Internal Revenue Service
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Rev. Rul. 2001-38, 2001-33 I.R.B. 124

INSURANCE COMPANIES; PREVAILING MORTALITY AND MORBIDITY TABLES

Released: July 27, 2001

Published: August 13, 2001

Section 807.--Rules for Certain Reserves

  Insurance companies; prevailing mortality and morbidity tables. The prevailing mortality and morbidity tables for contracts issued on or after January 1, 1999, are set forth for use by insurance companies to compute their reserves. Rev. Rul. 92-19 supplemented.

  Insurance companies; prevailing mortality and morbidity tables. The prevailing mortality and morbidity tables for contracts issued since 1999 are set forth for use by insurance companies to compute their reserves.

  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 [FN1]                                  
                                                                                
                Life Insurance and Supplementary      Individual      Group    
                 Total and Permanent Disability       Annuities     Annuities  
                            Benefits                   and Pure      and Pure  
                                                      Endowments    Endowments  
                                                                                
 Year [FN2]      Ordinary Contracts     Industrial                              
                 Life      Disability    Policies                              
    1992                                                                        
    1993                                                                        
    1994                                                                        
    1995                                                                        
    1996                                                                        
    1997                                                                        
    1998                                                                        
    1999                                               Annuity 2000 Mortality  
                                                            Table 94 GAR        
    2000                                                                        
                                                                                
           NOTES TO THE SCHEDULE OF PREVAILING COMMISSIONERS' TABLES            
FN1. 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 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.                                                                        
FN2. 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

  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 § 807 for certain insurance products issued after January 1, 1999. Parts II, III, and IV are not affected by this ruling.

DRAFTING INFORMATION

  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)