31A-17-504 - Computation of minimum standard.
31A-17-504. Computation of minimum standard.
Except as otherwise provided in Sections 31A-17-505, 31A-17-506, and 31A-17-513, theminimum standard for the valuation of all life insurance policies and annuity and pure endowmentcontracts issued prior to January 1, 1994, shall be that provided by the laws in effect immediatelyprior to that date. Except as otherwise provided in Sections 31A-17-505, 31A-17-506, and31A-17-513, the minimum standard for the valuation of all such policies and contracts issued onor after January 1, 1994, shall be the commissioner's reserve valuation methods defined inSections 31A-17-507, 31A-17-508, 31A-17-511, and 31A-17-513, 3.5% interest, or in the case oflife insurance policies and contracts, other than annuity and pure endowment contracts, issued onor after June 1, 1973, 4% interest for such policies issued prior to April 2, 1980, 5.5% interest forsingle premium life insurance policies, and 4.5% interest for all other such policies issued on andafter April 2, 1980, and the following tables:
(1) For all ordinary policies of life insurance issued on the standard basis, excluding anyaccident and health and accidental death benefits in such policies: the National Association ofInsurance Commissioners 1941 Standard Ordinary Mortality Table for such policies issued priorto the operative date of Subsection 31A-22-408(6)(a) (that is, the Standard Nonforfeiture Law forLife Insurance), the National Association of Insurance Commissioners 1958 Standard OrdinaryMortality Table for such policies issued on or after the operative date of Subsection31A-22-408(6)(a) and prior to the operative date of Subsection 31A-22-408(6)(d), provided thatfor any category of such policies issued on female risks, all modified net premiums and presentvalues referred to in this section may be calculated according to an age not more than six yearsyounger than the actual age of the insured; and for such policies issued on or after the operativedate of Subsection 31A-22-408(6)(d):
(a) the National Association of Insurance Commissioners 1980 Standard OrdinaryMortality Table;
(b) at the election of the company for any one or more specified plans of life insurance,the National Association of Insurance Commissioners 1980 Standard Ordinary Mortality Tablewith Ten-Year Select Mortality Factors; or
(c) any ordinary mortality table, adopted after 1980 by the National Association ofInsurance Commissioners, that is approved by rule promulgated by the commissioner for use indetermining the minimum standard of valuation for such policies.
(2) For all industrial life insurance policies issued on the standard basis, excluding anyaccident and health and accidental death benefits in such policies: the 1941 Standard IndustrialMortality Table for such policies issued prior to the operative date of Subsection31A-22-408(6)(c), and for such policies issued on or after such operative date, the NationalAssociation of Insurance Commissioners 1961 Standard Industrial Mortality Table or anyindustrial mortality table, adopted after 1980 by the National Association of InsuranceCommissioners, that is approved by rule promulgated by the commissioner for use in determiningthe minimum standard of valuation for such policies.
(3) For individual annuity and pure endowment contracts, excluding any disability andaccidental death benefits in such policies:
(a) the 1937 Standard Annuity Mortality Table;
(b) at the option of the company, the Annuity Mortality Table for 1949, Ultimate; or
(c) any modification of either of these tables approved by the commissioner.
(4) For group annuity and pure endowment contracts, excluding any accident and health
and accidental death benefits in such policies:
(a) the Group Annuity Mortality Table for 1951, any modification of such table approvedby the commissioner; or
(b) at the option of the company, any of the tables or modifications of tables specified forindividual annuity and pure endowment contracts.
(5) For total and permanent disability benefits in or supplementary to ordinary policies orcontracts: for policies or contracts issued on or after January 1, 1966, the tables of Period 2disablement rates and the 1930 to 1950 termination rates of the 1952 Disability Study of theSociety of Actuaries, with due regard to the type of benefit or any tables of disablement rates andtermination rates adopted after 1980 by the National Association of Insurance Commissioners,that are approved by rule promulgated by the commissioner for use in determining the minimumstandard of valuation for such policies; for policies or contracts issued on or after January 1,1961, and prior to January 1, 1966, either such tables or, at the option of the company, the Class(3) Disability Table (1926); and for policies issued prior to January 1, 1961, the Class (3)Disability Table (1926). Any such table shall, for active lives, be combined with a mortality tablepermitted for calculating the reserves for life insurance policies.
(6) For accidental death benefits in or supplementary to policies issued on or afterJanuary 1, 1966, the 1959 Accidental Death Benefits Table or any accidental death benefits tableadopted after 1980 by the National Association of Insurance Commissioners, that is approved byrule promulgated by the commissioner for use in determining the minimum standard of valuationfor such policies, for policies issued on or after January 1, 1961, and prior to January 1, 1966,either such table or, at the option of the company, the Inter-Company Double Indemnity MortalityTable; and for policies issued prior to January 1, 1961, the Inter-Company Double IndemnityMortality Table. Either table shall be combined with a mortality table for calculating the reservesfor life insurance policies.
(7) For group life insurance, life insurance issued on the substandard basis and otherspecial benefits: such tables as may be approved by the commissioner.
Amended by Chapter 116, 2001 General Session