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054.00.83-5. Conditions

AR ADC 054.00.83-5Arkansas Administrative Code

West's Arkansas Administrative Code
Title 054. Insurance Department
Division 00.
Rule 83. Recognition of the 2001 CSO Mortality Table for Use in Determining Minimum Reserve Liabilities and Nonforfeiture Benefits Model Regulation
Ark. Admin. Code 054.00.83-5
054.00.83-5. Conditions
Currentness
A. For each plan of insurance with separate rates for smokers and nonsmokers an insurer may use:
(1) Composite mortality tables to determine minimum reserve liabilities and minimum cash surrender values and amounts of paid-up nonforfeiture benefits;
(2) Smoker and nonsmoker mortality tables to determine the valuation net premiums and additional minimum reserves, if any, required by Ark. Code Ann. ยง 23-84-110 and use composite mortality tables to determine the basic minimum reserves, minimum cash surrender values and amounts of paid-up nonforfeiture benefits; or
(3) Smoker and nonsmoker mortality to determine minimum reserve liabilities and minimum cash surrender values and amounts of paid-up nonforfeiture benefits.
B. For plans of insurance without separate rates for smokers and nonsmokers the composite mortality tables shall be used.
C. 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 company for each plan of insurance, be used in its ultimate or select and ultimate form, subject to the restrictions of Section 6 and Rule and Regulation 47 of the Arkansas Insurance Regulations relative to use of the select and ultimate form.
D. When the 2001 CSO Mortality Table is the minimum reserve standard for any plan for a company, the actuarial opinion in the annual statement filed with the commissioner shall be based on an asset adequacy analysis as specified in Sections 5 through 12 of Rule and Regulation 64, Actuarial Opinion and Memorandum, of the Arkansas Insurance Regulations. A commissioner may exempt a company from this requirement if it only does business in this state and in no other state.
Current with amendments received through February 15, 2024. Some sections may be more current, see credit for details.
Ark. Admin. Code 054.00.83-5, AR ADC 054.00.83-5
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