Ins 2.81(5)(e)4.
4. The use of the 2001 CSO preferred class structure mortality table for the valuation of policies issued prior to January 1, 2007 is not permitted in any statutory financial statement in which a company reports, with respect to any policy or portion of a policy coinsured, as specified under subd.
4. a. or
b.:
Ins 2.81(5)(e)4.a.
a. In cases where the mode of payment of the reinsurance premium is less frequent than the mode of payment of the policy premium, a reserve credit that exceeds, by more than the amount specified in this subdivision paragraph as Y, the gross reserve calculated before reinsurance. Y is the amount of the gross reinsurance premium that provides coverage for the period from the next policy premium due date to the end of the policy year or the next reinsurance premium due date whichever is earlier, and that would be refunded to the ceding entity upon the termination of the policy.
Ins 2.81(5)(e)4.b.
b. In cases where the mode of payment of the reinsurance premium is more frequent than the mode of payment of the policy premium, a reserve credit that is less than the gross reserve, calculated before reinsurance, by an amount that is less than the amount specified in this subdivision paragraph as Z. Z is the amount of the gross reinsurance premium that the ceding entity would need to pay the assuming company to provide reinsurance coverage from the period of the next reinsurance premium due date to the next policy premium due date minus any liability established for the proportionate amount not remitted to the reinsurer.
Ins 2.81(5)(e)5.
5. For purposes of the condition described in subd.
4., both the reserve credit and the gross reserve before reinsurance for the mean reserve method shall be defined as the mean reserve minus the deferred premium asset, and for the mid-terminal reserve method shall include the unearned premium reserve. A company may estimate and adjust its accounting on an aggregate basis in order to meet the conditions to use the 2001 CSO preferred class structure table.
Ins 2.81(6)
(6) Applicability of the 2001 cso mortality table to s. ins 2.80, valuation of life insurance policies. Ins 2.81(6)(a)
(a) The 2001 CSO mortality table may be used in applying s.
Ins 2.80 in the following manner, subject to the transition dates for use of the 2001 CSO mortality table in sub.
(4):
Ins 2.81(6)(a)2.
2. Section
Ins 2.80 (3) (b): All calculations are made using the 2001 CSO mortality table, and, if elected, the optional minimum mortality standard for deficiency reserves stipulated in subd.
4. 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.
Ins 2.81(6)(a)4.
4. Section
Ins 2.80 (4) (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 subd.
3. 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 law or necessary to be in compliance with relevant actuarial standards of practice.
Ins 2.81(6)(a)5.
5. Section
Ins 2.80 (5) (f): The valuation mortality table used in determining the tabular cost of insurance shall be the ultimate mortality rates in the 2001 CSO mortality table.
Ins 2.81(7)(a)
(a) For any ordinary life insurance policy delivered or issued for delivery in this state on and after January 1, 2005, that utilizes the same premium rates and charges for male and female lives or is issued in circumstances where applicable law does not permit distinctions on the basis of gender, a mortality table that is a blend of the 2001 CSO mortality table (M) and the 2001 CSO mortality table (F) may, at the option of the company for each plan of insurance, be substituted for the 2001 CSO mortality table for use in determining minimum cash surrender values and amounts of paid-up nonforfeiture benefits. No change in minimum valuation standards is implied by this subsection of the regulation.
Ins 2.81(7)(b)
(b) The company may choose from among the blended tables developed by the American Academy of Actuaries CSO Task Force and adopted by the NAIC in December 2002.
Ins 2.81 Note
Note: The blended tables may be obtained from the website of the Office of the Commissioner of Insurance (
http://oci.wi.gov) or by writing to the Office.
Ins 2.81(7)(c)
(c) It shall not, in and of itself, be a violation of s.
628.34, Stats., for an insurer to issue the same kind of policy of life insurance on both a sex-distinct and sex-neutral basis.
Ins 2.81(8)(a)
(a) For funeral policies, the minimum mortality standard for determining reserve liabilities and nonforfeiture values for both male and female insureds shall be the Ultimate 1980 CSO, except as provided in par.
(b).
Ins 2.81(8)(b)
(b) For funeral policies issued on or after January 1, 2009, and before January 1, 2012, the 2001 CSO mortality table may be used as the minimum mortality standard for determining reserve liabilities and nonforfeiture values for both male and female insureds.
Ins 2.81(8)(c)
(c) If an insurer elects to use the 2001 CSO mortality table as a minimum standard for any funeral policy issued on or after January 1, 2009, and before January 1, 2012, the insurer shall provide, as a part of the regulatory asset adequacy issues summary submitted in support of the insurer's asset adequacy testing, an annual written notification to the domiciliary commissioner which shall include all of the following:
Ins 2.81(8)(c)1.
1. A complete list of all funeral policy forms that use the 2001 CSO mortality table as a minimum standard.
Ins 2.81(8)(c)2.
2. A certification signed by the appointed actuary stating that the reserve methodology employed by the insurer in determining reserves for the funeral policies issued on or after January 1, 2009, and before January 1, 2012, using the 2001 CSO mortality table as a minimum standard, develops adequate reserves. For purposes of the certification, the funeral policies using the 2001 CSO mortality table as a minimum standard may not be aggregated with any other policies.
Ins 2.81(8)(c)3.
3. Supporting information regarding the adequacy of reserves for funeral policies issued on or after January 1, 2009, and before January 1, 2012, and using the 2001 CSO mortality table as a minimum standard for reserves.
Ins 2.81(8)(d)
(d) For funeral policies issued on or after January 1, 2012, the Ultimate 1980 CSO mortality table shall be used as the minimum mortality standard for determining reserve liabilities and nonforfeiture values.
Ins 2.81 History
History: CR 04-071: cr.
Register December 2004 No. 588, eff. 1-1-05;
CR 07-070: am. (2) and (3) (a), cr. (3) (cm), (i), (4) (c) and (5) (e)
Register December 2007 No. 624, eff. 1-1-08; corrections in (4) (a) and (b) made under s.
13.92 (4) (b) 7., Stats.,
Register August 2009 No. 644;
CR 09-027: am. (2), (4) (a) and (b), cr. (3) (em), (j) and (8), renum. (8) to be (9)
Register September 2009 No. 645, eff. 10-1-09;
CR 10-026: am. (4) (c), cr. (5) (e) 4. and 5.
Register August 2010 No. 656, eff. 9-1-10; numbering of (5) (e) 5. and corrections in (5) (e) 4. and 5. made under s.
13.92 (4) (b) 1. and
7., Stats.,
Register August 2010 No. 656.
