Statutes, codes, and regulations
New Jersey Administrative Code
Title 11 - INSURANCEChapter 4 - ACTUARIAL SERVICES
Subchapter 27 - THE 2001 COMMISSIONER'S STANDARD ORDINARY (CSO) MORTALITY TABLE FOR USE IN DETERMINING MINIMUM RESERVE LIABILITIES AND NONFORFEITURE BENEFITS
Section 11:4-27.5 - Applicability of the 2001 CSO Mortality Table to N.J.A.C 11:4-32

N.J. Admin. Code § 11:4-27.5

Download
PDF
Current through Register Vol. 56, No. 24, December 18, 2024
Section 11:4-27.5 - Applicability of the 2001 CSO Mortality Table to N.J.A.C 11:4-32
(a) Subject to the transition dates for use of the 2001 CSO Mortality table in N.J.A.C. 11:4-27.3, the 2001 CSO Mortality Table may be used in applying N.J.A.C. 11:4-32 in the following manner.
1. The net level reserve premium is based on the ultimate mortality rates in the 2001 CSO Mortality Table in N.J.A.C. 11:4-32.1(c)2 ii.
2. In the definition of contract segmentation at N.J.A.C. 11:4-32.2, all calculations are made using the 2001 CSO Mortality Rate, and, if elected, the optional minimum mortality standard for deficiency reserves stipulated in N.J.A.C. 11:4-32.3 and 32.4. Where the definition of contract segmentation refers to a mortality rate for issue age x and policy year k+t, the mortality rate to be used 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. The 2001 CSO Mortality Table is the minimum standard for basic reserves in N.J.A.C. 11:4-32.3(a).
4. In N.J.A.C. 11:4-32.3(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 N.J.A.C. 11:4-32.3(b)3 i through viii. 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 rule or necessary to be in compliance with relevant Actuarial Standards of Practice.
5. The valuation mortality table used in determining the tabular cost of insurance shall be the ultimate mortality rates in the 2001 CSO Mortality Table in N.J.A.C. 11:4-32.4(c).
6. The calculations specified in N.J.A.C. 11:4-32.4(e) shall use the ultimate mortality rates in the 2001 CSO Mortality Table in N.J.A.C. 11:4-32.4(e)4.
7. The calculations specified in N.J.A.C. 11:4-32.4(f) shall use the ultimate mortality rates in the 2001 CSO Mortality Table in N.J.A.C. 11:4-32.4(f)4.
8. The calculations specified in N.J.A.C. 11:4-32.4(g) shall use the ultimate mortality rates in the 2001 CSO Mortality Table in N.J.A.C. 11:4-32.4(g)2.
9. The one-year valuation premium shall be calculated using the ultimate mortality rates in the 2001 CSO Mortality Table in N.J.A.C. 11:4-32.5(a) 2.
(b) Nothing in this section shall be construed to expand the applicability of N.J.A.C. 11:4-32 to include life insurance policies exempted therein.

N.J. Admin. Code § 11:4-27.5