§ 84.3. 1983 Table ‘‘a,’’ Annuity 2000 Mortality Table, 1983 GAM Table and 1994 GAR Table.

 (a)  The 1983 Table ‘‘a,’’ the Annuity 2000 Mortality Table excluding mortality rates independent of sex, the 1983 GAM Table and the 1994 GAR Table are approved by the Commissioner as annuity mortality tables for valuation.

 (b)  At the option of the company, the 1983 Table ‘‘a’’ may be used in determining the minimum standard of valuation for an individual annuity or pure endowment contract issued prior to January 1, 1986, and for an annuity or pure endowment purchased prior to January 1, 1986, under a group annuity or pure endowment contract.

 (c)  The 1983 Table ‘‘a,’’ or the Annuity 2000 Mortality Table excluding mortality rates independent of sex shall be used in determining the minimum standard of valuation for an individual annuity or pure endowment contract issued on or after January 1, 1986, and prior to June 26, 1999.

 (d)  The Annuity 2000 Mortality Table excluding mortality rates independent of sex shall be used, except as provided by subsection (e), in determining the minimum standard of valuation for an individual annuity or pure endowment contract issued on or after June 26, 1999.

 (e)  The 1983 Table ‘‘a’’ shall be used in determining the minimum standard of valuation for an individual annuity or pure endowment contract issued on or after June 26, 1999. when the contract is based on life contingencies and is issued to fund periodic benefits arising from:

   (1)  Settlements of claims pertaining to court settlements or out of court settlements from tort actions.

   (2)  Settlements of claims, such as worker’s compensation claims.

   (3)  Settlements of long term disability claims when a temporary or life annuity has been used in lieu of continuing disability payments.

 (f)  At the option of the company, the 1983 GAM Table or the 1994 GAR Table may be used in determining the minimum standard of valuation for an annuity or pure endowment purchased prior to January 1, 1986, under a group annuity or pure endowment contract.

 (g)  The 1983 GAM Table or the 1994 GAR Table shall be used in determining the minimum standard of valuation for an annuity or pure endowment purchased on or after January 1, 1986, and prior to June 26, 1999, under a group annuity or pure endowment contract.

 (h)  1994 GAR Table.

   (1)  The 1994 GAR Table shall be used in determining the minimum standard of valuation for an annuity or pure endowment purchased on or after June 26, 1999, under a group annuity or pure endowment contract.

   (2)  In using the 1994 GAR Table, the mortality rate for a person age x in year (1994 + n) shall be calculated as follows:

 q_x¹⁹⁹⁴⁺ⁿ = q_x¹⁹⁹⁴ (1-AA_x)ⁿ

   where the values of q_x¹⁹⁹⁴ and AA_x are as specified in the 1994 GAR Table.

   The provisions of this §  84.3 amended under sections 206, 506, 1501 and 1502 of The Administrative Code of 1929 (71 P. S. § §  66, 186, 411 and 412); section 301(c)(1) of The Insurance Department Act of 1921 (30 P. S. §  71(c)(1)); and section 410(e)(8)(F) of The Insurance Company Law (40 P. S. §  510.1(e)(8)(F)).

   The provisions of this §  84.3 amended June 25, 1999, effective June 26, 1999, 29 Pa.B. 3208. Immediately preceding text appears at serial page (132180).