CHAPTER 42
GENDER-BLENDED MINIMUM NONFORFEITURE
STANDARDS FOR LIFE INSURANCE
[Prior to 10/22/86, Insurance Department[510]]
191—42.1(508) Purpose. The purpose of this rule is to permit life insurance policies to provide the same cash surrender values and paid-up nonforfeiture benefits to both men and women. No change in minimum valuation standards is implied by this rule.
191—42.2(508) Definitions. For purposes of this chapter, the following definitions shall apply:
“1980 CSO Table, with or without Ten-Year Select Mortality Factors” means that mortality table, consisting of separate rates of mortality for male and female lives, developed by the Society of Actuaries Committee to Recommend New Mortality Tables for Valuation of Standard Individual Ordinary Life Insurance, incorporated in the 1980 NAIC Amendments to the Model Standard Valuation Law and Standard Nonforfeiture Law for Life Insurance, and referred to in those models as the Commissioners 1980 Standard Ordinary Mortality Table, with or without Ten-Year Select Mortality Factors.
“1980 CSO Table (M), with or without Ten-Year Select Mortality Factors” means that mortality table consisting of the rates of mortality for male lives from the 1980 CSO Table with or without Ten-Year Select Mortality Factors.
“1980 CSO Table (F), with or without Ten-Year Select Mortality Factors” means that mortality table consisting of the rates of mortality for female lives from the 1980 CSO Table, with or without Ten-Year Select Mortality Factors.
“1980 CET Table” means that mortality table consisting of separate rates of mortality for male and female lives, developed by the Society of Actuaries Committee to Recommend New Mortality Tables for Valuation of Standard Individual Ordinary Life Insurance, incorporated in the 1980 NAIC Amendments to the Model Standard Valuation Law and Standard Nonforfeiture Law for Life Insurance, and referred to in those models as the Commissioners 1980 Extended Term Insurance Table.
“1980 CET Table (M)” means that mortality table consisting of the rates of mortality for male lives from the 1980 CET Table.
“1980 CET Table (F)” means that mortality table consisting of the rates of mortality for female lives from the 1980 CET Table.
191—42.3(508) Use of gender-blended mortality tables. For any policy of insurance on the life of either a male or female insured delivered or issued for delivery in this state after the operative date of Iowa Code section 508.37, an insurer may:
	42.3(1) Substitute a mortality table which is a blend of the 1980 CSO Table (M) and the 1980 CSO Table (F) with or without Ten-Year Select Mortality Factors for the 1980 CSO Table, with or without Ten-Year Select Mortality Factors for use in determining minimum cash surrender values and amounts of paid-up nonforfeiture values, and
	42.3(2) Substitute a mortality table which is of the same blend as used in subrule 42.3(1) above but applied to form a blend of the 1980 CET Table (M) and the 1980 CET Table (F) for the 1980 CET Table for use in determining minimum cash surrender values and amounts of paid-up nonforfeiture benefits.
	42.3(3) The following tables, as developed and revised by the Society of Actuaries and adopted by the National Association of Insurance Commissioners shall be considered as the basis for acceptable gender-blended mortality tables:
	a. 	100 percent male 0 percent female, for tables to be designated as the “1980 CSO-A” and “1980 CET-A” tables.
	b. 	80 percent male 20 percent female, for tables to be designated as the “1980 CSO-B” and “1980 CET-B” tables.
	c. 	60 percent male 40 percent female, for tables to be designated as the “1980 CSO-C” and “1980 CET-C” tables.
	d. 	50 percent male 50 percent female, for tables to be designated as the “1980 CSO-D” and “1980 CET-D” tables.
	e. 	40 percent male 60 percent female, for tables to be designated as the “1980 CSO-E” and “1980 CET-E” tables.
	f. 	20 percent male 80 percent female, for tables to be designated as the “1980 CSO-F” and “1980 CET-F” tables.
	g. 	0 percent male 100 percent female, for tables to be designated as the “1980 CSO-G” and “1980 CET-G” tables.
Tables 1980 CSO-A, 1980 CET-A, 1980 CSO-G, and 1980 CET-G shall not be used with respect to policies issued on or after January 1, 1985, except where 90 percent or more of persons insured thereunder are anticipated to be of one gender 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 gender expected for such policies if the group conversion policy is considered to be controlled by the decision in Arizona Governing Committee v. Norris.
191—42.4(508) Unfair discrimination. It shall not be a violation of Iowa Code section 507B.4(7) for an insurer to issue the same kind of policy of life insurance on both a sex-distinct and sex-neutral basis.
191—42.5(508) Separability. If any provision of this rule or its application to any person or circumstance is for any reason held to be invalid, the remainder of the rule and the application of such provision to other persons or circumstances shall not be affected.
This rule is intended to implement Iowa Code section 508.37(6)“h”(6).
[Filed 6/15/84, Notice 3/14/84—published 7/4/84, effective 8/8/84]
[Editorially transferred from [510] to [191] IAC Supp. 10/22/86; see IAB 7/30/86]
[Filed 12/10/86, Notice 10/22/86—published 12/31/86, effective 2/4/87]