PURPOSE: This rule recognizes new mortality tables, 1983 Table A and 1983 Group Annuity Mortality Table, for use in determining the minimum standard of valuation for annuity and pure endowment contracts.

1. (1) Definitions.

   1. (A) As used in this rule, 1983 Table A means that mortality table developed by the Society of Actuaries Committee to Recommend a New Mortality Basis for Individual Annuity Valuation and adopted as a recognized mortality table for annuities in June 1982 by the National Association of Insurance Commissioners.
   2. (B) As used in this rule 1983 Group Annuity Mortality (GAM) Table means that mortality table developed by the Society of Actuaries Committee on Annuities and adopted as a recognized mortality table for annuities in December 1983 by the National Association of Insurance Commissioners.
   3. (C) As used in this rule 1994 Group Annuity Reserving (GAR) Table means that mortality table developed by the Society of Actuaries Group Annuity Valuation Table Task Force. The 1994 GAR Table is included in the report on pages 865–919 of Volume XLVII of the “Transactions of the Society of Actuaries (1995).”
   4. (D) As used in this rule Annuity 2000 Mortality Table means that mortality table developed by the Society of Actuaries Committee on Life Insurance Research. The Annuity 2000 Mortality Table is included in the report on pages 211–249 of Volume XLVII of the “Transactions of the Society of Actuaries (1995).”

2. (2) Individual Annuity or Pure Endowment Contracts.

   1. (A) Except as provided in subsections (B) and (C) of this section, the 1983 Table A is recognized and approved as an individual annuity mortality table for valuation and, at the option of the company, may be used for purposes of determining the minimum standard of valuation for any individual annuity or pure endowment contract issued on or after September 28, 1979.
   2. (B) Except as provided in subsection (C) of this section, either the 1983 Table A or the Annuity 2000 Mortality Table is to be used for determining the minimum standard of valuation for any individual annuity or pure endowment contract issued on or after January 1, 1987.
   3. (C) Except as provided in subsection (D) of this section, 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 January 1 of the year following the effective date of this rule.

   4. (D) The 1983 Table A without projection is to be used for determining the minimum standards of valuation for an individual annuity or pure endowment contract issued on or after January 1 of the year following the effective date of this rule, solely when the contract is based on life contingencies and is issued to fund periodic benefits arising from:

      1. 1. Settlements of various forms of

claims pertaining to court settlements or out of court settlements from tort actions;

1. 2. Settlements involving similar actions

such as workers’ compensation claims; or

1. 3. Settlements of long-term disability

claims where a temporary or life annuity has been used in lieu of continuing disability payments.

1. (3) Group Annuity or Pure Endowment Contracts.

   1. (A) Except as provided in subsection (B) and (C) of this section, the 1983 GAM Table, the 1983 Table A and the 1994 GAR Table are recognized and approved as group annuity mortality tables for valuation and, at the option of the company, any one of these tables may be used for purposes of valuation for any annuity or pure endowment purchased on or after September 28, 1979, under a group annuity or pure endowment contract.
   2. (B) Except as provided in subsection (C) of this section, either the 1983 GAM Table or the 1994 GAR Table is to be used for determining the minimum standard of valuation for any annuity or pure endowment purchased on or after January 1, 1987 under a group annuity or pure endowment contract.
   3. (C) The 1994 GAR Table shall be used for determining the minimum standard of valuation for any annuity or pure endowment purchased on or after January 1 of the year following the effective date of this rule under a group annuity or pure endowment contract.
2. (4) Application of the 1994 GAR Table. In using the 1994 GAR Table, the mortality rate for a person age x in year (1994 + n) is calculated as follows: 1994+n 1994 n qx =qx (1–AAx)

where the qx s and AAxs are as specified in the 1994 GAR Table. (5) Separability. If any provision of this rule or the application of this rule to any person or circumstance is for any reason held to be invalid, the remainder of the rule and the application of that provision to other persons or circumstances shall not be affected by it.

AUTHORITY: sections 374.045, RSMo Supp. 1999 and 376.380, RSMo Supp. 1994.* This rule was previously filed as 4 CSR 190- 13.270. Original rule filed April 2, 1986, effective Aug. 25, 1986. Amended: Filed June 23, 2000, effective Dec. 30, 2000.

*Original authority 374.045, RSMo 1967, amended 1993, 1995; and 376.380, RSMo 1939, amended 1943, 1947, 1959, 1961, 1965, 1971, 1975, 1979, 1982, 1993.