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Rule Title: APPLICATION OF THE 2012 IAR MORTALITY TABLE
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Department: STATE AUDITOR
Chapter: INSURANCE DEPARTMENT
Subchapter: Annuity Mortality Tables - Determining Reserve Liabilities
 
Latest version of the adopted rule presented in Administrative Rules of Montana (ARM):

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6.6.5304    APPLICATION OF THE 2012 IAR MORTALITY TABLE

(1) In using the 2012 IAR Mortality Table, the mortality rate for a person age x in year (2012 + n) is calculated as follows:

(a) qx2012+n = qx2012(1-G2x)n;

(b) the resulting qx2012+n shall be rounded to three decimal places per 1,000, e.g., 0.741 deaths per 1,000;

(c) also, the rounding shall occur according to the formula above, starting at the 2012 period table rate. For example:

(i) for a male age 30, qx2012 = 0.741, qx2013 = 0.741 * (1-0.010) ^ 1 = 0.73359, which is rounded to 0.734. qx2014 = 0.741 * (1-0.010) ^ 1 = 0.7262541, which is rounded to 0.726.

(ii) a method leading to incorrect rounding would be to calculate qx2014 as qx2013 * (1-0.010), or 0.734 * 0.99 = 0.727.

(d) It is incorrect to use the already rounded qx2013 to calculate qx2014.

 

History: 33-1-313, 33-2-418, MCA; IMP, 33-2-410, MCA; NEW, 2016 MAR p. 2328, Eff. 1/1/17.


 

 
MAR Notices Effective From Effective To History Notes
6-222 1/1/2017 Current History: 33-1-313, 33-2-418, MCA; IMP, 33-2-410, MCA; NEW, 2016 MAR p. 2328, Eff. 1/1/17.
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