Section 284-74-020. Annuity 2000 and 1994 GAR tables.

The purpose of this section is to recognize the following mortality tables for use in determining the minimum standard of valuation for annuity and pure endowment contracts: The annuity 2000 mortality table, the 2012 individual annuity reserving (2012 IAR) table, and the 1994 group annuity reserving (1994 GAR) table.

(1) The following definitions apply to this section:

(a) "Period table" means a table of mortality rates applicable to a given year (the period).

(b) "Generational mortality table" means a mortality table containing a set of mortality rates that decreases 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.

(2) This section does not apply to an individual annuity or pure endowment contract, if the contract is based on life contingencies and is issued to fund periodic benefits arising from:

(a) Settlements of various forms of claims pertaining to court settlements or out of court settlements from tort actions;

(b) Settlements involving similar actions such as worker's compensation claims; or

(c) Settlements of long term disability claims where a temporary or life annuity has been used in lieu of continuing disability payments.

(3) The annuity 2000 mortality table, which was developed by the society of actuaries committee on life insurance research and adopted as a recognized mortality table for annuities in December 1996 by the National Association of Insurance Commissioners (NAIC), and which is set forth in Transactions, Society of Actuaries, Vol. XLVII (1995), p. 240, is recognized and approved as an individual annuity mortality table for valuation and shall be used for determining the minimum standard of valuation for any individual annuity or pure endowment contract issued on or after April 1, 1998. At the option of the company, the annuity 2000 mortality table may be used for determining the minimum standard of valuation for any individual annuity or pure endowment contract issued on or after January 1, 1998.

(4) The 2012 IAR table, which was developed by the society of actuaries committee on life insurance research and containing rates, qx2012+n, is the generational mortality table derived from a combination of the 2012 IAM period table and projection scale G2 and must be used for determining the minimum standard of valuation for any individual annuity or pure endowment contract issued on or after January 1, 2015.

(5) In using the 2012 IAR table, the mortality rate for a person age x in year (2012 + n) is calculated as follows:

qx2012+n = qx2012 (l – G2x)n

The resulting qx2012+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.

(6) The 2012 individual annuity mortality period life (2012 IAM period) table, developed by the society of actuaries committee on life insurance research, shown below, contains loaded mortality rates for calendar year 2012. The table contains rates qx 2012.

2012 IAM Period Table

Female, Age Nearest Birthday

APPENDIX II

2012 IAM Period Table

Male, Age Nearest Birthday

(7) Projection scale G2 (scale G2), which was developed by the society of actuaries committee on life insurance research, is a table of annual rates, G2x, shown below, of mortality improvement by age for projecting future mortality rates beyond calendar year 2012.

Projection Scale G2

Female, Age Nearest Birthday

APPENDIX IV

Projection Scale G2

Male, Age Nearest Birthday

(8) The 1994 GAR table, which was developed by the society of actuaries group annuity valuation table task force and adopted as a recognized mortality table for annuities in December 1996 by the NAIC, and which is set forth in Transactions, Society of Actuaries, Vol. XLVII (1995), pp. 866 and 867, is recognized and approved as a group annuity mortality table for valuation and shall be used for determining the minimum standard of valuation for any annuity or pure endowment purchased on or after April 1, 1998, under a group annuity or pure endowment contract. At the option of the company, the 1994 GAR table may be used for determining the minimum standard of valuation for any annuity or pure endowment purchased on or after January 1, 1998, under a group annuity or pure endowment contract.

(9) In using the 1994 GAR table, the mortality rate for a person age x in year (1994 + n) is calculated as follows:

[Statutory Authority: RCW 48.02.060. WSR 14-01-040 (Matter No. R 2013-17), § 284-74-020, filed 12/11/13, effective 1/11/14; WSR 98-05-069 (Matter No. R 97-5), § 284-74-020, filed 2/17/98, effective 3/20/98.]

RCW 48.02.060. WSR 14-01-040 (Matter No. R 2013-17), § 284-74-020, filed 12/11/13, effective 1/11/14; WSR 98-05-069 (Matter No. R 97-5), § 284-74-020, filed 2/17/98, effective 3/20/98.