Wisconsin Administrative Code › Office of the Commissioner of Insurance › Chapter Ins 2 - Life Insurance › Section Ins 2.20 - Unisex nonforfeiture values in certain life insurance policies

Current through June 24, 2024
(1) PURPOSE. The
			 purpose of this section is to allow insurers who have elected an operative date
			 under s.
			 632.43(6m)
			 (h), Stats., to provide for cash surrender
			 and paid-up nonforfeiture benefits which do not vary with the sex of the life
			 insured. Some life insurance policies are subject to the decision of the United
			 States supreme court in
Arizona Governing Committee v.
			 Norris
,103 Supreme Court Reporter 3492, which makes it illegal for an
			 employer to make contributions after August 1, 1983, to a defined contribution
			 pension plan if the benefits derived from those contributions differ by sex.
			 Separate provisions are set forth in this section for unisex policies that may
			 be subject to that decision and for unisex policies in general.
(2) SCOPE. Except as provided for in sub. (4)
			 (b), this section applies only to those policies issued in this state for which
			 the insurer or employer has determined that the implications of
Norris
would prohibit the use of cash surrender and paid-up
			 nonforfeiture benefits which vary with the sex of the insured.
(3) DEFINITIONS.
(a) "lx" means the number of lives surviving
			 to age x.
(b) "1000 qx" means the
			 yearly death rate per thousand at age x.
(c)
1.
			 "Table A" means the 1980 CSO Mortality Table and the 1980 CET Mortality Table
			 for male lives, with or without 10-Year Select Mortality Factors. The yearly
			 death rate per thousand, 1000 qx, for these tables is published in Appendix A
			 and Appendix B, pages 618 and 619, Volume 33, Transactions of the Society of
			 Actuaries.
2. "Tables NA and SA"
			 means the corresponding 1980 nonsmoker and smoker mortality tables for male
			 lives.
(d)
1. "Table G" means the 1980 CSO Mortality
			 Table and the 1980 CET Mortality Table for female lives, with or without
			 10-Year Select Mortality Factors. The yearly death rate per thousand, 1000 qx,
			 from these tables is published in Appendix A and Appendix B, pages 618 and 619,
			 Volume 33, Transactions of the Society of Actuaries.
2. "Tables NG and SG" means the corresponding
			 1980 nonsmoker and smoker mortality tables for female lives.
(e)
1. "Tables B through F" means the blended
			 1980 CSO and 1980 CET Mortality Tables for policies issued on an age nearest
			 birthday basis with varying proportions of male lives to total lives. The ratio
			 of male lives to total lives is 80% for Table B, 60% for Table C, 50% for Table
			 D, 40% for Table E and 20% for Table F. These tables are published in the
			 proceedings of the National Association of Insurance Commissioners for the 1983
			 December meeting, pages 396 last birthday basis, the tables shall be modified
			 by interpolation between values of lx.
2. "Tables NB through NF and SB through SF"
			 means the corresponding 1980 blended nonsmoker and smoker mortality
			 tables.
(f) "1980 CSO
			 and CET Nonsmoker and Smoker Mortality Tables" means the mortality tables with
			 separate rates of mortality for nonsmokers and smokers derived from the 1980
			 CSO and 1980 CET Mortality Tables and adopted by the NAIC in December 1983.
			 Mortality rates for these tables are published on pp. 406-409, Proceedings of
			 the National Association of Insurance Commissioners, 1984, Vol. 1, and pp.
			 521-530 Proceedings of the National Association of Insurance Commissioners,
			 1987, Vol. 1.