# Title 45 — Insurance, Commissioner of

## Article 45-04 — Life Insurance

## Chapter 45-04-08 — Annuity Tables

### § 45-04-08-01. Definitions.

As used in this chapter:
1. "1983 GAM Table" means that mortality table developed by the society of actuaries committee
on annuities and adopted as a recognized mortality table for annuities in December 1983 by
the national association of insurance commissioners.
2. "1983 Table 'a'" means that mortality table developed by the society of actuaries committee to
recommend a new mortality basis for individual annuity valuation and adopted as a
recognized mortality table for annuities in June 1982 by the national association of insurance
commissioners.
3. "1994 GAR Table" means that mortality table developed by the society of actuaries group
annuity valuation table task force and shown at XLVII transactions of the society of actuaries
866-867 (1995).
4. "2012 IAR Table" means that generational mortality table developed by the society of
actuaries committee on life insurance research and containing rates, q 2012+n, derived from a
x
combination of the 2012 IAM Period Table and Projection Scale G2.
5. "2012 Individual Annuity Mortality Period Life (2012 IAM Period) Table" or "2012 IAM Period
Table" means the period table containing loaded mortality rates for calendar year 2012. This
table contains rates, q 2012, developed by the society of actuaries committee on life insurance.
x
6. "Annuity 2000 Mortality Table" means that mortality table developed by the society of actuaries
committee on life insurance research and shown at XLVII transactions of the society of
actuaries 240 (1995).
7. "Projection Scale G2 (Scale G2)" is a table of annual rates, G2 of which mortality
x,
improvement by age for projecting future mortality rates beyond calendar year 2012. This
table was developed by the society of actuaries committee on life insurance research.
History: Effective January 1, 1985; amended effective September 1, 1999; October 1, 2015.
General Authority: NDCC 28-32-02
Law Implemented: NDCC 26.1-35
### § 45-04-08-02. Individual annuity or pure endowment contracts.

1. Except as provided in subsections 2 and 3, 1983 Table "a" is recognized and approved as an
individual mortality table for valuation and, at the option of the company, may be used for
purposes of determining the minimum standard of valuation for any individual annuity or pure
endowment contract issued on or after July 1, 1983.

2. Except as provided in subsection 3, 1983 Table "a" is to be used for determining the minimum
standard of valuation for any individual annuity or pure endowment contract issued on or after
January 1, 1986.
3. Except as provided in subsection 4, the Annuity 2000 Mortality Table must be used for
determining the minimum standard of valuation of any individual annuity or pure endowment
contract issued on or after September 1, 1999.
4. Except as provided in subsection 5, the 2012 IAR Table must be used for determining the
minimum standard of valuation for any individual annuity or pure endowment contract issued
on or after January 1, 2016.
5. The 1983 Table "a" without projection is to be used for determining the minimum standards of
valuation for an individual annuity or pure endowment contract issued on or after
September 1, 1999, solely when the contract is based on life contingencies and is issued to
fund periodic benefits arising from:
a. Settlements of various forms of claims pertaining to court settlements or out-of-court
settlements from tort actions;
b. Settlements involving similar actions such as workers' compensation claims; or
c. Settlements of long-term disability claims when a temporary or life annuity has been used
in lieu of continuing disability payments.
History: Effective January 1, 1985; amended effective September 1, 1999; October 1, 2015.
General Authority: NDCC 28-32-02
Law Implemented: NDCC 26.1-35
### § 45-04-08-02.1. Application of the 2012 IAR Mortality Table.

In using the 2012 IAR Mortality Table, the mortality rate for a person age x in year (2012 + n) is
calculated as follows:
q 2012+n = q 2012(1-G2 )n
x x x
The resulting q 2012+n shall be rounded to three decimal places per 1,000 (e.g., 0.741 per 1,000). Also,
x
the rounding shall occur according to the formula above, starting at the 2012 IAM Period Table rate.
For example, for a male age 30, q 2012 = 0.741
x
q 2013 = 0.741 * (1-0.010) ^ 1 = 07.73358, which is rounded to 0.734.
x
q 2014 = 0.741 * (1-0.010) ^ 2 = 0.7262541, which is rounded to 0.726.
x
A method leading to incorrect round would be to calculate q 2014 as q 2013 * (1-0.010), or 0.734 *
x x
0.99 = 0.727. It is incorrect to use the already rounded q 2013 to calculate q 2014.
x x
History: Effective October 1, 2015.
General Authority: NDCC 28-32-02
Law Implemented: NDCC 26.1-35

### § 45-04-08-03. Group annuity or pure endowment contracts.

1. Except as provided in subsections 2 and 3, the 1983 GAM Table and the 1983 Table "a" and
the 1994 GAR Table are recognized and approved as group annuity mortality tables for
valuation and, at the option of the company, any one of these tables may be used for
purposes of valuation for any annuity or pure endowment purchased on or after July 1, 1983,
under a group annuity or pure endowment contract.
2. Except as provided in subsection 3, either the 1983 GAM Table or the 1994 GAR Table must
be used for determining the minimum standard of valuation for any annuity or pure
endowment purchased on or after January 1, 1986, under a group annuity or pure endowment
contract.
3. The 1994 GAR Table must be used for determining the minimum standard of valuation for any
annuity or pure endowment purchased on or after September 1, 1999, under a group annuity
or pure endowment contract.
History: Effective January 1, 1985; amended effective September 1, 1999.
General Authority: NDCC 28-32-02
Law Implemented: NDCC 26.1-35
### § 45-04-08-03.1. Application of the 1994 GAR Table.

In using the 1994 GAR Table, the mortality rate for a person age x in year (1994 + n) is calculated
as follows:
q 1994+n= q 1994(1 - AA )n
x x x
where the q 1994 and AA are as specified in the 1994 GAR Table.
x x
History: Effective September 1, 1999.
General Authority: NDCC 28-32-02
Law Implemented: NDCC 26.1-35
### § 45-04-08-04. Separability.

If any provision of this chapter or the application thereof to any person or circumstances is for any
reason held to be invalid, the remainder of the regulation and the application of such provision to other
persons or circumstances is not affected thereby.
History: Effective January 1, 1985.
General Authority: NDCC 28-32-02
Law Implemented: NDCC 26.1-35
