SECTION 4.2733. 2001 CSO Preferred Class Structure Table

(a) Policies issued on or after January 1, 2007, and before January 1, 2017. 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 subchapter, 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. Policies issued on or after January 1, 2017, must follow the mortality table requirements provided by the valuation manual adopted under Insurance Code Chapter 425, Subchapter B, concerning Standard Valuation Law.

(b) Policies issued on or after May 1, 2003, and before January 1, 2007. At the election of the insurer and with the consent of the commissioner, for policies issued on or after May 1, 2003, and before January 1, 2007, 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 subject to the conditions of §4.2734 of this title (relating to Conditions). In determining such consent, the commissioner may rely on the consent of the commissioner of the insurer's state of domicile.

(c) Requirement to make election. No election in subsection (a) or (b) of this section may be made until the insurer demonstrates that at least 20% of the business to be valued on this table is in one or more of the preferred classes.

(d) 2001 CSO Preferred Class Structure Mortality Table Treatment. A table from the 2001 CSO Preferred Class Structure Mortality Table used in place of a 2001 CSO Mortality Table, under the requirements of this subchapter, will be treated as part of the 2001 CSO Mortality Table only for purposes of reserve valuation under the requirements of Subchapter AA, Division 3 of this title (relating to 2001 CSO Mortality Table).

(e) Adoption by reference. The commissioner adopts by reference the 2001 CSO Preferred Class Structure Mortality Table. The table is available from the Financial Regulation Division, Actuarial Office, MC: FRD, Texas Department of Insurance, P.O. Box 12030, Austin, Texas 78711-2030 or on the internet by accessing the department's website at www.tdi.texas.gov/rules/2003/ficso.html.

Source Note: The provisions of this §4.2733 adopted to be effective March 12, 2007, 32 TexReg 1318; amended to be effective September 15, 2010, 35 TexReg 8375; amended to be effective May 11, 2022, 47 TexReg 2758; transferred effective September 1, 2023, as published in the July 28, 2023, issue of the Texas Register, 48 TexReg 4127; amended to be effective January 24, 2024, 49 TexReg 250