) of
					 this title. The calculations specified in §
												4.2826(g) of this
					 title use the ultimate mortality rates in the 2001 CSO Mortality
					 Table.
(9) Section
					 4.2827(a)(1)(B)
					 of this title (relating to Calculation of Minimum Valuation Standard for
					 Flexible Premium and Fixed Premium Universal Life Insurance Policies That
					 Contain Provisions Resulting in the Ability of a Policyowner to Keep a Policy
					 in Force Over a Second Guarantee Period). The one-year valuation premium is
					 calculated using the ultimate mortality rates in the 2001 CSO Mortality
					 Table.