S.D. Admin. R. 20:06:51:04

Current through Register Vol. 50, page 159, June 17, 2024

Section 20:06:51:04 - Separate rates for preferred and standard smoker lives

For each plan of insurance with separate rates for preferred and standard smoker lives, an insurer may use the Preferred Smoker and Residual Standard Smoker tables to substitute for the Smoker Mortality Table found in the 2001 CSO Mortality Table to determine minimum reserves. At the time of election and annually thereafter, for business valued under the Preferred Smoker Table, the appointed actuary shall certify that:

(1) The present value of death benefits over the next ten years after the valuation date, using the anticipated mortality experience without recognition of mortality improvement beyond the valuation date for each class, is less than the present value of death benefits using the preferred smoker valuation basis table corresponding to the valuation table being used for that class;

(2) The present value of death benefits over the future life of the contracts, using anticipated mortality experience without recognition of mortality improvement beyond the valuation date for each class, is less than the present value of death benefits using the preferred smoker valuation basic table.

S.D. Admin. R. 20:06:51:04

33 SDR 107, approved December 6, 2006, effective 1/1/2007.

General Authority: SDCL 58-26-83.

Law Implemented: SDCL 58-26-83.