Application of the 2001 CSO mortality table to chapter 45-04-12

1. The 2001 CSO mortality table may be used in applying chapter 45-04-12 in the following manner, subject to the transition dates for use of the 2001 CSO mortality table in section 45-04-07.1-02 (unless otherwise noted, the references in this section are to chapter 45-04-12): a. Paragraph 2 of subdivision b of subsection 1 of section 45-04-12-01: The net level reserve premium is based on the ultimate mortality rates in the 2001 CSO mortality table. b. Subsection 2 of section 45-04-12-02: All calculations are made using the 2001 CSO mortality rate, and, if elected, the optional minimum mortality standard for deficiency reserves stipulated in subdivision d. The value of "qx+k+t-1" is the valuation mortality rate for deficiency reserves in policy year k+t, but using the unmodified select mortality rates if modified select mortality rates are used in the computation of deficiency reserves. c. Subsection 1 of section 45-04-12-03: The 2001 CSO mortality table is the minimum standard for basic reserves. d. Subsection 2 of section 45-04-12-03: The 2001 CSO mortality table is the minimum standard for deficiency reserves. If select mortality rates are used, they may be multiplied by x percent for durations in the first segment, subject to the conditions specified in subdivision c of subsection 2 of section 45-04-12-03. In demonstrating compliance with those conditions, the demonstrations may not combine the results of tests that utilize the 1980 CSO mortality table with those tests that utilize the 2001 CSO mortality table, unless the combination is explicitly required by regulation or necessary to be in compliance with relevant actuarial standards of practice. e. Subsection 3 of section 45-04-12-04: The valuation mortality table used in determining the tabular cost of insurance shall be the ultimate mortality rates in the 2001 CSO mortality table. f. Subdivision d of subsection 5 of section 45-04-12-04: The calculations specified in subsection 5 of section 45-04-12-04 shall use the ultimate mortality rates in the 2001 CSO mortality table. g. Subdivision d of subsection 6 of section 45-04-12-04: The calculations specified in subsection 6 of section 45-04-12-04 shall use the ultimate mortality rates in the 2001 CSO mortality table. h. Subdivision b of subsection 7 of section 45-04-12-04: The calculations specified in subsection 7 of section 45-04-12-04 shall use the ultimate mortality rates in the 2001 CSO mortality table. i. Paragraph 2 of subdivision a of subsection 1 of section 45-04-12-05: The one-year valuation premium shall be calculated using the ultimate mortality rates in the 2001 CSO mortality table. 2. Nothing in this section shall be construed to expand the applicability of chapter 45-04-12 to include life insurance policies exempted under subsection 1 of section 45-04-12-01.