Bulletin No. 97-

Bulletin No. 02-15

To: All Domestic Life Insurance Companies

and Charitable Annuity Societies

From: Holly C. Bakke

Commissioner

Subject: Maximum Reserve Valuation and Nonforfeiture Rates

In accordance with N.J.S.A. 17B:19-8 and N.J.S.A. 17B:25-19, the attached table shows the rates of interest to be used for determining minimum valuation standards and nonforfeiture values applicable to life insurance policies issued in 1982 through 2003 and the annuity contracts issued or undergoing a change in fund in 1981 through 2002. With respect to benefits which are subject to the provisions of N.J.S.A. 17B:25-19, the rates shown are applicable for those benefits under life insurance policies issued in a particular calendar year on or after the operative date provided for at N.J.S.A. 17B:25-19.h(xi).

Requests for additional copies of the table should be directed to:

Nancy Hritz

Chief, Valuation Bureau

Life and Health Division

Department of Banking and Insurance

P.O. Box 325

Trenton, New Jersey 08625-0325

Phone: (609) 292-5427 ext. 50319

Fax: (609) 633-0527

E-Mail: nancy.hritz@dobi.state.nj.us

The bulletin can also be found at the Department's web site:

http://www.state.nj.us/dobi/insmnu.shtml

8/16/02 /s/Holly C. Bakke

Date Holly C. Bakke

Commissioner

Statutory Calendar Year Valuation and Nonforfeiture Interest Rates

A. Life Insurance


Guarantee Duration (Years)	Calendar Year	Valuation Interest Rates	Nonforfeiture Interest Rate
10 or less	82	6.75	8.50
	83 - 86	7.25	9.00
	87	6.50	8.25
	88 - 93	6.00	7.50
	94 - 98	5.50	7.00
	99 - 03	5.00	6.25

More than 10, not	82	6.25	7.75
more than 20	83 - 86	6.75	8.50
	87 - 93	6.00	7.50
	94 - 98	5.25	6.50
	99 – 03	4.75	6.00

More than 20	82	5.50	7.00
	83 – 86	6.00	7.50
	87 – 92	5.50	7.00
	93 – 94	5.00	6.25
	95 – 03	4.50	5.75

B. Single stipulated payment immediate annuities and for annuity benefits involving life contingencies arising from other annuities with cash settlement options and from guaranteed interest contracts with cash settlement options.

	Calendar Year	Valuation Interest Rates
	81	11.50
	82	13.25
	83 – 84	11.25
	85	11.00
	86	9.25
	87	8.00
	88 – 89	8.75
	90 – 91	8.25
	92	7.75
	93	7.00
	94	6.50
	95	7.25
	96 – 97	6.75
	98 – 99	6.25
	2000	7.00
	2001	6.75
	2002	6.50

C. Other Annuities and Guaranteed Interest Contracts

Contracts issued on an Issue Year Basis

Cash Settlement Options?	Future Interest Guarantee?	Guarantee Duration (Years)	Calendar Year	Valuation Interest Rate For Plan Type A B C
Yes	Yes	5 or less	81	11.50	9.50	8.25
			82	13.25	10.50	9.25
			83	11.25	9.25	8.25
			84	11.25	9.25	8.00
			85	11.00	7.00	8.00
			86	9.25	7.75	6.75
			87	8.00	6.75	6.25
			88	8.75	7.50	6.75
			89	8.75	7.25	6.50
			90 – 91	8.25	7.00	6.25
			92	7.75	6.50	6.00
			93	7.00	6.00	5.50
			94	6.50	5.75	5.25
			95	7.25	6.25	5.75
			96 – 97	6.75	5.75	5.25
			98 – 99	6.25	5.50	5.00
			2000	7.00	6.00	5.50
			2001	6.75	5.75	5.25
			2002	6.50	5.75	5.25

		more than	81	11.00	9.50	8.25
		5 but not	82	12.50	10.50	9.25
		more than	83	10.75	9.25	8.25
		10	84	10.75	9.25	8.00
			85	10.50	9.00	8.00
			86	8.75	7.75	6.75
			87	7.75	6.75	6.25
			88	8.50	7.50	6.75
			89	8.25	7.25	6.50
			90 – 91	8.00	7.00	6.25
			92	7.50	6.50	6.00
			93	6.75	6.00	5.50
			94	6.50	5.75	5.25
			95	7.00	6.25	5.75
			96 – 97	6.50	5.75	5.25
			98 – 99	6.00	5.50	5.00
			2000	6.75	6.00	5.50
			2001	6.50	5.75	5.25
			2002	6.25	5.75	5.25

		more than	81	7.75	6.75	6.25
		10 but not	82	8.50	7.25	6.75
		more than	83 – 84	8.25	7.00	6.75
		20	85	8.25	7.00	6.50
			86	7.50	6.50	6.00
			87	7.00	6.00	5.75
			88 – 89	7.25	6.25	6.00

C. Other Annuities and Guaranteed Interest Contracts - cont'd

Contracts issued on an Issue Year Basis

Cash Settlement Options?	Future Interest Guarantee?	Guarantee Duration (Years)	Calendar Year	Valuation Interest Rate For Plan Type A B C
Yes	Yes	more than	90 – 91	7.00	6.25	5.75
		10 but not	92	6.75	6.00	5.75
		more than	93	6.25	5.50	5.25
		20	94	6.00	5.25	5.00
			95	6.25	5.50	5.25
			96	6.00	5.25	5.00
			97	6.00	5.25	5.25
			98	5.75	5.00	4.75
			99	5.50	5.00	4.75
			2000	5.75	5.25	5.00
			01 - 02	6.00	5.25	5.00

		more than	81	6.25	5.50	5.50
		20	82	6.75	6.00	6.00
			83 - 84	6.75	5.75	5.75
			85	6.50	5.75	5.75
			86	6.00	5.50	5.75
			87	5.75	5.25	5.50
			88 - 89	6.00	5.25	5.25
			90 - 91	5.75	5.25	5.25
			92	5.75	5.00	5.00
			93	5.25	4.75	4.75
			94	5.00	4.50	4.50
			95	5.25	4.75	4.75
			96	5.00	4.50	4.50
			97	5.25	4.75	4.75
			98 – 99	4.75	4.50	4.50
			2000-02	5.00	4.50	4.50

Yes	No	5 or less	81	12.00	10.00	9.00
			82	13.75	11.25	10.00
			83	11.75	9.75	8.75
			84	11.75	9.75	8.50
			85	11.50	9.50	8.50
			86	9.50	8.00	7.25
			87	8.50	7.25	6.50
			88	9.25	7.75	7.00
			89	9.00	7.50	7.00
			90	8.50	7.25	6.50
			91	8.75	7.25	6.75
			92	8.00	6.75	6.25
			93	7.25	6.25	5.75
			94	6.75	6.00	5.50
			95	7.50	6.50	6.00
			96	6.75	6.00	5.50
			97	7.00	6.00	5.50
			98 – 99	6.50	5.75	5.25
			2000	7.25	6.25	5.75
			2001	7.00	6.00	5.50
			2002	6.75	6.00	5.50

C. Other Annuities and Guaranteed Interest Contracts - cont'd

Contracts issued on an Issue Year Basis

Cash Settlement Options?	Future Interest Guarantee?	Guarantee Duration (Years)	Calendar Year	Valuation Interest Rate For Plan Type A B C
Yes	No	more than	81	11.50		10.00	9.00
		5 but not	82	13.25		11.25	10.00
		more than	83	11.25		9.75	8.75
		10	84	11.25		9.75	8.50
			85	11.00		9.50	8.50
			86	9.25		8.00	7.25
			87	8.00		7.25	6.50
			88	8.75		7.75	7.00
			89	8.75		7.50	7.00
			90	8.25		7.25	6.50
			91	8.25		7.25	6.75
			92	7.75		6.75	6.25
			93	7.00		6.25	5.75
			94	6.50		6.00	5.50
			95	7.25		6.50	6.00
			96 – 97	6.75		6.00	5.50
			98	6.25		5.75	5.25
			99	6.25		5.50	5.25
			2000	7.00		6.25	5.75
			2001	6.75		6.00	5.50
			2002	6.50		6.00	5.50

		more than	81	8.00		7.00	6.75
		10 but not	82	8.75		7.50	7.25
		more than	83 - 84	8.75		7.50	7.00
		20	85	8.50		7.50	7.00
			86	7.75		6.75	6.50
			87	7.25		6.50	6.00
			88 - 91	7.50		6.50	6.25
			92	7.00		6.25	6.00
			93	6.50		5.75	5.50
			94	6.25		5.50	5.25
			95	6.50		5.75	5.50
			96 - 97	6.25		5.50	5.25
			98	6.00		5.25	5.00
			99	5.75		5.25	5.00
			2000	6.00		5.50	5.25
			2001	6.25		5.50	5.25
			2002	6.00		5.50	5.25

		more than	81	6.75	6.00			6.00
		20	82	7.25	6.25			6.25
			83- 85	7.00	6.25			6.25
			86	6.50	5.75			5.75
			87	6.00	5.50			5.50
			88	6.25	5.75			5.75
			89 - 91	6.25	5.50			5.50
			92	6.00	5.25			5.25
			93	5.50	5.00			5.00

C. Other Annuities and Guaranteed Interest Contracts - cont'd

Contracts issued on an Issue Year Basis

Cash Settlement Options?	Future Interest Guarantee?	Guarantee Duration (Years)	Calendar Year	Valuation Interest Rate For Plan Type A B C
Yes	No	more than	94		5.25			4.75	4.75
		20	95		5.50			5.00	5.00
			96		5.25			4.75	4.75
			97		5.25			5.00	5.00
			98		5.00		4.75		4.75
			99		5.00		4.50		4.50
			2000-02		5.25		4.75		4.75

No	Yes or	5 or less	81	11.50		NOT
	No		82	13.25		APPLICABLE
			83 - 84	11.25		FOR ANY
			85	11.00		GUARANTEE
			86	9.25		DURATION
			87	8.00		FOR PLAN
			88 - 89	8.75		TYPES
			90 - 91	8.25		B AND C
			92	7.75
			93	7.00
			94	6.50
			95	7.25
			96- 97	6.75
			98 – 99	6.25
			2000	7.00
			2001	6.75
			2002	6.50

		more than	81	11.00
		5 but not	82	12.50
		more than	83 – 84	10.75
		10	85	10.50
			86	8.75
			87	7.75
			88	8.50
			89	8.25
			90 – 91	8.00
			92	7.50
			93	6.75
			94	6.50
			95	7.00
			96 – 97	6.50
			98 – 99	6.00
			2000	6.75
			2001	6.50
			2002	6.25

		more than	81	10.00
		10 but not	82	11.25
		more than	83 – 84	9.75
		20	85	9.50
			86	8.00

C. Other Annuities and Guaranteed Interest Contracts - cont'd

Contracts issued on an Issue Year Basis

Cash Settlement Options?	Future Interest Guarantee?	Guarantee Duration (Years)	Calendar Year	Valuation Interest Rate For Plan Type A B C
No	Yes or	more than	87	7.25
	No	10 but not	88	7.75
		more than	89	7.50
		20	90 – 91	7.25
			92	6.75
			93	6.25
			94	6.00
			95	6.50
			96 – 97	6.00
			98	5.75
			99	5.50
			2000	6.25
			2002	6.00

		more than	81	7.75	NOT
		20	82	8.75	APPLICABLE
			83 - 84	7.75	FOR ANY
			85	7.50	GUARANTEE
			86	6.50	DURATION
			87	6.00	FOR PLAN
			88 - 89	6.25	TYPES
			90 - 91	6.00	B AND C
			92	5.75
			93	5.25
			94	5.00
			95	5.50
			96	5.00
			97	5.25
			98 – 99	4.75
			2000	5.25
			2002	5.00

D. Other Annuities and Guaranteed Interest Contracts

Contracts Valued on a Change in Fund Basis

(Only contracts with cash settlement options may be valued on change in fund basis)

Cash Settlement Options?	Future Interest Guarantee?	Guarantee Duration (Years)	Calendar Year	Valuation Interest Rate For Plan Type A B C
Yes	Yes	5 or less	81	13.25	12.00	9.00
			82	15.00	13.75	10.00
			83	12.75	11.75	8.75
			84	12.75	11.75	8.50
			85	12.50	11.50	8.50
			86	10.25	9.50	7.25
			87	9.00	8.50	6.50
			88	10.00	9.25	7.00

D. Other Annuities and Guaranteed Interest Contracts

Contracts Valued on a Change in Fund Basis

(Only contracts with cash settlement options may be valued on change in fund basis)

Cash Settlement Options?	Future Interest Guarantee?	Guarantee Duration (Years)	Calendar Year	Valuation Interest Rate For Plan Type A B C
Yes	Yes	5 or less	89	9.75	9.00	7.00
			90	9.25	8.50	6.50