NAC681B.164. Adoption by reference of annuity table to determine minimum standard of valuation for group annuity or pure endowment contract.

     1. A life insurer doing business in this State shall use the “1994 Group Annuity Reserving Table,” which is hereby adopted by reference, to determine the minimum standard of valuation for each group annuity or pure endowment contract that the insurer issues to a group in this State on or after November 16, 1998. The “1994 Group Annuity Reserving Table” is set forth on pages 866-67 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. For the purposes of the “1994 Group Annuity Reserving Table,” the mortality rate for a person of age x in the year (1994 + n) must be calculated by using the following formula:

                        q_x ¹⁹⁹⁴⁺ⁿ = q_x¹⁹⁹⁴ (1 - AA_x)ⁿ

where q_x¹⁹⁹⁴ and AA_x are as specified in the “1994 Group Annuity Reserving Table.”

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