(1)
Alternate
Tables.
(a) For any policy of
insurance delivered or issued for delivery in this state after the effective
date of former 211 CMR
33.00 in 1985,
1. the
1980 CSO Smoker and Nonsmoker Mortality Tables, with or without Ten-Year Select
Mortality Factors, may be substituted for the 1980 CSO Table, with or without
Ten-Year Select Mortality Factors, or for the 1958 CSO Table, and
2. the 1980 CET Smoker and Nonsmoker
Mortality Tables may be substituted for the 1980 CET Table or for the 1958 CET
Table.
(b) For any
policy of insurance delivered or issued for delivery in this state after May
22, 1985 and prior to January 1, 1989, the 1958 CSO or 1958 CET Smoker and
Nonsmoker Mortality Tables may be substituted for the 1958 CSO or 1958 CET
Tables; provided that for any category of insurance issued on female lives with
minimum reserve liabilities, minimum cash surrender values and the paid-up
nonforfeiture benefits determined using the 1958 CSO or 1958 CET Smoker and
Nonsmoker Mortality Tables, such minimum values may be calculated according to
an age not more than six years younger than the actual age of the
insured.
(c) For any policy of life
insurance issued in conjunction with an employer pension plan subject to the
decision of the United States Supreme Court in
Arizona Governing
Committee for Tax Deferred Annuity and Deferred Compensation Plans v.
Norris, 103 S. Ct. 3492 (1983), the life insurer may file with the
Division:
1. gender-blended, smoker/nonsmoker
mortality tables based on the 1980 CSO smoker/nonsmoker mortality
tables.
2. mortality tables
obtained by applying the 1980 CET loading formula to the respective
gender-blended 1980 CSO smoker/nonsmoker mortality tables. Gender-blended CSO
tables shall be calculated according to the following formula:
The ratio to be applied to all male lives is:
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where Z is the ratio of male lives to total lives at pivotal
age of 45.
Acceptable values of Z are .2, .4, .5, .6, and .8. Z values of
0 and 1.0 may be used for certain policies converted from group insurance and
for other policies issued after January 1, 1985, only if the proportion of
persons insured is 90% or more of one sex or the other.
The ratio to be applied to female lives is
Click to view
image
(2)
Conditions. For
each plan of insurance with separate rates for smokers and nonsmokers an
insurer may:
(a) use composite mortality
tables to determine minimum reserve liabilities, minimum cash surrender values
and the paid-up nonforfeiture benefits,
(b) use smoker and nonsmoker mortality tables
to determine the valuation net premiums and additional minimum reserves, if
any, required by M.G.L. c. 175, § 9, and use composite mortality tables to
determine the basic minimum reserves, minimum cash surrender values and the
paid-up nonforfeiture benefits, or
(c) use smoker and nonsmoker mortality tables
to determine minimum reserve liabilities, minimum cash surrender values and the
paid-up nonforfeiture benefits.
