R590. Insurance, Administration.R590-96. Mortality Tables for Determining Reserve Liabilities for Annuities.
R590-96-1. Authority.
This rule is promulgated by the commissioner pursuant to Sections 31A-2-201 and 31A-17-505.
R590-96-2. Purpose.
The purpose of this rule is to recognize certain mortality tables for determining the minimum standard of valuation for an annuity and a pure endowment contract.
R590-96-3. Definitions.
Terms used in this rule are defined in Section 31A-1-301. Additional terms are defined as follows:
(1) "1983 Table (a)" means the mortality table developed by the Society of Actuaries Committee to Recommend a New Mortality Basis for Individual Annuity Valuation, adopted by the NAIC in June 1982 as a recognized mortality table for annuities, and published in the 1982 Proceedings of the NAIC II, page 454.
(2) "1983 GAM Table" means the mortality table developed by the Society of Actuaries Committee on Annuities, adopted by the NAIC in December 1983 as a recognized mortality table for annuities, and published in 1984 Proceedings of the NAIC I, pages 414-415.
(3) "1994 GAM Table" means the 1994 Group Annuity Mortality Static Table, a period table containing loaded mortality rates for calendar year 1994, developed by the Society of Actuaries Group Annuity Valuation Table Task Force, and published in the Transactions of the Society of Actuaries, Vol. XLVII (1995), pages 898-899.
(4) "1994 GAR Table" means the 1994 Group Annuity Reserving Table, a generational mortality table developed by the Society of Actuaries Group Annuity Valuation Table Task Force, derived from a combination of 1994 GAM Table and the Projection Scale AA as described in Section R590-96-7, adopted by the NAIC in December 1996 as a recognized mortality table for annuities, and published in the Transactions of the Society of Actuaries, Vol. XLVII (1995), pages 866-867.
(5) "Annuity 2000 Mortality Table" means the mortality table developed by the Society of Actuaries Committee on Life Insurance Research adopted by the NAIC in December 1996 as a recognized mortality table for annuities, and published in the Transactions of the Society of Actuaries, Vol. XLVII (1995), page 240.
(6) "2012 IAM Period Table" means the period table containing loaded mortality rates for calendar year 2012, developed by the Society of Actuaries Committee on Life Insurance Research, and published in the 2012 Proceedings of the NAIC, Fall Volume I, pages 149-150.
(7) "2012 IAR Table" means the generational mortality table developed by Society of Actuaries Committee on Life Insurance Research, derived from a combination of the 2012 IAM Period Table and the Projection Scale G2 as described in Section R590-96-5, adopted by the NAIC in December 2012, and published in the 2012 Proceedings of the NAIC, Fall Volume I, pages 149-152.
(8) "Generational Mortality Table" means a mortality table containing a set of mortality rates that decrease for a given age from one year to the next based on a combination of a period table and a projection scale containing mortality improvement factors.
(9) "NAIC" means the National Association of Insurance Commissioners.
(10) "Period Table" means a table of mortality rates applicable to a given calendar year.
(11) "Projection Scale AA" means the table of annual mortality improvement factors for projecting future mortality rates beyond calendar year 1994, developed by the Society of Actuaries Group Annuity Valuation Table Task Force, and published in the Transactions of the Society of Actuaries, Vol. XLVII (1995), pages 824-826.
(12) "Projection Scale G2" means the table of annuity mortality improvement factors for projecting future mortality rates beyond calendar year 2012, developed by the Society of Actuaries Committee on Life Insurance Research, and published in the 2012 Proceedings of the NAIC, Fall Volume I, pages 151-152.
R590-96-4. Individual Annuity or Pure Endowment Contracts.
(1) An individual annuity or a pure endowment contract issued on or after April 2, 1980, and before July 1, 1985, at the option of the company, may be valued using the 1983 Table (a).
(2) An individual annuity or a pure endowment contract issued on or after July 1 1985, and before July 1, 1999, shall be valued using the following tables:
(a) the 1983 Table (a); or
(b) the Annuity 2000 Mortality Table.
(3) Except as provided in Subsection (5), an individual annuity or a pure endowment contract issued on or after July 1, 1999, and before January 1, 2015, shall be valued using the Annuity 2000 Mortality Table.
(4) Except as provided in Subsection (5) an individual annuity or a pure endowment contract issued on or after January 1, 2015, shall be valued using the 2012 IAR Table.
(5) The 1983 Table (a) shall be used for determining the minimum standards of valuation for an individual annuity or a pure endowment contract issued on or after July 1, 1999, when the contract is based on life contingencies and is issued to fund periodic benefits arising from settlement of:
(a) claims pertaining to court settlements or out of court settlements from tort actions;
(b) similar actions such as worker's compensation claims; or
(c) long term disability claims where a temporary or life annuity has been used in lieu of continuing disability payments.
