# COMAR Title 31 — Maryland Insurance Administration ## Subtitle 05 — Assets, Liabilities, Reserves, and Investments of Insurers ### Chapter 04 — Valuation Standards for Individual Annuity and Pure Endowment Contracts **Authority:** Insurance Article, §2-109 and Title 5, Subtitle 3, Annotated Code of Maryland **Administrative History:** Effective date: December 31, 1985 (12:26 Md. R. 2545) **Administrative History:** Chapter recodified from COMAR 09.30.68 to COMAR 31.05.04 effective September 7, 1998 (25:18 Md. R. 1439) **Administrative History:** Chapter revised effective May 24, 2004 (31:10 Md. R. 796) **Administrative History:** Regulation .01 amended effective November 10, 2014 (41:22 Md. R. 1320) **Administrative History:** Regulation .02B amended effective January 1, 2015 (41:22 Md. R. 1320) **Administrative History:** Regulation .05 amended effective January 1, 2015 (41:22 Md. R. 1320) **Administrative History:** Regulation .06 adopted effective January 1, 2015 (41:22 Md. R. 1320) **Administrative History:** Regulation .07 adopted effective January 1, 2015 (41:22 Md. R. 1320) **Administrative History:** Regulation .08 adopted effective January 1, 2015 (41:22 Md. R. 1320) #### Regulation .01 Purpose. *COMAR 31.05.04.01* The purpose of this chapter is to approve the use of the following mortality tables adopted by the National Association of Insurance Commissioners after 1980 as a basis for determining the minimum standards of valuation for individual annuity and pure endowment contracts: A. The 1983 Table “a”; B. The Annuity 2000 Mortality Table; and C. The 2012 Individual Annuity Reserving Table. #### Regulation .02 Definitions. *COMAR 31.05.04.02* A. In this chapter, the following terms have the meanings indicated. B. Terms Defined. (1) “Annuity 2000 Mortality Table” means the mortality table: (a) Developed by the Society of Actuaries Committee on Life Insurance Research; and (b) Set out in Regulation .04 of this chapter. (2) “Generational mortality table” means a mortality table containing a set of 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 rates of mortality improvement. (3) “Period table” means a table of mortality rates applicable to a given calendar year. (4) “Projection Scale G2” means a table: (a) Containing annual rates, G2x, of mortality improvement by age for projecting future mortality rates beyond calendar year 2012; (b) Developed by the Society of Actuaries Committee on Life Insurance Research; and (c) Set out in Regulation .07 of this chapter. (5) "1983 Table “a” means the mortality table: (a) Developed by the Society of Actuaries Committee to Recommend a New Mortality Basis for Individual Annuity Valuation; (b) Adopted as a recognized mortality table for annuities in June 1982 by the National Association of Insurance Commissioners; and (c) Set out in Regulation .03 of this chapter. (6) “2012 Individual Annuity Mortality Period Life Table” or “2012 IAM Period Table” means the period table containing loaded mortality rates for calendar year 2012. This table: (a) Contains rates, qx2012, developed by the Society of Actuaries Committee on Life Insurance Research; and (b) Is set out in Regulation .06 of this chapter. (7) “2012 Individual Annuity Reserving Table” or “2012 IAR Table” means the generational mortality table: (a) Developed by the Society of Actuaries Committee on Life Insurance Research; and (b) Containing rates, qx2012+n, that are derived from a combination of the 2012 IAM Period Table and Projection Scale G2 using the methodology set out in Regulation .08 of this chapter. #### Regulation .03 Table “a”. *COMAR 31.05.04.03* The 1983 Table “a”, as shown below, is the mortality table designated by that name and adopted in June, 1982, by the National Association of Insurance Commissioners. 1983 TABLE “a”—1,000qx Age Males Females 5 0.377 0.194 6 0.350 0.160 7 0.333 0.134 8 0.352 0.134 9 0.368 0.136 10 0.382 0.141 11 0.394 0.147 12 0.405 0.155 13 0.415 0.165 14 0.425 0.175 15 0.435 0.183 16 0.446 0.201 17 0.458 0.214 18 0.472 0.229 19 0.488 0.244 20 0.505 0.260 21 0.525 0.276 22 0.546 0.293 23 0.570 0.311 24 0.596 0.330 25 0.622 0.349 26 0.650 0.368 27 0.677 0.387 28 0.704 0.405 29 0.731 0.423 30 0.759 0.441 31 0.786 0.460 32 0.814 0.479 33 0.843 0.499 34 0.876 0.521 35 0.917 0.545 36 0.968 0.574 37 1.032 0.607 38 1.114 0.646 39 1.216 0.691 40 1.341 0.742 41 1.492 0.801 42 1.673 0.867 43 1.886 0.942 44 2.129 1.026 45 2.399 1.122 46 2.693 1.231 47 3.009 1.356 48 3.343 1.499 49 3.694 1.657 50 4.057 1.830 51 4.431 2.016 52 4.812 2.215 53 5.198 2.426 54 5.591 2.650 55 5.994 2.891 56 6.409 3.151 57 6.839 3.432 58 7.290 3.739 59 7.782 4.081 60 8.338 4.467 61 8.983 4.908 62 9.740 5.413 63 10.630 5.990 64 11.664 6.633 65 12.851 7.336 66 14.199 8.090 67 15.717 8.888 68 17.414 9.731 68 19.296 10.653 70 21.371 11.697 71 23.647 12.905 72 26.131 14.319 73 28.835 15.980 74 31.794 17.909 75 35.046 20.127 76 38.631 22.654 77 42.587 25.509 78 46.951 28.717 79 51.755 32.328 80 57.026 36.395 81 62.791 40.975 82 69.081 46.121 83 75.908 51.889 84 83.230 58.336 85 90.987 65.518 86 99.122 73.493 87 107.577 82.318 88 116.316 92.017 89 125.394 102.491 90 134.887 113.605 91 144.873 125.227 92 155.429 137.222 93 166.629 149.462 94 178.537 161.834 95 191.214 174.228 96 204.721 186.535 97 219.120 198.646 98 234.735 211.102 99 251.889 224.445 100 270.906 239.215 101 292.111 255.953 102 315.826 275.201 103 342.377 297.500 104 372.086 323.390 105 405.278 353.414 106 442.277 388.111 107 483.406 428.023 108 528.989 473.692 109 579.351 525.658 110 634.814 584.462 111 695.704 650.646 112 762.343 724.750 113 835.056 807.316 114 914.167 898.885 115 1000.000 1000.000 #### Regulation .04 Annuity 2000 Mortality Table. *COMAR 31.05.04.04* 1000q Age Nearest Birthday (x) Male Female* 5 0.291 0.171 6 0.270 0.141 7 0.257 0.118 8 0.294 0.118 9 0.325 0.121 10 0.350 0.126 11 0.371 0.133 12 0.388 0.142 13 0.402 0.152 14 0.414 0.164 15 0.425 0.177 16 0.437 0.190 17 0.449 0.204 18 0.463 0.219 19 0.480 0.234 20 0.499 0.250 21 0.519 0.265 22 0.542 0.281 23 0.566 0.298 24 0.592 0.314 25 0.616 0.331 26 0.639 0.347 27 0.659 0.362 28 0.675 0.376 29 0.687 0.389 30 0.694 0.402 31 0.699 0.414 32 0.700 0.425 33 0.701 0.436 34 0.702 0.449 35 0.704 0.463 36 0.719 0.481 37 0.749 0.504 38 0.796 0.532 39 0.864 0.567 40 0.953 0.609 41 1.065 0.658 42 1.201 0.715 43 1.362 0.781 44 1.547 0.855 45 1.752 0.939 46 1.974 1.035 47 2.211 1.141 48 2.460 1.261 49 2.721 1.393 50 2.994 1.538 51 3.279 1.695 52 3.576 1.864 53 3.884 2.047 54 4.203 2.244 55 4.534 2.457 56 4.876 2.689 57 5.228 2.942 58 5.593 3.218 59 5.988 3.523 60 6.428 3.863 61 6.933 4.242 62 7.520 4.668 63 8.207 5.144 64 9.008 5.671 65 9.940 6.250 66 11.016 6.878 67 12.251 7.555 68 13.657 8.287 69 15.233 9.102 70 16.979 10.034 71 18.891 11.117 72 20.967 12.386 73 23.209 13.871 74 25.644 15.592 75 28.304 17.564 76 31.220 19.805 77 34.425 22.328 78 37.948 25.158 79 41.812 28.341 80 46.037 31.933 81 50.643 35.985 82 55.651 40.552 83 61.080 45.690 84 66.948 51.456 85 73.275 57.913 86 80.076 65.119 87 87.370 73.136 88 95.169 81.991 89 103.455 91.577 90 112.208 101.758 91 121.402 112.395 92 131.017 123.349 93 141.030 134.486 94 151.422 145.689 95 162.179 156.846 96 173.279 167.841 97 184.706 178.563 98 196.946 189.604 99 210.484 201.557 100 225.806 215.013 101 243.398 230.565 102 263.745 248.805 103 287.334 270.326 104 314.649 295.719 105 346.177 325.576 106 382.403 360.491 107 423.813 401.054 108 470.893 447.860 109 524.128 501.498 110 584.004 562.563 111 651.007 631.645 112 725.622 709.338 113 808.336 796.233 114 899.633 892.923 115 1000.000 1000.000 *Based on 50% of Female Improvement Scale G. #### Regulation .05 Valuation Standards. *COMAR 31.05.04.05* 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. #### Regulation .06 2012 IAM Period Table. *COMAR 31.05.04.06* The 2012 Individual Annuity Mortality Period Life Table, as shown below, is the mortality table designated by that name and developed by the Society of Actuaries Committee on Life Insurance Research. 1000 qx2012 Age Nearest Birthday Male Female 0 1.605 1.621 1 0.401 0.405 2 0.275 0.259 3 0.229 0.179 4 0.174 0.137 5 0.168 0.125 6 0.165 0.117 7 0.159 0.110 8 0.143 0.095 9 0.129 0.088 10 0.113 0.085 11 0.111 0.086 12 0.132 0.094 13 0.169 0.108 14 0.213 0.131 15 0.254 0.156 16 0.293 0.179 17 0.328 0.198 18 0.359 0.211 19 0.387 0.221 20 0.414 0.228 21 0.443 0.234 22 0.473 0.240 23 0.513 0.245 24 0.554 0.247 25 0.602 0.250 26 0.655 0.256 27 0.688 0.261 28 0.710 0.270 29 0.727 0.281 30 0.741 0.300 31 0.751 0.321 32 0.754 0.338 33 0.756 0.351 34 0.756 0.365 35 0.756 0.381 36 0.756 0.402 37 0.756 0.429 38 0.756 0.463 39 0.800 0.504 40 0.859 0.552 41 0.926 0.600 42 0.999 0.650 43 1.069 0.697 44 1.142 0.740 45 1.219 0.780 46 1.318 0.825 47 1.454 0.885 48 1.627 0.964 49 1.829 1.051 50 2.057 1.161 51 2.302 1.308 52 2.545 1.460 53 2.779 1.613 54 3.011 1.774 55 3.254 1.950 56 3.529 2.154 57 3.845 2.399 58 4.213 2.700 59 4.631 3.054 60 5.096 3.460 61 5.614 3.916 62 6.169 4.409 63 6.759 4.933 64 7.398 5.507 65 8.106 6.146 66 8.548 6.551 67 9.076 7.039 68 9.708 7.628 69 10.463 8.311 70 11.357 9.074 71 12.418 9.910 72 13.675 10.827 73 15.150 11.839 74 16.860 12.974 75 18.815 14.282 76 21.031 15.799 77 23.540 17.550 78 26.375 19.582 79 29.572 21.970 80 33.234 24.821 81 37.533 28.351 82 42.261 32.509 83 47.441 37.329 84 53.233 42.830 85 59.855 48.997 86 67.514 55.774 87 76.340 63.140 88 86.388 71.066 89 97.634 79.502 90 109.993 88.377 91 123.119 97.491 92 137.168 107.269 93 152.171 118.201 94 168.194 130.969 95 185.260 146.449 96 197.322 163.908 97 214.751 179.695 98 232.507 196.151 99 250.397 213.150 100 268.607 230.722 101 290.016 251.505 102 311.849 273.007 103 333.962 295.086 104 356.207 317.591 105 380.000 340.362 106 400.000 362.371 107 400.000 384.113 108 400.000 400.000 109 400.000 400.000 110 400.000 400.000 111 400.000 400.000 112 400.000 400.000 113 400.000 400.000 114 400.000 400.000 115 400.000 400.000 116 400.000 400.000 117 400.000 400.000 118 400.000 400.000 119 400.000 400.000 120 1000.000 1000.000 #### Regulation .07 Projection Scale G2. *COMAR 31.05.04.07* Projection Scale G2, as shown below, is a table containing annual rates, G2x , of mortality improvement by age for projecting future mortality rates beyond calendar year 2012 and was developed by the Society of Actuaries Committee on Life Insurance Research. G2x Age Nearest Birthday Male Female 0 0.010 0.010 1 0.010 0.010 2 0.010 0.010 3 0.010 0.010 4 0.010 0.010 5 0.010 0.010 6 0.010 0.010 7 0.010 0.010 8 0.010 0.010 9 0.010 0.010 10 0.010 0.010 11 0.010 0.010 12 0.010 0.010 13 0.010 0.010 14 0.010 0.010 15 0.010 0.010 16 0.010 0.010 17 0.010 0.010 18 0.010 0.010 19 0.010 0.010 20 0.010 0.010 21 0.010 0.010 22 0.010 0.010 23 0.010 0.010 24 0.010 0.010 25 0.010 0.010 26 0.010 0.010 27 0.010 0.010 28 0.010 0.010 29 0.010 0.010 30 0.010 0.010 31 0.010 0.010 32 0.010 0.010 33 0.010 0.010 34 0.010 0.010 35 0.010 0.010 36 0.010 0.010 37 0.010 0.010 38 0.010 0.010 39 0.010 0.010 40 0.010 0.010 41 0.010 0.010 42 0.010 0.010 43 0.010 0.010 44 0.010 0.010 45 0.010 0.010 46 0.010 0.010 47 0.010 0.010 48 0.010 0.010 49 0.010 0.010 50 0.010 0.010 51 0.011 0.010 52 0.011 0.011 53 0.012 0.011 54 0.012 0.011 55 0.013 0.012 56 0.013 0.012 57 0.014 0.012 58 0.014 0.012 59 0.015 0.013 60 0.015 0.013 61 0.015 0.013 62 0.015 0.013 63 0.015 0.013 64 0.015 0.013 65 0.015 0.013 66 0.015 0.013 67 0.015 0.013 68 0.015 0.013 69 0.015 0.013 70 0.015 0.013 71 0.015 0.013 72 0.015 0.013 73 0.015 0.013 74 0.015 0.013 75 0.015 0.013 76 0.015 0.013 77 0.015 0.013 78 0.015 0.013 79 0.015 0.013 80 0.015 0.013 81 0.014 0.012 82 0.013 0.012 83 0.013 0.011 84 0.012 0.010 85 0.011 0.010 86 0.010 0.009 87 0.009 0.008 88 0.009 0.007 89 0.008 0.007 90 0.007 0.006 91 0.007 0.006 92 0.006 0.005 93 0.005 0.005 94 0.005 0.004 95 0.004 0.004 96 0.004 0.004 97 0.003 0.003 98 0.003 0.003 99 0.002 0.002 100 0.002 0.002 101 0.002 0.002 102 0.001 0.001 103 0.001 0.001 104 0.000 0.000 105 0.000 0.000 106 0.000 0.000 107 0.000 0.000 108 0.000 0.000 109 0.000 0.000 110 0.000 0.000 111 0.000 0.000 112 0.000 0.000 113 0.000 0.000 114 0.000 0.000 115 0.000 0.000 116 0.000 0.000 117 0.000 0.000 118 0.000 0.000 119 0.000 0.000 120 0.000 0.000 #### Regulation .08 Application of the 2012 IAR Table. *COMAR 31.05.04.08* A. In using the 2012 IAR Table, the mortality rate for a person age x in year (2012 + n) is calculated as follows: B. The resulting qx2012+n, as calculated in §A of this regulation, shall be rounded to three decimal places per 1,000. C. The rounding described in §B of this regulation shall occur according to the formula in §A of this regulation, starting at the 2012 period table rate.