reglab/statecodes huggingface dataset:
Texas Administrative Code › Title 28 - INSURANCE › Part 1 - TEXAS DEPARTMENT OF INSURANCE › Chapter 4 - LIFE AND ANNUITY › Subchapter AA - MORTALITY TABLES › Division 2 - SMOKER-NONSMOKER COMPOSITE MORTALITY TABLES › Section 4.2716 - 2001 CSO Mortality Table

Current through Reg. 49, No. 28; July 12, 2024
The 2001 CSO Mortality Table must be used for purposes of
						this subchapter under the requirements of Subchapter AA, Division 3 of this
						chapter (relating to 2001 CSO Mortality Table).
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 4.2721 - Purpose

Current through Reg. 49, No. 28; July 12, 2024
The purpose of this subchapter is to recognize, permit,
						and prescribe the use of the 2001 Commissioners Standard Ordinary (CSO)
						Mortality Table in accordance with Insurance Code §
											425.058(c)(3),
						concerning Computation of Minimum Standard: General Rule, and
						§1105.055(h), concerning Use of Mortality Tables and Interest Rates With
						Nonforfeiture Net Level Premium Method, and §
											4.2825 of this title (relating to
						General Calculation Requirements for Basic Reserves and Premium Deficiency
						Reserves). For policies issued on or after January 1, 2017, the valuation
						manual adopted under Insurance Code Chapter 425, Subchapter B, concerning
						Standard Valuation Law, provides applicable mortality tables.
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 4.2722 - Definitions

Current through Reg. 49, No. 28; July 12, 2024
The following words and terms, when used in this
						subchapter, have the following meanings unless the context clearly indicates
						otherwise.
(1) 2001 CSO Mortality
					 Table--Mortality tables, consisting of separate rates of mortality for male and
					 female lives, developed by the American Academy of Actuaries CSO Task Force
					 from the Valuation Basic Mortality Table developed by the Society of Actuaries
					 Individual Life Insurance Valuation Mortality Task Force, and adopted by the
					 National Association of Insurance Commissioners in December 2002. Unless the
					 context indicates otherwise, the 2001 CSO Mortality Table includes both the
					 ultimate form of that table, and the select and ultimate form of that table,
					 and includes both the smoker and nonsmoker mortality tables and the composite
					 mortality tables. It also includes both the age-nearest-birthday and
					 age-last-birthday bases of the mortality tables.
(2) 2001 CSO Mortality Table (F)--Mortality
					 table consisting of the rates of mortality for female lives from the 2001 CSO
					 Mortality Table.
(3) 2001 CSO
					 Mortality Table (M)--Mortality table consisting of the rates of mortality for
					 male lives from the 2001 CSO Mortality Table.
(4) Composite mortality tables--Mortality
					 tables with rates of mortality that do not distinguish between smokers and
					 nonsmokers.
(5) Smoker and
					 nonsmoker mortality tables--Mortality tables with separate rates of mortality
					 for smokers and nonsmokers.
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 4.2723 - 2001 CSO Mortality Table

Current through Reg. 49, No. 28; July 12, 2024
(a) At the
					 election of the company for any one or more specified plans of insurance and
					 subject to the conditions stated in this subchapter, the 2001 CSO Mortality
					 Table may be used as the minimum standard for policies issued on or after May
					 1, 2003, and before the date specified in subsection (b) of this section to
					 which Insurance Code §
											425.058(c)(3),
					 concerning Computation of Minimum Standard: General Rule, and
					 §1105.055(h), concerning Use of Mortality Tables and Interest Rates With
					 Nonforfeiture Net Level Premium Method, and §
											4.2825 of this title (relating to
					 General Calculation Requirements for Basic Reserves and Premium Deficiency
					 Reserves) are applicable. If the company elects to use the 2001 CSO Mortality
					 Table, it must do so for both valuation and nonforfeiture purposes.
(b) Subject to the conditions stated in this
					 subchapter, the 2001 CSO Mortality Table must be used in determining minimum
					 standards for policies issued on and after January 1, 2009, and before January
					 1, 2017, to which Insurance Code §
											425.058(c)
					 and §
											1105.055(h) and
					 §
											4.2825 of this title are
					 applicable, except as provided in Subchapter BB, Division 4 of this chapter
					 (relating to Preneed Life Insurance Minimum Mortality Standards for Determining
					 Reserve Liabilities and Nonforfeiture Values) for preneed life insurance
					 policies and certificates. For policies issued on or after January 1, 2017, the
					 valuation manual adopted under Insurance Code Chapter 425, Subchapter B,
					 concerning Standard Valuation Law, provides applicable mortality
					 tables.
(c) The minimum basis for
					 computation of values related to extended term benefits will be the 2001 CSO
					 Mortality Table under the requirements of this subchapter.
(d) The commissioner adopts by reference the
					 2001 CSO Mortality Table. The table is available from the Financial Regulation
					 Division, Actuarial Office, MC: FRD, Texas Department of Insurance, P.O. Box
					 12030, Austin, Texas 78711-2030 or on the internet by accessing the
					 department's website at
www.tdi.texas.gov/rules/2003/ficso.html
.
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 4.2724 - Conditions

Current through Reg. 49, No. 28; July 12, 2024
(a) For each plan of insurance with separate
					 rates for smokers and nonsmokers, an insurer may use:
(1) composite mortality tables to determine
					 minimum reserve liabilities and minimum cash surrender values and amounts of
					 paid-up nonforfeiture benefits;
(2)
					 smoker and nonsmoker mortality tables to determine the valuation net premiums
					 and additional minimum reserves, if any, required by Insurance Code §
												425.068, Reserve
					 Computation: Gross Premium Charged Less Than Valuation Net Premium, and use
					 composite mortality tables to determine the basic minimum reserves, minimum
					 cash surrender values, and amounts of paid-up nonforfeiture benefits;
					 or
(3) smoker and nonsmoker
					 mortality tables to determine minimum reserve liabilities and minimum cash
					 surrender values and amounts of paid-up nonforfeiture benefits.
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 4.2726 - Gender-Blended Tables

Current through Reg. 49, No. 28; July 12, 2024
(a) For any
					 ordinary life insurance policy delivered or issued for delivery in this state
					 on and after May 1, 2003, that utilizes the same premium rates and charges for
					 male and female lives or is issued in circumstances where applicable law does
					 not permit distinctions on the basis of gender, a mortality table that is a
					 blend of the 2001 CSO Mortality Table (M) and the 2001 CSO Mortality Table (F)
					 may, at the option of the company for each plan of insurance, be substituted
					 for the 2001 CSO Mortality Table for use in determining minimum cash surrender
					 values and amounts of paid-up nonforfeiture benefits. No change in minimum
					 valuation standards is implied by this subsection. For any ordinary life
					 insurance policy delivered or issued for delivery in Texas on or after January
					 1, 2017, the valuation manual adopted under Insurance Code Chapter 425,
					 Subchapter B, concerning Standard Valuation Law, provides the applicable
					 mortality tables.
(b) The company
					 may choose from among the blended tables developed by the American Academy of
					 Actuaries CSO Task Force and adopted by the National Association of Insurance
					 Commissioners in December 2002. These blended tables are available from the
					 Financial Regulation Division, Actuarial Office, MC: FRD, Texas Department of
					 Insurance, P.O. Box 12030, Austin, Texas 78711-2030 or on the internet by
					 accessing the department's website at
www.tdi.texas.gov/rules/2003/ficso.html
.
(c) It is not, in and of itself, a violation
					 of Insurance Code Chapter 541, concerning Unfair Methods of Competition and
					 Unfair or Deceptive Acts or Practices, for an insurer to issue the same kind of
					 policy of life insurance on both a sex-distinct and sex-neutral
					 basis.
Texas Administrative Code › Title 28 - INSURANCE › Part 1 - TEXAS DEPARTMENT OF INSURANCE › Chapter 4 - LIFE AND ANNUITY › Subchapter AA - MORTALITY TABLES › Division 4 - PREFERRED MORTALITY TABLES › Section 4.2731 - Purpose

Current through Reg. 49, No. 28; July 12, 2024
The purpose of this subchapter is to recognize and permit
						the use of mortality tables that reflect differences in mortality between
						preferred and standard lives in determining minimum reserve liabilities in
						accordance with Insurance Code §
											425.058(c)(3),
						concerning Computation of Minimum Standards: General Rule, and §
											4.2825 of this title (relating to
						General Calculation Requirements for Basic Reserves and Premium Deficiency
						Reserves). Policies issued on or after January 1, 2017, must follow the
						applicable mortality table requirements provided by the valuation manual
						adopted under Insurance Code Chapter 425, Subchapter B, concerning Standard
						Valuation Law.
Texas Administrative Code › Title 28 - INSURANCE › Part 1 - TEXAS DEPARTMENT OF INSURANCE › Chapter 4 - LIFE AND ANNUITY › Subchapter AA - MORTALITY TABLES › Division 4 - PREFERRED MORTALITY TABLES › Section 4.2732 - Definitions

Current through Reg. 49, No. 28; July 12, 2024
The following words and terms, when used in this
						subchapter, have the following meanings unless the context clearly indicates
						otherwise.
(1) 2001 CSO Mortality
					 Table--Mortality tables, consisting of separate rates of mortality for male and
					 female lives, developed by the American Academy of Actuaries CSO Task Force
					 from the Valuation Basic Mortality Table developed by the Society of Actuaries
					 Individual Life Insurance Valuation Mortality Task Force, and adopted by the
					 National Association of Insurance Commissioners (NAIC) in December 2002. The
					 2001 CSO Mortality Table is included in the Proceedings of the NAIC (2nd
					 Quarter 2002) and supplemented by the 2001 CSO Preferred Class Structure
					 Mortality Table defined below. Unless the context indicates otherwise, the 2001
					 CSO Mortality Table includes both the ultimate form of that table and the
					 select and ultimate form of that table and includes both the smoker and
					 nonsmoker mortality tables and the composite mortality tables. It also includes
					 both the age-nearest-birthday and age-last-birthday bases of the mortality
					 tables. Mortality tables in the 2001 CSO Mortality Table include the following.
(A) 2001 CSO Mortality Table (F)--Mortality
					 table consisting of the rates of mortality for female lives from the 2001 CSO
					 Mortality Table.
(B) 2001 CSO
					 Mortality Table (M)--Mortality table consisting of the rates of mortality for
					 male lives from the 2001 CSO Mortality Table.
(C) Composite mortality tables--Mortality
					 tables with rates of mortality that do not distinguish between smokers and
					 nonsmokers.
(D) Smoker and
					 nonsmoker mortality tables--Mortality tables with separate rates of mortality
					 for smokers and nonsmokers.
Texas Administrative Code › Title 28 - INSURANCE › Part 1 - TEXAS DEPARTMENT OF INSURANCE › Chapter 4 - LIFE AND ANNUITY › Subchapter AA - MORTALITY TABLES › Division 4 - PREFERRED MORTALITY TABLES › Section 4.2733 - 2001 CSO Preferred Class Structure Table

Current through Reg. 49, No. 28; July 12, 2024
(a) Policies issued on or after January 1,
					 2007, and before January 1, 2017. At the election of the insurer, for each
					 calendar year of issue, for any one or more specified plans of insurance and
					 subject to satisfying the conditions stated in this subchapter, 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. Policies issued on or after
					 January 1, 2017, must follow the mortality table requirements provided by the
					 valuation manual adopted under Insurance Code Chapter 425, Subchapter B,
					 concerning Standard Valuation Law.
(b) Policies issued on or after May 1, 2003,
					 and before January 1, 2007. At the election of the insurer and with the consent
					 of the commissioner, for policies issued on or after May 1, 2003, and before
					 January 1, 2007, 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 subject to the conditions of §
											4.2734 of this title (relating to
					 Conditions). In determining such consent, the commissioner may rely on the
					 consent of the commissioner of the insurer's state of domicile.
(c) Requirement to make election. No election
					 in subsection (a) or (b) of this section may be made until the insurer
					 demonstrates that at least 20% of the business to be valued on this table is in
					 one or more of the preferred classes.
(d) 2001 CSO Preferred Class Structure
					 Mortality Table Treatment. A table from the 2001 CSO Preferred Class Structure
					 Mortality Table used in place of a 2001 CSO Mortality Table, under the
					 requirements of this subchapter, will be treated as part of the 2001 CSO
					 Mortality Table only for purposes of reserve valuation under the requirements
					 of Subchapter AA, Division 3 of this title (relating to 2001 CSO Mortality
					 Table).
(e) Adoption by reference.
					 The commissioner adopts by reference the 2001 CSO Preferred Class Structure
					 Mortality Table. The table is available from the Financial Regulation Division,
					 Actuarial Office, MC: FRD, Texas Department of Insurance, P.O. Box 12030,
					 Austin, Texas 78711-2030 or on the internet by accessing the department's
					 website at
www.tdi.texas.gov/rules/2003/ficso.html
.
Texas Administrative Code › Title 28 - INSURANCE › Part 1 - TEXAS DEPARTMENT OF INSURANCE › Chapter 4 - LIFE AND ANNUITY › Subchapter AA - MORTALITY TABLES › Division 4 - PREFERRED MORTALITY TABLES › Section 4.2734 - Conditions

Current through Reg. 49, No. 28; July 12, 2024
(a) For each plan of insurance with separate
					 rates for preferred and standard nonsmoker lives, an insurer may use the super
					 preferred nonsmoker, preferred nonsmoker, and residual standard nonsmoker
					 tables to substitute for the nonsmoker mortality table found in the 2001 CSO
					 Mortality Table to determine minimum reserves. At the time of election and
					 annually thereafter, except for business valued under the residual standard
					 nonsmoker table, the appointed actuary must certify that:
(1) the present value of death benefits over
					 the next ten years after the valuation date, using the anticipated mortality
					 experience without recognition of mortality improvement beyond the valuation
					 date for each class, is less than the present value of death benefits using the
					 valuation basic table corresponding to the valuation table being used for that
					 class; and
(2) the present value of
					 death benefits over the future life of the contracts, using anticipated
					 mortality experience without recognition of mortality improvement beyond the
					 valuation date for each class, is less than the present value of death benefits
					 using the valuation basic table corresponding to the valuation table being used
					 for that class.
Texas Administrative Code › Title 28 - INSURANCE › Part 1 - TEXAS DEPARTMENT OF INSURANCE › Chapter 4 - LIFE AND ANNUITY › Subchapter BB - LIFE AND ANNUITY RESERVES › Division 1 - ACTUARIAL OPINION AND MEMORANDUM REGULATION › Section 4.2801 - Purpose

Current through Reg. 49, No. 28; July 12, 2024
The purpose of this subchapter is to prescribe guidelines
						and standards for the following activities:
(1) the submission of a statement of
					 actuarial opinion in accordance with Insurance Code §
											425.054, concerning
					 Annual Valuation of Reserves for Policies and Contracts Issued on or After
					 Operative Date of Valuation Manual, and for memoranda in support of such
					 opinion;
(2) the appointment of an
					 appointed actuary; and
(3) guidance
					 as to the meaning of "adequacy of reserves."
Texas Administrative Code › Title 28 - INSURANCE › Part 1 - TEXAS DEPARTMENT OF INSURANCE › Chapter 4 - LIFE AND ANNUITY › Subchapter BB - LIFE AND ANNUITY RESERVES › Division 1 - ACTUARIAL OPINION AND MEMORANDUM REGULATION › Section 4.2802 - Scope and Applicability

Current through Reg. 49, No. 28; July 12, 2024
(a) This
					 subchapter applies to all life insurance companies doing business in this state
					 and to all life insurance companies that are authorized to reinsure life
					 insurance, annuities, or accident and health insurance business in this
					 state.
(b) This subchapter must be
					 applied in a manner that allows the appointed actuary to utilize their
					 professional judgment in performing the asset analysis and developing the
					 actuarial opinion and supporting memoranda, consistent with relevant actuarial
					 standards of practice; however, the commissioner has the authority to specify
					 specific methods of actuarial analysis and actuarial assumptions when, in the
					 commissioner's judgment, these specifications are necessary for an acceptable
					 opinion to be rendered relative to the adequacy of reserves and related
					 items.
(c) This subchapter applies
					 to the actuarial opinion for the 2005 valuation through the 2016 valuation. The
					 requirements of the valuation manual adopted under Insurance Code Chapter 425,
					 Subchapter B, concerning Standard Valuation Law, apply to actuarial opinions
					 for valuations on or after January 1, 2017.
(d) A statement of opinion on the adequacy of
					 the reserves and related actuarial items based on an asset adequacy analysis in
					 accordance with §
											4.2806 of this title (relating to
					 Statement of Actuarial Opinion Based on an Asset Adequacy Analysis), and a
					 memorandum in support of the statement of opinion in accordance with §
											4.2807 of this title (relating to
					 Description of Actuarial Memorandum Including an Asset Adequacy Analysis and
					 Regulatory Asset Adequacy Issues Summary), is required each year, unless exempt
					 under §
											4.2808 of this title (relating to
					 Asset Adequacy Analysis Exemption).
Texas Administrative Code › Title 28 - INSURANCE › Part 1 - TEXAS DEPARTMENT OF INSURANCE › Chapter 4 - LIFE AND ANNUITY › Subchapter BB - LIFE AND ANNUITY RESERVES › Division 1 - ACTUARIAL OPINION AND MEMORANDUM REGULATION › Section 4.2803 - Commissioner Discretion

Current through Reg. 49, No. 28; July 12, 2024
The commissioner may require any company, otherwise
						exempt from asset adequacy analysis requirements in this subchapter, to provide
						an actuarial opinion and actuarial memorandum that complies with the asset
						adequacy analysis requirements in this subchapter including requirements in
						§
											4.2806 of this title (relating to
						Statement of Actuarial Opinion Based on an Asset Adequacy Analysis) and in
						§
											4.2807 of this title (relating to
						Description of Actuarial Memorandum Including an Asset Adequacy Analysis and
						Regulatory Asset Adequacy Issues Summary) if, in the opinion of the
						commissioner, an asset adequacy analysis is necessary with respect to the
						company.
Texas Administrative Code › Title 28 - INSURANCE › Part 1 - TEXAS DEPARTMENT OF INSURANCE › Chapter 4 - LIFE AND ANNUITY › Subchapter BB - LIFE AND ANNUITY RESERVES › Division 1 - ACTUARIAL OPINION AND MEMORANDUM REGULATION › Section 4.2805 - General Requirements

Current through Reg. 49, No. 28; July 12, 2024
(a) Submission
					 of statement of actuarial opinion. Any statement of actuarial opinion required
					 by this subchapter must be submitted in accordance with paragraphs (1) and (2)
					 of this subsection.
(1) There is to be
					 included on or attached to page one of the annual statement for each year
					 beginning with the year in which this subchapter becomes effective the
					 statement of an appointed actuary, entitled "Statement of Actuarial Opinion,"
					 setting forth an opinion relating to reserves and related actuarial items held
					 in support of policies and contracts, in accordance with §
												4.2806 of this title (relating to
					 Statement of Actuarial Opinion Based on an Asset Adequacy Analysis).
(2) Upon written request by the company, the
					 commissioner may grant an extension of the date for submission of the statement
					 of actuarial opinion.
Texas Administrative Code › Title 28 - INSURANCE › Part 1 - TEXAS DEPARTMENT OF INSURANCE › Chapter 4 - LIFE AND ANNUITY › Subchapter BB - LIFE AND ANNUITY RESERVES › Division 1 - ACTUARIAL OPINION AND MEMORANDUM REGULATION › Section 4.2806 - Statement of Actuarial Opinion Based on an Asset Adequacy Analysis

Current through Reg. 49, No. 28; July 12, 2024
(a) General description. The statement of
					 actuarial opinion required by this section must consist of the following
					 paragraphs:
(1) a paragraph identifying the
					 appointed actuary and their qualifications, recommended language is provided in
					 subsection (b)(1) of this section;
(2) a scope paragraph (recommended language
					 is provided in subsection (b)(2) of this section) identifying the subjects on
					 which an opinion is to be expressed and describing the scope of the appointed
					 actuary's work, including a tabulation delineating the reserves and related
					 actuarial items that have been analyzed for asset adequacy and the method of
					 analysis, and identifying the reserves and related actuarial items covered by
					 the opinion that have not been so analyzed;
(3) a reliance paragraph (recommended
					 language is provided in subsection (b)(3) of this section) describing those
					 areas, if any, where the appointed actuary has deferred to other experts in
					 developing data, procedures, or assumptions (e.g., anticipated cash flows from
					 currently owned assets, including variation in cash flows according to economic
					 scenarios), supported by a statement of each such expert with the information
					 prescribed by subsection (e) of this section; and
(4) an opinion paragraph expressing the
					 appointed actuary's opinion with respect to the adequacy of the supporting
					 assets to mature the liabilities (recommended language is provided in
					 subsection (b)(6) of this section).
(5) One or more additional paragraphs will be
					 needed in individual company cases as follows:
(A) if the appointed actuary considers it
					 necessary to state a qualification of their opinion;
(B) if the appointed actuary must disclose an
					 inconsistency in the method of analysis or basis of asset allocation used at
					 the prior opinion date with that used for this opinion;
(C) if the appointed actuary must disclose
					 whether additional reserves as of the prior opinion date are released as of
					 this opinion date, and the extent of the release; or
(D) if the appointed actuary chooses to add a
					 paragraph briefly describing the assumptions that form the basis for the
					 actuarial opinion.
Texas Administrative Code › Title 28 - INSURANCE › Part 1 - TEXAS DEPARTMENT OF INSURANCE › Chapter 4 - LIFE AND ANNUITY › Subchapter BB - LIFE AND ANNUITY RESERVES › Division 1 - ACTUARIAL OPINION AND MEMORANDUM REGULATION › Section 4.2808 - Asset Adequacy Analysis Exemption

Current through Reg. 49, No. 28; July 12, 2024
(a)
					 Companies that do business only in Texas and no other state are not required to
					 perform the asset adequacy analysis required by §
											4.2805 of this title (relating to
					 General Requirements) unless required by the commissioner under §
											4.2803 of this title (relating to
					 Commissioner Discretion).
(b)
					 Companies exempted under subsection (a) of this section must submit with the
					 annual statement an actuarial opinion under this subchapter but not based on an
					 asset adequacy analysis.
Texas Administrative Code › Title 28 - INSURANCE › Part 1 - TEXAS DEPARTMENT OF INSURANCE › Chapter 4 - LIFE AND ANNUITY › Subchapter BB - LIFE AND ANNUITY RESERVES › Division 2 - STRENGTHENED RESERVES PURSUANT TO INSURANCE CODE Section 425.067 › Section 4.2811 - Strengthened Reserves Under Insurance Code Section 425.067

Current through Reg. 49, No. 28; July 12, 2024
A life insurance company may increase the amount of its
						reserve liabilities by changing the basis of computation as provided in
						Insurance Code §
											425.067, concerning
						Optional Reserve Computations. The insurer may establish a higher reserving
						basis by reporting an increase in reserve in Exhibit 5A of its annual
						statement. Thereafter the insurer must continue to report on the higher basis.
						An insurer may, with the approval of the Texas Department of Insurance, as
						provided in Insurance Code §
											425.067, adopt a lower
						standard of valuation, but not lower than the minimum standard provided in
						Insurance Code §
											425.053, concerning
						Annual Valuation of Reserves for Policies and Contracts Issued Before Operative
						Date of Valuation Manual.
Texas Administrative Code › Title 28 - INSURANCE › Part 1 - TEXAS DEPARTMENT OF INSURANCE › Chapter 4 - LIFE AND ANNUITY › Subchapter BB - LIFE AND ANNUITY RESERVES › Division 3 - VALUATION OF LIFE INSURANCE POLICIES › Section 4.2821 - Purpose

Current through Reg. 49, No. 28; July 12, 2024
(a) The purpose of this subchapter is to
					 provide:
(1) tables of select mortality
					 factors and rules for their use;
(2) rules concerning a minimum standard for
					 the valuation of plans with nonlevel premiums or benefits; and
(3) rules concerning a minimum standard for
					 the valuation of plans with secondary guarantees.
Texas Administrative Code › Title 28 - INSURANCE › Part 1 - TEXAS DEPARTMENT OF INSURANCE › Chapter 4 - LIFE AND ANNUITY › Subchapter BB - LIFE AND ANNUITY RESERVES › Division 3 - VALUATION OF LIFE INSURANCE POLICIES › Section 4.2822 - Adoption of Tables of Select Mortality Factors

Current through Reg. 49, No. 28; July 12, 2024
The six tables of select mortality factors adopted in
						this section are from the NAIC model regulation titled "Valuation of Life
						Insurance Policies Model Regulation" that was adopted by the NAIC on March 8,
						1999. The six tables of base select mortality factors include: male aggregate,
						male nonsmokers, male smoker, female aggregate, female nonsmoker, and female
						smoker. These tables apply to both age-last-birthday and age-nearest-birthday
						mortality tables.
Attached Graphic
Texas Administrative Code › Title 28 - INSURANCE › Part 1 - TEXAS DEPARTMENT OF INSURANCE › Chapter 4 - LIFE AND ANNUITY › Subchapter BB - LIFE AND ANNUITY RESERVES › Division 3 - VALUATION OF LIFE INSURANCE POLICIES › Section 4.2823 - Applicability

Current through Reg. 49, No. 28; July 12, 2024
This subchapter applies to all life insurance policies,
						with or without nonforfeiture values, issued on or after January 1, 2000, and
						before January 1, 2017, subject to the following exceptions in paragraph (1) of
						this section and conditions in paragraph (2) of this section. For all life
						insurance policies, with or without nonforfeiture values, issued on or after
						January 1, 2017, the requirements of the valuation manual adopted under
						Insurance Code Chapter 425, Subchapter B, concerning Standard Valuation Law,
						apply.
(1) Exceptions.
(A) This subchapter does not apply to any
					 individual life insurance policy issued on or after the effective date of this
					 subchapter if the policy is issued in accordance with, and as a result of, the
					 exercise of a reentry provision contained in the original life insurance policy
					 of the same or greater face amount, issued before the effective date of this
					 subchapter, that guarantees the premium rates of the new policy. This
					 subchapter also does not apply to subsequent policies issued as a result of the
					 exercise of such a provision, or a derivation of the provision, in the new
					 policy.
(B) This subchapter does
					 not apply to any universal life policy that meets all the following
					 requirements:
(i) secondary guarantee period,
					 if any, is five years or less;
(ii)
					 specified premium for the secondary guarantee period is not less than the net
					 level reserve premium for the secondary guarantee period based on the 1980 CSO
					 valuation tables and the applicable valuation interest rate; and
(iii) the initial surrender charge is not
					 less than 100% of the first year annualized specified premium for the secondary
					 guarantee period.
(C)
					 This subchapter does not apply to any variable life insurance policy that
					 provides for life insurance, the amount or duration of which varies according
					 to the investment experience of any separate account or accounts.
(D) This subchapter does not apply to any
					 variable universal life insurance policy that provides for life insurance, the
					 amount or duration of which varies according to the investment experience of
					 any separate account or accounts.
(E) This subchapter does not apply to a group
					 life insurance certificate unless the certificate provides for a stated or
					 implied schedule of maximum gross premiums required in order to continue
					 coverage in force for a period in excess of one year.
Texas Administrative Code › Title 28 - INSURANCE › Part 1 - TEXAS DEPARTMENT OF INSURANCE › Chapter 4 - LIFE AND ANNUITY › Subchapter BB - LIFE AND ANNUITY RESERVES › Division 3 - VALUATION OF LIFE INSURANCE POLICIES › Section 4.2825 - General Calculation Requirements for Basic Reserves and Premium Deficiency Reserves

Current through Reg. 49, No. 28; July 12, 2024
(a) At the election
					 of the company for any one or more specified plans of life insurance, the
					 minimum mortality standard for basic reserves may be calculated using the 1980
					 CSO valuation tables with select mortality factors (or any other valuation
					 mortality table adopted by the NAIC after the effective date of this subchapter
					 and promulgated by regulation by the commissioner for this purpose). If select
					 mortality factors are elected, they may be:
(1) the ten-year select mortality factors
					 incorporated in Insurance Code Chapter 425, Subchapter B, concerning Standard
					 Valuation Law;
(2) the select
					 mortality factors adopted in §
												4.2822 of this title (relating to
					 Adoption of Tables of Select Mortality Factors); or
(3) any other table of select mortality
					 factors adopted by the NAIC after the effective date of this regulation and
					 promulgated by regulation by the commissioner for the purpose of calculating
					 basic reserves.
Texas Administrative Code › Title 28 - INSURANCE › Part 1 - TEXAS DEPARTMENT OF INSURANCE › Chapter 4 - LIFE AND ANNUITY › Subchapter BB - LIFE AND ANNUITY RESERVES › Division 3 - VALUATION OF LIFE INSURANCE POLICIES › Section 4.2826 - Calculation of Minimum Valuation Standard for Policies with Guaranteed Nonlevel Gross Premiums or Guaranteed Nonlevel Benefits (Other than Universal Life Policies)

Current through Reg. 49, No. 28; July 12, 2024
(a) Basic reserves.
					 Basic reserves must be calculated as the greater of the segmented reserves and
					 the unitary reserves. Both the segmented reserves and the unitary reserves for
					 any policy must use the same valuation mortality table and selection factors.
					 At the option of the insurer, in calculating segmented reserves and net
					 premiums, either one of the two adjustments described in paragraphs (1) or (2)
					 of this subsection may be made.
(1) An
					 insurer may use the adjustments described in this paragraph.
(A) Treat the unitary reserve, if greater
					 than zero, applicable at the end of each segment as a pure endowment;
					 and
(B) subtract the unitary
					 reserve, if greater than zero, applicable at the beginning of each segment from
					 the present value of guaranteed life insurance and endowment benefits for each
					 segment.
Texas Administrative Code › Title 28 - INSURANCE › Part 1 - TEXAS DEPARTMENT OF INSURANCE › Chapter 4 - LIFE AND ANNUITY › Subchapter BB - LIFE AND ANNUITY RESERVES › Division 3 - VALUATION OF LIFE INSURANCE POLICIES › Section 4.2827 - 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 Secondary Guarantee Period

Current through Reg. 49, No. 28; July 12, 2024
(a) General.
(1) Policies with a secondary guarantee
					 include:
(A) a policy with a guarantee that
					 the policy will remain in force at the original schedule of benefits, subject
					 only to the payment of specified premiums;
(B) a policy in which the minimum premium at
					 any duration is less than the corresponding one-year valuation premium,
					 calculated using the maximum valuation interest rate and the 1980 CSO valuation
					 tables with or without ten-year select mortality factors, or any other table
					 adopted after the effective date of this regulation by the NAIC and promulgated
					 by regulation by the commissioner for this purpose; or
(C) a policy with any combination of
					 subparagraphs (A) and (B) of this paragraph.
Texas Administrative Code › Title 28 - INSURANCE › Part 1 - TEXAS DEPARTMENT OF INSURANCE › Chapter 4 - LIFE AND ANNUITY › Subchapter BB - LIFE AND ANNUITY RESERVES › Division 3 - VALUATION OF LIFE INSURANCE POLICIES › Section 4.2829 - 2001 CSO Mortality Table

Current through Reg. 49, No. 28; July 12, 2024
The 2001 CSO Mortality Table must be used for purposes of
						this subchapter under the requirements of Subchapter AA, Division 3 of this
						chapter (relating to 2001 CSO Mortality Table).
Texas Administrative Code › Title 28 - INSURANCE › Part 1 - TEXAS DEPARTMENT OF INSURANCE › Chapter 4 - LIFE AND ANNUITY › Subchapter BB - LIFE AND ANNUITY RESERVES › Division 4 - PRENEED LIFE INSURANCE MINIMUM MORTALITY STANDARDS FOR DETERMINING RESERVE LIABILITIES AND NONFORFEITURE VALUES › Section 4.2831 - Purpose and Applicability

Current through Reg. 49, No. 28; July 12, 2024
(a) The purpose
					 of this subchapter is to establish the minimum mortality standards for reserves
					 and nonforfeiture values for preneed life insurance policies or certificates,
					 and to recognize, permit, and prescribe the use of the Ultimate 1980 CSO in
					 determining the minimum standard of valuation of reserves and the minimum
					 standard nonforfeiture values for preneed life insurance policies or
					 certificates in accordance with Insurance Code §
											425.058(c),
					 concerning Computation of Minimum Standard: General Rule, and §1105.055,
					 concerning Use of Mortality Tables and Interest Rates with Nonforfeiture Net
					 Level Premium Method, and §
											4.2825(a) of this
					 title (relating to General Calculation Requirements for Basic Reserves and
					 Premium Deficiency Reserves).
(b)
					 This subchapter applies to all preneed life insurance policies and certificates
					 issued on or after January 1, 2009.
Texas Administrative Code › Title 28 - INSURANCE › Part 1 - TEXAS DEPARTMENT OF INSURANCE › Chapter 4 - LIFE AND ANNUITY › Subchapter BB - LIFE AND ANNUITY RESERVES › Division 4 - PRENEED LIFE INSURANCE MINIMUM MORTALITY STANDARDS FOR DETERMINING RESERVE LIABILITIES AND NONFORFEITURE VALUES › Section 4.2832 - Definitions

Current through Reg. 49, No. 28; July 12, 2024
The following words and terms, when used in this
						subchapter, have the following meanings unless the context clearly indicates
						otherwise.
(1) 2001 CSO Mortality
					 Table--Mortality tables, consisting of separate rates of mortality for male and
					 female lives, developed by the American Academy of Actuaries CSO Task Force
					 from the Valuation Basic Mortality Table developed by the Society of Actuaries
					 Individual Life Insurance Valuation Mortality Task Force, and adopted by the
					 NAIC in December 2002. The 2001 CSO Mortality Table is included in the 2nd
					 Quarter 2002
Proceedings of the NAIC.
Unless the context
					 indicates otherwise, the 2001 CSO Mortality Table includes both the ultimate
					 form of that table and the select and ultimate form of that table and includes
					 both the smoker and nonsmoker mortality tables and the composite mortality
					 tables. It also includes both the age-nearest-birthday and age-last-birthday
					 bases of the mortality tables.
(2)
					 Department--The Texas Department of Insurance.
(3) NAIC--National Association of Insurance
					 Commissioners.
(4) Prepaid funeral
					 benefits--As defined in Finance Code §
											154.002(9),
					 concerning Definitions.
(5) Prepaid
					 funeral benefits contract--A contract or agreement for prepaid funeral benefits
					 subject to the requirements of Finance Code Chapter 154, concerning Prepaid
					 Funeral Services.
(6) Preneed life
					 insurance--A life insurance policy or certificate that is approved by the
					 department, issued by an insurance company licensed by the department, issued
					 in conjunction with an insurance-funded prepaid funeral benefits contract, and
					 that, whether by assignment or otherwise, has the purpose of funding prepaid
					 funeral benefits to be provided at the time of, or immediately following, the
					 death of the insured. For purposes of this subchapter, the definition of
					 preneed life insurance does not include an annuity contract or
					 policy.
(7) Ultimate 1980 CSO--The
					 Commissioners 1980 Standard Ordinary Mortality Table without 10-year selection
					 factors, incorporated into the 1980 amendments to the NAIC Standard Valuation
					 Law approved in December 1983.
Texas Administrative Code › Title 28 - INSURANCE › Part 1 - TEXAS DEPARTMENT OF INSURANCE › Chapter 4 - LIFE AND ANNUITY › Subchapter BB - LIFE AND ANNUITY RESERVES › Division 4 - PRENEED LIFE INSURANCE MINIMUM MORTALITY STANDARDS FOR DETERMINING RESERVE LIABILITIES AND NONFORFEITURE VALUES › Section 4.2833 - Minimum Valuation Mortality Standards

Current through Reg. 49, No. 28; July 12, 2024
Except as provided by §
											4.2836 of this title (relating to
						Transitional Use of the 2001 CSO Mortality Table), the Ultimate 1980 CSO is the
						minimum mortality standard for determining reserve liabilities and
						nonforfeiture values for both male and female insureds for preneed life
						insurance policies issued on or after January 1, 2009.
Texas Administrative Code › Title 28 - INSURANCE › Part 1 - TEXAS DEPARTMENT OF INSURANCE › Chapter 4 - LIFE AND ANNUITY › Subchapter BB - LIFE AND ANNUITY RESERVES › Division 4 - PRENEED LIFE INSURANCE MINIMUM MORTALITY STANDARDS FOR DETERMINING RESERVE LIABILITIES AND NONFORFEITURE VALUES › Section 4.2834 - Minimum Valuation Interest Rate Standards

Current through Reg. 49, No. 28; July 12, 2024
(a)
					 The interest rates used in determining the minimum standard for valuation of
					 preneed life insurance are the calendar year statutory valuation rates as
					 defined in Insurance Code Chapter 425, Subchapter B, concerning Standard
					 Valuation Law.
(b) The interest
					 rates used in determining the minimum standard for nonforfeiture values for
					 preneed life insurance are the calendar year statutory nonforfeiture interest
					 rates as defined in Insurance Code Chapter 1105, concerning Standard
					 Nonforfeiture Law for Life Insurance.
Texas Administrative Code › Title 28 - INSURANCE › Part 1 - TEXAS DEPARTMENT OF INSURANCE › Chapter 4 - LIFE AND ANNUITY › Subchapter BB - LIFE AND ANNUITY RESERVES › Division 4 - PRENEED LIFE INSURANCE MINIMUM MORTALITY STANDARDS FOR DETERMINING RESERVE LIABILITIES AND NONFORFEITURE VALUES › Section 4.2835 - Minimum Valuation Method Standards

Current through Reg. 49, No. 28; July 12, 2024
(a) The
					 method used in determining the standard for the minimum valuation of reserves
					 for preneed life insurance is the method defined in Insurance Code Chapter 425,
					 Subchapter B, concerning Standard Valuation Law.
(b) The method used in determining the
					 standard for the minimum nonforfeiture values for preneed life insurance is be
					 the method defined in Insurance Code Chapter 1105, concerning Standard
					 Nonforfeiture Law for Life Insurance.
Texas Administrative Code › Title 28 - INSURANCE › Part 1 - TEXAS DEPARTMENT OF INSURANCE › Chapter 4 - LIFE AND ANNUITY › Subchapter BB - LIFE AND ANNUITY RESERVES › Division 4 - PRENEED LIFE INSURANCE MINIMUM MORTALITY STANDARDS FOR DETERMINING RESERVE LIABILITIES AND NONFORFEITURE VALUES › Section 4.2836 - Transitional Use of the 2001 CSO Mortality Table

Current through Reg. 49, No. 28; July 12, 2024
(a) For preneed life insurance policies or
					 certificates issued on or after January 1, 2009, and before January 1, 2012,
					 the 2001 CSO Mortality Table may be used as the minimum standard for reserves
					 and minimum standard for nonforfeiture benefits for both male and female
					 insureds in accordance with the requirements of Subchapter AA, Division 3, of
					 this chapter (relating to 2001 CSO Mortality Table).
(b) If a company elects to use the 2001 CSO
					 Mortality Table as a minimum standard for any preneed life insurance policy or
					 certificate issued on or after the effective date of this subsection and before
					 January 1, 2012, the company must provide, as a part of the actuarial opinion
					 memorandum submitted in support of the company's asset adequacy analysis, an
					 annual written notification to the domiciliary commissioner. The notification
					 must include:
(1) a complete list of all
					 preneed life insurance policy and certificate forms that use the 2001 CSO
					 Mortality Table as a minimum standard;
(2) a certification signed by the appointed
					 actuary stating that the reserve methodology, employed by the company in
					 determining reserves for the preneed life insurance policies or certificates
					 issued after the effective date of this subchapter and using the 2001 CSO
					 Mortality Table as a minimum standard, develops adequate reserves (for the
					 purposes of this certification, the preneed life insurance policies or
					 certificates using the 2001 CSO Mortality Table as a minimum standard cannot be
					 aggregated with any other policies); and
(3) supporting information regarding the
					 adequacy of reserves for preneed life insurance policies or certificates issued
					 after the effective date of this subchapter and using the 2001 CSO Mortality
					 Table as a minimum standard for reserves.
Texas Administrative Code › Title 28 - INSURANCE › Part 1 - TEXAS DEPARTMENT OF INSURANCE › Chapter 5 - PROPERTY AND CASUALTY INSURANCE › Subchapter A - AUTOMOBILE INSURANCE › Division 1 - CERTIFICATES OF ASSUMPTION › Section 5.11 - Certificates of Assumption

Current through Reg. 49, No. 28; July 12, 2024
A certificate of assumption may be attached only to an
						automobile insurance policy issued for an insurer for which a reinsurance
						assumption agreement has been approved by a commissioner's order pursuant to 28
						Texas Administrative Code §
											7.604.
						For utilization under this section, the Texas Department of Insurance adopts by
						reference a certificate of assumption form which is published by the Texas
						Department of Insurance and available from the Automobile Division, P.O. Box
						149104, Mail Code 104-1A, Austin, Texas 78714-9104.
Texas Administrative Code › Title 28 - INSURANCE › Part 1 - TEXAS DEPARTMENT OF INSURANCE › Chapter 5 - PROPERTY AND CASUALTY INSURANCE › Subchapter A - AUTOMOBILE INSURANCE › Division 2 - DIVIDENDS PROCEDURE › Section 5.101 - Permissible Dividend Classes, Motor Vehicle Insurance

Current through Reg. 49, No. 28; July 12, 2024
The permissible classes for the payment of dividends for
						the lines of insurance regulated under the Insurance Code, Chapter 5,
						Subchapter A, are the same as the duly promulgated rating classifications for
						those lines of insurance. No insurer may declare or pay any dividend on any
						line of insurance regulated under the Insurance Code, Chapter 5, Subchapter A,
						unless the dividend is declared and paid on a class which is the same as one of
						the promulgated rating classifications for that line of
						insurance.
Texas Administrative Code › Title 28 - INSURANCE › Part 1 - TEXAS DEPARTMENT OF INSURANCE › Chapter 5 - PROPERTY AND CASUALTY INSURANCE › Subchapter A - AUTOMOBILE INSURANCE › Division 2 - DIVIDENDS PROCEDURE › Section 5.102 - Other Restrictions on the Payment of Dividends, Motor Vehicle Insurance

Current through Reg. 49, No. 28; July 12, 2024
(a) No dividend
					 shall take effect or may be paid until approved by the State Board of
					 Insurance.
(b) A dividend may only
					 be paid out of earned surplus.
(c)
					 A pro rata earned dividend must be paid on a participating policy which is
					 terminated prior to its expiration date, if a dividend is otherwise declared
					 and paid for that class of policies.
(d) A dividend may not be paid until the
					 policy expires.
(e) A dividend may
					 not be promised or guaranteed to policyholders.
(f) Dividends shall be disbursed uniformly by
					 classes.
(g) The automobile policy
					 contract must contain the standard participation language approved by the State
					 Board of Insurance.
(h) Earned
					 dividends may not be used by the company to extend or renew policies without
					 the insured's consent. A company may extend or renew policies by application of
					 earned dividends on individual company forms or billings which meet the
					 following minimum requirements:
(1) the
					 insured must be given written notice of his or her right to either accept his
					 earned dividend or agree to the application of his earned dividend to an
					 extension or renewal policy;
(2)
					 the amount of the earned dividend and the number of days the policy is to be
					 extended must be shown in the notice.
Texas Administrative Code › Title 28 - INSURANCE › Part 1 - TEXAS DEPARTMENT OF INSURANCE › Chapter 5 - PROPERTY AND CASUALTY INSURANCE › Subchapter A - AUTOMOBILE INSURANCE › Division 2 - DIVIDENDS PROCEDURE › Section 5.103 - Dividend Application Form, Motor Vehicle Insurance

Current through Reg. 49, No. 28; July 12, 2024
The State Board of Insurance adopts by reference Texas
						Casualty Dividend Disbursement Application, as applicable to motor vehicle
						insurance. This form may be obtained from the Deputy Insurance Commissioner,
						Casualty Group, State Board of Insurance, 1110 San Jacinto Street, Austin,
						Texas 78786.