NAC681B.162. Adoption by reference of annuity tables to determine minimum standard of valuation for individual annuity or pure endowment contract.

     1. Except as otherwise provided in subsection 2, a life insurer doing business in this State shall use the “Annuity 2000 Mortality Table,” which is hereby adopted by reference, to determine the minimum standard of valuation for each individual annuity or pure endowment contract that the insurer issues to a person in this State on or after November 16, 1998. The “Annuity 2000 Mortality Table” is set forth on page 240 of volume XLVII of the Transactions of the Society of Actuaries (1995), and a copy of this publication may be obtained from the Society of Actuaries, 475 North Martingale Road, Schaumburg, Illinois 60173, or by telephone at [phone], for the price of $55.

     2. A life insurer doing business in this State shall use, without projection, the “1983 Table ‘a,’” which is hereby adopted by reference, to determine the minimum standard of valuation for an individual annuity or pure endowment contract that the insurer issues to a person in this State on or after November 16, 1998, if the individual annuity or pure endowment contract involves life contingencies and is issued to pay periodic benefits arising from the settlement of:

     (a) A claim arising out of a tort, including, without limitation, a claim for workers’ compensation, regardless of whether an action relating to the claim was commenced in a court of competent jurisdiction; or

     (b) A claim for long-term disability in which the claimant has elected to receive a temporary or life annuity in lieu of payments for continuing disability.

Ê The “1983 Table ‘a’” is set forth on page 454 of the 1982 Proceedings of the NAIC II, and a copy of this publication may be obtained from the National Association of Insurance Commissioners, NAIC-Publications, P.O. Box 87-7870, Kansas City, Missouri 64187-7870, or by telephone at [phone], for the price of $180 plus $10 for shipping and handling.

     (Added to NAC by Comm’r of Insurance by R081-98, eff. 11-16-98)