1. (1) In using the 2012 IAR Mortality 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

2. (2) The resulting q_{x²⁰¹²⁺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. (3) 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.

4. (4) 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 xcalculate q_x²⁰¹⁴.

Author: Commissioner of Insurance

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

History: New Rule: Filed August 6, 2014; Effective January 1, 2015. Filed with LRS August 6, 2014. Rule is not subject to the Alabama Administrative Procedure Act. Amended: Published June 28, 2024; effective July 1, 2024. Published with LSA June 28, 2024. This rule is not subject to the Alabama Administrative Procedure Act.