Part III. Prevailing State Assumed Interest Rates — Products Issued in Years After 1982.

Schedule A STATUTORY VALUATION INTEREST RATES BASED ON THE 1980 AMENDMENTS TO THE NAIC STANDARD

VALUATION LAW A. Life insurance valuation: Guarantee Duration (years) Calendar Year of Issue 2018

10 or fewer N/A**

More than 10 but not more than 20 N/A**

More than 20 N/A**

***** The terms used in the schedules in this ruling and in Part III of Rev. Rul. 92-19 are those used in the Standard Valuation Law; the terms are defined in Rev. Rul. 92-19.

**For taxable years beginning after December 31, 2017, § 807(d), as amended by section 13517 of the Act, no longer requires life insurance reserves to be computed using the greater of (1) the applicable federal interest rate or (2) the prevailing state assumed interest rate. Section 807(d), as amended, requires use of the rate used for statutory reserving, as life insurance reserves for taxable years beginning after December 31, 2017, are determined, in part, based on the reserve computed as required by the National Association of Insurance Commissioners (NAIC) at the time the reserve is determined. For taxable years beginning after December 31, 2016, and on or before December 31, 2017, the prevailing state assumed interest rates for this product for calendar year of issue 2017 were provided in Rev. Rul. 2017-03.

Bulletin No. 2018–20 577 May 14, 2018

Part III, Schedule B

STATUTORY VALUATION INTEREST RATES BASED ON THE 1980 AMENDMENTS TO THE NAIC STANDARD

VALUATION LAW

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

Calendar Year of Issue Valuation Interest Rate

2017 3.75*

Source: Rates calculated from the monthly averages, ending June 30, 2017, of Moody’s Composite Yield on Seasoned Corporate Bonds.

*As this prevailing state assumed interest rate exceeds the applicable federal interest rate for 2017 of 1.46 percent, the valuation interest rate of 3.75 percent is to be used for this product under § 807.

Part III, Schedule C24 — 2017

STATUTORY VALUATION INTEREST RATES BASED ON NAIC STANDARD VALUATION LAW FOR 2017 CALENDAR

YEAR BUSINESS GOVERNED BY THE 1980 AMENDMENTS C. Valuation interest rates for other annuities and guaranteed interest contracts that are valued on an issue year basis:

Cash Settlement

Options?

Future Interest Guarantee? Guarantee Duration (years) Valuation Interest Rate For Plan Type

A B C

Yes Yes 5 or fewer 3.75* 3.75* 3.50*

More than 5, but not more than 10 3.75* 3.75* 3.50*

More than 10, but not more than 20 3.75* 3.50* 3.50*

More than 20 3.50* 3.25* 3.25*

Yes No 5 or fewer 4.00* 3.75* 3.50*

More than 5, but not more than 10 3.75* 3.75* 3.50*

More than 10, but not more than 20 3.75* 3.50* 3.50*

More than 20 3.50* 3.50* 3.50*

No Yes or No 5 or fewer 3.75*

More than 5, but not more than 10 3.75* NOT APPLICABLE

More than 10, but not more than 20 3.75*

More than 20 3.50*

Source: Rates calculated from the monthly averages, ending June 30, 2017, of Moody’s Composite Yield on Seasoned Corporate Bonds.

*As these rates exceed the applicable federal interest rate for 2017 of 1.46 percent, the valuation interest rate to be used for this product under § 807 is the applicable rate specified in the above table.

May 14, 2018 578 Bulletin No. 2018–20

Part III, Schedule D24 — 2017

STATUTORY VALUATION INTEREST RATES BASED ON NAIC STANDARD VALUATION LAW FOR 2017 CALENDAR

YEAR BUSINESS GOVERNED BY THE 1980 AMENDMENTS

D. Valuation interest rates for other annuities and guaranteed interest contracts that are contracts with cash settlement options and that are valued on a change in fund basis:

Cash Settlement

Options?

Future Interest Guarantee?

Guarantee Duration (years) Valuation Interest Rate For Plan Type

A B C

Yes Yes 5 or fewer 4.00* 4.00* 3.50*

More than 5, but not more than 10 4.00* 4.00* 3.50*

More than 10, but not more than 20 3.75* 3.75* 3.50*

More than 20 3.75* 3.75* 3.50*

Yes No 5 or fewer 4.00* 4.00* 3.75*

More than 5, but not more than 10 4.00* 4.00* 3.75*

More than 10, but not more than 20 4.00* 3.75* 3.50*

More than 20 3.75* 3.75* 3.50*

Source: Rates calculated from the monthly averages, ending June 30, 2017, of Moody’s Composite Yield on Seasoned Corporate Bonds.

• As these rates exceed the applicable federal interest rate for 2017 of 1.46 percent, the valuation interest rate to be used for this product under § 807 is the applicable rate specified in the above table.