Current through Register Vol. 49, No. 9, September, 2024
Section
1. Purpose
The purpose of this rule is to recognize the following mortality
tables for use in determining the minimum standard of valuation for annuity and
pure endowment contracts: the 1983 Table "a", the 1983 Group Annuity Mortality
(1983 GAM) Table, the Annuity 2000 Mortality Table, and the 1994 Group Annuity
Reserving (1994 GAR) Table.
Section
2. Authority
This rule is promulgated pursuant to the authority granted to the
Arkansas Insurance Commissioner ("Commissioner") by Ark. Code Ann. §§
23-84-101 et
seq.,
23-61-108 and
25-15-201 et
seq. *
Section 3.
Definitions
A. As used in this Rule "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.
B. As Used in this Rule "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.
C. As used in this rule "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).
D. As used in this rule "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).
Section 4.
Individual Annuity or Pure Endowment Contracts
A. Except as provided in Subsection B and C
of this section, the 1983 Table "a" is recognized and approved as an individual
annuity mortality table for valuation and, 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. 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 from
tort actions;
(2) Settlements
involving similar actions such as workers' compensation claims; or
(3) Settlements for long term disability
claims where a temporary or life annuity has been used in lieu of continuing
disability payments.
Section 5. 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 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 standards 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.
Section 6.
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
qx+1994 and
(1-AAx)n are
as specified in the 1994 GAR Table.
Section 7. Separability
Any section or provision of this regulation held by a court to be
invalid or unconstitutional will not affect the validity of any other section
or provision of this rule.
Section
8. Effective Date
The provisions of this rule shall be effective January 1, 1999,
upon statutory filing per Arkansas law.
