Section 3.9105 - Applicability of the 2001 CSO Mortality Table to Chapter 3, Subchapter EE of this Title(a) The 2001 CSO Mortality Table may be used in applying Chapter 3, Subchapter EE of this title (relating to Valuation of Life Insurance Policies) in the following manner, subject to the transition dates for use of the 2001 CSO Mortality Table in § 3.9103 of this title (relating to 2001 CSO Mortality Table): (1) Section 3.4503(1)(B)(ii) of this title (relating to Applicability): The net level reserve premium is based on the ultimate mortality rates in the 2001 CSO Mortality Table.(2) Section 3.4504(2) of this title (relating to Definitions). All calculations are made using the 2001 CSO Mortality Rate, and, if elected, the optional minimum mortality standard for deficiency reserves stipulated in paragraph (4) of this subsection. 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) Section 3.4505(a) of this title (relating to General Calculation Requirements for Basic Reserves and Premium Deficiency Reserves). The 2001 CSO Mortality Table is the minimum standard for basic reserves.(4) Section 3.4505(b) of this title. 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 §3.4505(b)(3)(A) to (I) of this title. 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) Section 3.4506(c) of this title (relating to Calculation of Minimum Valuation Standard for Policies with Guaranteed Nonlevel Gross Premiums or Guaranteed Nonlevel Benefits (Other than Universal Life Policies)). 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) Section 3.4506(e)(4) of this title. The calculations specified in § 3.4506(e) of this title shall use the ultimate mortality rates in the 2001 CSO Mortality Table.(7) Section 3.4506(f)(4) of this title. The calculations specified in § 3.4506(f) of this title shall use the ultimate mortality rates in the 2001 CSO Mortality Table.(8) Section 3.4506(g)(2) of this title. The calculations specified in § 3.4506(g) of this title shall use the ultimate mortality rates in the 2001 CSO Mortality Table.(9) Section 3.4507(a)(1)(B) of this title (relating to Calculation of Minimum Valuation Standard for Flexible Premium and Fixed Premium Universal Life Insurance Policies That Contain Provisions Resulting in the Ability of a Policyowner to Keep a Policy in Force Over a Second Guarantee Period). 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 Chapter 3, Subchapter EE to include life insurance policies exempted under § 3.4503(1) of this title.28 Tex. Admin. Code § 3.9105
The provisions of this §3.9105 adopted to be effective April 14, 2003, 28 TexReg 3056