11136
. Except as otherwise provided in Section 10489.4, such
valuation shall be certified by a competent actuary or, at the
expense of the society, verified by the actuary of the insurance
supervisory official of the state of domicile of the society, and the
legal minimum standard of valuation shall be as follows:
(a) All benefits promised by certificates issued prior to
September 22, 1952, and the rates therefor shall be valued in
accordance with the provisions of law applicable thereto as of the
date of issuance, but not lower than the standards and interest
assumptions used in the calculation of rates for such benefits.
(b) The minimum standard for the valuation of all certificates
issued after September 21, 1952, and prior to January 1, 1972, shall
be 3 percent per annum interest; in the case of certificates issued
on and after January 1, 1972, and prior to January 1, 1980, the
minimum standard for the valuation of all such certificates shall be
4 percent per annum interest; and in the case of certificates issued
on and after January 1, 1980, the minimum standard for the valuation
of all single premium certificates shall be 5 1/2 percent per annum
interest and for the valuation of all other such certificates shall
be 4 1/2 percent per annum interest, and the following tables:
(1) For all ordinary certificates of life insurance issued on the
standard basis, excluding any disability and accidental death
benefits in such certificates--the American Men Ultimate Table of
Mortality, with Bowerman's or Davis' Extension thereof, or, at the
option of the society, the Commissioners 1941 Standard Ordinary
Mortality Table or the Commissioners 1958 Standard Ordinary Mortality
Table, using actual age of the insured for male risks and an age not
more than six years younger than the actual age of the insured for
female risks, and for such policies issued on or after the operative
date of Section 10163.2 (i) the Commissioners 1980 Standard Ordinary
Mortality Table, or (ii) at the election of the company for any one
or more specified plans of life insurance, the Commissioners 1980
Standard Ordinary Mortality Table with Ten-Year Select Mortality
Factors, or (iii) any ordinary mortality table, adopted after 1980 by
the National Association of Insurance Commissioners, or its
successor, that is approved by regulation promulgated or bulletin
issued by the commissioner for use in determining the minimum
standard of valuation for such policies.
(2) For all industrial life insurance certificates issued on the
standard basis, excluding any disability and accidental death
benefits in such certificates--the 1941 Standard Industrial Mortality
Table, for such certificates issued prior to the operative date of
Section 10163.2, and for such policies issued on or after such
operative date, the Commissioners 1961 Standard Industrial Mortality
Table or any industrial mortality table, adopted after 1980 by the
National Association of Insurance Commissioners, or its successor,
that is approved by regulation promulgated or bulletin issued by the
commissioner for use in determining the minimum standard of valuation
for such policies.
(3) For annuity and pure endowment certificates, excluding any
disability and accidental death benefits in such certificates--the
1937 Standard Annuity Mortality Table, or the Annuity Mortality Table
for 1949 Ultimate, or the Individual Annuity Mortality Table for
1971, or any individual annuity mortality table, adopted after 1980
by the National Association of Insurance Commissioners, or its
successor, that is approved by regulation promulgated or bulletin
issued by the commissioner for use in determining the minimum
standard of valuation for such contracts, or any modification of any
of these tables approved by the commissioner.
(4) For disability benefits in or supplementary to ordinary
certificates--Hunter's Disability Table or the Class 3 Disability
Table (1926), modified to conform to the contractual waiting period,
or the tables of Period 2 disablement rates and the 1930 to 1950
termination rates of the 1952 Disability Study of the Society of
Actuaries with due regard to the type of benefit, or the 1964
Commissioners Disability Table, or any tables of disablement rates
and termination rates, adopted after 1980 by the National Association
of Insurance Commissioners, or its successor, that are approved by
regulation promulgated or bulletin issued by the commissioner for use
in determining the minimum standard of valuation for such policies.
Any such table shall, for active lives, be combined with a mortality
table permitted for calculating the reserves for life insurance
certificates.
(5) For accidental death benefits in or supplementary to
certificates--The Inter-Company Double Indemnity Mortality Table or
the 1959 Accidental Death Benefits Table, or any accidental death
benefits table, adopted after 1980 by the National Association of
Insurance Commissioners, or its successor, that is approved by
regulation promulgated or bulletin issued by the commissioner for use
in determining the minimum standard of valuation for such policies.
Any such table shall be combined with a mortality table permitted for
calculating the reserves for life insurance certificates.
(6) For temporary accident and health benefits in or supplementary
to certificates--Class 3 Disability Table (1926) with Conference
Modifications or the 1964 Commissioners Disability Table, or any
tables of disablement rates and termination rates, adopted after 1980
by the National Association of Insurance Commissioners, or its
successor, that are approved by regulation promulgated or bulletin
issued by the commissioner for use in determining the minimum
standard of valuation for such policies.
(7) For life insurance issued upon the substandard basis and other
special benefits--such tables as may be approved by the
commissioner.
(c) The commissioner may, in his discretion, accept other
standards for valuation if he finds that the reserves produced
thereby will not be less in the aggregate than reserves computed in
accordance with the minimum valuation standard prescribed. Whenever
the mortality experience under the certificates valued on the same
mortality table is in excess of the expected mortality according to
such table for a period of three consecutive years, the commissioner
may require additional reserves when in his judgment deemed necessary
on account of such certificates.
(d) Notwithstanding the provisions of subdivisions (a) and (b),
any society, with the consent of the insurance supervisory official
of the state of domicile of the society, and under such conditions,
if any, which he may impose, may establish and maintain reserves on
its certificates in excess of the reserves required thereunder, but
the contractual rights of any insured member shall not be affected
thereby.