Md. Code Regs. 31.05.04.05

Current through Register Vol. 51, No. 24, December 2, 2024

Section 31.05.04.05 - Valuation Standards

A. In valuing the reserve liabilities under individual annuity and pure endowment contracts in accordance with the provisions of Insurance Article, § 5-305(c) and (d), Annotated Code of Maryland, insurers may use either the 1971 Individual Annuity Mortality Table or the 1983 Table "a" for contracts issued on or after July 1, 1980, and before January 1, 1987.

B. Except as provided in §§C, D, and E of this regulation, the 1983 Table a, as shown in Regulation .03 of this chapter, is to be used by insurers in valuing reserve liabilities under individual annuity and pure endowment contracts in accordance with the provisions of Insurance Article, § 5-305(c) and (d), Annotated Code of Maryland, for contracts issued on and after January 1, 1987.

C. Except as provided in §§D and E of this regulation, 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 July 1, 2004.

D. Except as provided in §§E and F of this regulation, 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 July 1, 2005 and before January 1, 2015.

E. Except as provided in §F of this regulation, the 2012 IAR 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.

F. 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 July 1, 2005, 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 Workers' Compensation claims; or

(3) Settlements of long-term disability claims if a temporary or life annuity has been used instead of continuing disability payments.

Md. Code Regs. 31.05.04.05

Regulation .05 effective May 24, 2004 (31:10 Md. R. 796); amended effective January 1, 2015 (41:22 Md. R. 1320)