Ala. Admin. Code r. 482-1-143-.04

Current through Register Vol. 43, No. 02, November 27, 2024

Section 482-1-143-.04 - Definitions

(1) 2001 CSO MORTALITY TABLE. That mortality table, consisting of separate rates of mortality for male and female lives, developed by the American Academy of Actuaries CSO Task Force from the Valuation Basic Mortality Table developed by the Society of Actuaries 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 (2nd Quarter 2002). 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.

(2) ULTIMATE 1980 CSO. The Commissioners' 1980 Standard Ordinary Life Valuation Mortality Tables (1980 CSO) without ten-year (10-year) selection factors, incorporated into the 1980 amendments to the NAIC Standard Valuation Law approved in December, 1983.

(3) PRENEED CONTRACT. A written contract to purchase funeral merchandise, funeral services, cemetery merchandise, and/or cemetery services from a seller on a preneed basis (any time prior to death) within the scope of the Alabama Preneed Funeral and Cemetery Act, Code of Ala. 1975, §§ 27-17A-1et seq. For purposes of this chapter, and whether or not the transaction is subject to regulation as a preneed contract under the Alabama Preneed Funeral and Cemetery Act, Code of Ala. 1975, §§ 27-17A-1et seq., a "preneed contract" also includes a prearrangement if accompanied by a purchase of life insurance intended to ultimately fund a completed purchase of funeral or cemetery merchandise and services at need.

(4) PRENEED INSURANCE. Any life insurance policy or certificate that is issued in combination with, in support of, with an assignment to, or as a guarantee for a preneed contract. "Preneed insurance" also includes life insurance on the life of a preneed contract beneficiary acquired as an investment of trust assets by a preneed funeral merchandise and services trust pursuant to Ala. Act 2008-271. The status of the policy or contract as preneed insurance is determined at the time of issue in accordance with the policy form filing.

Ala. Admin. Code r. 482-1-143-.04

New: Filed November 7, 2008; effective January 1, 2009. Filed with LRS November 12, 2008. Rule is not subject to the Alabama Administrative Procedure Act.

Author: Commissioner of Insurance

Statutory Authority:Code of Ala. 1975, §§ 27-2-17, 27-36-7.