LIS

Administrative Code

Creating a Report: Check the sections you'd like to appear in the report, then use the "Create Report" button at the bottom of the page to generate your report. Once the report is generated you'll then have the option to download it as a pdf, print or email the report.

Virginia Administrative Code
Title 14. Insurance
Agency 5. State Corporation Commission, Bureau of Insurance
Chapter 321. Use of the 2001 CSO Mortality Table in Determining Reserve Liabilities and Nonforfeiture Benefits
10/5/2024

14VAC5-321-50. Applicability of the 2001 CSO Mortality Table to 14VAC5-319.

A. The 2001 CSO Mortality Table may be used in applying rules at 14VAC5-319, concerning life insurance reserves, in the following manner, subject to the transition dates for use of the 2001 CSO Mortality Table in 14VAC5-321-30.

1. When applying 14VAC5-319-30 B 2, the net level reserve premium is based on the ultimate mortality rates in the 2001 CSO Mortality Table.

2. When determining "contract segmentation method" as defined by 14VAC5-319-10, all calculations are made using the 2001 CSO mortality rate, and, if elected, the optional minimum mortality standard for deficiency reserves stipulated in subdivision 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. When applying 14VAC5-319-40 A, the 2001 CSO Mortality Table is the minimum standard for basic reserves.

4. When applying 14VAC5-319-40 B, 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 subdivisions 1 c, 1 d, 2, and 3 of 14VAC5-319-40 B. 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. When applying 14VAC5-319-50 C, 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. When applying 14VAC5-319-50 E 4, the calculations specified in 14VAC5-319-50 E shall use the ultimate mortality rates in the 2001 CSO Mortality Table.

7. When applying 14VAC5-319-50 F 4, the calculations specified in 14VAC5-319-50 F shall use the ultimate mortality rates in the 2001 CSO Mortality Table.

8. When applying 14VAC5-319-50 G 2, the calculations specified in 14VAC5-319-50 G shall use the ultimate mortality rates in the 2001 CSO Mortality Table.

9. When applying 14VAC5-319-60 A 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 14VAC5-319 to include life insurance policies excepted from regulation pursuant to 14VAC5-319-30 B.

Statutory Authority

§§ 12.1-13 and 38.2-223 of the Code of Virginia.

Historical Notes

Derived from Virginia Register Volume 20, Issue 16, eff. July 1, 2004.

Website addresses provided in the Virginia Administrative Code to documents incorporated by reference are for the reader's convenience only, may not necessarily be active or current, and should not be relied upon. To ensure the information incorporated by reference is accurate, the reader is encouraged to use the source document described in the regulation.

As a service to the public, the Virginia Administrative Code is provided online by the Virginia General Assembly. We are unable to answer legal questions or respond to requests for legal advice, including application of law to specific fact. To understand and protect your legal rights, you should consult an attorney.