3 Alaska Admin. Code § 28.611

Current through October 17, 2024

Section 3 AAC 28.611 - Application of the 2012 IAR Table

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

q_x²⁰¹²⁺ⁿ = q_x²⁰¹² (1 - G2_x)ⁿ

The resulting q_x²⁰¹²⁺ⁿ must be rounded to three decimal places per 1,000, for example, 0.741 deaths per 1,000. Also, the rounding must occur according to the formula above, starting at the 2012 period table rate.

For example, for a male age 30, q_x²⁰¹²= 0.741.

q_x²⁰¹³ = 0.741 * (1 - 0.010) ^ 1 = 0.73359, which is rounded to 0.734.

q_x²⁰¹⁴ = 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_x²⁰¹⁴ as q_x²⁰¹³ * (1 - 0.010), or 0.734 * 0.99 - 0.727. It is incorrect to use the already rounded q_x²⁰¹³ to calculate q_x²⁰¹⁴.

3 AAC 28.611

Eff. 12/26/2014, Register 212, January 2015

The 2012 lAR Table referenced in 3 AAC 28.611 may be obtained from the Society of Actuaries; 475 N. Martingale Road, Suite 600; Schaumburg, Illinois 60173; telephone number (847) 706-3500.

Authority:AS 21.06.090

AS 21.18.110

AS 21.18.160