(b)

1. (1) Nevertheless, the appointed actuary must consider in the analysis the effect of at least the following interest rate scenarios:

   1. (A) Level with no deviation;
   2. (B) Uniformly increasing over ten (10) years at one-half percent (0.5%) per year and then level;
   3. (C) Uniformly increasing at one percent (1%) per year over five (5) years, and then uniformly decreasing at one percent (1%) per year to the original level at the end of ten (10) years and then level;
   4. (D) An immediate increase of three percent (3%) and then level;
   5. (E) Uniformly decreasing over ten (10) years at one-half percent (0.5%) per year and then level;
   6. (F) Uniformly decreasing at one percent (1%) per year over five (5) years and then uniformly increasing at one percent (1%) per year to the original level at the end of ten (10) years and then level; and
   7. (G) An immediate decrease of three percent (3%) and then level.
2. (2) For these and other scenarios which may be used, projected interest rates for a five-year Treasury note need not be reduced beyond the point where the five-year Treasury note yield would be at fifty percent (50%) of its initial level.

3. (3)

   1. (A) The beginning interest rates may be based on:

(i) Interest rates for new investments as of the valuation date similar to recent investments allocated to support the product being tested; or

1. (ii) An outside index, such as Treasury yields, of assets of the appropriate length on a date close to the valuation date.

   1. (B) Whatever method is used to determine the beginning yield curve and associated interest rates should be specifically defined.
   2. (C) The beginning yield curve and associated interest rate should be consistent for all interest rate scenarios.