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Florida Administrative Code (Last Updated: April 18, 2024) |
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69. Department of Financial Services |
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69O. OIR – Insurance Regulation |
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69O-162. Annuity Contracts |
1(1) In using the 1994 GAR Table, the mortality rate for a person age x in year (1994 + n) is calculated as follows:
25q26x-271994 + n 30= q32x33199434(1 - AA37x38)39n
40where the q43x-44199445s and AA48x49s are as specified in the 1994 GAR Table.
58(2) In using the 2012 IAR Mortality Table, the mortality rate for a person age x in year (2012 + n) is calculated as follows:
83q84x852012 + n 88= q90x91201292(1 - G295x96)97n
98(a) The resulting q102x 1032012+n 104shall be rounded to three decimal places per 1,000, e.g., 0.741 deaths per 1,000. Also, the rounding shall occur according to the formula above, starting at the 2012 period table rate.
137(b) For example, for a male age 30, q146x1472012 148= 0.741.
1501. q152x 1532013 154= 0.741 * (1 – 0.010) ^ 1 = 0.73359, which is rounded to 0.734.
1692. q171x 1722014 173= 0.741 * (1 – 0.010) ^ 2 = 0.7262541, which is rounded to 0.726.
188(c) A method leading to incorrect rounding would be to calculate q200x 2012014 202as q204x 2052013 206* (1 – 0.010), or 0.734 * 0.99 = 0.727. It is incorrect to use the already rounded 224q225x 2262013 227to calculate q230x 2312014232.
233Rulemaking Authority 235624.308, 236625.121(5)(k) FS. 238Law Implemented 240624.307(1), 241625.121 FS. 243History–New 12-23-98, Formerly 4-162.106, Amended 7-28-15.
