[Code of Federal Regulations]
[Title 26, Volume 8]
[Revised as of April 1, 2004]
From the U.S. Government Printing Office via GPO Access
[CITE: 26CFR1.807-1]

[Page 624]
 
                       TITLE 26--INTERNAL REVENUE
 
    CHAPTER I--INTERNAL REVENUE SERVICE, DEPARTMENT OF THE TREASURY 
                               (CONTINUED)
 
Determination of Tax Liability--Table of Contents
 
Sec. 1.807-1  Mortality and morbidity tables.

    (a) Tables to be used. If there are no commissioners' standard 
tables applicable to an insurance contract when the contract is issued, 
then the mortality and morbidity tables set forth in this subsection are 
used to compute reserves under section 807(d)(2) for the contract.

------------------------------------------------------------------------
             Type of Contract                           Table
------------------------------------------------------------------------
1. Group term life insurance (active life   1960 Commissioners' Standard
 reserves).                                  Group Mortality Table.
2. Group life insurance (active life        1959 Accidental Death
 reserves); accidental death benefits.       Benefits Table.
3. Permanent and paid-up group life         Same table as are applicable
 insurance (active life reserves).           to males for ordinary life
                                             insurance.
4a. Group life insurance disability income  The tables of period 2
 benefits (active life reserves).            disablement rates and the
                                             1930 to 1950 termination
                                             rates of the 1952
                                             Disability Study of the
                                             Society of Actuaries.
4b. Group life insurance disability income  The 1930 to 1950 termination
 benefits (disabled life reserves).          rates of the 1952
                                             Disability study of the
                                             Society of Actuaries.
5. Group life insurance; survivor income    Same tables as are
 benefits insurance.                         applicable to group
                                             annuities.
6. Group life insurance; extended death     1970 Intercompany Group life
 benefits for disabled lives.                Disability Valuation Table.
7. Credit life insurance..................  1958 Commissions' Extended
                                             Term Table.
8. Supplementary contracts involving life   Same tables as are
 contingencies.                              applicable to individual
                                             immediate annuities.
9. Noncancellable accident and health       Tables used for NAIC annual
 insurance (active life reserves);           statement reserves as of
 benefits issued before 1984.                December 31, 1983.
10a. Noncancellable accident and health     1964 Commissioners'
 insurance (active life reserves); group     Disability Tables.
 disability benefits issued after 1983 and
 individual disability benefits issued
 after 1983 and before 1989.
10b. Noncancellable accident and health     1985 Commissioners'
 insurance (active life reserves);           Individual Disability Table
 individual disability benefits issued       A or Commissioners'
 after 1988.                                 Individual Disability Table
                                             B.
11. Noncancellable accident and health      1959 Accidental Death
 insurance (active life reserves);           Benefits Tables.
 accidental death benefits issued after
 1983.
12. Noncancellable accident and health      Tables used for NAIC annual
 insurance (active life reserves); all       statement reserves.
 benefits issued after 1983 other than
 disability and accidental death.
13a. Noncancellable accident and health     1964 Commissioners'
 insurance (claim reserves); group           Disability Tables.
 disability benefits for all years of
 issue and individual disability benefits
 for years before 1989.
13b. Noncancellable accident and health     1985 Commissioners'
 insurance (claim reserves); individual      Individual Disability Table
 disability benefits for years after 1988.   A or Commissioners'
                                             Individual Disability Table
                                             B.
14. Noncancellable accident and health      Tables used for annual
 insurance (claim reserves); all benefits    statement reserves.
 other than disability for all years of
 issue.
------------------------------------------------------------------------

    (b) Adjustments. An appropriate adjustment may be made to the tables 
in paragraph (a) of this section to reflect risks (such as substandard 
risks) incurred under the contract which are not otherwise taken into 
account.
    (c) Special rule where more than 1 table or option applicable. If, 
with respect to any category of risks, there are 2 or more tables (or 
options under 1 or more tables) in paragraph (a) of this section, the 
table (and option thereunder) which generally yields the lowest reserves 
shall be used to compute reserves under section 807(d)(2) for the 
contract.
    (d) Effective date. This section is effective for taxable years 
beginning after December 31, 1983, except that the 1985 Commissioners' 
Individual Disability Tables A and B shall be treated (for purposes of 
section 807(d)(5)(B) and for purposes of determining the issue dates of 
contracts for which they shall be used) as if the tables were new 
prevailing commissioners' standard tables adopted by the twenty-sixth 
State on December 26, 1989.

[T.D. 8278, 54 FR 52934, Dec. 26, 1989; 55 FR 1768, Jan. 18, 1990]