Sec. 42-2.7. Full description of nonforfeiture method and statement of mortality table

(a) A statement of the mortality table required by section 4221(a)(5) or section 4221(a)(6) of the Insurance Law shall specify the mortality table used, including smoking status variations, gender variations and method of determining ages.

(b) A statement of the method as required by section 4221(a)(6) of the Insurance Law shall include whether curtate, semi-continuous or continuous functions are used.

(c) A statement of the method to be used in calculating the cash surrender value and paid-up nonforfeiture benefit available under the policy on any policy anniversary beyond the last anniversary for which such values and benefits are consecutively shown in the policy. Acceptable statements of the nonforfeiture method shall include, but not be limited to, the following:

(1) the minimum nonforfeiture method;

(2) the net level premium method; and

(3) the present value of guaranteed benefits provided for by the policy less the present value of the nonforfeiture factors for each year after the date of determination for which a premium is due. If the statement includes the use of nonforfeiture factors, the nonforfeiture factors needed for calculation of the nonforfeiture values must appear in the policy.

(d) If a policy does not give a complete description of the method of calculation of nonforfeiture values, including those available at any time between policy anniversaries, then:

(1) the policy shall contain a statement that such method of computation has been filed with the insurance supervisory official of the state in which the policy form is delivered; and

(2) a complete description of the method of calculation shall be in the actuarial memorandum included in the policy form filing.