§ 3791d. Computation of minimum standard
Except as provided in sections 3791e, 3791f, and 3791m of this subchapter, the minimum
standard for the valuation of policies and contracts issued prior to the effective
date of this subchapter shall be that provided by the laws in effect immediately prior
to that date. Except as otherwise provided in sections 3791e, 3791f, and 3791m of
this subchapter, the minimum standard for the valuation of all policies and contracts
issued on or after July 1, 1968 shall be the Commissioners reserve valuation methods
defined in sections 3791g, 3791h, 3791k, and 3791m of this subchapter, three and one-half
percent interest, or in the case of life insurance policies and contracts, other than
annuity and pure endowment contracts, issued on or after April 12, 1973, four percent
interest for policies issued prior to January 1, 1980, five and one-half percent interest
for single premium life insurance policies and four and one-half percent interest,
and for all other policies issued on and after January 1, 1980, and the following
tables:
(1) For ordinary policies of life insurance issued on the standard basis, excluding any
disability and accidental death benefits in the policies: the Commissioners 1941 Standard
Ordinary Mortality Table for policies issued prior to the operative date of section
3766 of this chapter, the Commissioners 1958 Standard Ordinary Mortality Table for
policies issued on or after the operative date of section 3766 of this chapter and
prior to the operative date of section 3768 of this chapter provided that for any
category of policies issued on female risks, all modified net premiums and present
values referred to in this subchapter may be calculated according to an age not more
than six years younger than the actual age of the insured; and for policies issued
on or after the operative date of section 3768 of this chapter:
(A) the Commissioners 1980 Standard Ordinary Mortality Table;
(B) at the election of the company for any one or more specified plans of life insurance,
the Commissioners 1980 Standard Ordinary Mortality Table with Ten-Year Select Mortality
Factors; or
(C) any ordinary mortality table, adopted after 1980 by the NAIC, that is approved by
rule adopted by the Commissioner for use in determining the minimum standard of valuation
for such policies.
(2) For industrial life insurance policies issued on the standard basis, excluding any
disability and accidental death benefits in the policies: the 1941 Standard Industrial
Mortality Table for policies issued prior to the operative date of section 3767 of
this chapter, and for policies issued on or after the operative date of section 3767
of this chapter, the Commissioners 1961 Standard Industrial Mortality Table or any
industrial mortality table adopted after 1980 by the NAIC that is approved by rule
adopted by the Commissioner for use in determining the minimum standard of valuation
for the policies.
(3) For individual annuity and pure endowment contracts, excluding any disability and
accidental death benefits in the policies: the 1937 Standard Annuity Mortality Table,
or at the option of the company, the Annuity Mortality Table for 1949, Ultimate, or
any modification of either of these tables approved by the Commissioner.
(4) For group annuity and pure endowment contracts, excluding any disability and accidental
death benefits in the policies: the Group Annuity Mortality Table for 1951, a modification
of the table approved by the Commissioner, or at the option of the company, any of
the tables or modifications of tables specified for individual annuity and pure endowment
contracts.
(5) For total and permanent disability benefits in or supplementary to ordinary policies
or contracts: for policies or contracts issued on or after January 1, 1966, the tables
of Period 2 disablement rates and the 1930 to 1950 termination rates of the 1952 Disability
Study of the Society of Actuaries, with due regard to the type of benefit or any tables
of disablement rates and termination rates adopted after 1980 by the NAIC, that are
approved by rule adopted by the Commissioner for use in determining the minimum standard
of valuation for those policies; for policies or contracts issued on or after January
1, 1961, and prior to January 1, 1966, either those tables or, at the option of the
company, the Class 3 Disability Table of 1926; and for policies issued prior to January
1, 1961, the Class 3 Disability Table of 1926. Any such table shall, for active lives,
be combined with a mortality table permitted for calculating the reserves for life
insurance policies.
(6) For accidental death benefits in or supplementary to policies issued on or after January
1, 1966: the 1959 Accidental Death Benefits Table or any accidental death benefits
table adopted after 1980 by the NAIC approved by rule adopted by the Commissioner
for use in determining the minimum standard of valuation for those policies, for policies
issued on or after January 1, 1961, and prior to January 1, 1966, either that table
or, at the option of the company, the Inter-Company Double Indemnity Mortality Table;
and for policies issued prior to January 1, 1961, the Inter-Company Double Indemnity
Mortality Table. Either table shall be combined with a mortality table for calculating
the reserves for life insurance policies.
(7) For group life insurance, life insurance issued on the substandard basis, and other
special benefits: tables approved by the Commissioner. (Added 2015, No. 63, § 1, eff. June 17, 2015.)