North Carolina Administrative Code › Title 11 - INSURANCE › Chapter 11 - FINANCIAL EVALUATION DIVISION › Subchapter F - ACTUARIAL › Section .0500 - NEW ANNUITY VALUATION MORTALITY TABLES › Section 11F .0505 - MODEL RULE FOR RECOGNIZING A NEW ANNUITY MORTALITY TABLE FOR USE IN DETERMINING RESERVE LIABILITIES FOR ANNUITIES

Current through Register Vol. 39, No. 2, July 15, 2024
(a) The
				  North Carolina Department of Insurance incorporates by reference, including
				  subsequent amendments and editions, the National Association of Insurance
				  Commissioners Model No. 821, NAIC Model Rule (Regulation) for Recognizing a New
				  Annuity Mortality Table for Use in Determining Reserve Liabilities for
				  Annuities. Copies of Model No. 821 may be obtained from: The National
				  Association of Insurance Commissioners, 1100 Walnut Street, Suite 1500, Kansas
				  City, MO 64106-2197; the North Carolina Department of Insurance, Actuarial
				  Services Division, 1201 Mail Service Center, Raleigh, NC 27699-1201; and from
				  the Department of Insurance web page at
http://www.ncdoi.com
(b) For purposes of this Rule, Subsection A
				  of Section 4 of Model No. 821 shall read as follows:
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 standard of valuation for any
					 individual annuity or pure endowment contract issued on or after April 19,
					 1979.
(c) For purposes of
				  this Rule, Subsection B of Section 4 of Model No. 821 shall read as follows:
Except as provided in Subsection C of this section, either
					 the 1983 Table "a" or 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, 1987.
(d) For purposes of this Rule, Subsection C
				  of Section 4 of Model No. 821 shall read as follows:
Except as provided in Subsection D 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, 2000.
(e)
				  For purposes of this Rule, Subsection D of Section 4 of Model No. 821 shall
				  read as follows:
Except as provided in Subsection E of this section, the
					 2012 IAR 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, 2015.
(f)
				  For purposes of this Rule, Subsection E of Section 4 of Model No. 821 shall
				  read as follows:
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, 2000, 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 worker's 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.