Current through Register Vol. 49, No. 6, March 15, 2024
PURPOSE: This amendment changes the actuarial table to be
used in determining the minimum standard of valuation for any individual
annuity or pure endowment contract issued on or after January 1, 2016, except
as provided in subsection (2)(E) of this rule as amended.
(1) 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 Group Annuity
Mortality (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 Group Annuity Reserving (GAR) Table" means that mortality table
developed by the Society of Actuaries Group Annuity Valuation Table Task Force.
The 1994 GAR Table is included in the report on pages 865-919 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. The Annuity 2000 Mortality
Table is included in the report on pages 211-249 of Volume XLVII of the
"Transactions of the Society of Actuaries (1995)."
(E) As used in this rule "period table" means
a table of mortality rates applicable to a given calendar year (the
period).
(F) As used in this rule
"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.
(G)
As used in this rule "2012 IAR 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 section (3).
(H) As used in this rule "2012 Individual
Annuity Mortality Period Life (2012 IAM Period) Table," included herein, means
the period table containing loaded mortality rates for calendar year 2012. This
table contains rates, qx2012,
developed by the Society of Actuaries Committee on Life Insurance Research and
is shown in Appendices I and II.
(I) As used in this rule "Projection Scale G2
(Scale G2)," included herein, is a table of annual rates,
G2x, of mortality improvement by age for projecting
future mortality rates beyond calendar year 2012. This table was developed by
the Society of Actuaries Committee on Life Insurance Research and is shown in
Appendices III and IV.
(2) Individual Annuity or Pure Endowment
Contracts.
(A) Except as provided in
subsections (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
stan-dard of valuation for any individual annuity or pure endowment contract
issued on or after September 28, 1979.
(B) Except as provided in subsection (C) of
this section, either the 1983 Table A or the Annuity 2000 Mortality Table is to
be used for determining the minimum standard of val-uation for any individual
annuity or pure endowment contract issued on or after Jan-uary 1,
1987.
(C) Except as provided in
subsections (D) and (E) 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,
2001.
(D) Except as provided in
subsection (E) of this section, the 2012 IAR 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, 2016.
(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, 2001, 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.
(3) Application of the 2012 IAR Table.
In using the 2012 IAR Table, the mortality rate for a person
aged x in year (2012+n) is calculated as follows:
Click to view
image
where the
qx2012 and
G2x are as specified in the 2012 IAM Period Table and
Scale G2, Appendices I-IV.
The result
qx2012+n 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 above, starting at the 2012
period table rate. For example, it is incorrect to use an already rounded
qx2012+n to calculate
qx2012+n+1.
(4)
Group Annuity or Pure Endowment Contracts.
(A)
Except as provided in subsection (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 table may be used for purposes of valuation for any
annuity or pure endowment purchased on or after September 28, 1979, 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 is to be used for
determining the minimum standard of valuation for any annuity or pure endowment
purchased on or after January 1, 1987 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 of the year following the
effective date of this rule under a group annuity or pure endowment
contract.
(5) 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:
Click to view
image
where the qx
1994[s]
and AAx[s] are as specified in the 1994
GAR Table.
(6) Separability. If any provision of this rule or the
application of this rule to any person or circumstance is for any reason held
to be invalid, the remainder of the rule and the application of that provision
to other persons or circumstances shall not be affected by it.
*Original authority 374.045, RSMo 1967, amended 1993, 1995;
and 376.380, RSMo 1939, amended 1943, 1947, 1959, 1961, 1965, 1971, 1975, 1979,
1982, 1993.
