23 CAR Part 97 — An Annuity Mortality Table for Use in Determining Reserve Liabilities for Annuities

Chapter I

Subchapter B

Subpart 1

23 CAR § 97-101 Purpose {#sec-23-car-97-101 omnilex-key=us-ar-regs-official--title-23-part-97--23 CAR § 97-101}

23 CAR § 97-101. Purpose.

The purpose of this part is to recognize the following mortality tables for use in determining the minimum standard of valuation for annuity and pure endowment contracts:

(1) The 1983 Table “a”;

(2) The 1983 Group Annuity Mortality (1983 GAM) Table;

(3) The Annuity 2000 Mortality Table;

(4) The 2012 Individual Annuity Reserving (2012 IAR) Table; and

(5) The 1994 Group Annuity Reserving (1994 GAR) Table.

23 CAR § 97-102 Definitions {#sec-23-car-97-102 omnilex-key=us-ar-regs-official--title-23-part-97--23 CAR § 97-102}

23 CAR § 97-102. Definitions.

As used in this part:

(1) “1983 GAM Table” means that mortality table developed by the Society of Actuaries Committee on Annuities and adopted as a recognized mortality table for annuities in December 1983 by the National Association of Insurance Commissioners;

(2) “1983 Table ‘a’” means that mortality table developed by the Society of Actuaries Committee to Recommend a New Mortality Basis for Individual Annuity Valuation and adopted as a recognized mortality table for annuities in June 1982 by the National Association of Insurance Commissioners;

(3) “1994 GAR Table” means that mortality table developed by the Society of Actuaries Group Annuity Valuation Task Force and shown on pages 866-867 of Volume XLVII of the Transactions of the Society of Actuaries (1995);

(4) “2012 IAR Mortality Table” means that generational mortality table developed by the Society of Actuaries Committee on Life Insurance Research and containing rates, qx²⁰¹²⁺ⁿ, derived from a combination of the 2012 IAM Period Table and Projection Scale G2 using the methodology stated in 23 CAR § 97-104;

(5)(A) “2012 Individual Annuity Mortality Period Life (2012 IAM Period) Table” means the period table containing loaded mortality rates for calendar year 2012.

(B) This table contains rates, qx²⁰¹², developed by the Society of Actuaries Committee on Life Insurance Research and is shown in Appendices 1-2;

(6) “Annuity 2000 Mortality Table” means that mortality table developed by the Society of Actuaries Committee on Life Insurance Research and shown on page 240 of Volume XLVII of the Transactions of the Society of Actuaries (1995);

(7) “Generational mortality table” means a mortality table containing a set of mortality rates that decrease for a given age from one (1) year to the next based on a combination of a period table and a projection scale containing rates of mortality improvement;

(8) “Period table” means a table of mortality rates applicable to a given calendar year (the period); and

(9)(A) “Projection Scale G2 (Scale G2)” is a table of annual rates, G2x, of mortality improvement by age for projecting future mortality rates beyond calendar year 2012.

(B) This table was developed by the Society of Actuaries Committee on Life Insurance Research and is shown in Appendices 3-4.

23 CAR § 97-103 Individual annuity or pure endowment contracts {#sec-23-car-97-103 omnilex-key=us-ar-regs-official--title-23-part-97--23 CAR § 97-103}

23 CAR § 97-103. Individual annuity or pure endowment contracts.

(a) Except as provided in subsections (b) and (c) of this section, the 1983 Table “a”:

(1) Is recognized and approved as an individual annuity mortality table for valuation; and

(2) At the option of the company, may be used for purposes of determining the minimum standard of valuation for any individual annuity or pure endowment contract issued on or after March 18, 1977.

(b) Except as provided in subsection (c) of this section, either the 1983 Table “a” or the Annuity 2000 Mortality Table shall be used for determining the minimum standard of valuation for any individual annuity or pure endowment contract issued on or after December 16, 1985.

(c) Except as provided in subsection (d) of this section, the Annuity 2000 Mortality Table shall be used for determining the minimum standard of valuation for any individual annuity or pure endowment contract issued on or after January 1, 1999.

(d) Except as provided in subsection (e) of this section, the 2012 IAR Mortality Table shall be used for determining the minimum standard of valuation for any individual annuity or pure endowment contract issued on or after January 1, 2015.

(e) The 1983 Table “a” without projection is to be used for determining the minimum standards of valuation for an individual annuity or pure endowment contract issued on or after January 1, 1999, solely when the contract is based on life contingencies and is issued to fund periodic benefits arising from:

(1) Settlements of various forms of claims pertaining to court settlements or out of court settlements from tort actions;

(2) Settlements involving similar actions such as workers’ compensation claims; or

(3) Settlements of long-term disability claims where a temporary or life annuity has been used in lieu of continuing disability payments.

23 CAR § 97-104 Application of the 2012 IAR Mortality Table {#sec-23-car-97-104 omnilex-key=us-ar-regs-official--title-23-part-97--23 CAR § 97-104}

23 CAR § 97-104. Application of the 2012 IAR Mortality Table.

(a) In using the 2012 IAR Mortality Table, the mortality rate for a person age x in year (2012 + n) is calculated as follows:

(b) The resulting qx ²⁰¹²⁺ⁿ shall be rounded to three (3) decimal places per one thousand (1,000), e.g., 0.741 deaths per 1,000. Also, the rounding shall occur according to the formula above, starting at the 2012 period table rate.

(c) For example, for a male age thirty (30), qx²⁰¹² = 0.741.

qx ^2013^= 0.741 * (1 – 0.010) ^ 1 = 0.73359, which is rounded to 0.734.

qx ^2014^= 0.741 * (1 – 0.010) ^ 2 = 0.7262541, which is rounded to 0.726.

(d) A method leading to incorrect rounding would be to calculate qx ²⁰¹⁴ as qx ²⁰¹³ * (1 – 0.010), or 0.734 * 0.99 = 0.727. It is incorrect to use the already rounded qx²⁰¹³ to calculate qx ²⁰¹⁴.

23 CAR § 97-105 Group annuity or pure endowment contracts {#sec-23-car-97-105 omnilex-key=us-ar-regs-official--title-23-part-97--23 CAR § 97-105}

23 CAR § 97-105. Group annuity or pure endowment contracts.

(a) Except as provided in subsections (b) and (c) of this section, the 1983 GAM Table, the 1983 Table “a”, and the 1994 GAR Table are recognized and approved as group annuity mortality tables for valuation, and, at the option of the company, any one (1) of these tables may be used for purposes of valuation for any annuity or pure endowment purchased on or after March 18, 1977, under a group annuity or pure endowment contract.

(b) Except as provided in subsection (c) of this section, either the 1983 GAM Table or the 1994 GAR Table shall be used for determining the minimum standard of valuation for any annuity or pure endowment purchased on or after October 1, 1985, under a group annuity or pure endowment contract.

(c) The 1994 GAR Table shall be used for determining the minimum standard of valuation for any annuity or pure endowment purchased on or after January 1, 1999, under a group annuity or pure endowment contract.

23 CAR § 97-106 Application of the 1994 GAR Table {#sec-23-car-97-106 omnilex-key=us-ar-regs-official--title-23-part-97--23 CAR § 97-106}

23 CAR § 97-106. Application of the 1994 GAR Table.

In using the 1994 GAR Table, the mortality rate for a person age x in year (1994 + n) is calculated as follows:

Where the and are as specified in the 1994 GAR Table.

23 CAR pt. 97, Appendix A 2012 IAM Period Table – Female, Age Nearest Birthday {#sec-23-car-pt.-97-appendix-a omnilex-key=us-ar-regs-official--title-23-part-97--23 CAR pt. 97, Appendix A}

APPENDIX I

2012 IAM Period Table Female, Age Nearest Birthday

AGE 1000 ∙푞푞 푥푥 2012

AGE 1000 ∙푞푞 푥푥 2012

AGE 1000 ∙푞푞 푥푥 2012

AGE 1000∙푞푞 푥푥 2012

0 1.621 30 0.300 60 3.460 90 88.377 1 0.405 31 0.321 61 3.916 91 97.491 2 0.259 32 0.338 62 4.409 92 107.269 3 0.179 33 0.351 63 4.933 93 118.201 4 0.137 34 0.365 64 5.507 94 130.969 5 0.125 35 0.381 65 6.146 95 146.449 6 0.117 36 0.402 66 6.551 96 163.908 7 0.110 37 0.429 67 7.039 97 179.695 8 0.095 38 0.463 68 7.628 98 196.151 9 0.088 39 0.504 69 8.311 99 213.150 10 0.085 40 0.552 70 9.074 100 230.722 11 0.086 41 0.600 71 9.910 101 251.505 12 0.094 42 0.650 72 10.827 102 273.007 13 0.108 43 0.697 73 11.839 103 295.086 14 0.131 44 0.740 74 12.974 104 317.591 15 0.156 45 0.780 75 14.282 105 340.362 16 0.179 46 0.825 76 15.799 106 362.371 17 0.198 47 0.885 77 17.550 107 384.113 18 0.211 48 0.964 78 19.582 108 400.000 19 0.221 49 1.051 79 21.970 109 400.000 20 0.228 50 1.161 80 24.821 110 400.000 21 0.234 51 1.308 81 28.351 111 400.000 22 0.240 52 1.460 82 32.509 112 400.000 23 0.245 53 1.613 83 37.329 113 400.000 24 0.247 54 1.774 84 42.830 114 400.000 25 0.250 55 1.950 85 48.997 115 400.000 26 0.256 56 2.154 86 55.774 116 400.000 27 0.261 57 2.399 87 63.140 117 400.000 28 0.270 58 2.700 88 71.066 118 400.000 29 0.281 59 3.054 89 79.502 119 400.000 120 1000.000

23 CAR pt. 97, Appendix B 2012 IAM Period Table – Male, Age Nearest Birthday {#sec-23-car-pt.-97-appendix-b omnilex-key=us-ar-regs-official--title-23-part-97--23 CAR pt. 97, Appendix B}

APPENDIX II

2012 IAM Period Table Male, Age Nearest Birthday

AGE 1000 ∙푞푞 푥푥 2012

AGE 1000 ∙푞푞 푥푥 2012

AGE 1000 ∙푞푞 푥푥 2012

AGE 1000 ∙푞푞 푥푥 2012

0 1.605 30 0.741 60 5.096 90 109.993 1 0.401 31 0.751 61 5.614 91 123.119 2 0.275 32 0.754 62 6.169 92 137.168 3 0.229 33 0.756 63 6.759 93 152.171 4 0.174 34 0.756 64 7.398 94 168.194 5 0.168 35 0.756 65 8.106 95 185.260 6 0.165 36 0.756 66 8.548 96 197.322 7 0.159 37 0.756 67 9.076 97 214.751 8 0.143 38 0.756 68 9.708 98 232.507 9 0.129 39 0.800 69 10.463 99 250.397 10 0.113 40 0.859 70 11.357 100 268.607 11 0.111 41 0.926 71 12.418 101 290.016 12 0.132 42 0.999 72 13.675 102 311.849 13 0.169 43 1.069 73 15.150 103 333.962 14 0.213 44 1.142 74 16.860 104 356.207 15 0.254 45 1.219 75 18.815 105 380.000 16 0.293 46 1.318 76 21.031 106 400.000 17 0.328 47 1.454 77 23.540 107 400.000 18 0.359 48 1.627 78 26.375 108 400.000 19 0.387 49 1.829 79 29.572 109 400.000 20 0.414 50 2.057 80 33.234 110 400.000 21 0.443 51 2.302 81 37.533 111 400.000 22 0.473 52 2.545 82 42.261 112 400.000 23 0.513 53 2.779 83 47.441 113 400.000 24 0.554 54 3.011 84 53.233 114 400.000 25 0.602 55 3.254 85 59.855 115 400.000 26 0.655 56 3.529 86 67.514 116 400.000 27 0.688 57 3.845 87 76.340 117 400.000 28 0.710 58 4.213 88 86.388 118 400.000 29 0.727 59 4.631 89 97.634 119 400.000 120 1000.000

23 CAR pt. 97, Appendix C Projection Scale G2 – Female, Age Nearest Birthday {#sec-23-car-pt.-97-appendix-c omnilex-key=us-ar-regs-official--title-23-part-97--23 CAR pt. 97, Appendix C}

APPENDIX III

Projection Scale G2 Female, Age Nearest Birthday

AGE 퐺퐺2 푥푥

AGE 퐺퐺2 푥푥

AGE 퐺퐺2 푥푥

AGE 퐺퐺2 푥푥

0 0.010 30 0.010 60 0.013 90 0.006 1 0.010 31 0.010 61 0.013 91 0.006 2 0.010 32 0.010 62 0.013 92 0.005 3 0.010 33 0.010 63 0.013 93 0.005 4 0.010 34 0.010 64 0.013 94 0.004 5 0.010 35 0.010 65 0.013 95 0.004 6 0.010 36 0.010 66 0.013 96 0.004 7 0.010 37 0.010 67 0.013 97 0.003 8 0.010 38 0.010 68 0.013 98 0.003 9 0.010 39 0.010 69 0.013 99 0.002 10 0.010 40 0.010 70 0.013 100 0.002 11 0.010 41 0.010 71 0.013 101 0.002 12 0.010 42 0.010 72 0.013 102 0.001 13 0.010 43 0.010 73 0.013 103 0.001 14 0.010 44 0.010 74 0.013 104 0.000 15 0.010 45 0.010 75 0.013 105 0.000 16 0.010 46 0.010 76 0.013 106 0.000 17 0.010 47 0.010 77 0.013 107 0.000 18 0.010 48 0.010 78 0.013 108 0.000 19 0.010 49 0.010 79 0.013 109 0.000 20 0.010 50 0.010 80 0.013 110 0.000 21 0.010 51 0.010 81 0.012 111 0.000 22 0.010 52 0.011 82 0.012 112 0.000 23 0.010 53 0.011 83 0.011 113 0.000 24 0.010 54 0.011 84 0.010 114 0.000 25 0.010 55 0.012 85 0.010 115 0.000 26 0.010 56 0.012 86 0.009 116 0.000 27 0.010 57 0.012 87 0.008 117 0.000 28 0.010 58 0.012 88 0.007 118 0.000 29 0.010 59 0.013 89 0.007 119 0.000 120 0.000

23 CAR pt. 97, Appendix D Projection Scale G2 – Male, Age Nearest Birthday {#sec-23-car-pt.-97-appendix-d omnilex-key=us-ar-regs-official--title-23-part-97--23 CAR pt. 97, Appendix D}

APPENDIX IV

Projection Scale G2 Male, Age Nearest Birthday

AGE 퐺퐺2 푥푥

AGE 퐺퐺2 푥푥

AGE 퐺퐺2 푥푥

AGE 퐺퐺2 푥푥

0 0.010 30 0.010 60 0.015 90 0.007 1 0.010 31 0.010 61 0.015 91 0.007 2 0.010 32 0.010 62 0.015 92 0.006 3 0.010 33 0.010 63 0.015 93 0.005 4 0.010 34 0.010 64 0.015 94 0.005 5 0.010 35 0.010 65 0.015 95 0.004 6 0.010 36 0.010 66 0.015 96 0.004 7 0.010 37 0.010 67 0.015 97 0.003 8 0.010 38 0.010 68 0.015 98 0.003 9 0.010 39 0.010 69 0.015 99 0.002 10 0.010 40 0.010 70 0.015 100 0.002 11 0.010 41 0.010 71 0.015 101 0.002 12 0.010 42 0.010 72 0.015 102 0.001 13 0.010 43 0.010 73 0.015 103 0.001 14 0.010 44 0.010 74 0.015 104 0.000 15 0.010 45 0.010 75 0.015 105 0.000 16 0.010 46 0.010 76 0.015 106 0.000 17 0.010 47 0.010 77 0.015 107 0.000 18 0.010 48 0.010 78 0.015 108 0.000 19 0.010 49 0.010 79 0.015 109 0.000 20 0.010 50 0.010 80 0.015 110 0.000 21 0.010 51 0.011 81 0.014 111 0.000 22 0.010 52 0.011 82 0.013 112 0.000 23 0.010 53 0.012 83 0.013 113 0.000 24 0.010 54 0.012 84 0.012 114 0.000 25 0.010 55 0.013 85 0.011 115 0.000 26 0.010 56 0.013 86 0.010 116 0.000 27 0.010 57 0.014 87 0.009 117 0.000 28 0.010 58 0.014 88 0.009 118 0.000 29 0.010 59 0.015 89 0.008 119 0.000 120 0.000