IRS Revenue Ruling
2001-38

Code Sec. 807

<<FULL TEXT>>

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.


REV. RUL. 2001-38

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 <1>

Group
Life Insurance Individual Annuities
and Supplementary Total and Annuities and and Pure
Permanent Disability Benefits Pure Endowments Endowments
------------------------------ --------------- ----------
Ordinary Contracts
------------------ Industrial
Year <2> Life Disability Policies
-------- ---- ---------- ----------
1992
1993
1994
1995
1996
1997
1998
1999 Annuity 2000 Mortality Table 94 GAR
2000


----------
1/ 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.

2/ 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 section 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).

<<END RULING>>

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