Texas Administrative Code › Title 28 - INSURANCE › Part 1 - TEXAS DEPARTMENT OF INSURANCE › Chapter 3 - LIFE, ACCIDENT, AND HEALTH INSURANCE AND ANNUITIES › Subchapter JJ - 2001 CSO MORTALITY TABLE › Section 3.9105 - Applicability of the 2001 CSO Mortality Table to Chapter 3, Subchapter EE of this Title

Current through Reg. 49, No. 28; July 12, 2024
(a) The 2001 CSO
				  Mortality Table may be used in applying Chapter 3, Subchapter EE 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
				  §
										3.9103
				  of this title (relating to 2001 CSO Mortality Table):
(1) Section
				  3.4503(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
				  3.4504(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
				  3.4505(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
				  3.4505(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 §3.4505(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
				  3.4506(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 shall be the ultimate
				  mortality rates in the 2001 CSO Mortality Table.
(6) Section
				  3.4506(e)(4)
				  of this title. The calculations specified in §
											3.4506(e)
				  of this title shall use the ultimate mortality rates in the 2001 CSO Mortality
				  Table.
(7) Section
				  3.4506(f)(4)
				  of this title. The calculations specified in §
											3.4506(f)
				  of this title shall use the ultimate mortality rates in the 2001 CSO Mortality
				  Table.
(8) Section
				  3.4506(g)(2)
				  of this title. The calculations specified in §
											3.4506(g)
				  of this title shall use the ultimate mortality rates in the 2001 CSO Mortality
				  Table.
(9) Section
				  3.4507(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 shall
				  be calculated using the ultimate mortality rates in the 2001 CSO Mortality
				  Table.