§ 84.3a. Application of the 2012 IAR Mortality Table.
(a) In using the 2012 IAR Mortality Table, the mortality rate for a person age x in year (2012 + n) is calculated as follows: qx2012+n = qx2012 (1-G2x)n.
(b) The resulting qx 2012+n shall be rounded to three decimal places per 1,000, for example, 0.741 deaths per 1,000. This rounding shall occur according to the formula in subsection (a), starting at the 2012 period table rate.
(1) For example, for a male age 30, qx2012 = 0.741.
qx 2013= 0.741 * (1-0.010) [caret ] 1 = 0.73359, which is rounded to 0.734.
qx 2014= 0.741 * (1-0.010) [caret ] 2 = 0.7262541, which is rounded to 0.726.
(2) 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.
Authority The provisions of this § 84.3a issued under sections 206, 506, 1501 and 1502 of The Administrative Code of 1929 (71 P.S. § § 66, 186, 411 and 412); sections 301 and 303 of The Insurance Department Act of 1921 (40 P.S. § § 71 and 73); and section 410A of The Insurance Company Law of 1921 (40 P.S. § 510.1).
Source The provisions of this § 84.3a adopted July 8, 2016, effective August 8, 2016, 46 Pa.B. 3645.
Cross References This section cited in 31 Pa. Code § 84.2 (relating to definitions).
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