Arkansas Administrative Code › Agency 054 - Arkansas Insurance Department › Rule 054.00.14-003 - Amended Rule 38: An Annuity Mortality Table for Use in Determining Reserve Liabilities for Annuities

Current through Register Vol. 49, No. 6, June, 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, the 2012 Individual Annuity
			 Reserving (2012 IAR) 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).
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 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 Mortality 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 5.
H.
		  As used in this rule, "2012 Individual Annuity Mortality Period Life (2012 IAM
		  Period) Table" means the Period table containing loaded mortality rates for
		  calendar year 2012. This table contains rates, qx,
		  developed by the Society of Actuaries Committee on Life Insurance Research and
		  is shown in Appendices 1-2.
I. As
		  used in this rule, "Projection Scale G2 (Scale G2)" 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 3-4.