MODEL REGULATION FOR RECOGNIZING A NEW ANNUITY MORTALITY TABLE FOR USE IN DETERMINING RESERVE LIABILITIES FOR ANNUITIES AS MODIFIED AND ADOPTED BY REFERENCE BY

K.A.R. 40-2018

 

Section 1. Authority

 

This rule is promulgated by the Commissioner of Insurance pursuant to Section [insert applicable reference to the Standard Valuation Law] of the [insert state] Insurance Statute.

 

Section 2. Purpose

 

The purpose of this rule is to recognize the following mortality tables, 1983 Table "a," and 1983 GAM Table, for use in determining the minimum standard of valuation for annuity and pure endowment contracts.

 

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. [See 1982 NAIC PROCEEDINGS, Vol. II, page 454.]

 

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. [See 1984 NAIC PROCEEDINGS, Vol. I, pages 414 to 415.]

 

Section 4. Individual Annuity or Pure Endowment Contracts

 

A. 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 July 1, 1982.

 

B. The 1983 Table a is to be used for determining the minimum standard of valuation for any individual annuity or pure endowment contract issued on or after January 1, 1986.

 

Section 5. Group Annuity or Pure Endowment Contracts

 

A. The 1983 GAM Table and the 1983 Table a are recognized and approved as group annuity mortality tables for valuation and, at the option of the company, either table may be used for purposes of valuation for any annuity or pure endowment purchased on or after July 1, 1982 under a group annuity or pure endowment contract.

 

B. The 1983 GAM Table is to be used for determining the minimum standard of valuation for any annuity or pure endowment purchased on or after January 1, 1986 under a group annuity or pure endowment contract.

 

Section 7. Separability

 

If any provision of this rule or the application thereof to any person or circumstances is for any reason held to be invalid, the remainder of the regulation and the application such provision to other persons or circumstances shall not be affected thereby.

 

Section 8. Effective Date

 

The effective date of this rule is _____.

 

TABLE 16

 

 

 

 

 

 

 

 

 

 

 

1983 Table a 1,000qx

Age

Males

Females

 

Age

Males

Females

 

Age

Males

Females

 

 

 

 

 

 

 

 

 

 

 

5

0.377

0.194

 

45

2.399

1.122

 

85

90.987

65.518

6

0.350

0.160

 

46

2.693

1.231

 

86

99.122

73.493

7

0.333

0.134

 

47

3.009

1.356

 

87

107.577

82.318

8

0.352

0.134

 

48

3.343

1.499

 

88

116.316

92.017

9

0.368

0.136

 

49

3.694

1.657

 

89

125.394

102.491

 

 

 

 

 

 

 

 

 

 

 

10

0.382

0.141

 

50

4.057

1.830

 

90

134.887

113.605

11

0.394

0.147

 

51

4.431

2.016

 

91

144.873

125.227

12

0.405

0.155

 

52

4.812

2.215

 

92

155.429

137.222

13

0.415

0.165

 

53

5.198

2.426

 

93

166.629

146.462

14

1.425

0.175

 

54

5.591

2.650

 

94

178.537

161.834

 

 

 

 

 

 

 

 

 

 

 

15

0.435

0.188

 

55

5.994

2.891

 

95

191.214

174.228

16

0.446

0.201

 

56

6.409

3.151

 

96

204.721

186.535

17

0.458

0.214

 

57

6.839

3.432

 

97

219.120

198.646

18

0.472

0.229

 

58

7.290

3.739

 

98

234.735

221.102

19

0.488

0.244

 

59

7.782

4.081

 

99

251.889

224.445

 

 

 

 

 

 

 

 

 

 

 

20

0.505

0.260

 

60

8.338

4.467

 

100

270.906

239.215

21

0.525

0.276

 

61

8.983

4.908

 

101

292.111

255.953

22

0.546

0.293

 

62

9.740

5.413

 

102

315.826

275.201

23

0.570

0.311

 

63

10.630

5.990

 

103

342.377

297.500

24

0.596

0.330

 

64

11.664

6.633

 

104

372.086

323.390

 

 

 

 

 

 

 

 

 

 

 

25

0.622

0.349

 

65

12.851

7.336

 

105

405.278

353.414

26

0.650

0.368

 

66

14.199

8.090

 

106

442.277

388.111

27

0.677

0.387

 

67

15.717

8.888

 

107

483.406

428.023

28

0.704

0.405

 

68

17.414

9.731

 

108

528.989

473.692

29

0.731

0.423

 

69

19.296

10.653

 

109

579.351

525.658

 

 

 

 

 

 

 

 

 

 

 

30

0.759

0.441

 

70

21.371

11.697

 

110

634.814

584.462

31

0.786

0.460

 

71

23.647

12.905

 

111

695.704

650.646

32

0.814

0.479

 

72

26.131

14.319

 

112

762.343

724.750

33

0.843

0.499

 

73

28.835

15.980

 

113

835.056

807.316

34

0.876

0.521

 

74

31.794

17.909

 

114

914.167

898.885

 

 

 

 

 

 

 

 

 

 

 

35

0.917

0.545

 

75

35.046

20.127

 

115

1,000.000

1,000.000

36

0.968

0.574

 

76

38.631

22.654

 

 

 

 

37

1.032

0.607

 

77

42.587

25.509

 

 

 

 

38

1.114

0.646

 

78

46.951

28.717

 

 

 

 

39

1.206

0.691

 

79

51.755

32.328

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

40

1.341

0.742

 

80

57.026

36.395

 

 

 

 

41

1.492

0.801

 

81

62.791

40.975

 

 

 

 

42

1.673

0.867

 

82

69.081

46.121

 

 

 

 

43

1.886

0.942

 

83

75.908

51.889

 

 

 

 

44

2.129

1.026

 

84

83.230

58.336

 

 

 

 

 

TABLE 18-A

 

 

 

 

 

 

1983 Group Annuity Mortality Table

 

 

 

 

 

 

(Males)

Age

qx

Age

qx

Age

qx

 

 

 

 

 

 

5

0.000342

40

0.001238

75

0.044597

6

0.000318

41

0.001370

76

0.049388

7

0.000302

42

0.001527

77

0.054758

8

0.000294

43

0.001715

78

0.060678

9

0.000292

44

0.001932

79

0.067125

10

0.000293

45

0.002183

80

0.074070

11

0.000298

46

0.002471

81

0.081484

12

0.000304

47

0.002790

82

0.089320

13

0.000310

48

0.003138

83

0.097525

14

0.000317

49

0.003513

84

0.106047

15

0.000325

50

0.003909

85

0.114836

16

0.000333

51

0.004324

86

0.124170

17

0.000343

52

0.004755

87

0.133870

18

0.000353

53

0.005200

88

0.144073

19

0.000365

54

0.005660

89

0.154859

20

0.000377

55

0.006131

90

0.166307

21

0.000392

56

0.006618

91

0.178214

22

0.000408

57

0.007139

92

0.190460

23

0.000424

58

0.007719

93

0.203007

24

0.000444

59

0.008384

94

0.217904

25

0.000464

60

0.009158

95

0.234086

26

0.000488

61

0.010064

96

0.248436

27

0.000513

62

0.011133

97

0.263954

28

0.000542

63

0.012391

98

0.280803

29

0.000572

64

0.013868

99

0.299154

30

0.000607

65

0.015592

100

0.319185

31

0.000645

66

0.017579

101

0.341086

32

0.000687

67

0.019804

102

0.365052

33

0.000734

68

0.022229

103

0.393102

34

0.000785

69

0.024817

104

0.427255

35

0.000860

70

0.027530

105

0.469531

36

0.000907

71

0.030354

106

0.521945

37

0.000966

72

0.033370

107

0.586518

38

0.001039

73

0.036680

108

0.665268

39

0.001128

74

0.040388

109

0.760215

 

 

 

 

 

----

 

TABLE 18-B

 

 

 

 

 

 

1983 Group Annuity Mortality Table

 

 

 

 

 

 

(Females)

Age

qx

Age

qx

Age

qx

 

 

 

 

 

 

5

0.000171

40

0.000665

75

0.023992

6

0.000140

41

0.000716

76

0.027185

7

0.000118

42

0.000775

77

0.030672

8

0.000104

43

0.000842

78

0.034459

9

0.000097

44

0.000919

79

0.038549

10

0.000096

45

0.001010

80

0.042945

11

0.000104

46

0.001117

81

0.017655

12

0.000113

47

0.001237

82

0.052691

13

0.000122

48

0.001366

83

0.058071

14

0.000131

49

0.001505

84

0.063807

15

0.000140

50

0.001647

85

0.069918

16

0.000149

51

0.001793

86

0.076570

17

0.000159

52

0.001949

87

0.083870

18

0.000168

53

0.002120

88

0.091935

19

0.000179

54

0.002315

89

0.101354

20

0.000189

55

0.002541

90

0.111750

21

0.000201

56

0.002803

91

0.123076

22

0.000212

57

0.003103

92

0.135630

23

0.000225

58

0.003443

93

0.149577

24

0.000239

59

0.003821

94

0.165103

25

0.000253

60

0.004241

95

0.182419

26

0.000268

61

0.004703

96

0.201757

27

0.000284

62

0.005210

97

0.222044

28

0.000302

63

0.005769

98

0.243899

29

0.000320

64

0.006386

99

0.268185

30

0.000342

65

0.007064

100

0.295187

31

0.000364

66

0.007817

101

0.325225

32

0.000388

67

0.008681

102

0.358897

33

0.000414

68

0.009702

103

0.395843

34

0.000443

69

0.010922

104

0.438360

35

0.000476

70

0.012385

105

0.487816

36

0.000502

71

0.014128

106

0.545886

37

0.000536

72

0.016160

107

0.614309

38

0.000573

73

0.018481

108

0.694855

39

0.000617

74

0.021092

109

1.789474

 

 

 

 

110

1.000000