Golden State OKs Preferred Mortality Tables

The California Department of Insurance has changed its life reserve calculation rules.

The California department now will “permit the use of mortality tables that reflect differences in mortality between preferred and standard lives in determining minimum reserve liabilities,” California Insurance Commissioner Steve Poizner writes in Bulletin 2009-2.

Through the change, the California department is endorsing use of the 2001 Commissioners Standard Ordinary Preferred Class Structure Mortality Table adopted by the National Association of Insurance Commissioners, Kansas City, Mo., in September 2006.