Code of Vermont Rules › Agency 21 - DEPARTMENT OF FINANCIAL REGULATION › Sub-Agency 020 - INSURANCE DIVISION › Chapter 014 - REGULATION 88-4: MORTALITY TABLES FOR LIFE INSURANCE AND ANNUITIES › Section 21 020 014 - REGULATION 88-4: MORTALITY TABLES FOR LIFE INSURANCE AND ANNUITIES

Current through June,
				2024
Part A ANNUITY
				MORTALITY TABLES
Section A 1 Authority
Part A of Regulation I-88-4 is promulgated by the
				  Commissioner of the Vermont Department of Financial Regulation pursuant to
				  8 V.S.A., Section
				  3784, of the Vermont Insurance
				  Statutes.
Section A 2
				Purpose
The purpose of Part A 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 A
				3 Definitions
A. As used in Part
				A, "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 Part A, "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 Part A, "1994 GAR Table" means
				that mortality table developed by the Society of Actuaries Group Annuity
				Valuation Table Task Force and shown on pages 866-867 of Volume XLVII of the
				Transactions of the Society of Actuaries (1995).
D. As used in Part A, "Annuity 2000 Mortality
				Table" means that mortality table developed by the Society of Actuaries
				Committee on Life Insurance Research-and shown on pages 240 of Volume XLVII of
				the Transactions of the Society of Actuaries (1995).
E. As used in Part A, "Period table" means a
				table of mortality rates applicable to a given calendar year (the
				Period).
F. As used in Part A,
				"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 Part A, "2012 IAR Table" means that Generational mortality table developed
				by the Society of Actuaries Committee on Life Insurance Research and containing
				rates, q x [2012+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, q x [2012 ], 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, G2 X , 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,
Section A
				4 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 standard of valuation for any
				individual annuity or pure endowment contract issued on or after January 1,
				1980.
B. 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 D
				ecember 31, 1985.
C. E xcept 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.
D. 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.
E. The 1983 Table "a" without projection
				shall 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.
Section
				A 5 Application of the 2012 IAR Mortality Table
In using the 2012 IAR Mortality Table, the mortality rate
				  for a person age x in year (2012 + n) is calculated as follows:
q x [2012+n ]- q x [2012 ](1 - G2 x ) [n ]
The resulting q x [2012+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, for a male age 30, q x [2012 ]= 0.741.
q x [2013 ]= 0.741 * (1 - 0.010) ¬ 1 = 0.73359, which is
				  rounded to 0.734.
q x [2014 ]= 0.741 * (1 - 0.010) ¬ 2 = 0.7262541, which
				  is rounded to 0.726.
A method leading to incorrect rounding would be to calculate
				  q x [2014 ] as q x [2013 ] * (1 - 0.010), or 0.734* 0.99 = 0.727.
It is incorrect to use the already rounded q x [2013 ]to
				  calculate q x [2014 ].
Section A 6
				Group Annuity of Pure Endowment Contracts
A.
				Except as provided in Subsections 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 of these tables may be used for purposes of valuation for an annuity or
				pure endowment purchased on or after January 1, 1980, 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 shall be used for determining the minimum standard of valuation
				for any annuity or pure endowment purchased on or after December 31, 1985,
				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, 2000 under a group annuity or pure endowment
				contract.
Section A 7 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:
q x [1994+n ]- q x [1994 ] (1-AA x ) [n ]
where the q x [1994 ] and AA X are as specified in the 1994
				  GAR Table.
Appendix I. 2012 IAM Period Table - Female, Age Nearest
				  Birthday.
AGE
1000-
q x
2012
AGE
1000-
q x
2012
AGE
1000-
q x
2012
AGE
1000-
q x
2012
0
1.621
30
0.300
60
3.460
90
88.377
1
0.405
31
0.321
61
3.916
91
97.491
2
0.259
32
0.338
62
4.409
92
107.269
3
0.179
33
0.351
63
4.933
93
118.201
4
0.137
34
0.365
64
5.507
94
130.969
5
0.125
35
0.381
65
6.146
95
146.449
6
0.117
36
0.402
66
6.551
96
163.908
7
0.110
37
0.429
61
7.039
97
179.695
8
0.095
38
0.463
68
7.628
98
196.151
9
0.088
39
0.504
69
8.311
99
213.150
10
0.085
40
0.552
70
9.074
100
230.722
11
0.086
41
0.600
71
9.910
101
251.505
12
0.094
42
0.650
72
10.827
102
273.007
13
0.108
43
0.697
73
11.839
103
295.086
14
0.131
44
0.740
74
12.974
104
317.591
15
0.156
45
0.780
75
14.282
105
340362
16
0.179
46
0.825
76
15.799
106
362371
17
0.198
47
0.885
77
17.550
107
384.113
18
0.211
48
0.964
78
19.582
108
400.000
19
0.221
49
1.051
79
21.970
109
400.000
20
0.228
50
1.161
80
24.821
110
400.000
21
0.234
51
1.308
81
28.351
111
400.000
22
0.240
52
1.460
82
32.509
112
400.000
23
0.245
53
1.613
83
37.329
113
400.000
24
0.247
54
1.774
84
42.830
114
400.000
25
0.250
55
1.950
85
48.997
115
400.000
26
0.256
56
2.154
86
55.774
116
400.000
27
0.261
57
2.399
87
63.140
117
400.000
28
0.270
58
2.700
88
71.066
118
400.000
29
0.281
59
3.054
89
79.502
119
400.000
120
1000.000
Appendix II. 2012 IAM Period Table - Male, Age Nearest
				  Birthday.
AGE
1000-
q x
2012
AGE
1000-
q x
2012
AGE
1000-
q x
2012
AGE
1000-
q x
2012
0
1.605
30
0.741
60
5.096
90
109.993
1
0.401
31
0.751
61
5.614
91
123.119
2
0.275
32
0.754
62
6.169
92
137.168
3
0.229
33
0.756
63
6.759
93
152.171
4
0.174
34
0.756
64
7.398
94
168.194
5
0.168
35
0.756
65
8.106
95
185.260
6
0.165
36
0.756
66
8.548
96
197.322
7
0.159
37
0.756
61
9.076
97
214.751
8
0.143
38
0.756
68
9.708
98
232.507
9
0.129
39
0.800
69
10.463
99
250.397
10
0.113
40
0.859
70
11.357
100
268.607
11
0.111
41
0.926
71
12.418
101
290.016
12
0.132
42
0.999
72
13.675
102
311.849
13
0.169
43
1.069
73
15.150
103
333.962
14
0.213
44
1.142
74
16.860
104
356.207
15
0.254
45
1.219
75
18.815
105
380.000
16
0.293
46
1.318
76
21.031
106
400.000
17
0.328
47
1.454
77
23.540
107
400.000
18
0.359
48
1.627
78
26.375
108
400.000
19
0.387
49
1.829
79
29.572
109
400.000
20
0.414
50
2.057
80
33.234
110
400.000
21
0.443
51
2.302
81
37.533
111
400.000
22
0.473
52
2.545
82
42.261
112
400.000
23
0.513
53
2.779
83
47.441
113
400.000
24
0.554
54
3.011
84
53.233
114
400.000
25
0.602
55
3.254
85
59.855
115
400.000
26
0.655
56
3.529
86
67.514
116
400.000
27
0.688
57
3.845
87
76.340
117
400.000
28
0.710
58
4.213
88
86.388
118
400.000
29
0.727
59
4.631
89
97.634
119
400.000
120
1000.000
Appendix III. Projection Scale G2 - Female, Age Nearest
				  Birthday.
AGE
G2
								x
AGE
G2
								x
AGE
G2
								x
AGE
G2
								x
0
0.010
30
0.010
60
0.013
90
0.006
1
0.010
31
0.010
61
0.013
91
0.006
2
0.010
32
0.010
62
0.013
92
0.005
3
0.010
33
0.010
63
0.013
93
0.005
4
0.010
34
0.010
64
0.013
94
0.004
5
0.010
35
0.010
65
0.013
95
0.004
6
0.010
36
0.010
66
0.013
96
0.004
7
0.010
37
0.010
67
0.013
97
0.003
8
0.010
38
0.010
68
0.013
98
0.003
9
0.010
39
0.010
69
0.013
99
0.002
10
0.010
40
0.010
70
0.013
100
0.002
11
0.010
41
0.010
71
0.013
101
0.002
12
0.010
42
0.010
72
0.013
102
0.001
13
0.010
43
0.010
73
0.013
103
0.001
14
0.010
44
0.010
74
0.013
104
0.000
15
0.010
45
0.010
75
0.013
105
0.000
16
0.010
46
0.010
76
0.013
106
0.000
17
0.010
47
0.010
77
0.013
107
0.000
18
0.010
48
0.010
78
0.013
108
0.000
19
0.010
49
0.010
79
0.013
109
0.000
20
0.010
50
0.010
80
0.013
110
0.000
21
0.010
51
0.010
81
0.012
111
0.000
22
0.010
52
0.011
82
0.012
112
0.000
23
0.010
53
0.011
83
0.011
113
0.000
24
0.010
54
0.011
84
0.010
114
0.000
25
0.010
55
0.012
85
0.010
115
0.000
26
0.010
56
0.012
86
0.009
116
0.000
27
0.010
57
0.012
87
0.008
117
0.000
28
0.010
58
0.012
88
0.007
118
0.000
29
0.010
59
0.013
89
0.007
119
0.000
120
0.000
Appendix IV. Projection Scale G2 - Male, Age Nearest
				  Birthday.
AGE
G2
								x
AGE
G2
								x
AGE
G2
								x
AGE
G2
								x
0
0.010
30
0.010
60
0.015
90
0.007
1
0.010
31
0.010
61
0.015
91
0.007
2
0.010
32
0.010
62
0.015
92
0.006
3
0.010
33
0.010
63
0.015
93
0.005
4
0.010
34
0.010
64
0.015
94
0.005
5
0.010
35
0.010
65
0.015
95
0.004
6
0.010
36
0.010
66
0.015
96
0.004
7
0.010
37
0.010
67
0.015
97
0.003
8
0.010
38
0.010
68
0.015
98
0.003
9
0.010
39
0.010
69
0.015
99
0.002
10
0.010
40
0.010
70
0.015
100
0.002
11
0.010
41
0.010
71
0.015
101
0.002
12
0.010
42
0.010
72
0.015
102
0.001
13
0.010
43
0.010
73
0.015
103
0.001
14
0.010
44
0.010
74
0.015
104
0.000
15
0.010
45
0.010
75
0.015
105
0.000
16
0.010
46
0.010
76
0.015
106
0.000
17
0.010
47
0.010
77
0.015
107
0.000
18
0.010
48
0.010
78
0.015
108
0.000
19
0.010
49
0.010
79
0.015
109
0.000
20
0.010
50
0.010
80
0.015
110
0.000
21
0.010
51
0.011
81
0.014
111
0.000
22
0.010
52
0.011
82
0.013
112
0.000
23
0.010
53
0.012
83
0.013
113
0.000
24
0.010
54
0.012
84
0.012
114
0.000
25
0.010
55
0.013
85
0.011
115
0.000
26
0.010
56
0.013
86
0.010
116
0.000
27
0.010
57
0.014
87
0.009
117
0.000
28
0.010
58
0.014
88
0.009
118
0.000
29
0.010
59
0.015
89
0.008
119
0.000
120
0.000