reglab/statecodes huggingface dataset:
Virginia Administrative Code › Title 14 - INSURANCE › Agency 5 - STATE CORPORATION COMMISSION, BUREAU OF INSURANCE › Chapter 318 - RULES GOVERNING TERM AND UNIVERSAL LIFE INSURANCE RESERVE FINANCING › Section 14VAC5-318-30 - Definitions

Current through Register Vol. 40, No. 24, July 15, 2024
The following words and terms when used in this chapter shall
				  have the following meanings, unless the context clearly indicates
				  otherwise:
"Actuarial method" means the methodology used to determine
				  the required level of primary security, as described in 14VAC5-318-50.
"Commission" means the State Corporation Commission when
				  acting pursuant to or in accordance with Title 38.2 of the Code of
				  Virginia.
"Covered policy" means, subject to the exemptions described
				  in 14VAC5-318-40, those policies, other than grandfathered policies, of the
				  following policy types:
1.  Life insurance policies with guaranteed nonlevel gross
				  premiums or guaranteed nonlevel benefits, except for flexible premium universal
				  life insurance policies; or
2.  Flexible premium universal life insurance policies with
				  provisions resulting in the ability of a policyholder to keep a policy in force
				  over a secondary guarantee period.
"Grandfathered policies" means policies of the types
				  described in the "covered policy" definition that were:
1.  Issued prior to January 1, 2015; and
2.  Ceded, as of December 31, 2014, as part of a reinsurance
				  treaty that would not have met one of the exemptions set forth in 14VAC5-318-40
				  had that section then been in effect.
"NAIC" means the National Association of Insurance
				  Commissioners.
"Noncovered policy" means any policy that does not meet the
				  definition of covered policy, including grandfathered policies.
"Required level of primary security" means the dollar amount
				  determined by applying the actuarial method to the risks ceded with respect to
				  covered policies, but not more than the total reserve ceded.
"Primary security" means the following forms of
				  security:
1.  Cash meeting the requirements of subdivision 2 a of §
									38.2-1316.4 of the Code of
				  Virginia;
2.  Securities listed by the Securities Valuation Office
				  meeting the requirements of subdivision 2 b of §
									38.2-1316.4 of the Code of
				  Virginia, but excluding any synthetic letter of credit, contingent note,
				  credit-linked note, or other similar security that operates in a manner similar
				  to a letter of credit, and excluding any securities issued by the ceding
				  insurer or any of its affiliates; and
3.  For security held in connection with funds-withheld and
				  modified coinsurance reinsurance treaties:
a.  Commercial loans in good standing of CM3 quality and
				  higher as calculated for the life risk-based capital report;
b.  Policy loans; and
c.  Derivatives acquired in the normal course and used to
				  support and hedge liabilities pertaining to the actual risks in the policies
				  ceded pursuant to the reinsurance treaty.
Virginia Administrative Code › Title 14 - INSURANCE › Agency 5 - STATE CORPORATION COMMISSION, BUREAU OF INSURANCE › Chapter 318 - RULES GOVERNING TERM AND UNIVERSAL LIFE INSURANCE RESERVE FINANCING › Section 14VAC5-318-40 - Exemptions from this chapter

Current through Register Vol. 40, No. 24, July 15, 2024
This chapter does not apply to the situations described in
				  subdivisions 1 through 6 of this section.
1. Reinsurance of:
a. Policies that satisfy the criteria for
				exemption set forth in
				14VAC5-319-50 F or G and that are
				issued before the later of:
(1) January 1,
				2018; and
(2) The date on which the
				ceding insurer begins to apply the provisions of VM-20 to establish the ceded
				policies' statutory reserves, but in no event later than January 1,
				2020;
Virginia Administrative Code › Title 14 - INSURANCE › Agency 5 - STATE CORPORATION COMMISSION, BUREAU OF INSURANCE › Chapter 318 - RULES GOVERNING TERM AND UNIVERSAL LIFE INSURANCE RESERVE FINANCING › Section 14VAC5-318-70 - Prohibition against avoidance

Current through Register Vol. 40, No. 24, July 15, 2024
No insurer that has covered policies to which this chapter
				  applies, as set forth in 14VAC5-318-20, shall take any action or series of
				  actions or enter into any transaction, arrangement, or series of transactions
				  or arrangements if the purpose of such action, transaction, arrangement, or
				  series thereof is to avoid the requirements of this chapter or to circumvent
				  its purpose and intent, as set forth in 14VAC5-318-10.
Statutory Authority: §§
											12.1-13,
					 38.2-223, and
					 38.2-1316.7 of the Code of
					 Virginia.
Virginia Administrative Code › Title 14 - INSURANCE › Agency 5 - STATE CORPORATION COMMISSION, BUREAU OF INSURANCE › Chapter 318 - RULES GOVERNING TERM AND UNIVERSAL LIFE INSURANCE RESERVE FINANCING › Section 14VAC5-318-80 - Severability

Current through Register Vol. 40, No. 24, July 15, 2024
If any provision of this chapter or the application thereof
				  to any person or circumstance is for any reason held to be invalid, the
				  remainder of the chapter and the application of the provision to other persons
				  or circumstances shall not be affected thereby.
Statutory Authority: §§
											12.1-13,
					 38.2-223, and
					 38.2-1316.7 of the Code of
					 Virginia.
Virginia Administrative Code › Title 14 - INSURANCE › Agency 5 - STATE CORPORATION COMMISSION, BUREAU OF INSURANCE › Chapter 319 - LIFE INSURANCE RESERVES › Section 14VAC5-319-20 - Purpose

Current through Register Vol. 40, No. 24, July 15, 2024
A. The purpose of
				this regulation is to provide:
1. Tables of
				select mortality factors and rules for their use;
2. Rules establishing minimum valuation and
				reserve standards for plans with nonlevel premiums or benefits; and
3. Rules establishing minimum valuation and
				reserve standards for plans with secondary guarantees.
Virginia Administrative Code › Title 14 - INSURANCE › Agency 5 - STATE CORPORATION COMMISSION, BUREAU OF INSURANCE › Chapter 319 - LIFE INSURANCE RESERVES › Section 14VAC5-319-30 - Applicability

Current through Register Vol. 40, No. 24, July 15, 2024
A. This regulation
				shall apply to all life insurance policies, with or without nonforfeiture
				values, issued on or after January 1, 2000, subject to the exceptions and
				conditions in subsections B and C of this section.
B. Exceptions to this regulation.
1. This regulation shall not apply to any
				individual life insurance policy issued on or after January 1, 2000, 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 January 1, 2000, that guarantees the
				premium rates of the new policy. This regulation also shall 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.
2. This regulation shall not apply to any
				universal life policy that meets all the following requirements:
a. Secondary guarantee period, if any, is
				five years or less;
b. 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 as defined in
				14VAC5-319-10 and the applicable
				valuation interest rate; and
c. The
				initial surrender charge is not less than 100% of the first year annualized
				specified premium for the secondary guarantee period.
3. This regulation shall 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.
4. This
				regulation shall 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.
5. This regulation shall 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.
Virginia Administrative Code › Title 14 - INSURANCE › Agency 5 - STATE CORPORATION COMMISSION, BUREAU OF INSURANCE › Chapter 319 - LIFE INSURANCE RESERVES › Section 14VAC5-319-40 - General calculation requirements for basic reserves and premium deficiency reserves

Current through Register Vol. 40, No. 24, July 15, 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 on or after January 1, 2000, and
				promulgated by regulation by the commission for this purpose. If select
				mortality factors are elected, they may be:
1. The 10-year select mortality factors
				incorporated into the 1980 amendments to the NAIC Standard Valuation
				Law;
2. The 20-year select
				mortality factors in
				14VAC5-319-70; or
3. Any other table of select mortality
				factors adopted by the NAIC on or after January 1, 2000, and promulgated by
				regulation by the commission for the purpose of calculating basic
				reserves.
Virginia Administrative Code › Title 14 - INSURANCE › Agency 5 - STATE CORPORATION COMMISSION, BUREAU OF INSURANCE › Chapter 319 - LIFE INSURANCE RESERVES › Section 14VAC5-319-50 - Calculation of minimum valuation standard for policies with guaranteed nonlevel gross premiums or guaranteed nonlevel benefits (other than universal life policies)

Current through Register Vol. 40, No. 24, July 15, 2024
A.
				Basic reserves shall be calculated as the greater of the segmented reserves and
				the unitary reserves. Both the segmented reserves and the unitary reserves for
				any policy shall use the same valuation mortality table and selection factors.
				At the option of the company, in calculating segmented reserves and net
				premiums, either of the adjustments described in subdivision 1 or 2 of this
				subsection may be made:
1. Treat the unitary
				reserve, if greater than 0, applicable at the end of each segment as a pure
				endowment and subtract the unitary reserve, if greater than 0, applicable at
				the beginning of each segment from the present value of guaranteed life
				insurance and endowment benefits for each segment.
2. Treat the guaranteed cash surrender value,
				if greater than 0, applicable at the end of each segment as a pure endowment;
				and subtract the guaranteed cash surrender value, if greater than 0, applicable
				at the beginning of each segment from the present value of guaranteed life
				insurance and endowment benefits for each segment.
Virginia Administrative Code › Title 14 - INSURANCE › Agency 5 - STATE CORPORATION COMMISSION, BUREAU OF INSURANCE › Chapter 319 - LIFE INSURANCE RESERVES › Section 14VAC5-319-60 - 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 Register Vol. 40, No. 24, July 15, 2024
A.
				General provisions are:
1. Policies with a
				secondary guarantee include, but are not limited to, the following:
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
				10-year select mortality factors, or any other table adopted on or after
				January 1, 2000, by the NAIC and promulgated by regulation by the commission
				for this purpose; or
c. A policy
				with any combination of subdivisions 1 a and 1 b of this subsection.
Virginia Administrative Code › Title 14 - INSURANCE › Agency 5 - STATE CORPORATION COMMISSION, BUREAU OF INSURANCE › Chapter 319 - LIFE INSURANCE RESERVES › Section 14VAC5-319-80 - Severability

Current through Register Vol. 40, No. 24, July 15, 2024
If any provisions of this regulation or the application
				  thereof to any person or circumstance is for any reason held to be invalid, the
				  remainder of the rules comprising this regulation and the application of such
				  provision to other persons or circumstances shall not be affected
				  thereby.
Statutory Authority
§§ 12.1-13 and 38.2-223 of the Code of Virginia.
Virginia Administrative Code › Title 14 - INSURANCE › Agency 5 - STATE CORPORATION COMMISSION, BUREAU OF INSURANCE › Chapter 320 - RULES ESTABLISHING MINIMUM RESERVE STANDARDS FOR INDIVIDUAL AND GROUP ACCIDENT AND SICKNESS INSURANCE CONTRACTS › Section 14VAC5-320-10 - Purpose

Current through Register Vol. 40, No. 24, July 15, 2024
The purpose of this chapter (14VAC5-320-10 et seq.), is to set
				  forth rules governing reserve standards for accident and sickness insurance
				  policies which the Commission deems necessary to carry out the provisions of
				  §§ 38.2-1311 and 38.2-1314 of the Code of Virginia.
Statutory Authority
§§ 12.1-13, 38.2-223, 38.2-1311 and 38.2-1314 of
					 the Code of Virginia.
Virginia Administrative Code › Title 14 - INSURANCE › Agency 5 - STATE CORPORATION COMMISSION, BUREAU OF INSURANCE › Chapter 320 - RULES ESTABLISHING MINIMUM RESERVE STANDARDS FOR INDIVIDUAL AND GROUP ACCIDENT AND SICKNESS INSURANCE CONTRACTS › Section 14VAC5-320-20 - General

Current through Register Vol. 40, No. 24, July 15, 2024
A. Scope.
1. These standards apply to all individual
				and group accident and sickness insurance coverages, except credit accident and
				sickness insurance coverages, provided by policies or contracts delivered or
				issued for delivery by any domestic, foreign or alien company licensed to
				transact the business of insurance in this Commonwealth.
2. When a company determines that adequacy of
				its accident and sickness insurance reserves requires reserves in excess of the
				minimum standards specified herein, such increased reserves shall be held and
				shall be considered the minimum reserves for that company.
3. With respect to any block of contracts, or
				with respect to a company's accident and sickness business as a whole, a
				prospective gross premium valuation is the ultimate test of reserve adequacy as
				of a given valuation date. Such a gross premium valuation will take into
				account for contracts in force, in a claims status, or in a continuation of
				benefits status on the valuation date, the present value as of the valuation
				date of: all expected benefits unpaid, all expected expenses unpaid, and all
				unearned or expected premiums, adjusted for future premium increases reasonably
				expected to be put into effect.
Such a gross premium valuation is to be performed whenever a
				  significant doubt exists as to reserve adequacy with respect to any major block
				  of contracts, or with respect to the company's accident and sickness business
				  as a whole. In the event inadequacy is found to exist, immediate loss
				  recognition shall be made and the reserves restored to adequacy. Adequate
				  reserves (inclusive of claim, premium and contract reserves, if any) shall be
				  held with respect to all contracts, regardless of whether contract reserves are
				  required for such contracts under these standards. Whenever minimum reserves,
				  as defined in these standards, exceed reserve requirements as determined by a
				  prospective gross premium valuation, such minimum reserves remain the minimum
				  requirement under these standards.
Virginia Administrative Code › Title 14 - INSURANCE › Agency 5 - STATE CORPORATION COMMISSION, BUREAU OF INSURANCE › Chapter 320 - RULES ESTABLISHING MINIMUM RESERVE STANDARDS FOR INDIVIDUAL AND GROUP ACCIDENT AND SICKNESS INSURANCE CONTRACTS › Section 14VAC5-320-30 - Claim reserves

Current through Register Vol. 40, No. 24, July 15, 2024
A.
				General.
1. Claim reserves are required for
				all incurred but unpaid claims on all accident and sickness insurance
				policies.
2. Appropriate claim
				expense reserves are required with respect to the estimated expense of
				settlement of all incurred but unpaid claims.
3. All such reserves for prior valuation
				years are to be tested for adequacy and reasonableness along the lines of claim
				runoff schedules in accordance with the statutory financial statement including
				consideration of any residual unpaid liability.
Virginia Administrative Code › Title 14 - INSURANCE › Agency 5 - STATE CORPORATION COMMISSION, BUREAU OF INSURANCE › Chapter 320 - RULES ESTABLISHING MINIMUM RESERVE STANDARDS FOR INDIVIDUAL AND GROUP ACCIDENT AND SICKNESS INSURANCE CONTRACTS › Section 14VAC5-320-40 - Premium reserves

Current through Register Vol. 40, No. 24, July 15, 2024
A.
				General.
1. Unearned premium reserves are
				required for all contracts with respect to the period of coverage for which
				premiums, other than premiums paid in advance, have been paid beyond the date
				of valuation.
2. If premiums due
				and unpaid are carried as an asset, such premiums must be treated as premiums
				in force, subject to unearned premium reserve determination. The value of
				unpaid commissions, premium taxes, and the cost of collection associated with
				due and unpaid premiums must be carried as an offsetting liability.
3. The gross premiums paid in advance for a
				period of coverage commencing after the next premium due date which follows the
				date of valuation may be appropriately discounted to the valuation date and
				shall be held either as a separate liability or, unless questioned by the
				Commission, as an addition to the unearned premium reserve which would
				otherwise be required as a minimum.
Virginia Administrative Code › Title 14 - INSURANCE › Agency 5 - STATE CORPORATION COMMISSION, BUREAU OF INSURANCE › Chapter 320 - RULES ESTABLISHING MINIMUM RESERVE STANDARDS FOR INDIVIDUAL AND GROUP ACCIDENT AND SICKNESS INSURANCE CONTRACTS › Section 14VAC5-320-50 - Contract reserves

Current through Register Vol. 40, No. 24, July 15, 2024
A.
				General.
1. Contract reserves are required,
				unless otherwise specified in subdivision 2, for:
a. All individual and group contracts with
				which level premiums are used; or
b. All individual and group contracts with
				respect to which, due to the gross premium pricing structure at issue, the
				value of the future benefits at any time exceeds the value of any appropriate
				future valuation net premiums at that time. The values specified in this
				subdivision shall be determined on the basis specified in subsection B of this
				section.
Virginia Administrative Code › Title 14 - INSURANCE › Agency 5 - STATE CORPORATION COMMISSION, BUREAU OF INSURANCE › Chapter 320 - RULES ESTABLISHING MINIMUM RESERVE STANDARDS FOR INDIVIDUAL AND GROUP ACCIDENT AND SICKNESS INSURANCE CONTRACTS › Section 14VAC5-320-60 - Reinsurance

Current through Register Vol. 40, No. 24, July 15, 2024
Increases to, or credits against reserves carried, arising
				  because of reinsurance assumed or reinsurance ceded, must be determined in a
				  manner consistent with these minimum reserve standards and with all applicable
				  provisions of the reinsurance contracts which affect the company's
				  liabilities.
Statutory Authority
§§ 12.1-13, 38.2-223, 38.2-1311 and 38.2-1314 of
					 the Code of Virginia.
Virginia Administrative Code › Title 14 - INSURANCE › Agency 5 - STATE CORPORATION COMMISSION, BUREAU OF INSURANCE › Chapter 320 - RULES ESTABLISHING MINIMUM RESERVE STANDARDS FOR INDIVIDUAL AND GROUP ACCIDENT AND SICKNESS INSURANCE CONTRACTS › Section 14VAC5-320-70 - Severability

Current through Register Vol. 40, No. 24, July 15, 2024
If any provision in this chapter (14VAC5-320-10 et seq.) or the
				  application thereof to any person or circumstance is held for any reason to be
				  invalid, the remainder of the provisions in this chapter shall not be affected
				  thereby.
Statutory Authority
§§ 12.1-13, 38.2-223, 38.2-1311 and 38.2-1314 of
					 the Code of Virginia.
Virginia Administrative Code › Title 14 - INSURANCE › Agency 5 - STATE CORPORATION COMMISSION, BUREAU OF INSURANCE › Chapter 320 - RULES ESTABLISHING MINIMUM RESERVE STANDARDS FOR INDIVIDUAL AND GROUP ACCIDENT AND SICKNESS INSURANCE CONTRACTS › Section 14VAC5-320-70:1 - APPENDIX A. SPECIFIC STANDARDS FOR MORBIDITY, INTEREST AND MORTALITY

Current through Register Vol. 40, No. 24, July 15, 2024
A. Minimum
				morbidity standards for valuation of specified individual contract accident and
				sickness insurance benefits are as follows:
1. Disability Income Benefits Due to Accident
				or Sickness.
a. Contract Reserves:
Contracts issued on or after January 1, 1965 and prior to
				  January 1, 1986:
The 1964 Commissioners Disability Table (64 CDT).
Contracts issued on or after January 1, 1994:
The 1985 Commissioners Individual Disability Tables A
				  (85CIDA):
Or
The 1985 Commissioners Individual Disability Tables B
				  (85CIDB).
Contracts issued during 1986 through 1993:
Optional use of either the 64CDT or the appropriate 1985
				  tables (85CIDA and/or 85CIDB).
Each company shall elect, with respect to all individual
				  contracts issued in any one statement year, whether it will use Tables A or
				  Tables B as the minimum standard. The company may, however, elect to use the
				  other tables with respect to any subsequent statement year.
b. Claim Reserves:
The minimum morbidity standard in effect for contract
				  reserves on currently issued contracts, as of the date the claim is
				  incurred.
Virginia Administrative Code › Title 14 - INSURANCE › Agency 5 - STATE CORPORATION COMMISSION, BUREAU OF INSURANCE › Chapter 320 - RULES ESTABLISHING MINIMUM RESERVE STANDARDS FOR INDIVIDUAL AND GROUP ACCIDENT AND SICKNESS INSURANCE CONTRACTS › Section 14VAC5-320-70:3 - APPENDIX C. RESERVES FOR WAIVER OF PREMIUM

Current through Register Vol. 40, No. 24, July 15, 2024
Waiver of premium reserves involve several special
				  considerations. First, the disability valuation tables promulgated by the NAIC
				  are based on exposures that include contracts on premium waiver as in-force
				  contracts. Hence, contract reserves based on these tables are NOT reserves on
				  "active lives" but rather reserves on contracts "in force." This is true for
				  the 1964 CDT and for both the 1985 CIDA and CIDB tables.
Accordingly, tabular reserves using any of these tables
				  should value reserves on the following basis:
Claim reserves should include reserves for premiums expected
				  to be waived, valuing as a minimum the valuation net premium being
				  waived.
Premium reserves should include contracts on premium waiver
				  as in-force contracts, valuing as a minimum the unearned modal valuation net
				  premium being waived.
Contract reserves should include recognition of the waiver of
				  premium benefit in addition to other contract benefits provided for, valuing as
				  a minimum the valuation net premium to be waived.
If a company is, instead, valuing reserves on what is truly
				  an active life table, or if a specific valuation table is not being used but
				  the company's gross premiums are calculated on a basis that includes in the
				  projected exposure only those contracts for which premiums are being paid, then
				  it may not be necessary to provide specifically for waiver of premium reserves.
				  Any company using such a true "active life" basis should carefully consider,
				  however, whether or not additional liability should be recognized on account of
				  premiums waived during periods of disability or during claim
				  continuation.
Virginia Administrative Code › Title 14 - INSURANCE › Agency 5 - STATE CORPORATION COMMISSION, BUREAU OF INSURANCE › Chapter 321 - USE OF THE 2001 CSO MORTALITY TABLE IN DETERMINING RESERVE LIABILITIES AND NONFORFEITURE BENEFITS › Section 14VAC5-321-10 - Authority

Current through Register Vol. 40, No. 24, July 15, 2024
This chapter is promulgated by the commission, pursuant to
				  § 38.2-223 of the Code of Virginia and in accordance with §§
				  38.2-1369, 38.2-3206 through 38.2-3209, and 38.2-4120 of the Code of Virginia
				  and 14VAC5-319-40, to approve,
				  recognize, permit, and prescribe the use of the 2001 Commissioners Standard
				  Ordinary (CSO) Mortality Table by and for insurers transacting the business of
				  insurance in this Commonwealth.
Statutory Authority: §§ 12.1-13 and 38.2-223 of
					 the Code of Virginia.
Virginia Administrative Code › Title 14 - INSURANCE › Agency 5 - STATE CORPORATION COMMISSION, BUREAU OF INSURANCE › Chapter 321 - USE OF THE 2001 CSO MORTALITY TABLE IN DETERMINING RESERVE LIABILITIES AND NONFORFEITURE BENEFITS › Section 14VAC5-321-20 - Definitions

Current through Register Vol. 40, No. 24, July 15, 2024
The following words and terms when used in this chapter shall
				  have the following meanings unless the context clearly indicates otherwise:
"2001 CSO Mortality Table" means that mortality table, which
				  is included in the Proceedings of the NAIC (2nd Quarter 2002), consisting of
				  separate rates of mortality for male and female lives, developed by the 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. 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. The 2001 CSO Mortality Table may be accessed via the American
				  Academy Society of Actuaries' website,
https://mort.soa.org/
.
"2001 CSO Mortality Table (F)" means that mortality table
				  consisting of the rates of mortality for female lives from the 2001 CSO
				  Mortality Table.
"2001 CSO Mortality Table (M)" means that mortality table
				  consisting of the rates of mortality for male lives from the 2001 CSO Mortality
				  Table. "Commission" means the State Corporation Commission.
"Composite mortality tables" means mortality tables with
				  rates of mortality that do not distinguish between smokers and
				  nonsmokers.
"NAIC" means the National Association of Insurance
				  Commissioners.
"Smoker and nonsmoker mortality tables" means mortality
				  tables with separate rates of mortality for smokers and
				  nonsmokers.
Statutory Authority: 12.1-13 and 38.2-223 of the Code of
					 Virginia.
Virginia Administrative Code › Title 14 - INSURANCE › Agency 5 - STATE CORPORATION COMMISSION, BUREAU OF INSURANCE › Chapter 321 - USE OF THE 2001 CSO MORTALITY TABLE IN DETERMINING RESERVE LIABILITIES AND NONFORFEITURE BENEFITS › Section 14VAC5-321-30 - 2001 CSO Mortality Table

Current through Register Vol. 40, No. 24, July 15, 2024
A.
				At the election of the insurer for any one or more specified plans of insurance
				and subject to the conditions stated in this chapter, the 2001 CSO Mortality
				Table may be used as the minimum standard for policies issued on or after
				January 1, 2004, and before the date specified in subsection B of this section
				to which subdivision 1 of § 38.2-1369 and § 38.2-3209 of the Code of
				Virginia are applicable. If the insurer elects to use the 2001 CSO Mortality
				Table, it shall do so for both valuation and nonforfeiture purposes.
B. Subject to the conditions stated in this
				chapter, the 2001 CSO Mortality Table shall be used in determining minimum
				standards for policies issued on and after January 1, 2009, to which
				subdivision 1 of § 38.2-1369 and § 38.2-3209 of the Code of Virginia
				are applicable.
C. A table from the
				2001 CSO Preferred Class Structure Mortality Table used in place of a 2001 CSO
				Mortality Table, pursuant to the requirements of 14VAC5-322, will be treated as
				part of the 2001 CSO Mortality Table only for purposes of reserve valuation
				pursuant to the requirements of this chapter.
Statutory Authority: §§ 12.1-13 and 38.2-223 of
					 the Code of Virginia.
Virginia Administrative Code › Title 14 - INSURANCE › Agency 5 - STATE CORPORATION COMMISSION, BUREAU OF INSURANCE › Chapter 321 - USE OF THE 2001 CSO MORTALITY TABLE IN DETERMINING RESERVE LIABILITIES AND NONFORFEITURE BENEFITS › Section 14VAC5-321-40 - Conditions

Current through Register Vol. 40, No. 24, July 15, 2024
A. For policies
				issued on or after July 1, 2004, with 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 § 38.2-1376 of the
				Code of Virginia 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.
Virginia Administrative Code › Title 14 - INSURANCE › Agency 5 - STATE CORPORATION COMMISSION, BUREAU OF INSURANCE › Chapter 321 - USE OF THE 2001 CSO MORTALITY TABLE IN DETERMINING RESERVE LIABILITIES AND NONFORFEITURE BENEFITS › Section 14VAC5-321-50 - Applicability of the 2001 CSO Mortality Table to 14VAC5-319

Current through Register Vol. 40, No. 24, July 15, 2024
A. The 2001 CSO Mortality Table may be used
				in applying rules at 14VAC5-319, concerning life insurance reserves, in the
				following manner, subject to the transition dates for use of the 2001 CSO
				Mortality Table in
				14VAC5-321-30.
1. When applying
				14VAC5-319-30 B 2, the net level
				reserve premium is based on the ultimate mortality rates in the 2001 CSO
				Mortality Table.
2. When
				determining "contract segmentation method" as defined by
				14VAC5-319-10, all calculations
				are made using the 2001 CSO mortality rate, and, if elected, the optional
				minimum mortality standard for deficiency reserves stipulated in subdivision 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. When applying
				14VAC5-319-40 A, the 2001 CSO
				Mortality Table is the minimum standard for basic reserves.
4. When applying
				14VAC5-319-40 B, 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 subdivisions 1 c, 1
				d, 2, and 3 of
				14VAC5-319-40 B. 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. When
				applying 14VAC5-319-50 C, 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. When applying
				14VAC5-319-50 E 4, the
				calculations specified in
				14VAC5-319-50 E shall use the
				ultimate mortality rates in the 2001 CSO Mortality Table.
7. When applying
				14VAC5-319-50 F 4, the
				calculations specified in
				14VAC5-319-50 F shall use the
				ultimate mortality rates in the 2001 CSO Mortality Table.
8. When applying
				14VAC5-319-50 G 2, the
				calculations specified in
				14VAC5-319-50 G shall use the
				ultimate mortality rates in the 2001 CSO Mortality Table.
9. When applying
				14VAC5-319-60 A 1 b, the one-year
				valuation premium shall be calculated using the ultimate mortality rates in the
				2001 CSO Mortality Table.
Virginia Administrative Code › Title 14 - INSURANCE › Agency 5 - STATE CORPORATION COMMISSION, BUREAU OF INSURANCE › Chapter 321 - USE OF THE 2001 CSO MORTALITY TABLE IN DETERMINING RESERVE LIABILITIES AND NONFORFEITURE BENEFITS › Section 14VAC5-321-60 - Gender-blended tables

Current through Register Vol. 40, No. 24, July 15, 2024
A. For
				any ordinary life insurance policy delivered or issued for delivery in this
				Commonwealth on and after July 1, 2004, 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 insurer 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.
B. When applying
				subsection A of this section, the insurer may choose from among the blended
				tables developed by the American Academy of Actuaries CSO Task Force and
				adopted by the NAIC in December 2002.
C. It shall not, in and of itself, be a
				violation of § 38.2-508 or § 38.2-508.2 of the Code of Virginia
				concerning respectively, unfair discrimination and discrimination prohibited,
				for an insurer to issue the same kind of policy of life insurance on both a
				sex-distinct and sex-neutral basis.
Statutory Authority
§§ 12.1-13 and 38.2-223 of the Code of Virginia.
Virginia Administrative Code › Title 14 - INSURANCE › Agency 5 - STATE CORPORATION COMMISSION, BUREAU OF INSURANCE › Chapter 321 - USE OF THE 2001 CSO MORTALITY TABLE IN DETERMINING RESERVE LIABILITIES AND NONFORFEITURE BENEFITS › Section 14VAC5-321-70 - Severability clause

Current through Register Vol. 40, No. 24, July 15, 2024
If any provision of this chapter or the application thereof
				  to any person or circumstance is for any reason held to be invalid, the
				  remainder of the chapter and the application of the provision to other persons
				  or circumstances shall not be affected thereby.
Statutory Authority
§§ 12.1-13 and 38.2-223 of the Code of Virginia.
Virginia Administrative Code › Title 14 - INSURANCE › Agency 5 - STATE CORPORATION COMMISSION, BUREAU OF INSURANCE › Chapter 321 - USE OF THE 2001 CSO MORTALITY TABLE IN DETERMINING RESERVE LIABILITIES AND NONFORFEITURE BENEFITS › Section - DOCUMENTS INCORPORATED BY REFERENCE (14VAC5-321)

Current through Register Vol. 40, No. 24, July 15, 2024
2001 CSO Mortality Table, American Academy of Actuaries,
				  June 2002.
Virginia Administrative Code › Title 14 - INSURANCE › Agency 5 - STATE CORPORATION COMMISSION, BUREAU OF INSURANCE › Chapter 322 - USE OF THE 2001 CSO PREFERRED CLASS STRUCTURE MORTALITY TABLE IN DETERMINING RESERVE LIABILITIES › Section 14VAC5-322-10 - Authority

Current through Register Vol. 40, No. 24, July 15, 2024
This chapter is promulgated by the commission, pursuant to
				  § 38.2-223 of the Code of Virginia and in accordance with § 38.2-1369
				  of the Code of Virginia and
				  14VAC5-319-40, to approve,
				  recognize, permit, and prescribe the use of the 2001 Commissioners Standard
				  Ordinary (CSO) Preferred Class Structure Mortality Table by and for insurers
				  transacting the business of insurance in this Commonwealth.
Statutory Authority: §§ 12.1-13 and 38.2-223 of
					 the Code of Virginia.
Virginia Administrative Code › Title 14 - INSURANCE › Agency 5 - STATE CORPORATION COMMISSION, BUREAU OF INSURANCE › Chapter 322 - USE OF THE 2001 CSO PREFERRED CLASS STRUCTURE MORTALITY TABLE IN DETERMINING RESERVE LIABILITIES › Section 14VAC5-322-30 - 2001 CSO Preferred Class Structure Mortality Table

Current through Register Vol. 40, No. 24, July 15, 2024
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 chapter, 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, or, with the consent of the commissioner and
				  subject to the conditions set forth in
				  14VAC5-322-40 D, January 1, 2004.
				  In determining such consent, the commissioner may rely on the consent of the
				  commissioner of the company's state of domicile. No such election shall be made
				  until the insurer demonstrates at least 20% of the business to be valued on
				  this table is in one or more of the preferred classes. A table from the 2001
				  CSO Preferred Class Structure Mortality Table used in place of a 2001 CSO
				  Mortality Table, pursuant to the requirements of this chapter, will be treated
				  as part of the 2001 CSO Mortality Table only for purposes of reserve valuation
				  pursuant to the requirements of the rules entitled "Use of the 2001 CSO
				  Mortality Table In Determining Minimum Reserve Liabilities And Nonforfeiture
				  Benefits" (14VAC5-321).
Statutory Authority
§§ 12.1-13 and 38.2-223 of the Code of Virginia.
Virginia Administrative Code › Title 14 - INSURANCE › Agency 5 - STATE CORPORATION COMMISSION, BUREAU OF INSURANCE › Chapter 322 - USE OF THE 2001 CSO PREFERRED CLASS STRUCTURE MORTALITY TABLE IN DETERMINING RESERVE LIABILITIES › Section 14VAC5-322-40 - Conditions

Current through Register Vol. 40, No. 24, July 15, 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 shall certify
				that:
1. The present value of death benefits
				over the next 10 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.
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.
Virginia Administrative Code › Title 14 - INSURANCE › Agency 5 - STATE CORPORATION COMMISSION, BUREAU OF INSURANCE › Chapter 322 - USE OF THE 2001 CSO PREFERRED CLASS STRUCTURE MORTALITY TABLE IN DETERMINING RESERVE LIABILITIES › Section 14VAC5-322-50 - Severability clause

Current through Register Vol. 40, No. 24, July 15, 2024
If any provision of this chapter or the application thereof
				  to any person or circumstance is for any reason held to be invalid, the
				  remainder of the chapter and the application of the provision to other persons
				  or circumstances shall not be affected thereby.
Statutory Authority
§§ 12.1-13 and 38.2-223 of the Code of Virginia.
Virginia Administrative Code › Title 14 - INSURANCE › Agency 5 - STATE CORPORATION COMMISSION, BUREAU OF INSURANCE › Chapter 322 - USE OF THE 2001 CSO PREFERRED CLASS STRUCTURE MORTALITY TABLE IN DETERMINING RESERVE LIABILITIES › Section - DOCUMENTS INCORPORATED BY REFERENCE (14VAC5-322)

Current through Register Vol. 40, No. 24, July 15, 2024
2001 CSO Mortality Table, American Academy of Actuaries, June
				  2002.
Preferred Class Structure Mortality Table, Society of
				  Actuaries, January 30, 2006 report, as adopted by NAIC September
				  2006.
Virginia Administrative Code › Title 14 - INSURANCE › Agency 5 - STATE CORPORATION COMMISSION, BUREAU OF INSURANCE › Chapter 323 - RULES GOVERNING PRENEED LIFE INSURANCE MINIMUM STANDARDS FOR DETERMINING RESERVE LIABILITIES AND NONFORFEITURE VALUES › Section 14VAC5-323-10 - Authority

Current through Register Vol. 40, No. 24, July 15, 2024
This chapter is promulgated by the commission, pursuant to
				  § 38.2-223 of the Code of Virginia and in accordance with §§
				  38.2-1369, 38.2-3206 through 38.2-3209, and 38.2-4120 of the Code of Virginia
				  and 14VAC5-319-40, to approve,
				  recognize, permit, and prescribe the use of the 1980 Commissioners Standard
				  Ordinary (CSO) Life Valuation Mortality Table for use in determining the
				  minimum standard of valuation of reserves and the minimum standard
				  nonforfeiture values for insurers offering preneed insurance in this
				  Commonwealth.
Statutory Authority: §§ 12.1-13 and 38.2-223 of
					 the Code of Virginia.
Virginia Administrative Code › Title 14 - INSURANCE › Agency 5 - STATE CORPORATION COMMISSION, BUREAU OF INSURANCE › Chapter 323 - RULES GOVERNING PRENEED LIFE INSURANCE MINIMUM STANDARDS FOR DETERMINING RESERVE LIABILITIES AND NONFORFEITURE VALUES › Section 14VAC5-323-20 - Definitions

Current through Register Vol. 40, No. 24, July 15, 2024
The following words and terms when used in this chapter shall
				  have the following meanings unless the context clearly indicates
				  otherwise:
"2001 CSO Mortality Table" means that mortality table, which
				  is included in the Proceedings of the NAIC (2nd Quarter 2002), 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. 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.
"Commission" means the State Corporation Commission.
"NAIC" means the National Association of Insurance
				  Commissioners.
"Preneed insurance," "preneed insurance contract," or
				  "preneed insurance policy" means a life insurance policy, or other life
				  insurance contract which at issue, whether by assignment or otherwise, has for
				  a purpose, the funding of a preneed funeral contract as defined in §
				  54.1-2800 of the Code of Virginia.
"Ultimate 1980 CSO" means the Commissioners 1980 Standard
				  Ordinary Life Valuation Mortality Table without any selection factors,
				  incorporated into the 1980 NAIC amendments to the Standard Valuation Law and
				  Standard Nonforfeiture Law for Life Insurance models, and adopted by the NAIC
				  in December 1983. It is a mortality table consisting of separate rates of
				  mortality for male and female lives, developed by the Society of Actuaries
				  Committee to recommend new mortality tables for valuation of standard
				  individual ordinary life insurance, as set forth in Transactions, Society of
				  Actuaries, Vol. XXXIII (1981), pp. 673 and 674.
Statutory Authority
§§ 12.1-13 and 38.2-223 of the Code of
					 Virginia.
Virginia Administrative Code › Title 14 - INSURANCE › Agency 5 - STATE CORPORATION COMMISSION, BUREAU OF INSURANCE › Chapter 323 - RULES GOVERNING PRENEED LIFE INSURANCE MINIMUM STANDARDS FOR DETERMINING RESERVE LIABILITIES AND NONFORFEITURE VALUES › Section 14VAC5-323-30 - Minimum valuation mortality standards

Current through Register Vol. 40, No. 24, July 15, 2024
For preneed insurance contracts, and similar policies and
				  contracts, the minimum mortality standard for determining reserve liabilities
				  and nonforfeiture values for both male and female insureds shall be the
				  Ultimate 1980 CSO.
Statutory Authority
§§ 12.1-13 and 38.2-223 of the Code of
					 Virginia.
Virginia Administrative Code › Title 14 - INSURANCE › Agency 5 - STATE CORPORATION COMMISSION, BUREAU OF INSURANCE › Chapter 323 - RULES GOVERNING PRENEED LIFE INSURANCE MINIMUM STANDARDS FOR DETERMINING RESERVE LIABILITIES AND NONFORFEITURE VALUES › Section 14VAC5-323-40 - Minimum valuation interest rate standards

Current through Register Vol. 40, No. 24, July 15, 2024
A. The interest rates used in determining the
				minimum standard for valuation of preneed insurance shall be the calendar year
				statutory valuation interest rates as defined in § 38.2-1371 of the Code
				of Virginia.
B. The interest rates
				used in determining the minimum standard for nonforfeiture values for preneed
				insurance shall be the calendar year statutory nonforfeiture interest rates as
				defined in § 38.2-3209 of the Code of Virginia.
Statutory Authority: §§ 12.1-13 and 38.2-223 of
					 the Code of Virginia.
Virginia Administrative Code › Title 14 - INSURANCE › Agency 5 - STATE CORPORATION COMMISSION, BUREAU OF INSURANCE › Chapter 323 - RULES GOVERNING PRENEED LIFE INSURANCE MINIMUM STANDARDS FOR DETERMINING RESERVE LIABILITIES AND NONFORFEITURE VALUES › Section 14VAC5-323-50 - Minimum valuation method standards

Current through Register Vol. 40, No. 24, July 15, 2024
A. The method used in determining the
				standard for the minimum valuation of reserves of preneed insurance shall be
				the method defined in §§ 38.2-1368 and 38.2-1369 of the Code of
				Virginia.
B. The method used in
				determining the standard for the minimum nonforfeiture values for preneed
				insurance shall be the method defined in § 38.2-3209 of the Code of
				Virginia.
Statutory Authority: §§ 12.1-13 and 38.2-223 of
					 the Code of Virginia.