Rev. Rul. 99-10, 1999-10 I.R.B. 10.

                       Internal Revenue Service
                                 Revenue Ruling

                   INSURANCE COMPANIES; INTEREST RATE TABLES

                            Published: March 8, 1999

  Insurance companies; interest rate tables. Prevailing state assumed interest rates are provided for the determination of reserves under section 807 of the Code for contracts issued in 1998 and 1999. Rev. Rul. 92-19 supplemented in part.

  For purposes of § 807(d)(4) of the Internal Revenue Code, for taxable years beginning after December 31, 1997, this ruling supplements the schedules of prevailing state assumed interest rates set forth in 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. As § 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, the table of applicable federal interest rates in Rev. Rul. 92-19 is also supplemented.

  Following are supplements to schedules A, B, C, and D to Part III of Rev. Rul. 92-19, providing prevailing state assumed interest rates for insurance products with different features issued in 1998 and 1999, and a supplement to the table in Part IV of Rev. Rul. 92-19, providing the applicable federal interest rate under § 807(d) for 1998 and 1999. This ruling does not supplement Parts I and II of Rev. Rul. 92-19.

  This is the seventh supplement to the interest rates provided in Rev. Rul. 92-19. Earlier supplements were published in Rev. Rul. 93-58, 1993-2 C.B. 241 (interest rates for insurance products issued in 1992 and 1993), Rev. Rul. 94- 11, 1994-1 C.B. 196 (1993 and 1994), Rev. Rul. 95-4, 1995-1 C.B. 141 (1994 and 1995), Rev. Rul. 96-2, 1996-1 C.B. 141 (1995 and 1996), Rev. Rul. 97-2, 1997-1 C.B. 8 (1996 and 1997), and Rev. Rul. 98-2, 1998-2 I.R.B. 15 (1997 and 1998).

Part III. Prevailing State Assumed Interest Rates -- Products Issued in Years
                              After 1982. [FNa1]
                                  Schedule A

  STATUTORY VALUATION INTEREST RATES BASED ON THE 1980 AMENDMENTS TO THE NAIC
                            STANDARD VALUATION LAW

A. Life insurance valuation:
Guarantee Duration (years)                       Calendar Year of Issue
                                          1999

10 or fewer                               5.00 [FNaa1]
More than 10 but not more than 20         4.75 [FNaa1]
More than 20                              4.50 [FNaa1]

Source: Rates calculated from the monthly averages, ending June 30, 1998, of
  Moody's Corporate Bond Yield Average -- Monthly Average Corporates.

FNaa1. As the applicable federal interest rate for 1999 of 6.30 percent
  exceeds this prevailing state assumed interest rate, the interest rate to be
  used for this product under § 807 is 6.30 percent.

FNa1. The terms used in the schedules in this ruling and in Part III of Rev.
  Rul. 92-19 are those used in the Standard Valuation Law; the terms are
  defined in Rev. Rul. 92-19.

                             Part III, Schedule B
  STATUTORY VALUATION INTEREST RATES BASED ON THE 1980 AMENDMENTS TO THE NAIC
                            STANDARD VALUATION LAW

B. Single premium immediate annuities and annuity benefits involving life
  contingencies arising from other annuities with cash settlement options and
  from guaranteed interest contracts with cash settlement options:

        Calendar Year of Issue                  Valuation Interest Rate
                 1998                                 6.25 [FNa1]

Source: Rates calculated from the monthly averages, ending June 30, 1998, of
  Moody's Corporate Bond Yield Average -- Monthly Average Corporates. The terms
  used in this schedule are those used in the Standard Valuation Law as defined
  in Rev. Rul. 92-19.

FNa1. As this prevailing state assumed interest does not exceed the
  applicable federal interest rate for 1998 of 6.31 percent, the applicable
  federal interest rate of 6.31 percent is to be used for this product under s
  807.

                         Part III, Schedule C16 - 1998
  STATUTORY VALUATION INTEREST RATES BASED ON NAIC STANDARD VALUATION LAW FOR
          1998 CALENDAR YEAR BUSINESS GOVERNED BY THE 1980 AMENDMENTS

C. Valuation interest rates for other annuities and guaranteed interest
  contracts that are valued on an issue year basis:

   Yes      Yes       5 or fewer           6.25 [FNa1]   5.50        5.00
                                                           [FNa1]      [FNa1]
                      More than 5, but     6.00 [FNa1]   5.50        5.00
                        not more than 10                   [FNa1]      [FNa1]
                      More than 10, but    5.75 [FNa1]   5.00        4.75
                        not more than 20                   [FNa1]      [FNa1]
                      More than 20         4.75 [FNa1]   4.50        4.50
                                                           [FNa1]      [FNa1]
   Yes      No        5 or fewer           6.50          5.75        5.25
                                                           [FNa1]      [FNa1]
                      More than 5, but     6.25 [FNa1]   5.75        5.25
                        not more than 10                   [FNa1]      [FNa1]
                      More than 10, but    6.00 [FNa1]   5.25        5.00
                        not more than 20                   [FNa1]      [FNa1]
                      More than 20         5.00 [FNa1]   4.75        4.75
                                                           [FNa1]      [FNa1]
    No      Yes or    5 or fewer           6.25 [FNa1]
              No
                      More than 5, but     6.00 [FNa1]   NOT APPLICABLE
                        not more than 10
                      More than 10, but    5.75 [FNa1]
                        not more than 20
                      More than 20         4.75 [FNa1]

Source: Rates calculated from the monthly averages, ending June 30, 1998 of
  Moody's Corporate Bond Yield Average -- Monthly Average Corporates.

FNa1. As the applicable federal interest rate for 1998 of 6.31 percent
  exceeds this prevailing state assumed interest rate, the interest rate to be
  used for this product under § 807 is 6.31 percent.

                         Part III, Schedule D16 - 1998
  STATUTORY VALUATION INTEREST RATES BASED ON NAIC STANDARD VALUATION LAW FOR
          1998 CALENDAR YEAR BUSINESS GOVERNED BY THE 1980 AMENDMENTS

D. Valuation interest rates for other annuities and guaranteed interest
  contracts that are contracts with cash settlement options and that are valued
  on a change in fund basis:

   Cash      Future                              Valuation Interest Rate
Settlement  Interest  Guarantee Duration              For Plan Type
Options?   Guarantee      (years)            A            B            C

   Yes      Yes       5 or fewer          7.00        6.50         5.25 [FNa1]
                      More than 5, but    6.75        6.50         5.25 [FNa1]
                        not more than 10
                      More than 10, but   6.25        6.00 [FNa1]  5.00 [FNa1]
                        not more than 20    [FNa1]
                      More than 20        5.50        5.50 [FNa1]  4.75 [FNa1]
                                            [FNa1]
   Yes      No        5 or fewer          7.00        6.75         5.50 [FNa1]
                      More than 5, but    7.00        6.75         5.50 [FNa1]
                        not more than 10
                      More than 10, but   6.50        6.25 [FNa1]  5.25 [FNa1]
                        not more than 20
                      More than 20        5.75        5.75 [FNa1]  4.75 [FNa1]
                                            [FNa1]

Source: Rates calculated from the monthly averages, ending June 30, 1998, of
  Moody's Corporate Bond Yield Average -- Monthly Average Corporates.
FNa1. As the applicable federal interest rate for 1998 of 6.31 percent
  exceeds this prevailing state assumed interest rate, the interest rate to be
  used for this product under § 807 is 6.31 percent.

                  Part IV. Applicable Federal Interest Rates.
       TABLE OF APPLICABLE FEDERAL INTEREST RATES FOR PURPOSES OF § 807

                Year                                Interest Rate
                1998                                     6.31
                1999                                     6.30

Sources: Rev. Rul. 97-50, 1997-49 C.B. 5 for the 1998 rate and Rev. Rul. 98-57,
  1998-49 I.R.B. 4 for the 1999 rate.

EFFECT ON OTHER REVENUE RULINGS

  Rev. Rul. 92-19 is supplemented by the addition to Part III of that ruling of prevailing state assumed interest rates under § 807 for certain insurance products issued in 1998 and 1999 and is further supplemented by an addition to the table in Part IV of Rev. Rul. 92-19 listing applicable federal interest rates. Parts I and II of Rev. Rul. 92-19 are not affected by this ruling.

  DRAFTING INFORMATIONThe principal author of this revenue ruling is Ann H. Logan of the Office of Assistant Chief Counsel (Financial Institutions and Products). For further information regarding this revenue ruling contact her on (202) 622-3970 (not a toll-free call).

*113 1998-2 I.R.B. 15

                       Internal Revenue Service
                                 Revenue Ruling

                   INSURANCE COMPANIES; INTEREST RATE TABLES

                          Published: January 12, 1998

  Insurance companies; Interest rate tables. Prevailing state assumed interest rates are provided for the determination of reserves under section 807 of the Code for contracts issued in 1997 and 1998. Rev. Rul. 92-19 supplemented in part.

  Prevailing state assumed interest rates are provided for the determination of reserves under section 807 of the Code for contracts issued in 1997 and 1998. Rev. Rul. 92-19 supplemented in part.

  For purposes of § 807(d)(4) of the Internal Revenue Code, for taxable years beginning after December 31, 1996, this ruling supplements the schedules of prevailing state assumed interest rates set forth in 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. As § 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, the table of applicable federal interest rates in Rev. Rul. 92-19 is also supplemented.

  Following are supplements to schedules A, B, C, and D to Part III of Rev. Rul.

  Part III. Prevailing State Assumed Interest Rates--Products Issued in Years After 1982. ( [FNFNa1])

                                   Schedule A
  STATUTORY VALUATION INTEREST RATES BASED ON THE 1980 AMENDMENTS TO THE NAIC
                             STANDARD VALUATION LAW

  A. Life insurance valuation:
                 Guarantee Duration (years)              Calendar Year of Issue
                                                                           1998

                                   10 or fewer                     5.50 (FNaa1)
*114           More than 10 but not more than 20                   5.25 (FNaa1)
                                  More than 20                     4.50 (FNaa1)

Note FNSource: Rates calculated from the monthly averages, ending June 30,
  1997, of Moody's Corporate Bond Yield Average--Monthly Average Corporates.

Note FNaa1. As the applicable federal interest rate for 1998 of 6.31 percent
  exceeds this prevailing state assumed interest rate, the interest rate to be
  used for this product under § 807 is 6.31 percent.

                              Part III, Schedule B
  STATUTORY VALUATION INTEREST RATES BASED ON THE 1980 AMENDMENTS TO THE NAIC
                             STANDARD VALUATION LAW

  B. Single premium immediate annuities and annuity benefits involving life contingencies arising from other annuities with cash settlement options and from guaranteed interest contracts with cash settlement options:

        Calendar Year of Issue                  Valuation Interest Rate
                 1997                                 6.75 (FNa1)

Note FNSource: Rates calculated from the monthly averages, ending June 30,
  1997, of Moody's Corporate Bond Yield Average--Monthly Average Corporates.

  The terms used in this schedule are those used in the Standard Valuation Law
  as defined in Rev. Rul. 92"19.

Note FNa1. As this prevailing state assumed interest rate exceeds the
  applicable federal interest rate for 1997 of 6.33 percent, the prevailing
  state assumed interest rate of 6.75 percent is to be used for this product
  under § 807.

                           Part III, Schedule C15-1997

  STATUTORY VALUATION INTEREST RATES BASED ON NAIC STANDARD VALUATION LAW FOR
          1997 CALENDAR YEAR BUSINESS GOVERNED BY THE 1980 AMENDMENTS

  C. Valuation interest rates for other annuities and guaranteed interest contracts that are valued on an issue year basis:

Note FNSource: Rates calculated from the monthly averages, ending June 30, 1997
  of Moody's Corporate Bond Yield Average--Monthly Average Corporates.

Note FNa1. As the applicable federal interest rate for 1997 of 6.33 percent
  exceeds this prevailing state assumed interest rate, the interest rate to be
  used for this product under § 807 is 6.33 percent.

Part IV. Applicable Federal Interest Rates.

       TABLE OF APPLICABLE FEDERAL INTEREST RATES FOR PURPOSES OF § 807

                Year                                Interest Rate
                1997                                     6.33
                1998                                     6.31

Note FNSources: Rev. Rul. 96"57, 1996"2 C.B. 82 for the 1997 rate and Rev. Rul.
  97"50, 1997"49 I.R.B. 5 for the 1998 rate.

EFFECT ON OTHER REVENUE RULINGS

  Rev. Rul. 92-19 is supplemented by the addition to Part III of that ruling of prevailing state assumed interest rates under § 807 for certain insurance products issued in 1997 and 1998 and is further supplemented by an addition to the table in Part IV of Rev. Rul. 92-19 listing applicable federal interest rates. Parts I and II of Rev. Rul. 92-19 are not affected by this ruling.

DRAFTING INFORMATION

  The principal author of this revenue ruling is Ann H. Logan of the Office of Assistant Chief Counsel (Financial Institutions and Products). For further information regarding this revenue ruling contact her on (202) 622-3970 (not a toll-free call).

                           Part III, Schedule D15-1997

  STATUTORY VALUATION INTEREST RATES BASED ON NAIC STANDARD VALUATION LAW FOR
          1997 CALENDAR YEAR BUSINESS GOVERNED BY THE 1980 AMENDMENTS

  D. Valuation interest rates for other annuities and guaranteed interest contracts that are contracts with cash settlement options and that are valued on a change in fund basis:

Note FNa1. As the applicable federal interest rate for 1997 of 6.33 percent
  exceeds this prevailing state assumed interest rate, the interest rate to be
  used for this product under § 807 is 6.33 percent.

EFFECT ON OTHER REVENUE RULINGS

  Rev. Rul. 92-19 is supplemented by the addition to Part III of that ruling of prevailing state assumed interest rates under § 807 for certain insurance products issued in 1997 and 1998 and is further supplemented by an addition to the table in Part IV of Rev. Rul. 92-19 listing applicable federal interest rates. Parts I and II of Rev. Rul. 92-19 are not affected by this ruling.

*118 DRAFTING INFORMATION

  The principal author of this revenue ruling is Ann H. Logan of the Office of Assistant Chief Counsel (Financial Institutions and Products). For further information regarding this revenue ruling contact her on (202) 622-3970 (not a toll-free call).

FNFNa1. The terms used in the schedules in this ruling and in Part III of Rev. Rul. 92-19 are those used in the Standard Valuation Law, the terms are defined in Rev. Rul. 92-19.

Rev. Rul. 99-10, 1999-10 I.R.B. 10.