L&HPennsylvaniahard
Under PA's Standard Nonforfeiture and Standard Valuation Laws (40 P.S. §§ 510.1, 510.2), what is the role of the Commissioners Standard Ordinary (CSO) mortality table?
It sets the minimum mortality assumptions for calculating statutory reserves and nonforfeiture values for ordinary life policies
BIt dictates the premium rates insurers must charge for term life
CIt is used solely for federal tax qualification purposes under IRC § 7702 and has no role in determining PA statutory reserves or nonforfeiture values for ordinary life policies
DIt establishes the maximum policy loan interest rate
Why this is the answer
The CSO mortality table is the statutorily prescribed mortality assumption that PA life insurers must use (at minimum) when computing reserves and nonforfeiture values. The currently operative table is the 2017 CSO, which replaced the 2001 CSO for covered policies.
Studying for the Pennsylvania Life & Health exam?
This question comes from our L&H bank. Take a free practice test — no signup.