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Oklahoma Administrative Code (Last Updated: March 11, 2021) |
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TITLE 365. Insurance Department |
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Chapter 10. Life, Accident and Health |
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Subchapter 21. Recognition of the 2001 CSO Mortality Table for Use in Determining Minimum Reserve Liabilities and Nonforfeiture Benefits Regulation |
SECTION 365:10-21-6. Applicability of the 2001 CSO Mortality Table to Oklahoma Valuation of Life Insurance Policies Regulation, O.A.C. 365:10-17-1, et seq.
Latest version.
- (a) The 2001 CSO Mortality Table may be used in applying the Oklahoma Valuation of Life Insurance Policies Regulation, O.A.C. 365:10-17-4, in the following manner, subject to the transition dates for use of the 2001 CSO Mortality Table in Section 365:10-21-4 of this regulation (unless otherwise noted, the references in this section are to the Oklahoma Valuation of Life Insurance Policies Regulation, O.A.C. 365:10-17-1, et seq.):(1) O.A.C. 365:10-17-2(1)(B)(ii): The net level reserve premium is based on the ultimate mortality rates in the 2001 CSO Mortality Table.(2) "Contract segmentation method" as defined at O.A.C. 365:10-17-3: All calculations are made using the 2001 CSO Mortality Rate, and, if elected, the optional minimum mortality standard for deficiency reserves stipulated in O.A.C 365:10-21-6(a)(4) of this regulation. 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) O.A.C. 365:10-17-4(a): The 2001 CSO Mortality Table is the minimum standard for basic reserves.(4) O.A.C. 365:10-17-4(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 O.A.C. 365:10-17-4(b)(3)(A) to (I). 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) O.A.C. 365:10-17-5(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) O.A.C. 365:10-17-5(e)(4): The calculations specified in O.A.C. 365:10-17-5(e) shall use the ultimate mortality rates in the 2001 CSO Mortality Table.(7) O.A.C. 365:10-17-4(f)(4): The calculations specified in O.A.C. 365:10-17-5(f) shall use the ultimate mortality rates in the 2001 CSO Mortality Table.(8) O.A.C. 365:10-17-5(g)(2): The calculations specified in O.A.C. 365:10-17-5(g) shall use the ultimate mortality rates in the 2001 CSO Mortality Table.(9) O.A.C. 365:10-17-6(a)(1)(B): The one-year valuation premium shall be calculated using the ultimate mortality rates in the 2001 CSO Mortality Table.(b) Nothing in this section shall be construed to expand the applicability of the Oklahoma Valuation of Life Insurance Policies Regulation, O.A.C. 365:10-17-1, et seq., to include life insurance policies exempted under O.A.C. 365:10-17-2(1) of the Oklahoma Valuation of Life Insurance Policies Regulation.