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IDAPA 18.07.02 — Reserve Liabilities and Minimum Valuations for Annuities and Pure Endowment Contracts

Idaho Administrative Code IDAPA 18.07.02: Reserve Liabilities and Minimum Valuations for Annuities and Pure Endowment Contracts (5 codified sections)

[!NOTE] Official Regulatory Attachments & Forms This administrative rule adopts the following official regulatory attachments and binding forms: - Attachments to Idaho Rule 18.07.02 – Actuarial Formulas and Tables

See the full Section 3: Regulatory Attachments & Forms catalog for official downloads and schedules.

Title 41, Chapters 2 and 6, Sections 41-211 and 41-612, Idaho Code. (4-6-23)

IDAPA 18.07.02.001 - Scope

To determine minimum standard valuation for annuity and pure endowment contracts. (4-6-23)

IDAPA 18.07.02.010 - Definitions

01. 1983 Table 'a'. The mortality table developed by the Society of Actuaries (SOA) Committee for Individual Annuity Valuation in 1981 and in June 1982 by the National Association of Insurance Commissioners (NAIC). (4-6-23)

02. 1983 GAM Table. The mortality table developed by the SOA Committee on Annuities and adopted as a recognized mortality table for annuities in December 1983 by the NAIC. (4-6-23)

03. 1994 GAR Table. The mortality table developed by the (SOA) Group Annuity Valuation Table Task Force and shown on pages 866-867 of Volume 47 of the Transactions of Society of Actuaries 1995. (4-6-23)

04. 2012 Individual Annuity Mortality Period Life (2012 IAM Period) Table. The Period Table loaded mortality rates for calendar year 2012. This table contains rates, qx2012, developed by the (SOA) Committee on Life Insurance Research. (4-6-23)

05. 2012 Individual Annuity Reserving (2012 IAR) Table. The generational mortality table developed by the (SOA) Committee on Life Insurance Research and containing rates, qx2012+n derived from a combination of the 2012 IAM Period Table and Scale G2, using the method Section 014. (4-6-23)

06. Annuity 2000 Mortality Table. The mortality table developed by the (SOA) Committee on Life Insurance Research. (4-6-23)

07. Generational Mortality Table. A mortality table with 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 mortality- improvement rates. (4-6-23)

08. Period Table. A table of mortality rates applying to a given calendar year (the Period). (4-6-23)

09. Projection Scale G2 (Scale G2). 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 (SOA) Committee on Life Insurance Research. (4-6-23)

IDAPA 18.07.02.011 - Individual Annuity Or Pure Endowment Contracts

01. Individual Annuity Mortality Table. Except as stated in Subsections 011.02, the 1983 Table 'a' is approved as an individual annuity mortality table for valuation, and, a company may use it to determine the minimum standard of valuation for any individual annuity or pure endowment contract issued on or after July 1, 1982. (4-6-23)

02. Minimum Standard of Valuation. Except as stated in Subsection 011.03, either the 1983 Table 'a' or the Annuity 2000 Mortality Table is used to determine the minimum standard of valuation for an individual annuity or pure endowment contract issued on or after January 1, 1987. (4-6-23)

03. The Annuity 2000 Mortality Table. Except as stated in Subsection 011.04, the Annuity 2000 Mortality Table is used to determine the minimum standard of valuation for an individual annuity or pure endowment contract issued on or after March 29, 2012. (4-6-23)

04. The 2012 IAR Mortality Table. Except as stated in Subsection 011.05, the 2012 IAR Mortality Table is used to determine the minimum standard of valuation for any individual annuity or pure endowment contract issued on or after January 1, 2015. (4-6-23)

05. The 1983 Table 'a.' The 1983 Table 'a' without projection is used to determine the minimum Idaho Department of Insurance for Annuities & Pure Endowment Contracts standard of valuation for an individual annuity or pure endowment contract issued on or after March 29, 2012, solely when the contract is based on life contingencies and issued to fund periodic benefits arising from: (4-6-23)

  a. Settlements of claims pertaining to court settlements or out of court settlements from tort actions; (4-6-23)

  b. Settlements involving similar actions like workers' compensation claims; or (4-6-23)

  c. Settlements of long-term disability claims where a temporary or life annuity is used in lieu of continuing disability payments. (4-6-23)

IDAPA 18.07.02.012 - Group Annuity Or Pure Endowment Contracts

01. Group Annuity Mortality Tables. Except as stated in Subsections 012.02, the 1983 GAM Table, the 1983 Table 'a' and the 1994 GAR Table are approved as group annuity mortality tables for valuation and, at the option of the company, any one (1) of these tables 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. (4-6-23)

02. Minimum Standard of Valuation. Except as stated in Subsection 012.03, either the 1983 GAM Table or the 1994 GAR Table is used to determine the minimum standard of valuation for an annuity or pure endowment purchased on or after January 1, 1987, under a group annuity or pure endowment contract. (4-6-23) 03 1994 GAR Table. The 1994 GAR Table is used to determine the minimum standard of valuation for an annuity or pure endowment purchased on or after March 29, 2012, under a group annuity or pure endowment contract. (4-6-23)