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054.00.83-6. Applicability of the 2001 CSO Mortality Table to Rule and Regulation 47, Valuation...

AR ADC 054.00.83-6Arkansas 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 054.00.83-6
054.00.83-6. Applicability of the 2001 CSO Mortality Table to Rule and Regulation 47, Valuation of Life Insurance Policies, of the Arkansas Insurance Regulations
Currentness
A. The 2001 CSO Mortality Table may be used in applying Rule and Regulation 47, Valuation of Life Insurance Policies, of the Arkansas Insurance Regulations in the following manner, subject to the transition dates for use of the 2001 CSO Mortality Table in Section 4 of this regulation (unless otherwise noted, the references in this section are to the Rule and Regulation 47, Valuation of Life Insurance Policies, of the Arkansas Insurance Regulations):
(1) Section 3A(2)(b): The net level reserve premium is based on the ultimate mortality rates in the 2001 CSO Mortality Table.
(2) Section 4B: All calculations are made using the 2001 CSO Mortality Rate, and, if elected, the optional minimum mortality standard for deficiency reserves stipulated in Section 6A(4) of this regulation. 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 5A: The 2001 CSO Mortality Table is the minimum standard for basic reserves.
(4) Section 5B: 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 Sections 5B(3)(a) to (i). 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 6C: 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 6E(4): The calculations specified in Section 6E shall use the ultimate mortality rates in the 2001 CSO Mortality Table.
(7) Section 6F(4): The calculations specified in Section 6F shall use the ultimate mortality rates in the 2001 CSO Mortality Table.
(8) Section 6G(2): The calculations specified in Section 6G shall use the ultimate mortality rates in the 2001 CSO Mortality Table.
(9) Section 7A(1)(b): 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 Rule and Regulation 47, Valuation of Life Insurance Policies, of the Arkansas Insurance Regulations to include life insurance policies exempted under Section 3A of said Rule and Regulation 47.
Current with amendments received through February 15, 2024. Some sections may be more current, see credit for details.
Ark. Admin. Code 054.00.83-6, AR ADC 054.00.83-6
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