Wisconsin Administrative Code › Office of the Commissioner of Insurance › Chapter Ins 2 - Life Insurance › Section Ins 2.81 - Recognition of the 2001 CSO mortality table for use in determining minimum reserve liabilities and nonforfeiture benefits

Current through June 24, 2024
(1) AUTHORITY. This
			 section is promulgated by the commissioner of insurance pursuant to s.
			 623.06(2)
			 (am) 3, Stats., standard valuation law, and
			 s.
			 632.43(6m)
			 (e) 3 f., Stats., standard nonforfeiture law
			 for life insurance.
(2) PURPOSE.
			 The purpose of this section is to recognize, permit and prescribe the use of:
			 the 2001 commissioners' standard ordinary CSO mortality table in accordance
			 with s.
			 623.06(2) (am)
			 3, Stats., standard valuation law, and s.
			 632.43(6m)
			 (e) 3 f., Stats., standard nonforfeiture law
			 for life insurance; the 2001 CSO mortality table in s.
			 Ins
			 2.20 unisex nonforfeiture values in certain life
			 insurance policies, s.
			 Ins
			 2.35 smoker and nonsmoker mortality tables for minimum
			 reserve liabilities and minimum nonforfeiture benefits, and s.
			 Ins
			 2.80 valuation of life insurance policies; mortality
			 tables that reflect differences in mortality between preferred and standard
			 lives in determining minimum reserve liabilities in accordance with s.
			 623.06(2) (am)
			 3, Stats., standard valuation law, and s.
			 Ins
			 2.80 valuation of life insurance policies; and the
			 1980 commissioners' standard ordinary CSO mortality table for determining the
			 minimum standard of valuation of reserves and the minimum standard
			 nonforfeiture values for funeral policies.
(3) DEFINITIONS. In this section:
(a) "2001 CSO mortality table" means that
			 mortality table, 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
			 Proceedings of the NAIC (2nd Quarter 2002) and is
			 supplemented by the 2001 CSO preferred class structure mortality table and may
			 be obtained from the office. 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.
Note:
The 2001 CSO mortality table may be obtained
				from the website of the Office of the Commissioner of Insurance
				(http://oci.wi.gov) or by writing to the Office.
(b) "2001 CSO mortality table (F)" means that
			 mortality table consisting of the rates of mortality for female lives from the
			 2001 CSO mortality table.
(c) "2001
			 CSO mortality table (M)" means that mortality table consisting of the rates of
			 mortality for male lives from the 2001 CSO mortality table.
(cm) "2001 CSO preferred class structure
			 mortality table" means mortality tables with separate rates for super preferred
			 nonsmokers, preferred nonsmokers, residual standard nonsmokers, preferred
			 smokers, and residual standard smoker splits of the 2001 CSO nonsmoker and
			 smoker tables as adopted by the NAIC at the September, 2006 national meeting
			 and published in the Proceedings of the NAIC (3rd Quarter 2006). Unless the
			 context indicates otherwise, the 2001 CSO preferred class structure mortality
			 table" includes both the ultimate form of that table and the select and
			 ultimate form of that table. It includes both the smoker and nonsmoker
			 mortality tables. It includes both the male and female mortality tables and the
			 gender composite mortality tables. It also includes both the
			 age-nearest-birthday and age-last-birthday bases of the mortality table.
Note:
The 2001 CSO preferred class structure
				mortality table may be obtained from the website of the Office of the
				Commissioner of Insurance (http://oci.wi.gov) or by writing to the
				Office.
(d) "Commissioner"
			 means the commissioner of insurance.
(e) "Composite mortality tables" means
			 mortality tables with rates of mortality that do not distinguish between
			 smokers and nonsmokers.
(em)
			 "Funeral policies" means life insurance policies as defined in s.
			 632.415,
			 Stats.
(f) "NAIC" means the
			 national association of insurance commissioners.
(g) "Office" means the office of the
			 commissioner of insurance.
(h)
			 "Smoker and nonsmoker mortality tables" means mortality tables with separate
			 rates of mortality for smokers and nonsmokers.
(i) "Statistical agent" means an entity with
			 proven systems for protecting the confidentiality of individual insured and
			 insurer information, demonstrated resources for and history of ongoing
			 electronic communications and data transfer ensuring data integrity with
			 insurers, which are its members or subscribers, and a history of and means for
			 aggregation of data and accurate promulgation of the experience modifications
			 in a timely manner.
(j) "Ultimate
			 1980 CSO" means the commissioners 1980 standard ordinary mortality table
			 without 10-year select mortality factors, incorporated into the standard
			 valuation law as provided in s.
			 623.06(2) (am)
			 1, Stats.
Note:
The Ultimate 1980 CSO mortality table may be
				obtained from the website of the Office of the Commissioner of Insurance
				(http://oci.wi.gov) or by writing to the Office.