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Chapter 05. Valuation Standards for Group Annuity and Pure Endowment Contracts

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Regulation .01 Purpose.Copy Citation

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The purpose of this chapter is to approve the use of new mortality tables adopted by the National Association of Insurance Commissioners after 1980 as a basis for determining the minimum standards of valuation of annuities and pure endowments purchased under group annuity and pure endowment contracts.

Regulation .02 Definitions.Copy Citation

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A.
In this chapter, the following terms have the meanings indicated.
B.
Terms Defined.
(1)
"1983 GAM Tables" means the mortality tables:
(a)
Developed by the Society of Actuaries Committee on Annuities;
(b)
Adopted as a recognized mortality table for annuities in December 1983 by the National Association of Insurance Commissioners; and
(c)
Set out in Regulation .03 of this chapter.
(2)
"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 COMAR 31.05.04.03.
(3)
"1994 GAR Table" means the mortality table:
(a)
Developed by the Society of Actuaries Group Annuity Valuation Table Task Force; and
(b)
Set out in Regulation .04 of this chapter.

Regulation .03 1983 GAM Tables.Copy Citation

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A.
1983 GAM TABLE—MALES.
B.
1983 GAM TABLE—FEMALES.

Regulation .04 1994 GAR Table.Copy Citation

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Male Female
Age (x) qx1994 AAx qx1994 AAx
1 0.000592 0.020 0.000531 0.020
2 0.000400 0.020 0.000346 0.020
3 0.000332 0.020 0.000258 0.020
4 0.000259 0.020 0.000194 0.020
5 0.000237 0.020 0.000175 0.020
6 0.000227 0.020 0.000163 0.020
7 0.000217 0.020 0.000153 0.020
8 0.000201 0.020 0.000137 0.020
9 0.000194 0.020 0.000130 0.020
10 0.000197 0.020 0.000131 0.020
11 0.000208 0.020 0.000138 0.020
12 0.000226 0.020 0.000148 0.020
13 0.000255 0.020 0.000164 0.020
14 0.000297 0.019 0.000189 0.018
15 0.000345 0.019 0.000216 0.016
16 0.000391 0.019 0.000242 0.015
17 0.000430 0.019 0.000262 0.014
18 0.000460 0.019 0.000273 0.014
19 0.000484 0.019 0.000280 0.015
20 0.000507 0.019 0.000284 0.016
21 0.000530 0.018 0.000286 0.017
22 0.000556 0.017 0.000289 0.017
23 0.000589 0.015 0.000292 0.016
24 0.000624 0.013 0.000291 0.015
25 0.000661 0.010 0.000291 0.014
26 0.000696 0.006 0.000294 0.012
27 0.000727 0.005 0.000302 0.012
28 0.000754 0.005 0.000314 0.012
29 0.000779 0.005 0.000331 0.012
30 0.000801 0.005 0.000351 0.010
31 0.000821 0.005 0.000373 0.008
32 0.000839 0.005 0.000397 0.008
33 0.000848 0.005 0.000422 0.009
34 0.000849 0.005 0.000449 0.010
35 0.000851 0.005 0.000478 0.011
36 0.000862 0.005 0.000512 0.012
37 0.000891 0.005 0.000551 0.013
38 0.000939 0.006 0.000598 0.014
39 0.000999 0.007 0.000652 0.015
40 0.001072 0.008 0.000709 0.015
41 0.001156 0.009 0.000768 0.015
42 0.001252 0.010 0.000825 0.015
43 0.001352 0.011 0.000877 0.015
44 0.001458 0.012 0.000923 0.015
45 0.001578 0.013 0.000973 0.016
46 0.001722 0.014 0.001033 0.017
47 0.001899 0.015 0.001112 0.018
48 0.002102 0.016 0.001206 0.018
49 0.002326 0.017 0.001310 0.018
50 0.002579 0.018 0.001428 0.017
51 0.002872 0.019 0.001568 0.016
52 0.003213 0.020 0.001734 0.014
53 0.003584 0.020 0.001907 0.012
54 0.003979 0.020 0.002084 0.010
55 0.004425 0.019 0.002294 0.008
56 0.004949 0.018 0.002563 0.006
57 0.005581 0.017 0.002919 0.005
58 0.006300 0.016 0.003359 0.005
59 0.007090 0.016 0.003863 0.005
60 0.007976 0.016 0.004439 0.005
61 0.008986 0.015 0.005093 0.005
62 0.010147 0.015 0.005832 0.005
63 0.011471 0.014 0.006677 0.005
64 0.012940 0.014 0.007621 0.005
65 0.014535 0.014 0.008636 0.005
66 0.016239 0.013 0.009694 0.005
67 0.018034 0.013 0.010764 0.005
68 0.019859 0.014 0.011763 0.005
69 0.021729 0.014 0.012709 0.005
70 0.023730 0.015 0.013730 0.005
71 0.025951 0.015 0.014953 0.006
72 0.028481 0.015 0.016506 0.006
73 0.031201 0.015 0.018344 0.007
74 0.034051 0.015 0.020381 0.007
75 0.037211 0.014 0.022686 0.008
76 0.040858 0.014 0.025325 0.008
77 0.045171 0.013 0.028366 0.007
78 0.050211 0.012 0.031727 0.007
79 0.055861 0.011 0.035362 0.007
80 0.062027 0.010 0.039396 0.007
81 0.068615 0.009 0.043952 0.007
82 0.075532 0.008 0.049153 0.007
83 0.082510 0.008 0.054857 0.007
84 0.089613 0.007 0.060979 0.007
85 0.097240 0.007 0.067738 0.006
86 0.105792 0.007 0.075347 0.005
87 0.115671 0.006 0.084023 0.004
88 0.126980 0.005 0.093820 0.004
89 0.139452 0.005 0.104594 0.003
90 0.152931 0.004 0.116265 0.003
91 0.167260 0.004 0.128751 0.003
92 0.182281 0.003 0.141973 0.003
93 0.198392 0.003 0.155931 0.002
94 0.215700 0.003 0.170677 0.002
95 0.233606 0.002 0.186213 0.002
96 0.251510 0.002 0.202538 0.002
97 0.268815 0.002 0.219655 0.001
98 0.285277 0.001 0.237713 0.001
99 0.301298 0.001 0.256712 0.001
100 0.317238 0.001 0.276427 0.001
101 0.333461 0.000 0.296629 0.000
102 0.350330 0.000 0.317093 0.000
103 0.368542 0.000 0.338505 0.000
104 0.387855 0.000 0.361016 0.000
105 0.407224 0.000 0.383597 0.000
106 0.425599 0.000 0.405217 0.000
107 0.441935 0.000 0.424846 0.000
108 0.457553 0.000 0.444358 0.000
109 0.473150 0.000 0.464469 0.000
110 0.486745 0.000 0.482325 0.000
111 0.496356 0.000 0.495110 0.000
112 0.500000 0.000 0.500000 0.000
113 0.500000 0.000 0.500000 0.000
114 0.500000 0.000 0.500000 0.000
115 0.500000 0.000 0.500000 0.000
116 0.500000 0.000 0.500000 0.000
117 0.500000 0.000 0.500000 0.000
118 0.500000 0.000 0.500000 0.000
119 0.500000 0.000 0.500000 0.000
120 1.000000 0.000 1.000000 0.000

Regulation .05 Valuation Standards.Copy Citation

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A.
In valuing the reserve liabilities for annuities and pure endowments purchased under group annuity and pure endowment contracts in accordance with the provisions of Insurance Article, §5-305(f), Annotated Code of Maryland, insurers may use either the 1971 Group Annuity Mortality Table, the 1983 GAM Tables shown in Regulation .03 of this chapter, or the 1983 Table “a” shown in COMAR 31.05.04.03 for annuities and pure endowments purchased on or after July 1, 1980, and before January 1, 1987.
B.
Except as provided in §§C and D of this regulation, the 1983 GAM Tables are to be used by insurers in valuing reserve liabilities in accordance with the provisions of Insurance Article, §5-305(f), Annotated Code of Maryland, for annuities and pure endowments purchased on and after January 1, 1987, under group annuity and pure endowment contracts.
C.
Except as provided in §D of this regulation, either the 1983 GAM Table or the 1994 GAR Table shall be used for determining the minimum standard of valuation for any annuity or pure endowment purchased on or after July 1, 2004 under a group annuity or pure endowment contract.
D.
The 1994 GAR Table shall be used for determining the minimum standard of valuation for any annuity or pure endowment purchased on or after July 1, 2005 under a group annuity or pure endowment contract.

Regulation .06 Application of the 1994 GAR Table.Copy Citation

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In using the 1994 GAR Table, the mortality rate for a person age X in year (1994 + n) is calculated as follows:
qx1994+n = qx1994 (1-AAx) n
where the qx1994 and AAxs are as specified in the 1994 GAR Table.
Chapter annotations
Authority: Insurance Article, §2-109 and Title 5, Subtitle 3, Annotated Code of Maryland
History: Effective date: December 31, 1985 (12:26 Md. R. 2545)
History: Chapter recodified from COMAR 09.30.69 to COMAR 31.05.05 effective September 7, 1998 (25:18 Md. R. 1439)
History: Chapter revised effective May 24, 2004 (31:10 Md. R. 796)