Alternate Rule

Alternate Rule In determining minimum cash surrender values and amounts of paid-up nonforfeiture benefits for any policy of insurance on the life of either a male or female insured on a form of insurance with separate rates for smokers and nonsmokers delivered or issued for delivery in this state after the operative date of Section (insert applicable reference corresponding to paragraph 5-c(11) of the NAIC Model Standard Nonforfeiture Law for Life Insurance) for that policy form, in addition to the mortality tables that may be used according to Section 4, (i) a mortality table which is a blend of the male and female rates of mortality according to the 1980 CSO Smoker Mortality Table, in the case of lives classified as smokers, or the 1980 CSO Nonsmokers Mortality table, in the case of lives classified as nonsmokers, with or without ten-year Select Mortality Factors, may at the option of the company be substituted for the 1980 CSO Table, with or without Ten-Year Select Mortality Factors, and (ii) a mortality table which is of the same blend as used in (i) but applied to form a blend of the male and female rates of mortality according to the corresponding 1980 CET Smoker Mortality Table or 1980 Nonsmoker Mortality Table may at the option of the company be substituted for the 1980 CET Table. The following blended mortality tables will be considered acceptable: 1. SA:100% Male 0% Female smoker tables designated as “1980 CSO-SA” and “1980 CET-SA” tables. 2. SB:80% Male 20% Female smoker tables designated as “1980 CSO-SB” and “1980 CET-SB” tables. 3. SC:60% Male 40% Female smoker tables designated as “1980 CSO-SC” and “1980 CET-SC” tables. 4. SD:50% Male 50% Female smoker tables designated as “1980 CSO-SD” and “1980 CET-SD” tables. 5. SE:40% Male 60% Female smoker tables designated as “1980 CSO-SE” and “1980 CET-SE” tables. 6. SF:20% Male 80% Female smoker tables designated as “1980 CSO-SF” and “1980 CET-SF” tables. 7. SG:0% Male 100% Female smoker tables designated as “1980 CSO-SG” and “1980 CET-SG” tables. 8. NA:100% Male 0% Female nonsmoker tables designated as “1980 CSO-NA” and “1980 CET-NA” tables. 9. NB:80% Male 20% Female nonsmoker tables designated as “1980 CSO-NB” and “1980 CET-NB” tables. 10. NC:60% Male 40% Female nonsmoker tables designated as “1980 CSO-NC” and “1980 CET-NC” tables. 11. ND:50% Male 50% Female nonsmoker tables designated as “1980 CSO-ND” and “1980 CET-ND” tables. 12. NE:40% Male 60% Female nonsmoker tables designated as “1980 CSO-NE” and “1980 CET-NE” tables. 13. NF:20% Male 80% Female nonsmoker tables designated as “1980 CSO-NF” and “1980 CET-NF” tables. 14. NG:0% Male 100% Female nonsmoker tables designated as “1980 CSO-NG” and “1980 CET-NG” tables. Tables SA, SG, NA and NG are not acceptable as blended tables unless the proportion of persons insured is anticipated to be 90% or more of one sex or the other. *Rule 6.05 was added by NAIC, December 1986