830 - VALUATION OF LIFE INSURANCE POLICIES MODEL REGULATION

(Including the Introduction and Use of New Select Mortality Factors)

 

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VALUATION OF LIFE INSURANCE POLICIES MODEL REGULATION      

 

Section 1.  Purpose

           

Section 2.  Authority     

 

Section 3.  Applicability 

 

Section 4.  Definitions

           

Section 5.  General Calculation Requirements for Basic Reserves and Premium Deficiency Reserves

           

Section 6.  Calculation of Minimum Valuation Standard for Policies with Guaranteed Nonlevel Gross Premiums or Guaranteed Nonlevel Benefits (Other than Universal Life Policies)

           

Section 7.  Calculation of Minimum Valuation Standard for Flexible Premium and Fixed Premium Universal Life Insurance Policies That Contain Provisions Resulting in the Ability of a Policyowner to Keep a Policy in Force Over a Secondary Guarantee Period        

 

Section 8.  Effective Date           

 

Appendix.  Select Mortality Factors        

 

Section 1.  Purpose

 

A.         The purpose of this regulation is to provide:

 

(1)        Tables of select mortality factors and rules for their use;

 

(2)        Rules concerning a minimum standard for the valuation of plans with nonlevel premiums or benefits; and

 

(3)        Rules concerning a minimum standard for the valuation of plans with secondary guarantees.

 

B.         The method for calculating basic reserves defined in this regulation will constitute the commissioners' Reserve Valuation Method for policies to which this regulation is applicable.

 

Section 2.  Authority

 

This regulation is issued under the authority of Section [insert applicable section] of the Insurance Laws of [insert state].

 

Section 3.  Applicability

 

This regulation shall apply to all life insurance policies, with or without nonforfeiture values, issued on or after the effective date of this regulation, subject to the following exceptions and conditions.

 

A.         Exceptions

 

(1)        This regulation shall not apply to any individual life insurance policy issued on or after the effective date of this regulation if the policy is issued in accordance with and as a result of the exercise of a reentry provision contained in the original life insurance policy of the same or greater face amount, issued before the effective date of this regulation, that guarantees the premium rates of the new policy.  This regulation also shall not apply to subsequent policies issued as a result of the exercise of such a provision, or a derivation of the provision, in the new policy.

 

(2)        This regulation shall not apply to any universal life policy that meets all the following requirements:

 

(a)        Secondary guarantee period, if any, is five (5) years or less;

 

(b)        Specified premium for the secondary guarantee period is not less than the net level reserve premium for the secondary guarantee period based on the CSO valuation tables as defined in Section 4F and the applicable valuation interest rate; and

 

(c)        The initial surrender charge is not less than 100 percent of the first year annualized specified premium for the secondary guarantee period.

Drafting Note: Policies with a secondary guarantee are described in Section 7.

 

(3)        This regulation shall not apply to any variable life insurance policy that provides for life insurance, the amount or duration of which varies according to the investment experience of any separate account or accounts.

 

(4)        This regulation shall not apply to any variable universal life insurance policy that provides for life insurance, the amount or duration of which varies according to the investment experience of any separate account or accounts.

 

(5)        This regulation shall not apply to a group life insurance certificate unless the certificate provides for a stated or implied schedule of maximum gross premiums required in order to continue coverage in force for a period in excess of one year.

 

B.         Conditions

 

(1)        Calculation of the minimum valuation standard for policies with guaranteed nonlevel gross premiums or guaranteed nonlevel benefits (other than universal life policies), or both, shall be in accordance with the provisions of Section 6.

 

(2)        Calculation of the minimum valuation standard for flexible premium and fixed premium universal life insurance policies, that contain provisions resulting in the ability of a policyholder to keep a policy in force over a secondary guarantee period shall be in accordance with the provisions of Section 7.

 

Section 4.  Definitions

 

For purposes of this regulation:

 

A.         "Basic reserves" means reserves calculated in accordance with Section [cite section of state law comparable to Section 5 of the NAIC Standard Valuation Law].

 

B.         "Contract segmentation method" means the method of dividing the period from issue to mandatory expiration of a policy into successive segments, with the length of each segment being defined as the period from the end of the prior segment (from policy inception, for the first segment) to the end of the latest policy year as determined below.  All calculations are made using the 1980 CSO valuation tables, as defined in Subsection F of this section, (or any other valuation mortality table adopted by the National Association of Insurance Commissioners (NAIC) after the effective date of this regulation and promulgated by regulation by the commissioner for this purpose), and, if elected, the optional minimum mortality standard for deficiency reserves stipulated in Section 5B of this regulation.

The length of a particular contract segment shall be set equal to the minimum of the value t for which Gt is greater than Rt (if Gt never exceeds Rt the segment length is deemed to be the number of years from the beginning of the segment to the mandatory expiration date of the policy), where Gt and Rt are defined as follows:

 

            GPx+k+t

Gt =   __________

            GPx+k+t-1

 

where:

 

x =       original issue age;

k =       the number of years from the date of issue to the beginning of the segment;

t =        1, 2, ...; t is reset to 1 at the beginning of each segment;

 

GPx+k+t-1 =     Guaranteed gross premium per thousand of face amount for year t of the segment, ignoring policy fees only if level for the premium paying period of the policy.

 

            qx+k+t

Rt =      __________,      However, Rt may be increased or decreased by one

            qx+k+t-1           percent in any policy year, at the company's option,

                                       but Rt shall not be less than one;

where:

 

x, k and t are as defined above, and

 

qx+k+t-1 =        valuation mortality rate for deficiency reserves in policy year k+t but using the mortality of Section 5B(2) if Section 5B(3) is elected for deficiency reserves.

 

However, if GPx+k+t is greater than 0 and GPx+k+t-1 is equal to 0, Gt shall be deemed to be 1000.  If  GPx+k+t and GPx+k+t-1 are both equal to 0, Gt shall be deemed to be 0.

 

Drafting Note: The purpose of the one percent tolerance in the R factor is to prevent irrational segment lengths due to such things as premium rounding. For example, consider a plan in which gross premiums are designed at some point to be a ratio times the underlying ultimate mortality rates, where the ratio varies by issue age. The resulting segments may be greater than one year, because the guaranteed gross premiums are not expressed in fractional cents. The tolerance factor allows the creation of one year segments for a plan in which premiums parallel the underlying valuation mortality table.

 

C.         "Deficiency reserves" means the excess, if greater than zero, of

 

(1)        Minimum reserves calculated in accordance with Section [cite section of the state law comparable to Section 8 of the NAIC Standard Valuation Law] over

 

(2)        Basic reserves.

 

D.         "Guaranteed gross premiums" means the premiums under a policy of life insurance that are guaranteed and determined at issue.

 

E.         "Maximum valuation interest rates" means the interest rates defined in Section [cite section of state law comparable to Section 4b of the NAIC Standard Valuation Law] (Computation of Minimum Standard by Calendar Year of Issue) that are to be used in determining the minimum standard for the valuation of life insurance policies.

 

F.         "1980 CSO valuation tables" means the Commissioners' 1980 Standard Ordinary Mortality Table (1980 CSO Table) without ten-year selection factors, incorporated into the 1980 amendments to the NAIC Standard Valuation Law, and variations of the 1980 CSO Table approved by the NAIC, such as the smoker and nonsmoker versions approved in December 1983.

 

Drafting Note: This regulation defines the 1980 CSO Tables without the existing ten -year select mortality factors to assure that, if select mortality factors are elected, only one set of factors may be applied to the base valuation mortality table.

 

G.         "Scheduled gross premium" means the smallest illustrated gross premium at issue for other than universal life insurance policies.  For universal life insurance policies, scheduled gross premium means the smallest specified premium described in Section 7A(3), if any, or else the minimum premium described in Section 7A(4).

 

H.         (1)        "Segmented reserves" means reserves, calculated using segments produced by the contract segmentation method, equal to the present value of all future guaranteed benefits less the present value of all future net premiums to the mandatory expiration of a policy, where the net premiums within each segment are a uniform percentage of the respective guaranteed gross premiums within the segment.  The uniform percentage for each segment is such that, at the beginning of the segment, the present value of the net premiums within the segment equals:

 

(a)        The present value of the death benefits within the segment, plus

 

(b)        The present value of any unusual guaranteed cash value (see Section 6D) occurring at the end of the segment, less

 

(c)        Any unusual guaranteed cash value occurring at the start of the segment, plus

 

(d)        For the first segment only, the excess of the Item (i) over Item (ii), as follows:

 

(i)         A net level annual premium equal to the present value, at the date of issue, of the benefits provided for in the first segment after the first policy year, divided by the present value, at the date of issue, of an annuity of one per year payable on the first and each subsequent anniversary within the first segment on which a premium falls due.  However, the net level annual premium shall not exceed the net level annual premium on the nineteen-year premium whole life plan of insurance of the same renewal year equivalent level amount at an age one year higher than the age at issue of the policy.

 

(ii)         A net one year term premium for the benefits provided for in the first policy year.

 

(2)        The length of each segment is determined by the "contract segmentation method," as defined in this section.

 

(3)        The interest rates used in the present value calculations for any policy may not exceed the maximum valuation interest rate, determined with a guarantee duration equal to the sum of the lengths of all segments of the policy.

 

(4)        For both basic reserves and deficiency reserves computed by the segmented method, present values shall include future benefits and net premiums in the current segment and in all subsequent segments.

 

Drafting Note: The segmentation requirement should not be limited to plans with no cash surrender values; otherwise companies could avoid segmentation entirely by designing policies with minimal (positive) cash values.  Segmentation for plans with cash surrender values should be based solely upon gross premium levels. Basing segmentation upon the level of cash surrender values introduces complications because of the inter-relationship between minimum cash surrender values and gross premium patterns. The requirements of this regulation relating to reserves for plans with unusual cash values and to reserves if cash values exceed calculated reserves serve to link required reserves and cash surrender values.  The calculation of segmented reserves shall not be linked to the occurrence of a positive unitary terminal reserve at the end of a segment. The requirement of this regulation to hold the greater of the segmented reserve or the unitary reserve eliminates the need for any linkage.

 

I.          "Tabular cost of insurance" means the net single premium at the beginning of a policy year for one-year term insurance in the amount of the guaranteed death benefit in that policy year.

 

J.          "Ten-year select factors" means the select factors adopted with the 1980 amendments to the NAIC Standard Valuation Law.

 

K.         (1)        "Unitary reserves" means the present value of all future guaranteed benefits less the present value of all future modified net premiums, where:

 

(a)        Guaranteed benefits and modified net premiums are considered to the mandatory expiration of the policy; and

 

(b)        Modified net premiums are a uniform percentage of the respective guaranteed gross premiums, where the uniform percentage is such that, at issue, the present value of the net premiums equals the present value of all death benefits and pure endowments, plus the excess of Item (i) over Item (ii), as follows:

 

(i)         A net level annual premium equal to the present value, at the date of issue, of the benefits provided for after the first policy year, divided by the present value, at the date of issue, of an annuity of one per year payable on the first and each subsequent anniversary of the policy on which a premium falls due.  However, the net level annual premium shall not exceed the net level annual premium on the nineteen-year premium whole life plan of insurance of the same renewal year equivalent level amount at an age one year higher than the age at issue of the policy.

 

(ii)         A net one year term premium for the benefits provided for in the first policy year.

 

(2)        The interest rates used in the present value calculations for any policy may not exceed the maximum valuation interest rate, determined with a guarantee duration equal to the length from issue to the mandatory expiration of the policy.

Drafting Note: The purpose of this subsection is to define as specifically as possible what has become commonly called the unitary method. The NAIC Standard Valuation Law does not define the term "unitary" for policies with nonlevel premiums or benefits; its requirement for reserves "computed by a method that is consistent with the principles of the NAIC Standard Valuation Law" has not been uniformly interpreted.

 

L.         "Universal life insurance policy" means any individual life insurance policy under the provisions of which separately identified interest credits (other than in connection with dividend accumulations, premium deposit funds, or other supplementary accounts) and mortality or expense charges are made to the policy.

 

Section 5.  General Calculation Requirements for Basic Reserves and Premium Deficiency Reserves

 

A.         At the election of the company for any one or more specified plans of life insurance, the minimum mortality standard for basic reserves may be calculated using the 1980 CSO valuation tables with select mortality factors (or any other valuation mortality table adopted by the NAIC after the effective date of this regulation and promulgated by regulation by the commissioner for this purpose).  If select mortality factors are elected, they may be:

 

(1)        The ten-year select mortality factors incorporated into the 1980 amendments to the NAIC Standard Valuation Law;

 

(2)        The select mortality  factors in the Appendix; or

 

Drafting Note:  The select mortality factors for duration 1 through 15 in the Appendix of this regulation reflect the Society of Actuaries' data for the years 1983 through 1986, split by sex and smoking status, with fifteen years of mortality improvement, based on Society of Actuaries' Projection Scale A applied.  A 50% margin was added.  The factors were then graded to the 1980 CSO Tables over the next five durations.  A 50% margin was deemed appropriate to provide a reasonable margin, with little likelihood that actual experience for significant blocks of business would exceed it.

 

(3)        Any other table of select mortality factors adopted by the NAIC after the effective date of this regulation and promulgated by regulation by the commissioner for the purpose of calculating basic reserves.

 

B.         Deficiency reserves, if any, are calculated for each policy as the excess, if greater than zero, of the quantity A over the basic reserve.  The quantity A is obtained by recalculating the basic reserve for the policy using guaranteed gross premiums instead of net premiums when the guaranteed gross premiums are less than the corresponding net premiums.  At the election of the company for any one or more specified plans of insurance, the quantity A and the corresponding net premiums used in the determination of quantity A may be based upon the 1980 CSO valuation tables with select mortality factors (or any other valuation mortality table adopted by the NAIC after the effective date of this regulation and promulgated by regulation by the commissioner).  If select mortality factors are elected, they may be:

 

(1)        The ten-year select mortality factors incorporated into the 1980 amendments to the NAIC Standard Valuation Law;

 

(2)        The select mortality factors in the Appendix of this regulation;

 

Drafting Note: The select mortality factors in the Appendix of this regulation do not reflect the underwriting risk classes that have evolved since the period of the underlying experience.  In light of this consideration and the recent recognition of the regulatory value of actuarial opinions, this regulation allows actuarial judgment to be used for deficiency reserves.

 

(3)        For durations in the first segment, X percent of the select mortality factors in the Appendix , subject to the following:

 

(a)        X may vary by policy year, policy form, underwriting classification, issue age, or any other policy factor expected to affect mortality experience;

 

(b)        X shall not be less than twenty percent (20%);

 

(c)        X shall not decrease in any successive policy years;

 

(d)        X is such that, when using the valuation interest rate used for basic reserves, Item (i) is greater than or equal to Item (ii);

 

(i)         The actuarial present value of future death benefits, calculated using the mortality rates resulting from the application of X;

 

(ii)         The actuarial present value of future death benefits calculated using anticipated mortality experience without recognition of mortality improvement beyond the valuation date;

 

(e)        X is such that the mortality rates resulting from the application of X are at least as great as the anticipated mortality experience, without recognition of mortality improvement beyond the valuation date, in each of the first five (5) years after the valuation date;

 

(f)         The appointed actuary shall increase X at any valuation date where it is necessary to continue to meet all the requirements of Subsection B(3);

 

(g)        The appointed actuary may decrease X at any valuation date as long as X does not decrease in any successive policy years and as long as it continues to meet all the requirements of Subsection B(3); and

 

(h)        The appointed actuary shall specifically take into account the adverse effect on expected mortality and lapsation of any anticipated or actual increase in gross premiums.

 

(i)         If X is less than 100 percent at any duration for any policy, the following requirements shall be met:

 

(i)         The appointed actuary shall annually prepare an actuarial opinion and memorandum for the company in conformance with the requirements of Section [insert applicable section for asset adequacy opinion requirement of the Actuarial Opinion and Memorandum Regulation]; and

 

(ii)         The appointed actuary shall annually opine for all policies subject to this regulation as to whether the mortality rates resulting from the application of X meet the requirements of Subsection B(3). This opinion shall be supported by an actuarial report, subject to appropriate Actuarial Standards of Practice promulgated by the Actuarial Standards Board of the American Academy of Actuaries. The X factors shall reflect anticipated future mortality, without recognition of mortality improvement beyond the valuation date, taking into account relevant emerging experience.

 

(4)        Any other table of select mortality factors adopted by the NAIC after the effective date of this regulation and promulgated by regulation by the commissioner for the purpose of calculating deficiency reserves.

 

C.         This subsection applies to both basic reserves and deficiency reserves.  Any set of select mortality factors may be used only for the first segment.  However, if the first segment is less than ten (10) years, the appropriate ten-year select mortality factors incorporated into the 1980 amendments to the NAIC Standard Valuation Law may be used thereafter through the tenth policy year from the date of issue.

 

Drafting Note: This regulation does not allow the use of select mortality factors beyond the first segment. The rationale is that the result of a premium increase that is sufficient to require a new segment will be increased lapsation, leading to mortality deterioration after the increase. Also, for policies that have reentry provisions, select mortality factors shall not be used in segments beginning after reentry unless a new policy is actually issued. However, this regulation allows the use of the ten-year select mortality factors incorporated into the 1980 amendments of the NAIC Standard Valuation Law beyond the first segment (but in no case beyond the tenth policy year) in recognition that the mortality deterioration is unlikely to occur to a significant degree within the first ten (10) years.

 

D.         In determining basic reserves or deficiency reserves, guaranteed gross premiums without policy fees may be used where the calculation involves the guaranteed gross premium but only if the policy fee is a level dollar amount after the first policy year.  In determining deficiency reserves, policy fees may be included in guaranteed gross premiums, even if not included in the actual calculation of basic reserves.

 

E.         Reserves for policies that have changes to guaranteed gross premiums, guaranteed benefits, guaranteed charges, or guaranteed credits that are unilaterally made by the insurer after issue and that are effective for more than one year after the date of the change shall be the greatest of the following: (1) reserves calculated ignoring the guarantee, (2) reserves assuming the guarantee was made at issue, and

 

(3) reserves assuming that the policy was issued on the date of the guarantee.

 

F.         The commissioner may require that the company document the extent of the adequacy of reserves for specified blocks, including but not limited to policies issued prior to the effective date of this regulation. This documentation may include a demonstration of the extent to which aggregation with other non-specified blocks of business is relied upon in the formation of the appointed actuary opinion pursuant to and consistent with the requirements of Section [insert applicable section of asset adequacy opinion requirement of the Actuarial Opinion and Memorandum Regulation].

 

Section 6.  Calculation of Minimum Valuation Standard for Policies with Guaranteed Nonlevel Gross Premiums or Guaranteed Nonlevel Benefits (Other than Universal Life Policies)

 

A.         Basic Reserves

Basic reserves shall be calculated as the greater of the segmented reserves and the unitary reserves. Both the segmented reserves and the unitary reserves for any policy shall use the same valuation mortality table and selection factors.  At the option of the insurer, in calculating segmented reserves and net premiums, either of the adjustments described in Paragraph (1) or (2) below may be made:

 

(1)        Treat the unitary reserve, if greater than zero, applicable at the end of each segment as a pure endowment and subtract the unitary reserve, if greater than zero, applicable at the beginning of each segment from the present value of guaranteed life insurance and endowment benefits for each segment.

 

(2)        Treat the guaranteed cash surrender value, if greater than zero, applicable at the end of each segment as a pure endowment; and subtract the guaranteed cash surrender value, if greater than zero, applicable at the beginning of each segment from the present value of guaranteed life insurance and endowment benefits for each segment.

 

B.         Deficiency Reserves

 

(1)        The deficiency reserve at any duration shall be calculated:

 

(a)        On a unitary basis if the corresponding basic reserve determined by Subsection A is unitary;

 

(b)        On a segmented basis if the corresponding basic reserve determined by Subsection A is segmented; or

 

(c)        On the segmented basis if the corresponding basic reserve determined by Subsection A is equal to both the segmented reserve and the unitary reserve.

 

(2)        This subsection shall apply to any policy for which the guaranteed gross premium at any duration is less than the corresponding modified net premium calculated by the method used in determining the basic reserves, but using the minimum valuation standards of mortality (specified in Section 5B) and rate of interest.

 

(3)        Deficiency reserves, if any, shall be calculated for each policy as the excess if greater than zero, for the current and all remaining periods, of the quantity A over the basic reserve, where A is obtained as indicated in Section 5B.

 

(4)        For deficiency reserves determined on a segmented basis, the quantity A is determined using segment lengths equal to those determined for segmented basic reserves.

 

C.         Minimum Value

 

Basic reserves may not be less than the tabular cost of insurance for the balance of the policy year, if mean reserves are used.  Basic reserves may not be less than the tabular cost of insurance for the balance of the current modal period or to the paid-to-date, if later, but not beyond the next policy anniversary, if mid-terminal reserves are used.  The tabular cost of insurance shall use the same valuation mortality table and interest rates as that used for the calculation of the segmented reserves. However, if select mortality factors are used, they shall be the ten-year select factors incorporated into the 1980 amendments of the NAIC Standard Valuation Law.  In no case may total reserves (including basic reserves, deficiency reserves and any reserves held for supplemental benefits that would expire upon contract termination) be less than the amount that the policyowner would receive (including the cash surrender value of the supplemental benefits, if any, referred to above), exclusive of any deduction for policy loans, upon termination of the policy.

 

D.         Unusual Pattern of Guaranteed Cash Surrender Values

 

Drafting Note: This requirement is independent of both the segmentation process and the unitary process. After the greater of the segmented or the unitary reserve has been determined, then this subsection imposes an additional floor on the ultimate reserve. The purpose of this subsection is to assure adequate funding of significant increases in guaranteed cash surrender values.

 

(1)        For any policy with an unusual pattern of guaranteed cash surrender values, the reserves actually held prior to the first unusual guaranteed cash surrender value shall not be less than the reserves calculated by treating the first unusual guaranteed cash surrender value as a pure endowment and treating the policy as an n year policy providing term insurance plus a pure endowment equal to the unusual cash surrender value, where n is the number of years from the date of issue to the date the unusual cash surrender value is scheduled.

 

(2)        The reserves actually held subsequent to any unusual guaranteed cash surrender value shall not be less than the reserves calculated by treating the policy as an n year policy providing term insurance plus a pure endowment equal to the next unusual guaranteed cash surrender value, and treating any unusual guaranteed cash surrender value at the end of the prior segment as a net single premium, where

 

(a)        n is the number of years from the date of the last unusual guaranteed cash surrender value prior to the valuation date to the earlier of:

 

(i)         The date of the next unusual guaranteed cash surrender value, if any, that is scheduled after the valuation date; or

 

(ii)         The mandatory expiration date of the policy; and

 

(b)        The net premium for a given year during the n year period is equal to the product of the net to gross ratio and the respective gross premium; and

 

(c)        The net to gross ratio is equal to Item (i) divided by Item (ii) as follows:

 

(i)         The present value, at the beginning of the n year period, of death benefits payable during the n year period plus the present value, at the beginning of the n year period, of the next unusual guaranteed cash surrender value, if any, minus the amount of the last unusual guaranteed cash surrender value, if any, scheduled at the beginning of the n year period.

 

(ii)         The present value, at the beginning of the n year period, of the scheduled gross premiums payable during the n year period.

 

(3)        For purposes of this subsection, a policy is considered to have an unusual pattern of guaranteed cash surrender values if any future guaranteed cash surrender value exceeds the prior year's guaranteed cash surrender value by more than the sum of:

 

(a)        One hundred ten percent (110%) of the scheduled gross premium for that year;

 

(b)        One hundred ten percent (110%) of one year's accrued interest on the sum of the prior year's guaranteed cash surrender value and the scheduled gross premium using the nonforfeiture interest rate used for calculating policy guaranteed cash surrender values; and

 

(c)        Five percent (5%) of the first policy year surrender charge, if any.

 

E.         Optional Exemption for Yearly Renewable Term Reinsurance. At the option of the company, the following approach for reserves on YRT reinsurance may be used:

 

Drafting Note: Traditional reserves for yearly renewable term (YRT) reinsurance, the calculations of which this section describes, are already adequate and sufficient. However, without this option in the regulation, YRT reinsurance would be subject to the more complex segmentation calculations.

 

(1)        Calculate the valuation net premium for each future policy year as the tabular cost of insurance for that future year.

 

(2)        Basic reserves shall never be less than the tabular cost of insurance for the appropriate period, as defined in Subsection C.

 

(3)        Deficiency reserves.

 

(a)        For each policy year, calculate the excess, if greater than zero, of the valuation net premium over the respective maximum guaranteed gross premium.

 

(b)        Deficiency reserves shall never be less than the sum of the present values, at the date of valuation, of the excesses determined in accordance with Subparagraph (a) above.

 

(4)        For purposes of this subsection, the calculations use the maximum valuation interest rate and the 1980 CSO mortality tables with or without ten-year select mortality factors, or any other table adopted after the effective date of this regulation by the NAIC and promulgated by regulation by the commissioner for this purpose.

 

(5)        A reinsurance agreement shall be considered YRT reinsurance for purposes of this subsection if only the mortality risk is reinsured.

 

(6)        If the assuming company chooses this optional exemption, the ceding company's reinsurance reserve credit shall be limited to the amount of reserve held by the assuming company for the affected policies.

 

F.         Optional Exemption for Attained-Age-Based Yearly Renewable Term Life Insurance Policies. At the option of the company, the following approach for reserves for attained-age-based YRT life insurance policies may be used:

 

Drafting Note: Traditional reserves for attained-age-based YRT policies, the calculations of which this subsection describes, are already adequate and sufficient.  However, without this option in the regulation, these policies would be subject to the more complex segmentation calculations.

 

(1)        Calculate the valuation net premium for each future policy year as the tabular cost of insurance for that future year.

 

(2)        Basic reserves shall never be less than the tabular cost of insurance for the appropriate period, as defined in Subsection 6C.

 

(3)        Deficiency reserves.

 

(a)        For each policy year, calculate the excess, if greater than zero, of the valuation net premium over the respective maximum guaranteed gross premium.

 

(b)        Deficiency reserves shall never be less than the sum of the present values, at the date of valuation, of the excesses determined in accordance with Subparagraph (a) above.

 

(4)        For purposes of this subsection, the calculations use the maximum valuation interest rate and the 1980 CSO valuation tables with or without ten-year select mortality factors, or any other table adopted after the effective date of this regulation by the NAIC and promulgated by regulation by the commissioner for this purpose.

 

(5)        A policy shall be considered an attained-age-based YRT life insurance policy for purposes of this subsection if:

 

(a)        The premium rates (on both the initial current premium scale and the guaranteed maximum premium scale) are based upon the attained age of the insured such that the rate for any given policy at a given attained age of the insured is independent of the year the policy was issued; and

 

(b)        The premium rates (on both the initial current premium scale and the guaranteed maximum premium scale) are the same as the premium rates for policies covering all insureds of the same sex, risk class, plan of insurance and attained age.

 

(6)        For policies that become attained-age-based YRT policies after an initial period of coverage, the approach of this subsection may be used after the initial period if:

 

(a)        The initial period is constant for all insureds of the same sex, risk class and plan of insurance; or

 

(b)        The initial period runs to a common attained age for all insureds of the same sex, risk class and plan of insurance; and

 

(c)        After the initial period of coverage, the policy meets the conditions of Paragraph (5) above.

 

(7)        If this election is made, this approach shall be applied in determining reserves for all attained-age-based YRT life insurance policies issued on or after the effective date of this regulation.

 

G.         Exemption from Unitary Reserves for Certain n-Year Renewable Term Life Insurance Polices. Unitary basic reserves and unitary deficiency reserves need not be calculated for a policy if the following conditions are met:

 

Drafting Note: Without this exemption, companies issuing certain n-year renewable term policies could be forced to hold reserves higher than n-year term reserves, even though in many cases gross premiums are well above valuation mortality rates.

 

(1)        The policy consists of a series of n-year periods, including the first period and all renewal periods, where n is the same for each period, except that for the final renewal period, n may be truncated or extended to reach the expiry age, provided that this final renewal period is less than 10 years and less than twice the size of the earlier n-year periods, and for each period, the premium rates on both the initial current premium scale and the guaranteed maximum premium scale are level;

 

(2)        The guaranteed gross premiums in all n-year periods are not less than the corresponding net premiums based upon the 1980 CSO Table with or without the ten-year select mortality factors; and

 

(3)        There are no cash surrender values in any policy year.

 

H.         Exemption from Unitary Reserves for Certain Juvenile Policies

 

Unitary basic reserves and unitary deficiency reserves need not be calculated for a policy if the following conditions are met, based upon the initial current premium scale at issue:

 

(1)        At issue, the insured is age twenty-four (24) or younger;

 

(2)        Until the insured reaches the end of the juvenile period, which shall occur at or before age twenty-five (25), the gross premiums and death benefits are level, and there are no cash surrender values; and

 

(3)        After the end of the juvenile period, gross premiums are level for the remainder of the premium paying period, and death benefits are level for the remainder of the life of the policy.

 

Drafting Note:  The jumping juvenile policy described has traditionally been valued in two segments.  This exemption will allow that practice to continue without requiring the calculation of reserves on a unitary basis.  However, within each segment, both basic and deficiency reserves shall comply with the segmented reserve requirements.

 

Section 7.  Calculation of Minimum Valuation Standard for Flexible Premium and Fixed Premium

Universal Life Insurance Policies That Contain Provisions Resulting in the Ability of a Policyowner to Keep a Policy in Force Over a Secondary Guarantee Period

 

A.         General

 

(1)        Policies with a secondary guarantee include:

 

(a)        A policy with a guarantee that the policy will remain in force at the original schedule of benefits, subject only to the payment of specified premiums;

 

(b)        A policy in which the minimum premium at any duration is less than the corresponding one year valuation premium, calculated using the maximum valuation interest rate and the 1980 CSO valuation tables with or without ten-year select mortality factors, or any other table adopted after the effective date of this regulation by the NAIC and promulgated by regulation by the commissioner for this purpose; or

 

(c)        A policy with any combination of Subparagraph (a) and (b).

 

Drafting Note: Universal life and variable universal life policies with secondary guarantees that meet the requirements of Section 3A(2) are not subject to this regulation.

 

(2)        A secondary guarantee period is the period for which the policy is guaranteed to remain in force subject only to a secondary guarantee. When a policy contains more than one secondary guarantee, the minimum reserve shall be the greatest of the respective minimum reserves at that valuation date  of each unexpired secondary guarantee, ignoring all other secondary guarantees.Secondary guarantees that are unilaterally  changed by the insurer after issue shall be considered to have been made at issue. Reserves described in Subsections B and C below shall be recalculated from issue to reflect these changes.

 

(3)        Specified premiums mean the premiums specified in the policy, the payment of which guarantees that the policy will remain in force at the original schedule of benefits, but which otherwise would be insufficient to keep the policy in force in the absence of the guarantee if maximum mortality and expense charges and minimum interest credits were made and any applicable surrender charges were assessed.

 

(4)        For purposes of this section, the minimum premium for any policy year is the premium that, when paid into a policy with a zero account value at the beginning of the policy year, produces a zero account value at the end of the policy year.  The minimum premium calculation shall use the policy cost factors (including mortality charges, loads and expense charges) and the interest crediting rate, which are all guaranteed at issue.

 

(5)        The one-year valuation premium means the net one-year premium based upon the original schedule of benefits for a given policy year.  The one-year valuation premiums for all policy years are calculated at issue.  The select mortality factors defined in Section 5B(2), (3), and (4) may not be used to calculate the one-year valuation premiums.

 

(6)        The one-year valuation premium should reflect the frequency of fund processing, as well as the distribution of deaths assumption employed in the calculation of the monthly mortality charges to the fund.

 

B.         Basic Reserves for the Secondary Guarantees

 

Basic reserves for the secondary guarantees shall be the segmented reserves for the secondary guarantee period.  In calculating the segments and the segmented reserves, the gross premiums shall be set equal to the specified premiums, if any, or otherwise to the minimum premiums, that keep the policy in force and the segments will be determined according to the contract segmentation method as defined in Section 4B.

 

C.         Deficiency Reserves for the Secondary Guarantees

 

Deficiency reserves, if any, for the secondary guarantees shall be calculated for the secondary guarantee period in the same manner as described in Section 6B with gross premiums set equal to the specified premiums, if any, or otherwise to the minimum premiums that keep the policy in force.

 

D.         Minimum Reserves

 

The minimum reserves during the secondary guarantee period are the greater of:

 

(1)        The basic reserves for the secondary guarantee plus the deficiency reserve, if any, for the secondary guarantees; or

 

(2)        The minimum reserves required by other rules or regulations governing universal life plans.

 

Section 8.  Effective Date

 

This regulation shall become effective January 1, 2000.

 

Appendix.  Select Mortality Factors

 

SELECT MORTALITY FACTORS

 

This appendix contains tables of select mortality factors that are the bases to which the respective percentage of Section 5A(2), 5B(2) and 5B(3) are applied.

 

The six tables of select mortality factors contained herein include: (1) male aggregate, (2) male nonsmoker, (3) male smoker, (4) female aggregate, (5) female nonsmoker, and (6) female smoker.

 

These tables apply to both age last birthday and age nearest birthday mortality tables.

 

For sex-blended mortality tables, compute select mortality factors in the same proportion as the underlying mortality. For example, for the 1980 CSO-B Table, the calculated select mortality factors are eighty percent (80%) of the appropriate male table in this Appendix, plus twenty percent (20%) of the appropriate female table in this Appendix.


 

SELECT MORTALITY FACTORS

 

Male, Aggregate           

 Issue                                                                                                               Duration           

Age

1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20+

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

0-15

100

100

100

100

100

100

100

100

100

100

100

100

100

100

100

100

100

100

100

100

16

100

100

100

100

100

100

100

100

100

100

100

100

100

100

100

100

100

100

100

100

17

100

100

100

100

100

100

100

100

100

100

100

100

100

100

100

100

100

100

100

100

18

96

98

98

99

99

100

100

90

92

92

92

92

93

93

96

97

98

98

99

100

19

83

84

84

87

87

87

79

79

79

81

81

82

82

82

85

88

91

94

97

100

20

69

71

71

74

74

69

69

67

69

70

71

71

71

71

74

79

84

90

95

100

21

66

68

69

71

66

66

67

66

67

70

70

70

70

71

71

77

83

88

94

100

22

65

66

66

63

63

64

64

64

65

68

68

68

68

69

71

77

83

88

94

100

23

62

63

59

60

62

62

63

63

64

65

65

67

67

69

70

76

82

88

94

100

24

60

56

56

59

59

60

61

61

61

64

64

64

66

67

70

76

82

88

94

100

25

52

53

55

56

58

58

60

60

60

63

62

63

64

67

69

75

81

88

94

100

26

51

52

55

56

58

58

57

61

61

62

63

64

66

69

66

73

80

86

93

100

27

51

52

55

57

58

60

61

61

60

63

63

64

67

66

67

74

80

87

93

100

28

49

51

56

58

60

60

61

62

62

63

64

66

65

66

68

74

81

87

94

100

29

49

51

56

58

60

61

62

62

62

64

64

62

66

67

70

76

82

88

94

100

30

49

50

56

58

60

60

62

63

63

64

62

63

67

68

71

77

83

88

94

100

31

47

50

56

58

60

62

63

64

64

62

63

66

68

70

72

78

83

89

94

100

           

 

Male, Aggregate           

Issue                                                                                                               Duration

Age

1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20+

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

32

46

49

56

59

60

62

63

66

62

63

66

67

70

72

73

78

84

89

95

100

33

43

49

56

59

62

63

64

62

65

66

67

70

72

73

75

80

85

90

95

100

34

42

47

56

60

62

63

61

63

66

67

70

71

73

75

76

81

86

90

95

100

35

40

47

56

60

63

61

62

65

67

68

71

73

74

76

76

81

86

90

95

100

36

38

42

56

60

59

61

63

65

67

68

70

72

74

76

77

82

86

91

95

100

37

38

45

56

57

61

62

63

65

67

68

70

72

74

76

76

81

86

90

95

100

38

37

44

53

58

61

62

65

66

67

69

69

73

75

76

77

82

86

91

95

100

39

37

41

53

58

62

63

65

65

66

68

69

72

74

76

76

81

86

90

95

100

40

34

40

53

58

62

63

65

65

66

68

68

71

75

76

77

82

86

91

95

100

41

34

41

53

58

62

63

65

64

64

66

68

70

74

76

77

82

86

91

95

100

42

34

43

53

58

61

62

63

63

63

64

66

69

72

75

77

82

86

91

95

100

43

34

43

54

59

60

61

63

62

62

64

66

67

72

74

77

82

86

91

95

100

44

34

44

54

58

59

60

61

60

61

62

64

67

71

74

77

82

86

91

95

100

45

34

45

53

58

59

60

60

60

59

60

63

66

71

74

77

82

86

91

95

100

46

31

43

52

56

57

58

59

59

59

60

63

67

71

74

75

80

85

90

95

100

47

32

42

50

53

55

56

57

58

59

60

65

68

71

74

75

80

85

90

95

100

48

32

41

47

52

54

56

57

57

57

61

65

68

72

73

74

79

84

90

95

100

49

30

40

46

49

52

54

55

56

57

61

66

69

72

73

74

79

84

90

95

100

           

 

Male, Aggregate           

Issue                                                                                                               Duration

Age

1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20+

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

50

30

38

44

47

51

53

54

56

57

61

66

71

72

73

75

80

85

90

95

100

51

28

37

42

46

49

53

54

56

57

61

66

71

72

73

75

80

85

90

95

100

52

28

35

41

45

49

51

54

56

57

61

66

71

72

74

75

80

85

90

100

100

53

27

35

39

44

48

51

53

55

57

61

67

71

74

75

76

81

86

100

100

100

54

27

33

38

44

48

50

53

55

57

61

67

72

74

75

76

81

100

100

100

100

55

25

32

37

43

47

50

53

55

57

61

68

72

74

75

78

100

100

100

100

100

56

25

32

37

43

47

49

51

54

56

61

67

70

73

74

100

100

100

100

100

100

57

24

31

38

43

47

49

51

54

56

59

66

69

72

100

100

100

100

100

100

100

58

24

31

38

43

48

48

50

53

56

59

64

67

100

100

100

100

100

100

100

100

59

23

30

39

43

48

48

51

53

55

58

63

100

100

100

100

100

100

100

100

100

60

23

30

39

43

48

47

50

52

53

57

100

100

100

100

100

100

100

100

100

100

61

23

30

39

43

49

49

50

52

53

75

100

100

100

100

100

100

100

100

100

100

62

23

30

39

44

49

49

51

52

75

75

100

100

100

100

100

100

100

100

100

100

63

22

30

39

45

50

50

52

75

75

75

100

100

100

100

100

100

100

100

100

100

64

22

30

39

45

50

51

75

75

75

75

100

100

100

100

100

100

100

100

100

100

65

22

30

39

45

50

65

70

70

70

70

100

100

100

100

100

100

100

100

100

100

66

22

30

39

45

60

65

70

70

70

70

100

100

100

100

100

100

100

100

100

100

67

22

30

39

60

60

65

70

70

70

70

100

100

100

100

100

100

100

100

100

100

 

 

Male, Aggregate           

Issue                                                                                                               Duration

Age

1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20+

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

68

23

32

55

60

60

65

70

70

70

70

100

100

100

100

100

100

100

100

100

100

69

23

52

55

60

60

65

70

70

70

70

100

100

100

100

100

100

100

100

100

100

70

48

52

55

60

60

65

70

70

70

70

100

100

100

100

100

100

100

100

100

100

71

48

52

55

60

60

65

70

70

70

70

100

100

100

100

100

100

100

100

100

100

72

48

52

55

60

60

65

70

70

70

70

100

100

100

100

100

100

100

100

100

100

73

48

52

55

60

60

65

70

70

70

70

100

100

100

100

100

100

100

100

100

100

74

48

52

55

60

60

65

70

70

70

70

100

100

100

100

100

100

100

100

100

100

75

48

52

55

60

60

65

70

70

70

70

100

100

100

100

100

100

100

100

100

100

76

48

52

55

60

60

65

70

70

70

100

100

100

100

100

100

100

100

100

100

100

77

48

52

55

60

60

65

70

70

100

100

100

100

100

100

100

100

100

100

100

100

78

48

52

55

60

60

65

70

100

100

100

100

100

100

100

100

100

100

100

100

100

79

48

52

55

60

60

65

100

100

100

100

100

100

100

100

100

100

100

100

100

100

80

48

52

55

60

60

100

100

100

100

100

100

100

100

100

100

100

100

100

100

100

81

48

52

55

60

100

100

100

100

100

100

100

100

100

100

100

100

100

100

100

100

82

48

52

55

100

100

100

100

100

100

100

100

100

100

100

100

100

100

100

100

100

83

48

52

100

100

100

100

100

100

100

100

100

100

100

100

100

100

100

100

100

100

84

48

100

100

100

100

100

100

100

100

100

100

100

100

100

100

100

100

100

100

100

85+

100

100

100

100

100

100

100

100

100

100

100

100

100

100

100

100

100

100

100

100

 

Male, Non-Smoker        

Issue                                                                                                             Duration  

Age

1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20+

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

0-15

100

100

100

100

100

100

100

100

100

100

100

100

100

100

100

100

100

100

100

100

16

100

100

100

100

100

100

100

100

100

100

100

100

100

100

100

100

100

100

100

100

17

100

100

100

100

100

100

100

100

100

100

100

100

100

100

100

100

100

100

100

100

18

93

95

96

98

99

100

100

90

92

92

92

92

95

95

96

97

98

98

99

100

19

80

81

83

86

87

87

79

79

79

81

81

82

83

83

86

89

92

94

97

100

20

65

68

69

72

74

69

69

67

69

70

71

71

72

72

75

80

85

90

95

100

21

63

66

68

71

66

66

67

66

67

70

70

70

71

71

73

78

84

89

95

100

22

62

65

66

62

63

64

64

64

67

68

68

68

70

70

73

78

84

89

95

100

23

60

62

58

60

62

62

63

63

64

67

68

68

67

69

71

77

83

88

94

100

24

59

55

56

58

59

60

61

61

63

65

67

66

66

69

71

77

83

88

94

100

25

52

53

55

56

58

58

60

60

61

64

64

64

64

67

70

76

82

88

94

100

26

51

53

55

56

58

60

61

61

61

63

64

64

66

69

67

74

80

87

93

100

27

51

52

55

58

60

60

61

61

62

63

64

66

67

66

67

74

80

87

93

100

28

49

52

57

58

60

61

63

62

62

64

66

66

63

66

68

74

81

87

94

100

29

49

51

57

60

61

61

62

62

63

64

66

63

65

67

68

74

81

87

94

100

30

49

51

57

60

61

62

63

63

63

64

62

63

66

68

70

76

82

88

94

100

31

47

50

57

60

60

62

63

64

64

62

63

65

67

70

71

77

83

88

94

100

32

46

50

57

60

62

63

64

64

62

63

65

66

68

71

72

78

83

89

94

100

 

Male, Non-Smoker        

Issue                                                                                                             Duration  

Age

1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20+

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

33

45

49

56

60

62

63

64

62

63

65

66

68

71

73

74

79

84

90

95

100

34

43

48

56

62

63

64

62

62

65

66

67

70

72

74

74

79

84

90

95

100

35

41

47

56

62

63

61

62

63

66

67

68

70

72

74

75

80

85

90

95

100

36

40

47

56

62

59

61

62

63

66

67

68

70

72

74

75

80

85

90

95

100

37

38

45

56

58

59

61

62

63

66

67

67

69

71

73

74

79

84

90

95

100

38

38

45

53

58

61

62

63

65

65

67

68

70

72

74

73

78

84

89

95

100

39

37

41

53

58

61

62

63

64

65

67

68

70

71

73

73

78

84

89

95

100

40

34

41

53

58

61

62

63

64

64

66

67

69

71

73

72

78

83

89

94

100

41

34

41

53

58

61

61

62

62

63

65

65

67

69

71

71

77

83

88

94

100

42

34

43

53

58

60

61

62

61

61

63

64

66

67

69

71

77

83

88

94

100

43

32

43

53

58

60

61

60

60

60

60

62

64

66

68

69

75

81

88

94

100

44

32

44

52

57

59

60

60

59

59

58

60

62

65

67

69

75

81

88

94

100

45

32

44

52

57

59

60

59

57

57

57

59

61

63

66

68

74

81

87

94

100

46

32

42

50

54

56

57

57

56

55

56

59

61

63

65

67

74

80

87

93

100

47

30

40

48

52

54

55

55

54

54

55

59

61

62

63

66

73

80

86

93

100

48

30

40

46

49

51

52

53

53

54

55

57

61

62

63

63

70

78

85

93

100

49

29

39

43

48

50

51

50

51

53

54

57

61

61

62

62

70

77

85

92

100

50

29

37

42

45

47

48

49

50

51

54

57

61

61

61

61

69

77

84

92

100

 

Male, Non-Smoker        

Issue                                                                                                             Duration  

Age

1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20+

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

51

27

35

40

43

45

47

48

50

51

53

57

60

61

61

62

70

77

85

92

100

52

27

34

39

42

44

45

48

49

50

53

56

60

60

62

62

70

77

85

100

100

53

25

31

37

41

44

45

47

49

50

51

56

59

61

61

62

70

77

100

100

100

54

25

30

36

39

43

44

47

48

49

51

55

59

59

61

62

70

100

100

100

100

55

24

29

35

38

42

43

45

48

49

50

56

58

59

61

62

100

100

100

100

100

56

23

29

35

38

42

42

44

47

48

50

55

57

58

59

100

100

100

100

100

100

57

23

28

35

38

42

42

43

45

47

49

53

55

56

100

100

100

100

100

100

100

58

22

28

33

37

41

41

43

45

45

47

51

53

100

100

100

100

100

100

100

100

59

22

26

33

37

41

41

42

44

44

46

50

100

100

100

100

100

100

100

100

100

60

20

26

33

37

41

40

41

42

42

45

100

100

100

100

100

100

100

100

100

100

61

20

26

33

37

41

40

41

42

42

75

100

100

100

100

100

100

100

100

100

100

62

19

25

32

38

40

40

41

42

75

75

100

100

100

100

100

100

100

100

100

100

63

19

25

33

36

40

40

41

75

75

75

100

100

100

100

100

100

100

100

100

100

64

18

24

32

36

39

40

75

75

75

75

100

100

100

100

100

100

100

100

100

100

65

18

24

32

36

39

65

70

70

70

70

100

100

100

100

100

100

100

100

100

100

66

18

24

32

36

60

65

70

70

70

70

100

100

100

100

100

100

100

100

100

100

67

18

24

32

60

60

65

70

70

70

70

100

100

100

100

100

100

100

100

100

100

68

18

24

55

60

60

65

70

70

70

70

100

100

100

100

100

100

100

100

100

100

 

Male, Non-Smoker        

Issue                                                                                                             Duration  

Age

1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20+

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

69

18

52

55

60

60

65

70

70

70

70

100

100

100

100

100

100

100

100

100

100

70

48

52

55

60

60

65

70

70

70

70

100

100

100

100

100

100

100

100

100

100

71

48

52

55

60

60

65

70

70

70

70

100

100

100

100

100

100

100

100

100

100

72

48

52

55

60

60

65

70

70

70

70

100

100

100

100

100

100

100

100

100

100

73

48

52

55

60

60

65

70

70

70

70

100

100

100

100

100

100

100

100

100

100

74

48

52

55

60

60

65

70

70

70

70

100

100

100

100

100

100

100

100

100

100

75

48

52

55

60

60

65

70

70

70

70

100

100

100

100

100

100

100

100

100

100

76

48

52

55

60

60

65

70

70

70

100

100

100

100

100

100

100

100

100

100

100

77

48

52

55

60

60

65

70

70

100

100

100

100

100

100

100

100

100

100

100

100

78

48

52

55

60

60

65

70

100

100

100

100

100

100

100

100

100

100

100

100

100

79

48

52

55

60

60

65

100

100

100

100

100

100

100

100

100

100

100

100

100

100

80

48

52

55

60

60

100

100

100

100

100

100

100

100

100

100

100

100

100

100

100

81

48

52

55

60

100

100

100

100

100

100

100

100

100

100

100

100

100

100

100

100

82

48

52

55

100

100

100

100

100

100

100

100

100

100

100

100

100

100

100

100

100

83

48

52

100

100

100

100

100

100

100

100

100

100

100

100

100

100

100

100

100

100

84

48

100

100

100

100

100

100

100

100

100

100

100

100

100

100

100

100

100

100

100

85+

100

100

100

100

100

100

100

100

100

100

100

100

100

100

100

100

100

100

100

100

 

Male, Smoker   

Issue                                                                                                                 Duration          

Age

1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20+

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

0-15

100

100

100

100

100

100

100

100

100

100

100

100

100

100

100

100

100

100

100

100

16

100

100

100

100

100

100

100

100

100

100

100

100

100

100

100

100

100

100

100

100

17

100

100

100

100

100

100

100

100

100

100

100

100

100

100

100

100

100

100

100

100

18

100

100

100

100

100

100

100

100

100

100

100

100

100

100

100

100

100

100

100

100

19

100

100

100

100

100

100

100

100

100

100

100

100

100

100

100

100

100

100

100

100

20

98

100

100

100

100

100

100

99

99

99

100

99

99

99

100

100

100

100

100

100

21

95

98

99

100

95

96

96

95

96

97

97

96

96

96

96

97

98

98

99

100

22

92

95

96

90

90

93

93

92

93

95

95

93

93

92

93

94

96

97

99

100

23

90

92

85

88

88

89

89

89

90

90

90

90

89

90

92

94

95

97

98

100

24

87

81

82

85

84

86

88

86

86

88

88

86

86

88

89

91

93

96

98

100

25

77

78

79

82

81

83

83

82

83

85

84

84

84

85

86

89

92

94

97

100

26

75

77

79

82

82

83

83

82

83

84

84

84

84

85

81

85

89

92

96

100

27

73

75

78

82

82

83

83

82

82

82

82

84

84

80

81

85

89

92

96

100

28

71

73

79

82

81

82

83

81

81

82

82

82

80

80

81

85

89

92

96

100

29

69

72

78

81

81

82

82

81

81

81

81

77

80

80

81

85

89

92

96

100

30

68

71

78

81

81

81

82

81

81

81

76

77

80

80

81

85

89

92

96

100

31

65

70

77

81

79

81

82

81

81

76

77

79

81

81

83

86

90

93

97

100

32

63

67

77

78

79

81

81

81

76

77

77

80

83

83

85

88

91

94

97

100

 

Male, Smoker   

Issue                                                                                                                 Duration          

Age

1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20+

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

33

60

65

74

78

79

79

81

76

77

77

79

80

83

85

85

88

91

94

97

100

34

57

62

74

77

79

79

75

76

77

79

79

81

83

85

87

90

92

95

97

100

35

53

60

73

77

79

75

75

76

77

79

80

82

84

86

88

90

93

95

98

100

36

52

59

71

75

74

75

75

76

77

79

79

81

83

85

87

90

92

95

97

100

37

49

58

70

71

74

74

75

76

77

78

79

81

84

86

86

89

92

94

97

100

38

48

55

66

70

72

74

74

75

76

78

79

81

83

85

87

90

92

95

97

100

39

45

50

65

70

72

72

74

74

75

77

79

81

84

86

86

89

92

94

97

100

40

41

49

63

68

71

72

73

74

74

76

78

80

83

85

86

89

92

94

97

100

41

40

49

63

68

71

72

72

72

73

75

76

78

81

84

85

88

91

94

97

100

42

40

49

62

68

70

71

71

71

71

73

75

76

81

83

85

88

91

94

97

100

43

39

50

62

67

69

69

70

70

70

71

73

76

79

83

85

88

91

94

97

100

44

39

50

60

66

68

69

68

69

69

69

71

74

79

81

85

88

91

94

97

100

45

37

50

60

66

68

68

68

67

67

67

69

73

78

81

85

88

91

94

97

100

46

37

48

58

63

65

67

66

66

66

67

71

74

78

81

84

87

90

94

97

100

47

36

47

55

61

63

64

64

64

65

67

71

75

79

81

84

87

90

94

97

100

48

35

46

53

58

60

62

63

63

65

67

72

75

79

81

83

86

90

93

97

100

49

34

45

51

56

58

59

61

62

63

67

72

77

80

81

83

86

90

93

97

100

50

34

43

49

53

55

57

60

61

63

67

73

78

80

81

81

85

89

92

96

100

 

Male, Smoker   

Issue                                                                                                                 Duration          

Age

1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20+

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

51

32

42

47

52

55

57

60

61

63

67

73

78

80

83

84

87

90

94

97

100

52

32

40

46

50

54

56

60

61

63

67

73

78

81

84

85

88

91

94

100

100

53

30

37

44

49

54

56

59

61

65

67

74

79

83

85

87

90

92

100

100

100

54

30

36

43

48

53

55

59

61

65

67

74

80

84

85

89

91

100

100

100

100

55

29

35

42

47

53

55

59

61

65

67

75

80

84

86

90

100

100

100

100

100

56

28

35

42

47

53

55

57

60

63

68

74

79

83

85

100

100

100

100

100

100

57

28

35

42

47

53

54

57

60

64

67

74

78

81

100

100

100

100

100

100

100

58

26

33

43

48

54

54

56

59

63

67

73

78

100

100

100

100

100

100

100

100

59

26

33

43

48

54

53

57

59

63

66

73

100

100

100

100

100

100

100

100

100

60

25

33

43

48

54

53

56

58

62

66

100

100

100

100

100

100

100

100

100

100

61

25

33

43

49

55

55

57

59

63

75

100

100

100

100

100

100

100

100

100

100

62

25

33

43

50

56

56

58

61

75

75

100

100

100

100

100

100

100

100

100

100

63

24

33

45

51

56

56

59

75

75

75

100

100

100

100

100

100

100

100

100

100

64

24

34

45

51

57

57

75

75

75

75

100

100

100

100

100

100

100

100

100

100

65

24

34

45

52

57

65

70

70

70

70

100

100

100

100

100

100

100

100

100

100

66

24

35

45

53

60

65

70

70

70

70

100

100

100

100

100

100

100

100

100

100

67

25

35

45

60

60

65

70

70

70

70

100

100

100

100

100

100

100

100

100

100

68

25

36

55

60

60

65

70

70

70

70

100

100

100

100

100

100

100

100

100

100

 

Male, Smoker   

Issue                                                                                                                 Duration          

Age

1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20+

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

69

27

52

55

60

60

65

70

70

70

70

100

100

100

100

100

100

100

100

100

100

70

48

52

55

60

60

65

70

70

70

70

100

100

100

100

100

100

100

100

100

100

71

48

52

55

60

60

65

70

70

70

70

100

100

100

100

100

100

100

100

100

100

72

48

52

55

60

60

65

70

70

70

70

100

100

100

100

100

100

100

100

100

100

73

48

52

55

60

60

65

70

70

70

70

100

100

100

100

100

100

100

100

100

100

74

48

52

55

60

60

65

70

70

70

70

100

100

100

100

100

100

100

100

100

100

75

48

52

55

60

60

65

70

70

70

70

100

100

100

100

100

100

100

100

100

100

76

48

52

55

60

60

65

70

70

70

100

100

100

100

100

100

100

100

100

100

100

77

48

52

55

60

60

65

70

70

100

100

100

100

100

100

100

100

100

100

100

100

78

48

52

55

60

60

65

70

100

100

100

100

100

100

100

100

100

100

100

100

100

79

48

52

55

60

60

65

100

100

100

100

100

100

100

100

100

100

100

100

100

100

80

48

52

55

60

60

100

100

100

100

100

100

100

100

100

100

100

100

100

100

100

81

48

52

55

60

100

100

100

100

100

100

100

100

100

100

100

100

100

100

100

100

82

48

52

55

100

100

100

100

100

100

100

100

100

100

100

100

100

100

100

100

100

83

48

52

100

100

100

100

100

100

100

100

100

100

100

100

100

100

100

100

100

100

84

48

100

100

100

100

100

100

100

100

100

100

100

100

100

100

100

100

100

100

100

85+

100

100

100

100

100

100

100

100

100

100

100

100

100

100

100

100

100

100

100

100

 

Female, Aggregate        

Issue                                                                                                            Duration   

Age

1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20+

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

0-15

100

100

100

100

100

100

100

100

100

100

100

100

100

100

100

100

100

100

100

100

16

100

100

100

100

100

100

100

100

100

100

100

100

100

100

100

100

100

100

100

100

17

99

100

100

100

100

100

100

100

93

95

96

97

97

100

100

100

100

100

100

100

18

83

83

84

84

84

84

86

78

78

79

82

84

85

88

88

90

93

95

98

100

19

65

66

68

68

68

68

63

63

64

66

69

71

72

74

75

80

85

90

95

100

20

48

50

51

51

51

47

48

48

49

51

56

57

58

61

63

70

78

85

93

100

21

47

48

50

51

47

47

48

49

51

53

57

60

61

64

64

71

78

86

93

100

22

44

47

48

45

47

47

48

49

53

54

60

61

63

64

66

73

80

86

93

100

23

42

45

44

45

47

47

49

51

53

54

61

64

64

67

69

75

81

88

94

100

24

39

40

42

44

47

47

50

51

54

56

64

64

66

69

70

76

82

88

94

100

25

34

38

41

44

47

47

50

53

56

57

64

67

69

71

73

78

84

89

95

100

26

34

38

41

45

49

49

51

56

58

59

66

69

70

73

70

76

82

88

94

100

27

34

38

41

47

50

51

54

57

59

60

69

70

73

70

71

77

83

88

94

100

28

34

37

43

47

53

53

56

59

62

63

70

73

70

72

74

79

84

90

95

100

29

34

38

43

49

54

56

58

60

63

64

73

70

72

74

75

80

85

90

95

100

30

35

38

43

50

56

56

59

63

66

67

70

71

74

75

76

81

86

90

95

100

31

35

38

43

51

56

58

60

64

67

65

71

72

74

75

76

81

86

90

95

100

32

35

39

45

51

56

59

63

66

65

66

72

72

75

76

76

81

86

90

95

100

 

Female, Aggregate        

Issue                                                                                                            Duration   

Age

1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20+

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

33

36

39

44

52

58

62

64

65

66

67

72

74

75

76

76

81

86

90

95

100

34

36

40

45

52

58

63

63

66

67

68

74

74

76

76

76

81

86

90

95

100

35

36

40

45

53

59

61

65

67

68

70

75

74

75

76

75

80

85

90

95

100

36

36

40

45

53

55

62

65

67

68

70

74

74

74

75

75

80

85

90

95

100

37

36

41

47

52

57

62

65

67

68

69

72

72

73

75

74

79

84

90

95

100

38

34

41

44

52

57

63

66

68

69

70

72

71

72

74

75

80

85

90

95

100

39

34

40

45

53

58

63

66

68

69

69

70

70

70

73

74

79

84

90

95

100

40

32

40

45

53

58

65

65

67

68

69

70

69

70

73

73

78

84

89

95

100

41

32

40

45

53

57

63

64

67

68

68

69

69

69

73

74

79

84

90

95

100

42

32

40

45

52

56

61

63

65

66

68

69

68

70

74

75

80

85

90

95

100

43

31

39

45

51

55

59

61

65

65

66

68

69

69

74

77

82

86

91

95

100

44

31

39

45

50

54

58

61

63

64

66

67

68

71

75

78

82

87

91

96

100

45

31

38

44

49

53

56

59

62

63

65

67

68

71

77

79

83

87

92

96

100

46

29

37

43

48

51

54

59

62

63

65

67

69

71

77

78

82

87

91

96

100

47

28

35

41

46

49

54

57

61

62

66

68

69

71

77

77

82

86

91

95

100

48

28

35

41

44

49

52

57

61

63

66

68

71

72

75

77

82

86

91

95

100

49

26

34

39

43

47

52

55

61

63

67

69

71

72

75

75

80

85

90

95

100

50

25

32

38

41

46

50

55

61

63

67

69

72

72

75

74

79

84

90

95

100

 

Female, Aggregate        

Issue                                                                                                            Duration   

Age

1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20+

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

51

25

32

38

41

45

50

55

61

63

66

68

69

71

74

74

79

84

90

95

100

52

23

30

36

41

45

51

56

61

62

65

66

68

68

73

73

78

84

89

100

100

53

23

30

36

41

47

51

56

61

62

63

65

66

68

72

72

78

83

100

100

100

54

22

29

35

41

47

53

57

61

61

62

62

66

66

69

70

76

100

100

100

100

55

22

29

35

41

47

53

57

61

61

61

62

63

64

68

69

100

100

100

100

100

56

22

29

35

41

45

51

56

59

60

61

62

63

64

67

100

100

100

100

100

100

57

22

29

35

41

45

50

54

56

58

59

61

62

63

100

100

100

100

100

100

100

58

22

30

36

41

44

49

53

56

57

57

61

62

100

100

100

100

100

100

100

100

59

22

30

36

41

44

48

51

53

55

56

59

100

100

100

100

100

100

100

100

100

60

22

30

36

41

43

47

50

51

53

55

100

100

100

100

100

100

100

100

100

100

61

22

29

35

39

42

46

49

50

52

80

100

100

100

100

100

100

100

100

100

100

62

20

28

33

39

41

45

47

49

80

80

100

100

100

100

100

100

100

100

100

100

63

20

28

33

38

41

44

46

80

80

80

100

100

100

100

100

100

100

100

100