Section 688A.352 - Restrictions on use of 2001 CSO Preferred Class Structure Mortality Table1. An insurer shall not use the 2001 CSO Preferred Class Structure Mortality Table for the valuation of policies issued before January 1, 2008, in any financial statement required by statute in which the insurer reports, with respect to any policy or portion of a policy coinsured:(a) In cases where the mode of payment of the reinsurance premium is less frequent than the mode of payment of the policy premium, a reserve credit that exceeds, by more than Y, the gross reserve calculated before reinsurance. As used in this paragraph, Y is the amount of the gross reinsurance premium that: (1) Provides coverage for the period from the next policy premium due date to the earlier of the end of the policy year and the next reinsurance premium due date; and (2) Would be refunded to the ceding entity upon the termination of the policy. (b) In cases where the mode of payment of the reinsurance premium is more frequent than the mode of payment of the policy premium, a reserve credit that is less than the gross reserve, calculated before reinsurance, by an amount that is less than Z. As used in this paragraph, Z is the amount of the gross reinsurance premium that the ceding entity would need to pay the assuming company to provide reinsurance coverage from the period of the next reinsurance premium due date to the next policy premium due date minus any liability established for the proportionate amount not remitted to the insurer.2. An insurer may estimate and adjust its accounting on an aggregate basis to meet the conditions to use the 2001 CSO Preferred Class Structure Mortality Table set forth in this section and NAC 688A.355 and 688A.357.3. For the purposes of subsection 1, the reserve: (a) For the mean reserve method is defined as the mean reserve minus the deferred premium asset; and (b) For the mid-terminal reserve method includes the unearned premium reserve.Nev. Admin. Code § 688A.352
Added to NAC by Comm'r of Insurance by R093-14, eff. 6/28/2016NRS 679B.130, 681B.120, 688A.325