REVENUE RULE 92-19

Internal Revenue Service
Revenue Ruling

INSURANCE COMPANIES; INTEREST RATE AND MORTALITY AND MORBIDITY TABLES

Published: March 30, 1992

Section 807.  Rules for Certain Reserves

Insurance companies; interest rate and mortality and morbidity tables. Prevailing state assumed interest rates and prevailing commissioners' standard tables of morality and morbidity are provided for the determination of reserves under section 807 of the Code for contracts issued in taxable years beginning after December 31, 1983. Rev. Rul. 7mf 87clarified, supplemented and superseded.

For purposes of section 807(d)(4) and 807(d)(5) of the Internal Revenue Code, for taxable years beginning after December 31, 1983, this ruling clarifies and supplements the schedule of prevailing state assumed interest rates and prevailing commissioners' standard tables of mortality and morbidity set forth in Rev. Rul 87-26, 1987-1 C.B. 158. 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 endowment, and (3) group annuities and pure endowments for taxable years beginning after December 31, 1983. Beginning with policies issued in 1988, section 807(d)(2)(B) requires that the interest rate used to compute these reserves be the greater of (1) the applicable federal interest rate, or (2) the prevailing state assumed interest rate; accordingly, the applicable federal interest rates for 1988 through 1992 are also indicated in this ruling.

The Service anticipates that the prevailing state assumed interest rates will be updated annually and that the prevailing commissioners' standard tables of mortality and morbidity will be updated as needed.

Following are: (1) Part I, the schedule of prevailing commissioners' standard tables of mortality and morbidity for products issued in years 1948 through 1991, (2) Part II, the schedule of prevailing state assumed interest rates for products issued in years 1946 through 1982, (3) Part III, the schedules (A, B, C1 through C9, and D1 through D9) of prevailing state assumed interest rates for insurance products with different features issued in years 1983 through 1991, [FN1] and (4) Part IV, a table of the applicable federal interest rates under section 807(d)(4)(A) for years 1988 through 1992.

[The remainder of this document is not suitable for online reproduction and can be obtained through Access Service and Microfiche as 1992-13 I.R.B. 4. ]

FN1. Schedule A in Part III contains 1992 prevailing state assumed interest rates for life insurance contracts issued in 1992.

Rev. Rul. 92-19, 1992-1 C.B. 227, 1992-13 I.R.B. 4.