Definitions

A. “2001 CSO Mortality Table” means that mortality table, consisting of separate rates of mortality for male and female lives, developed by the AAA CSO task force from the Valuation Basic Mortality Table developed by the SOA individual life insurance valuation mortality task force, and adopted by the NAIC in December 2002. The 2001 CSO Mortality Table is included in the Proceedings of the NAIC, second quarter 2002, and supplemented by the 2001 CSO Preferred Class Structure Mortality Table defined in Subsection B of 13.9.18.7 NMAC. Unless the context indicates otherwise, the 2001 CSO Mortality Table includes both the ultimate form of that table and the select and ultimate form of that table and includes both the Smoker and Nonsmoker Mortality Tables and the Composite Mortality Tables. It also includes both the age-nearest-birthday and age-last-birthday bases of the mortality tables. Mortality tables in the 2001 CSO Mortality Table include the following: (1) “2001 CSO Mortality Table (F)” means that mortality table consisting of the rates of mortality for female lives from the 2001 CSO Mortality Table; (2) “2001 CSO Mortality Table (M)” means that mortality table consisting of the rates of mortality for male lives from the 2001 CSO Mortality Table; (3) “Composite Mortality Tables” means mortality tables with rates of mortality that do not distinguish between smokers and nonsmokers; and (4) “Smoker and Nonsmoker Mortality Tables” means mortality tables with separate rates of mortality for smokers and nonsmokers. B. “2001 CSO Preferred Class Structure Mortality Table” means mortality tables with separate rates of mortality for super preferred nonsmokers, preferred nonsmokers, residual standard nonsmokers, preferred smokers, and residual standard smoker splits of the 2001 CSO Nonsmoker and Smoker Tables as adopted by the at the September, 2006 national meeting and published in the Proceedings of the NAIC, third quarter 2006. Unless the context indicates otherwise, the 2001 CSO Preferred Class Structure Mortality Table includes both the ultimate form of that table and the select and ultimate form of that table. It includes both the Smoker and Nonsmoker Mortality Tables. It includes both the male and female mortality tables and the gender composite mortality tables. It also includes both the age-nearest-birthday and age-last-birthday bases of the mortality table. C. “AAA” means the American academy of actuaries. D. “CSO” means commissioners standard ordinary. E. “NAIC” means the national association of insurance commissioners. F. “SOA” means the society of actuaries. 13.9.18 NMAC 2 G. “Statistical agent” means an entity with proven systems for protecting the confidentiality of individual insured and insurer information, demonstrated resources for and history of ongoing electronic communications and data transfer ensuring data integrity with insurers, which are its members or subscribers and a history of and means for aggregation of data and accurate promulgation of the experience modifications in a timely manner. H. “Superintendent” means the superintendent of insurance, the office of superintendent of insurance or employees of the office of superintendent of insurance acting within the scope of the superintendent’s official duties and with the superintendent’s authorization. [13.9.18.7 NMAC - N, 12/31/2007; A, 7/24/2018] 13.9.18.8 2001 CSO PREFERRED CLASS STRUCTURE TABLE: At the election of the insurer, for each calendar year of issue, for any one or more specified plans of insurance and subject to satisfying the conditions stated in this rule, the 2001 CSO Preferred Class Structure Mortality Table may be substituted in place of the 2001 CSO Smoker or Nonsmoker Mortality Table as the minimum valuation standard for policies issued on or after January 1, 2007. For policies issued on or after January 1, 2004 and prior to January 1, 2007, these tables may be substituted with the consent of the superintendent and subject to the conditions of 13.9.18.9 NMAC. In determining such consent, the superintendent may rely on the consent of the commissioner of the company’s state of domicile. No such election shall be made until the company demonstrates at least twenty percent of the business to be valued on this table is in one or more of the preferred classes. A table from the 2001 CSO Preferred Class Structure Mortality Table used in place of a 2001 CSO Mortality Table, pursuant to the requirements of this rule, will be treated as part of the 2001 CSO Mortality Table only for purposes of reserve valuation pursuant to the requirements of 13.9.16 NMAC, Use Of 2001 Commissioners Standard Ordinary Mortality Table.