State-assumed interest rates for insurance company reserve computations

Rev. Rul. 2015-2: Interest rates for insurance company

The IRS today released an advance copy of Rev. Rul. 2015-2 that, for purposes of section 807(d)(4), supplements the schedules of prevailing state-assumed interest rates for use by insurance companies to compute their reserves with respect to contracts issued in 2014 and 2015.

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The information contained in Rev. Rul. 2015-2 [PDF 17 KB] is to be used by insurance companies in computing their reserves for:

  • Life insurance and supplementary total and permanent disability benefits
  • Individual annuities and pure endowments
  • Group annuities and pure endowments

Section 807(d)(2)(B) requires that the interest rate used to compute these reserves be the greater of (1) the applicable federal interest rate, or (2) the prevailing state-assumed interest rate.

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