(a) Tables to be used. If there are no commissioners' standard tables applicable to an insurance contract when the contract is issued, then the mortality and morbidity tables set forth in this subsection are used to compute reserves under section 807(d)(2) for the contract. ------------------------------------------------------------------------
Type of Contract Table------------------------------------------------------------------------1. Group term life insurance (active life 1960 Commissioners' Standard
reserves). Group Mortality Table.2. Group life insurance (active life 1959 Accidental Death
reserves); accidental death benefits. Benefits Table.3. Permanent and paid-up group life Same table as are applicable
insurance (active life reserves). to males for ordinary life
insurance.4a. Group life insurance disability income The tables of period 2
benefits (active life reserves). disablement rates and the
1930 to 1950 termination
rates of the 1952
Disability Study of the
Society of Actuaries.4b. Group life insurance disability income The 1930 to 1950 termination
benefits (disabled life reserves). rates of the 1952
Disability study of the
Society of Actuaries.5. Group life insurance; survivor income Same tables as are
benefits insurance. applicable to group
annuities.6. Group life insurance; extended death 1970 Intercompany Group life
benefits for disabled lives. Disability Valuation Table.7. Credit life insurance.................. 1958 Commissions' Extended
Term Table.8. Supplementary contracts involving life Same tables as are
contingencies. applicable to individual
immediate annuities.9. Noncancellable accident and health Tables used for NAIC annual
insurance (active life reserves); statement reserves as of
benefits issued before 1984. December 31, 1983.10a. Noncancellable accident and health 1964 Commissioners'
insurance (active life reserves); group Disability Tables.
disability benefits issued after 1983 and
individual disability benefits issued
after 1983 and before 1989.10b. Noncancellable accident and health 1985 Commissioners'
insurance (active life reserves); Individual Disability Table
individual disability benefits issued A or Commissioners'
after 1988. Individual Disability Table
B.11. Noncancellable accident and health 1959 Accidental Death
insurance (active life reserves); Benefits Tables.
accidental death benefits issued after
1983.12. Noncancellable accident and health Tables used for NAIC annual
insurance (active life reserves); all statement reserves.
benefits issued after 1983 other than
disability and accidental death.13a. Noncancellable accident and health 1964 Commissioners'
insurance (claim reserves); group Disability Tables.
disability benefits for all years of
issue and individual disability benefits
for years before 1989.13b. Noncancellable accident and health 1985 Commissioners'
insurance (claim reserves); individual Individual Disability Table
disability benefits for years after 1988. A or Commissioners'
Individual Disability Table
B.14. Noncancellable accident and health Tables used for annual
insurance (claim reserves); all benefits statement reserves.
other than disability for all years of
issue.------------------------------------------------------------------------
(b) Adjustments. An appropriate adjustment may be made to the tables in paragraph (a) of this section to reflect risks (such as substandard risks) incurred under the contract which are not otherwise taken into account.
(c) Special rule where more than 1 table or option applicable. If, with respect to any category of risks, there are 2 or more tables (or options under 1 or more tables) in paragraph (a) of this section, the table (and option thereunder) which generally yields the lowest reserves shall be used to compute reserves under section 807(d)(2) for the contract.
(d) Effective date. This section is effective for taxable years beginning after December 31, 1983, except that the 1985 Commissioners' Individual Disability Tables A and B shall be treated (for purposes of section 807(d)(5)(B) and for purposes of determining the issue dates of contracts for which they shall be used) as if the tables were new prevailing commissioners' standard tables adopted by the twenty-sixth State on December 26, 1989. [T.D. 8278, 54 FR 52934, Dec. 26, 1989; 55 FR 1768, Jan. 18, 1990]