OAR 836-031-0815
Conditions


(1)

For each plan of insurance with separate rates for preferred and standard nonsmoker lives, an insurer may use the super preferred nonsmoker, preferred nonsmoker, and residual standard nonsmoker tables to substitute for the nonsmoker mortality table found in the 2001 CSO Mortality Table to determine minimum reserves. At the time of election and annually thereafter, except for business valued under the residual standard nonsmoker table, the appointed actuary shall certify that:

(a)

The present value of death benefits over the next ten years after the valuation date, using the anticipated mortality experience without recognition of mortality improvement beyond the valuation date for each class, is less than the present value of death benefits using the valuation basic table corresponding to the valuation table being used for that class;

(b)

The present value of death benefits over the future life of the contracts, using anticipated mortality experience without recognition of mortality improvement beyond the valuation date for each class, is less than the present value of death benefits using the valuation basic table corresponding to the valuation table being used for that class.

(2)

For each plan of insurance with separate rates for preferred and standard smoker lives, an insurer may use the preferred smoker and residual standard smoker tables to substitute for the smoker mortality table found in the 2001 CSO Mortality Table to determine minimum reserves. At the time of election and annually thereafter, for business valued under the preferred smoker table, the appointed actuary shall certify that:

(a)

The present value of death benefits over the next ten years after the valuation date, using the anticipated mortality experience without recognition of mortality improvement beyond the valuation date for each class, is less than the present value of death benefits using the preferred smoker valuation basic table corresponding to the valuation table being used for that class;

(b)

The present value of death benefits over the future life of the contracts, using anticipated mortality experience without recognition of mortality improvement beyond the valuation date for each class, is less than the present value of death benefits using the preferred smoker valuation basic table.

(3)

Unless exempted by the Director, each authorized insurer using the 2001 CSO Preferred Class structure Table shall annually file with the Director, with the NAIC or with a statistical agent designated by the NAIC and acceptable to the Director, statistical reports showing mortality an such other information ask the Director may deem necessary or expedient for the administration of the provisions of OAR 836-031-0800 (Purpose, authority) to 836-031-0815 (Conditions). The form of the reports shall be established by the Director or the Director may require the use of a form established by the NAIC or by a statistical agent designated by the NAIC and acceptable to the Director.

(4)

Intentionally left blank —Ed.

(a)

The use of the 2001 CSO Preferred Class Structure 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, either of the following:

(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 the paragraph as Y, the gross reserve calculated before reinsurance. Y is the amount of the gross reinsurance premium that:
(i)
Provides coverage for the period from the next policy premium due date to the earlier of the end of the policy year and the next reinsurance premium due date; and
(ii)
Would be refunded to the ceding entity upon the termination of the policy.

(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 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.

(b)

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. For purposes of this condition, but the reserve credit and the gross reserve before reinsurance:

(A)

For the mean reserve method defined as the mean reserve minus the deferred premium asset; and

(B)

For the mid-terminal reserve method which includes the unearned premium reserve.

(5)

Tables referenced in this rule are available from the Insurance Division of the Department of Consumer and Business Services.
[ED. NOTE: Tables referenced are available from the agency.]
836‑031‑0200
Scope, Authority
836‑031‑0210
Definitions, Application and Explanation of Technical Terms Used
836‑031‑0220
Principles Governing Reserves
836‑031‑0230
Claim Reserves
836‑031‑0240
Premium Reserves
836‑031‑0250
Contract Reserves
836‑031‑0260
Reinsurance
836‑031‑0270
Specific Standards for Morbidity
836‑031‑0280
Specific Standards for Interest
836‑031‑0290
Specific Standards for Mortality
836‑031‑0300
Reserves for Waiver of Premium
836‑031‑0400
Allowed Assets
836‑031‑0410
Title Insurance Unearned Premium Reserve
836‑031‑0600
Purpose
836‑031‑0605
Valuation Manual
836‑031‑0610
Authority
836‑031‑0620
Scope
836‑031‑0630
Definitions
836‑031‑0640
General Requirements
836‑031‑0670
Statement of Actuarial Opinion Based On an Asset Adequacy Analysis
836‑031‑0680
Description of Actuarial Memorandum Including an Asset Adequacy Analysis and Regulatory Asset Adequacy Summary
836‑031‑0690
Additional Considerations for Analysis
836‑031‑0750
Purpose, Authority and Applicability
836‑031‑0755
Applicability
836‑031‑0760
Definitions
836‑031‑0765
General Calculation Requirements for Basic Reserves and Premium Deficiency Reserves
836‑031‑0770
Calculation of Minimum Valuation Standard for Policies with Guaranteed Nonlevel Gross Premiums or Guaranteed Nonlevel Benefits (Other than Universal Life Policies)
836‑031‑0775
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
836‑031‑0800
Purpose, authority
836‑031‑0805
Definitions
836‑031‑0810
2001 CSO Preferred Class Structure Table
836‑031‑0815
Conditions
836‑031‑0855
Recoupment of Assessments by Oregon Insurance Guaranty Association
Last Updated

Jun. 8, 2021

Rule 836-031-0815’s source at or​.us