Insurance Tax Bulletin
Prevailing interest rates for
computing certain insurance
reserves
February 4, 2013
In brief
On J...
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Prevailing interest rates for computing certain insurance reserves

Revenue Ruling 2013–4 gives the state assumed interest rates for insurance products issued in 2012 and 2013 under Section 807(d,) and the federal interest rates for calculating reserves for the same period. Make sure your organization is using the right interest rates when making calculations.
Published on: Mar 4, 2016
Published in: Business      
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Transcripts - Prevailing interest rates for computing certain insurance reserves

  • 1. Insurance Tax Bulletin Prevailing interest rates for computing certain insurance reserves February 4, 2013 In brief On January 31, 2013, the IRS issued Revenue Ruling 2013-4 which provides state assumed interest rates and applicable federal rates for the determination of reserves under Section 807(d) for insurance products issued in 2012 and 2013. In detail Revenue Ruling 2013-4 should 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. For purposes of Section 807(d), for taxable years beginning after December 31, 2011, the Ruling supplements the schedules of prevailing state assumed interest rates set forth in Revenue Ruling 92-19. ruling also supplements Part IV of Revenue Ruling 92-19 by providing the applicable federal interest rates for computing reserves for 2012 and 2013. Specifically, the Ruling supplements Schedules A, B, C and D -- under Part III of Revenue Ruling 92-19, by providing prevailing state assumed interest rates for certain insurance products issued in 2012 and 2013. The The takeaway Insurance companies should ensure that they using the correct interest rates when computing their reserves for 2012 and 2013. Let's talk For a deeper discussion of how this issue might affect your practice, please contact: Insurance Tax Practice Anthony DiGilio (703) 918-4812 anthony.digilio@us.pwc.com © 2013 PricewaterhouseCoopers LLP. All rights reserved. In this document, PwC refers to PricewaterhouseCoopers (a Delaware limited liability partnership), which is a member firm of PricewaterhouseCoopers International Limited, each member firm of which is a separate legal entity. www.pwc.com

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