Section 3.28.611. Application of the 2012 IAR Table.

In using the 2012 IAR Table, the mortality rate for a person age x in year (2012 + n) is calculated as follows:  
qx 2012+n = qx 2012 (1-G2x)n   
The resulting qx 2012+n must be rounded to three decimal places per 1,000, for example, 0.741 deaths per 1,000. Also, the rounding must occur according to the formula above, starting at the 2012 period table rate.  
For example, for a male age 30, qx 2012=  0.741.  
qx 2013=  0.741.* (1 - 0.010) ^ 1 = 0.73359, which is rounded to 0.734.  
qx 2014=  0.741.* (1 - 0.010) ^ 2 = 0.7262541, which is rounded to 0.726.  
A method leading to incorrect rounding would be to calculate qx 2014 as qx 2013 * (1 - 0.010), or 0.734 * 0.99 = 0.727. It is incorrect to use the already rounded qx 2013 to calculate qx 2014.  

Authorities

21.06.090;21.18.110;21.18.160

Notes

Reference

3 AAC 28.619
3 AAC 28.690

Authority

AS 21.06.090 AS 21.18.110 AS 21.18.160 Editor's note: The 2012 IAR Table referenced in 3 AAC 28.611 may be obtained from the Society of Actuaries; 475 N. Martingale Road, Suite 600; Schaumburg, Illinois 60173; telephone number [phone].

History

Eff. 12/26/2014, Register 212

References

3.28.611