1. (a) 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. (b) The resulting q_x ²⁰¹²⁺ⁿ shall be rounded to three decimal places per 1,000, for example, 0.741 deaths per 1,000. This rounding shall occur according to the formula in subsection (a), starting at the 2012 period table rate.

   1. (1) For example, for a male age 30, q_x²⁰¹² = 0.741.

      q_x ²⁰¹³= 0.741 * (1-0.010) [caret ] 1 = 0.73359, which is rounded to 0.734.

      q_x ²⁰¹⁴= 0.741 * (1-0.010) [caret ] 2 = 0.7262541, which is rounded to 0.726.

   2. (2) A method leading to incorrect rounding would be to calculate q_x ²⁰¹⁴ as q_x ²⁰¹³ * (1-0.010), or 0.734 * 0.99 = 0.727. It is incorrect to use the already rounded q_x ²⁰¹³ to calculate q_x ²⁰¹⁴.

Authority

The provisions of this § 84.3a issued under sections 206, 506, 1501 and 1502 of The Administrative Code of 1929 (71 P.S. § § 66, 186, 411 and 412); sections 301 and 303 of The Insurance Department Act of 1921 (40 P.S. § § 71 and 73); and section 410A of The Insurance Company Law of 1921 (40 P.S. § 510.1).

Source

The provisions of this § 84.3a adopted July 8, 2016, effective August 8, 2016, 46 Pa.B. 3645.

Cross References

This section cited in 31 Pa. Code § 84.2 (relating to definitions).