S.D. Admin. R. 20:06:08:45

Current through Register Vol. 51, page 57, November 12, 2024

Section 20:06:08:45 - Conditions of use

The 2001 CSO Mortality Table shall be used in the following manner:

(1) For each plan of insurance with separate rates for smokers and nonsmokers an insurer may use:

(a) Composite mortality tables to determine minimum reserve liabilities and minimum cash surrender values and amounts of paid-up nonforfeiture benefits;

(b) Smoker and nonsmoker mortality tables to determine the valuation net premiums and additional minimum reserves, if any, required by SDCL 58-26-81 and 58-26-82 and use composite mortality tables to determine the basic minimum reserves, minimum cash surrender values and amounts of paid-up nonforfeiture benefits; or

(c) Smoker and nonsmoker mortality to determine minimum reserve liabilities and minimum cash surrender values and amounts of paid-up nonforfeiture benefits;

(2) For plans of insurance without separate rates for smokers and nonsmokers the composite mortality table shall be used;

(3) For the purpose of determining minimum reserve liabilities and minimum cash surrender values and amounts of paid-up nonforfeiture benefits, the 2001 CSO Mortality Table may, at the option of the insurer for each plan of insurance, be used in the insurer's ultimate or select and ultimate form.

If the 2001 CSO Mortality Table is the minimum reserve standard for any plan for an insurer, the actuarial opinion in the annual statement filed with the director shall be based on an asset adequacy analysis pursuant to SDCL 58-26-46. An insurer is exempt from this requirement if the insurer only does business in this state and no other state.

S.D. Admin. R. 20:06:08:45

30 SDR 189, effective 6/7/2004.

General Authority: SDCL 58-26-57.

Law Implemented: SDCL 58-26-57.