Statutes, codes, and regulations
Alabama Administrative Code
Title 482 - ALABAMA DEPARTMENT OF INSURANCE
Chapter 482-1-076 - ALABAMA PROCEDURES FOR RECOGNIZING A NEW ANNUITY MORTALITY TABLE FOR USE IN DETERMINING RESERVE LIABILITIES FOR ANNUITIES
Section 482-1-076-.07 - Application Of The 2012 IAR Mortality Table

Ala. Admin. Code r. 482-1-076-.07

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Current through Register Vol. 43, No. 1, October 31, 2024
Section 482-1-076-.07 - Application Of The 2012 IAR Mortality Table
(1) In using the 2012 IAR Mortality Table, the mortality rate for a person age x in year (2012 + n) is calculated as follows:

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(2) 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.
(3) For example, for a male age 30, qx2012 = 0.741.

qx2013 = 0.741 * (1 - 0.010) ^ 1 = 0.73359, which is rounded to 0.734.

qx2014 = 0.741 * (1 - 0.010) ^ 2 = 0.7262541, which is rounded to 0.726.

(4) A method leading to incorrect rounding would be to calculate qx2014 as qx2013 * (1 - 0.010), or 0.734 * 0.99 = 0.727. It is incorrect to use the already rounded qx2013 to xcalculate qx2014.

Ala. Admin. Code r. 482-1-076-.07

Amended by Alabama Administrative Monthly Volume XXXII, Issue No. 11, August 29, 2014, eff. 1/1/2015.
Amended by Alabama Administrative Monthly Volume XLII, Issue No. 09, June 28, 2024, eff. 7/1/2024.

Author: Commissioner of Insurance

Statutory Authority:Code of Ala. 1975, §§ 27-2-17 and 27-36A-1 to 27-36A-20.