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Ins 2.20(3)(d)2. 2. "Tables NG and SG" means the corresponding 1980 nonsmoker and smoker mortality tables for female lives.
Ins 2.20(3)(e)1.1. "Tables B through F" means the blended 1980 CSO and 1980 CET Mortality Tables for policies issued on an age nearest birthday basis with varying proportions of male lives to total lives. The ratio of male lives to total lives is 80% for Table B, 60% for Table C, 50% for Table D, 40% for Table E and 20% for Table F. These tables are published in the proceedings of the National Association of Insurance Commissioners for the 1983 December meeting, pages 396 last birthday basis, the tables shall be modified by interpolation between values of lx.
Ins 2.20(3)(e)2. 2. "Tables NB through NF and SB through SF" means the corresponding 1980 blended nonsmoker and smoker mortality tables.
Ins 2.20(3)(f) (f) "1980 CSO and CET Nonsmoker and Smoker Mortality Tables"means the mortality tables with separate rates of mortality for nonsmokers and smokers derived from the 1980 CSO and 1980 CET Mortality Tables and adopted by the NAIC in December 1983. Mortality rates for these tables are published on pp. 406-409, Proceedings of the National Association of Insurance Commissioners, 1984, Vol. 1, and pp. 521-530 Proceedings of the National Association of Insurance Commissioners, 1987, Vol. 1.
Ins 2.20(4) (4)Cash value and paid-up nonforfeiture benefits.
Ins 2.20(4)(a)1.1. For any policy of life insurance which falls within sub. (2) of this section and is delivered or issued for delivery in this state after the operative date of s. 632.43 (6m) (h), Stats., applicable to the policy, the cash surrender and paid-up nonforfeiture benefits provided under the policy may be calculated using one of the sets of tables designated as Table A through Table G. Tables A and G may not be used for policies issued on or after January 1, 1985 except where the proportion of persons insured is anticipated to be 90% or more of one sex or the other or except for certain policies converted from group insurance. Such group conversions issued on or after January 1, 1986, shall use mortality tables based on the blend of lives by sex expected for such policies if such group conversions are considered extensions of the Norris decision.
Ins 2.20(4)(a)2. 2. In place of Tables A through G under sub. (1), corresponding Tables NA through NG and SA through SG may be used in situations where separate rates for nonsmokers and smokers are used.
Ins 2.20(4)(b)1.1. An insurer may elect one of the Tables B through F in lieu of the 1980 CSO and CET tables for all life insurance policies under which all contractual requirements and guarantees are independent of the sex of the life insured, without regard to any opinion as to the applicability of Norris; provided that the Table so elected may not be changed unless the insurer can demonstrate to the satisfaction of the commissioner that a different Blend is more appropriate.
Ins 2.20(4)(b)2. 2. In lieu of the above, corresponding Tables NB through NF and SB through SF may be used in situations where separate rates for nonsmokers and smokers are used.
Ins 2.20(5) (5)Reserves. The minimum reserve standards for life insurance policies are set forth in s. 623.06, Stats., and are not affected by this section.
Ins 2.20 History History: Emerg. cr. eff. 5-19-84; cr. Register, August, 1984, No. 344, eff. 9-1-84; r. (6) under s. 13.93 (2m) (b) 16., Stats., Register, December, 1984, No. 348; renum. (3)(c), (d), (e), (4)(a) and (b) to be (3)(c)1., (d)1., (e)1., (4)(a)1. and (b)1. and am. (4)(a)1. and (b)1., cr. (3)(c)2., (d)2., (e)2., (f), (4)(a)2. and (b)2., Register, November, 1988, No. 395, eff. 12-1-88.
Ins 2.30 Ins 2.30 Annuity mortality tables.
Ins 2.30(1) (1)Purpose. The purpose of this section is to adopt, pursuant to s. 623.06 (2a) (b) and (d), Stats., mortality tables for use in determining the minimum standard of valuation for annuity and pure endowment contracts.
Ins 2.30(2) (2)Definitions.
Ins 2.30(2)(a)(a) "NAIC" means the national association of insurance commissioners.
Ins 2.30(2)(b) (b) "1983 `table' " means that mortality table adopted for the valuation of individual annuity and pure endowment contracts in June of 1982 by the NAIC and published on page 454, NAIC proceedings, vol. II 1982.
Ins 2.30(2)(c) (c) "1983 GAM table" means those male and female group annuity mortality tables adopted for the valuation of group annuity and pure endowment contracts in December of 1983 by the NAIC and published on pages 414-415, NAIC proceedings, vol. I, 1984.
Ins 2.30(2)(d) (d) "Annuity 2000 mortality table" means those male and female mortality tables adopted for the valuation of individual annuity and pure endowment contracts in December of 1996 by the NAIC as published on page 240, vol. XLVII, transactions, society of actuaries, 1995.
Ins 2.30(2)(e) (e) "1994 GAR table" means the group annuity reserving table adopted for the valuation of group annuity and pure endowment contracts in December of 1996 by the NAIC as published on pages 866 and 867, vol. XLVII, transactions, society of actuaries, 1995.
Ins 2.30(3) (3)Individual annuity or pure endowment contracts.
Ins 2.30(3)(a)(a) The 1983 table `a' may be used to determine the minimum standard of valuation for any individual annuity or pure endowment contract issued on or after November 8, 1977 but before January 1, 1986.
Ins 2.30(3)(b) (b) Either the 1983 table `a' or the annuity 2000 mortality table shall be used to determine the minimum standard of valuation for any individual annuity or pure endowment contract issued on or after January 1, 1986 but before January 1, 1999.
Ins 2.30(3)(c) (c) Except as provided in par. (d) the annuity 2000 mortality table shall be used to determine the minimum standard of valuation for any individual annuity or pure endowment contract issued on or after January 1, 1999.
Ins 2.30(3)(d) (d) The 1983 table a without projection shall be used for determining the minimum standards of valuation for an individual annuity or pure endowment contract issued on or after January 1, 1999 when the contract is based on life contingencies and is issued to fund periodic benefits arising from any of one of the following:
Ins 2.30(3)(d)1. 1. Settlements of various forms of claims pertaining to court settlements or out of court settlements from tort actions.
Ins 2.30(3)(d)2. 2. Settlements involving similar actions such as worker's compensation claims.
Ins 2.30(3)(d)3. 3. Settlements of long term disability claims where a temporary or life annuity has been used in lieu of continuing disability payments.
Ins 2.30(4) (4)Group annuity or pure endowment contracts.
Ins 2.30(4)(a)(a) Either the 1983 GAM table, the 1983 table `a', or the 1994 GAR table may be used to value any annuity or pure endowment purchased on or after November 8, 1977 but before January 1, 1986 under a group annuity or pure endowment contract.
Ins 2.30(4)(b) (b) Either the 1983 GAM table or the 1994 GAR table shall be used to determine the minimum standard of valuation for any annuity or pure endowment contract purchased on or after January 1, 1986 but before January 1, 1999 under a group annuity or pure endowment contract.
Ins 2.30(4)(c) (c) The 1994 GAR table shall be used for determining the minimum standard of valuation for any annuity or pure endowment contract purchased on or after January 1, 1999 under a group annuity or pure endowment contract.
Ins 2.30(5) (5)Application of 1994 GAR table.
Ins 2.30(5)(a)(a) In using the 1994 GAR table the mortality rate for a person age x in year (1994 + n) is calculated as follows:
qx 1994+n = qx 1994 (1-AAx) n
where the qx 1994s and AAxs are as specified in the 1994 GAR Table.
Ins 2.30 History History: Cr. Register, November, 1985, No. 359, eff. 12-1-85; am. Register, October, 1998, No. 514, eff. 1-1-99.
Ins 2.35 Ins 2.35 Smoker and nonsmoker mortality tables for minimum reserve liabilities and minimum nonforfeiture benefits.
Ins 2.35(1)(1)Purpose. This section implements ss. 623.06 (2) (am) 3. and 632.43 (6m) (e) 3. f., Stats., by permitting the use of mortality tables that reflect differences in mortality between smokers and nonsmokers. These mortality tables are used in determining minimum reserve liabilities and minimum cash surrender values and amounts of paid-up nonforfeiture benefits for plans of insurance with separate premium rates for smokers and nonsmokers.
Ins 2.35(2) (2)Definitions. In this section:
Ins 2.35(2)(a) (a) "1980 CSO table, with or without 10-year select mortality factor" means that mortality table, consisting of separate rates of mortality for male and female lives, incorporated in ss. 623.06 (2) (am) 3 and 632.43 (6m) (e) 3. f., Stats., and referred to in those statutes as the commissioner's 1980 standard ordinary mortality table, with or without 10-year select mortality factors.
Ins 2.35(2)(b) (b) "1980 CET table" means that mortality table consisting of separate rates of mortality for male and female lives incorporated in ss. 623.06 (2) (am) 3. and 632.43 (6m) (e) 3. f., Stats., and referred to in those statutes as the commissioner's 1980 extended term insurance table.
Ins 2.35(2)(c) (c) "1980 CSO smoker and nonsmoker mortality tables" means the mortality tables with separate rates of mortality for smokers and nonsmokers derived from the tables defined in par. (a), and adopted by the National Association of Insurance Commissioners in December 1983.
Ins 2.35 Note Note: Mortality rates for these tables are published on pp. 406-413, Proceedings of the National Association of Insurance Commissioners, 1984 Vol. I.
Ins 2.35(2)(d) (d) "1980 CET smoker and nonsmoker mortality tables" means the mortality tables with separate rates of mortality for smokers and nonsmokers derived from the tables defined in par. (b), and adopted by the National Association of Insurance Commissioners in December 1983.
Ins 2.35 Note Note: Mortality rates for these tables are published on pp. 406-413, Proceedings of the National Association of Insurance Commissioners, 1984 Vol. I.
Ins 2.35(2)(e) (e) "Composite mortality tables" means the mortality tables defined in pars. (a) and (b), as originally published with rates of mortality that do not distinguish between smokers and nonsmokers.
Ins 2.35(3) (3)Alternate tables. At the option of the company and subject to the condition that the company use the same select factors for both smoker and nonsmoker tables, and the conditions stated in sub. (4), for any policy of insurance delivered or issued for delivery in this state after the operative date of s. 632.43 (6m) (h), Stats., for that policy form:
Ins 2.35(3)(a) (a) The company may substitute the 1980 CSO smoker and nonsmoker mortality tables, with or without 10-year select mortality factors for the 1980 CSO table, with or without 10-year select mortality factors, for use in determining minimum reserve liabilities, minimum cash surrender values and amounts of paid-up nonforfeiture benefits; and
Ins 2.35(3)(b) (b) The company may substitute the 1980 CET smoker and nonsmoker mortality tables for the 1980 CET Table for use in determining minimum reserve liabilities, minimum cash surrender values and amounts of paid-up nonforfeiture benefits.
Ins 2.35(4) (4)Conditions. For each plan of insurance with separate rates for smokers and nonsmokers the company may:
Ins 2.35(4)(a) (a) Use composite mortality tables to determine minimum reserve liabilities, minimum cash surrender values and amounts of paid-up nonforfeiture benefits;
Ins 2.35(4)(b) (b) Use 1980 CSO or 1980 CET smoker and nonsmoker mortality tables to determine the valuation net premiums and additional minimum reserves, if any, required by s. 623.06 (7), Stats., and use composite mortality tables to determine the basic minimum reserves, minimum cash surrender values and amounts of paid-up nonforfeiture benefits; or
Ins 2.35(4)(c) (c) Use 1980 CSO or 1980 CET smoker and nonsmoker mortality tables to determine minimum reserve liabilities and minimum cash surrender values and amounts of paid-up nonforfeiture benefits.
Ins 2.35 History History: Cr. Register, November, 1988, No. 395, eff. 12-1-88.
Ins 2.40 Ins 2.40 Annuity contracts without life contingencies.
Ins 2.40(1)(1)Purpose. This section implements and interprets s. 632.66, Stats., by authorizing life insurers to issue annuity contracts without life contingencies and setting forth the conditions under which these annuity contracts may be issued.
Ins 2.40(2) (2)Scope. This section applies to all annuity contracts without life contingencies and which are classified as life and disability insurance under s. Ins 6.75 (1).
Ins 2.40(3) (3)Grant of authority. A life insurer that holds a valid certificate of authority to transact the business of life insurance and annuities in this state may issue in this state annuity contracts without life contingencies, subject to the following conditions:
Ins 2.40(3)(a) (a) No insurer may base the consideration to be paid to the insurer for the annuity contract without a life contingency upon the age or condition of health of the purchaser of the contract or any other person, or on any mortality or morbidity contingencies.
Ins 2.40(3)(b) (b) An insurer shall base the amounts guaranteed to be paid under an annuity contract without a life contingency upon reasonable assumptions as to investment income and expenses, determined in a manner which is equitable to all holders of such contracts.
Ins 2.40(3)(c) (c) An insurer may offer to the public an annuity contract without a life contingency only through licensed intermediaries or directly by the insurer.
Ins 2.40(4) (4)Applicable statutes and administrative rules. An annuity contract without a life contingency is deemed to be an annuity for purposes of chs. 600 to 645, Stats., and all rules adopted thereunder, including, but not limited to, ch. 623, Stats., ss. 631.20 to 631.27, Stats., and ss. Ins 2.07, 2.15, 6.05, and 51.80.
Ins 2.40 History History: Cr. Register, December, 1988, No. 396, eff. 1-1-89; correction in (4) made under s. 13.93 (2m) (b) 7., Stats., Register, June, 1999, No. 522.
Ins 2.45 Ins 2.45 Charitable organizations; insurable interest.
Ins 2.45(1)(1)Purpose. The purpose of this section is to interpret s. 631.07, Stats., with respect to the insurable interest of charitable organizations. This section does not limit or abridge any insurable interest existing at common law or by statute.
Ins 2.45(2) (2)Scope. This section applies to life insurance policies issued in this state, including, but not limited to, policies in force on March 1, 1994.
Ins 2.45(3) (3)Definitions. In this section:
Ins 2.45(3)(a) (a) "Charitable organization" means an organization described in 26 USC 170 (c) or 26 USC 501 (c) (3).
Ins 2.45(3)(b) (b) "Life insurance" includes endowment policies and annuities.
Ins 2.45(4) (4)Insurable interest. A charitable organization may be the applicant, owner or beneficiary of a life insurance policy issued on the life of any individual. A charitable organization is deemed to have an insurable interest in the individual. For insurance applied for on or after March 1, 1994, the charitable organization has an insurable interest only if it obtains the consent of the individual in writing or by other means authorized by common law or by statute.
Ins 2.45 History History: Cr. Register, February, 1994, No. 458, eff. 3-1-94.
Ins 2.80 Ins 2.80 Valuation of life insurance policies.
Ins 2.80(1)(1)Purpose.
Ins 2.80(1)(a)(a) This section establishes minimum standards under ch. 623, Stats., for life insurance policy reserves by providing tables of select mortality factors, establishing rules concerning a minimum standard for the valuation of plans with non-level premiums or benefits, and establishing rules concerning a minimum standard for the valuation of plans with secondary guarantees.
Ins 2.80(1)(b) (b) The method for calculating basic reserves defined in this section constitutes the commissioner's reserve valuation method for policies to which this section is applicable.
Ins 2.80(2) (2)Scope. This section applies to all life insurance policies, wherever sold, with or without nonforfeiture values, issued on or after January 1, 2000, subject to the following exceptions and conditions:
Ins 2.80(2)(a) (a) This section does not apply to any individual life insurance policy issued on or after January 1, 2000, if the policy is issued in accordance with and as a result of the exercise of a reentry provision contained in the original life insurance policy of the same or greater face amount that was issued before January 1, 2000 that guarantees the premium rates of the new policy. This section also does not apply to subsequent policies issued as a result of the exercise of such a provision in the new policy.
Ins 2.80(2)(b) (b) This section does not apply to any of the following:
Ins 2.80(2)(b)1. 1. Any universal life policy that meets all the following requirements:
Ins 2.80(2)(b)1.a. a. The secondary guarantee period, if any, is 5 years or less.
Ins 2.80(2)(b)1.b. b. The specified premium for the secondary guarantee period is not less than the net level reserve premium for the secondary guarantee period based on the CSO valuation tables as defined in sub. (3) (f) and the applicable valuation interest rate.
Ins 2.80(2)(b)1.c. c. The initial surrender charge is not less than 100% of the first year annualized specified premium for the secondary guarantee period.
Ins 2.80(2)(b)2. 2. Any variable life insurance policy that provides for life insurance, the amount or duration of which varies according to the investment experience of any separate account or accounts.
Ins 2.80(2)(b)3. 3. Any variable universal life insurance policy that provides for life insurance, the amount or duration of which varies according to the investment experience of any separate account or accounts.
Ins 2.80(2)(b)4. 4. Group life insurance certificates, unless the certificates provide for a stated or implied schedule of maximum gross premiums required in order to continue coverage in force for a period in excess of one year.
Ins 2.80(2)(c) (c) Calculation of the minimum valuation standard for policies with guaranteed nonlevel gross premiums or guaranteed nonlevel benefits, other than universal life policies, or both, shall be in accordance with the provisions of sub. (5).
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