§ 26.1-35-02 — Computation of minimum standard

North Dakota § 26.1-35-02

• Jurisdiction: North Dakota
• Title 26.1: Insurance
• Ch. 26.1-35: Standard Valuation Law

Text

Except as provided in sections 26.1-35-03, 26.1-35-04, and 26.1-35-11, the minimum
standard for the valuation of all life or accident insurance policies and contracts issued prior to
July 1, 1977, are those provided by sections 26-03-33, 26-03-34, and 26-10-01 as they existed
on June 30, 1977. Except as otherwise provided in sections 26.1-35-03, 26.1-35-04, and
26.1-35-11, the minimum standard for the valuation of all life or accident insurance policies and
contracts issued after June 30, 1977, is the commissioners reserve valuation methods defined
in sections 26.1-35-05, 26.1-35-06, 26.1-35-09, and 26.1-35-11, five and one-half percent
interest for single premium life insurance policies and four and one-half percent interest for all
other such policies and contracts issued after June 30, 1977, other than annuity and pure
endowment contracts, and the following tables:

1. For ordinary policies of life insurance issued on the standard basis, excluding any
disability and accidental death benefits in the policies, the commissioners 1941
standard ordinary mortality table for policies issued before the operative date of
section 26.1-33-22, the commissioners 1958 standard ordinary mortality table for
policies issued on or after the operative date of section 26.1-33-22 and prior to the
earlier of a specified date filed by an insurer with the commissioner in a written notice
of the insurer's election to comply with this chapter or January 1, 1989, provided that
for any category of policies issued on female risks, all modified net premiums and
present values referred to in this chapter may be calculated according to an age not
more than six years younger than the actual age of the insured; and for policies issued
on or after the earlier of a specified date filed by an insurer with the commissioner in a
written notice of the insurer's election to comply with this chapter or January 1, 1989:
a. The commissioners 1980 standard ordinary mortality table;
b. At the election of the insurer for any one or more specified plans of life insurance,
the commissioners 1980 standard ordinary mortality table with ten-year select
mortality factors; or
c. Any ordinary mortality table, adopted after 1980 by the national association of
insurance commissioners, that is approved by rule adopted by the commissioner
for use in determining the minimum standard of valuation for the policies.
2. For industrial life insurance policies issued on the standard basis, excluding any
disability and accidental death benefits in the policies, the 1941 standard industrial
mortality table for policies issued before the operative date of section 26.1-33-23, and
for policies issued on or after the operative date of section 26.1-33-23, the
commissioners 1961 standard industrial mortality table or any industrial mortality table,
adopted after 1980 by the national association of insurance commissioners, that is
approved by rule adopted by the commissioner for use in determining the minimum
standard of valuation for the policies.
3. For individual annuity and pure endowment contracts, excluding any disability and
accidental death benefits in the policies, the 1937 standard annuity mortality table, or
at the option of the insurer, the annuity mortality table for 1949, ultimate, or any
modification of either of these tables approved by the commissioner.
4. For group annuity and pure endowment contracts, excluding any disability and
accidental death benefits in the policies, the group annuity mortality table for 1951, a
modification of the table approved by the commissioner, or at the option of the insurer,
any of the tables or modifications of tables specified for individual annuity and pure
endowment contracts.
5. For total and permanent disability benefits in or supplementary to policies or contracts,
for policies or contracts issued after December 31, 1965, 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 any tables of
disablement rates and termination rates, adopted after 1980 by the national
association of insurance commissioners, that are approved by rule adopted by the
commissioner for use in determining the minimum standard of valuation for those
policies; for policies or contracts issued after December 31, 1960, and before
January 1, 1966, either those tables or, at the option of the insurer, the class (3)
disability table (1926); and for policies issued before January 1, 1961, the class (3)
disability table (1926). The table must, for active lives, be combined with a mortality
table permitted for calculating the reserves for life insurance policies.
6. For accidental death benefits in or supplementary to policies issued after December
31, 1965, the 1959 accidental death benefits table or any accidental death benefits
table, adopted after 1980 by the national association of insurance commissioners, that
is approved by rule adopted by the commissioner for use in determining the minimum
standard of valuation for the policies; for policies issued after December 31, 1960, and
before January 1, 1966, either that table or, at the option of the insurer, the
intercompany double indemnity mortality table; and for policies issued before January

1, 1961, the intercompany double indemnity mortality table. Either table must be
combined with a mortality table for calculating the reserves for life insurance policies.
7. For group life insurance, life insurance issued on the substandard basis and other
special benefits, any tables approved by the commissioner.