Ill. Admin. Code tit. 50, § 1412.40 - Conditions
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 Section 223(3)(f) of the
Code 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
1412.50
of this Part and 50 Ill. Adm. Code 1409 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 Director shall be
based on an asset adequacy analysis in conformance with Section 223(1b) of the
Code. The Director may exempt a company from this requirement if it only does
business in this State and in no other state.
Notes
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