Tax Notes logo
HOMETax Notes ResearchFederalIRS Guidancerevenue rulings

IRS Supplements Mortality Tables For Insurance Reserve Computation.

JUL. 26, 2001

Rev. Rul. 2001-38; 2001-2 C.B. 124

DATED JUL. 26, 2001
DOCUMENT ATTRIBUTES
  • Institutional Authors
    Internal Revenue Service
  • Cross-Reference
    Rev. Rul. 92-19, 1992-1 C.B. 227

    Part I
  • Code Sections
  • Subject Areas/Tax Topics
  • Index Terms
    insurance companies, life, reserves
  • Jurisdictions
  • Language
    English
  • Tax Analysts Document Number
    Doc 2001-20198 (3 original pages)
  • Tax Analysts Electronic Citation
    2001 TNT 145-8
Citations: Rev. Rul. 2001-38; 2001-2 C.B. 124

Rev. Rul. 2001-38

[1] For purposes of section 807(d)(5) of the Internal Revenue Code, this ruling clarifies and supplements the schedule of prevailing commissioners' standard tables of mortality and morbidity set forth in Part I of Rev. Rul. 92-19, 1992-1 C.B. 227. This information is to be used by insurance companies in computing their reserves for (1) life insurance and supplementary total and permanent disability benefits, (2) individual annuities and pure endowments, and (3) group annuities and pure endowments.

       SCHEDULE OF PREVAILING COMMISSIONERS' STANDARD TABLES --

 

                PRODUCTS ISSUED IN 1992-2000 INCLUSIVE.

 

 

                              TABLES 1

 

 

               Life Insurance              Individual       Group

 

          and Supplementary Total and      Annuities        Annuities

 

          Permanent Disability Benefits    and Pure         and Pure

 

                                           Endowments       Endowments

 

 Year 2 Ordinary Contracts   Industrial

 

          Life     Disability  Policies

 

 

 1992

 

 1993

 

 1994

 

 1995

 

 1996

 

 1997

 

 1998

 

 1999                                       Annuity 2000      94 GAR

 

                                            Mortality Table

 

 2000

 

 

                        NOTES TO THE SCHEDULE

 

                 OF PREVAILING COMMISSIONERS' TABLES

 

 

1. Stated in the schedule is the most recent mortality table

 

   permitted as of January 1 of the year for valuation of policies of

 

   the specified type issued in that year under the valuation laws of

 

   at least 26 states. For policies issued prior to 1992, please

 

   refer to Rev. Rul. 92-19, 1992-1 C.B. 227 which clarified and

 

   supplemented Rev. Rul. 87-26, 1987-1 C.B. 158.

 

 

   The abbreviations used stand for the following mortality tables:

 

 

   Annuity 2000 Mortality Table:

 

 

     The Annuity 2000 Mortality Table is an individual, mortality

 

     table and is a sex distinct table. This table is not applicable

 

     to contracts based on settlements of various forms of claims

 

     pertaining to court settlements or out of court settlements from

 

     tort actions, settlements involving similar actions such as

 

     worker compensation claims or settlements of long term

 

     disability claims where a temporary or life annuity has been in

 

     used in lieu of continuing disability payment.

 

 

     For these contracts, the 1983 Table "a" should be used.

 

 

   94 GAR: 1994 Group Annuity Reserving Table The 94 GAR is a sex-

 

     distinct table to determine the reserves for a group.

 

 

2. The year indicated is the first year the table may be used for

 

     federal income tax purposes. Section 807(d)(5)(A) states that

 

     the specified table may be used as the prevailing table from the

 

     beginning of the calendar year in which the table becomes

 

     prevailing. The former table, however, may be used as the

 

     prevailing table for that calendar year and three subsequent

 

     years. Rev. Rul. 87-26.

 

 

EFFECT ON OTHER REVENUE RULINGS

[2] Rev. Rul. 92-19 is supplemented by the addition to Part I of that ruling of the commissioners' standard tables of mortality and morbidity under section 807 for certain insurance products issued after January 1, 1999. Parts II, III, and IV are not affected by this ruling.

DRAFTING INFORMATION

[3] The principal author of this revenue ruling is Sumit Mitra of the Office of Assistant Chief Counsel (Financial Institutions and Products). For further information regarding this revenue ruling contact either him or Donald J. Drees, Jr. at (202) 622-3970 (not a toll-free call).

DOCUMENT ATTRIBUTES
  • Institutional Authors
    Internal Revenue Service
  • Cross-Reference
    Rev. Rul. 92-19, 1992-1 C.B. 227

    Part I
  • Code Sections
  • Subject Areas/Tax Topics
  • Index Terms
    insurance companies, life, reserves
  • Jurisdictions
  • Language
    English
  • Tax Analysts Document Number
    Doc 2001-20198 (3 original pages)
  • Tax Analysts Electronic Citation
    2001 TNT 145-8
Copy RID