| (a) For preneed life insurance policies or certificates
issued on or after January 1, 2009, and before January 1, 2012, the
2001 CSO Mortality Table may be used as the minimum standard for reserves
and minimum standard for nonforfeiture benefits for both male and
female insureds in accordance with the requirements of Subchapter
AA, Division 3, of this chapter (relating to 2001 CSO Mortality Table).
(b) If a company elects to use the 2001 CSO Mortality
Table as a minimum standard for any preneed life insurance policy
or certificate issued on or after the effective date of this subsection
and before January 1, 2012, the company must provide, as a part of
the actuarial opinion memorandum submitted in support of the company's
asset adequacy analysis, an annual written notification to the domiciliary
commissioner. The notification must include:
(1) a complete list of all preneed life insurance policy
and certificate forms that use the 2001 CSO Mortality Table as a minimum
standard;
(2) a certification signed by the appointed actuary
stating that the reserve methodology, employed by the company in determining
reserves for the preneed life insurance policies or certificates issued
after the effective date of this subchapter and using the 2001 CSO
Mortality Table as a minimum standard, develops adequate reserves
(for the purposes of this certification, the preneed life insurance
policies or certificates using the 2001 CSO Mortality Table as a minimum
standard cannot be aggregated with any other policies); and
(3) supporting information regarding the adequacy of
reserves for preneed life insurance policies or certificates issued
after the effective date of this subchapter and using the 2001 CSO
Mortality Table as a minimum standard for reserves.
(c) Preneed life insurance policies or certificates
issued on or after January 1, 2012, must use the Ultimate 1980 CSO
in the calculation of minimum nonforfeiture values and minimum reserves.
|
| Source Note: The provisions of this §4.2836 adopted to be effective December 29, 2008, 33 TexReg 10441; transferred effective September 1, 2023, as published in the July 28, 2023, issue of the Texas Register, 48 TexReg 4127; amended to be effective January 24, 2024, 49 TexReg 250 |
