Illinois Administrative Code
Title 50 - INSURANCE
Part 935 - THE MINIMUM MORTALITY STANDARD FOR VALUATION OF ANNUITY AND PURE ENDOWMENT CONTRACTS
Section 935.45 - 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:

Image

b) The resulting Image shall be rounded to three decimal places per 1,000, e.g., 0.741 deaths per 1,000. Also, the rounding shall occur according to the formula in subsection (a), starting at the 2012 period table rate.

c) For example, for a male age 30, Image = 0.741.

Image= 0.741 * (1 - 0.010) ^ 1 = 0.73359, which is rounded to 0.734.

Image= 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 Image as Image* (1 - 0.010), or 0.734 * 0.99 = 0.727. It is incorrect to use the already rounded Image to calculate Image.