The purpose of this notice is to inform all insurers, other interested parties, and the general public of the adoption of 28 Texas Administrative Code (TAC) Chapter 3, Subchapter JJ, 2001 CSO Mortality Table (Commissioners Order No. 03-0204), effective April 14, 2003, and to provide information that will assist insurers in receiving expedited approval of certain forms.
This new regulation is necessary to prescribe the use of the 2001 CSO Mortality Table in determining minimum reserve liabilities and nonforfeiture benefits, as well as to recognize the use of the 2001 CSO Mortality Table. Insurers may use the table only for new policies issued on or after May 1, 2003. Beginning January 1, 2009, insurers must the 2001 CSO Mortality Table for insurance products issued on or after that date. The 2001 CSO Mortality Table may be found on the American Academy of Actuaries' website through the link, www.tdi.state.tx.us/company/ficso.html.
Where the only amendment to a compliant previously approved policy form is a revision to recognize the use of the 2001 CSO Mortality Table to determine the minimum reserve liabilities and nonforfeiture benefits, a carrier may expedite review by following the requirements of 28 TAC Chapter 3 Subchapter A for an expedited review, and including the following information:
- a new policy page for the table of nonforfeiture values, if applicable.
- a new basis of values page that reflects the 2001 CSO Mortality Table.
- a new maximum cost of insurance rates table, a maximum cost of insurance rates for all issue ages, if applicable.
- a new actuarial memorandum.
- a certification stating that the only change to the approved policy form is to recognize the use of the 2001 CSO Mortality Table.
The department will begin immediate review of filings that meet these requirements in the order receive. The department will follow the usual review process for filing of new policy forms, policy forms with additional changes, and policy forms not meeting the requirements noted above.
For all filings, insurers should note that as provided by 28 TAC Chapter 3, Subchapter JJ, insurers may use the table only for new policies issued on or after May 1, 2003. Insurers should also be aware that the 60-day deemer provided for in Texas Insurance Code Art. 3.42 cannot begin prior to the rule's effective date of April 14, 2003.
Ana M. Smith-Daley