This text of Indiana § 27-1-12.8-27 (Reserves according to commissioners reserve valuation method) is published on Counsel Stack Legal Research, covering Indiana primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.
(a)Except as provided in sections 28, 31,
and 33 of this chapter, reserves according to the commissioners reserve
valuation method for the life insurance and endowment benefits of a
contract providing for a uniform amount of insurance and requiring the
payment of uniform premiums is the excess, if any, of the present value
(on the date of valuation) of the future guaranteed benefits provided for
by the contract over the then present value of any future modified net
premiums for the contract.
(b)The modified net premiums for a contract described in
subsection (a) are the uniform percentage of the respective contract
premiums for the benefits such that the present value (on the date of
issue of the contract) of all modified net premiums is equal to the sum
of the then present value of the
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(a) Except as provided in sections 28, 31,
and 33 of this chapter, reserves according to the commissioners reserve
valuation method for the life insurance and endowment benefits of a
contract providing for a uniform amount of insurance and requiring the
payment of uniform premiums is the excess, if any, of the present value
(on the date of valuation) of the future guaranteed benefits provided for
by the contract over the then present value of any future modified net
premiums for the contract.
(b) The modified net premiums for a contract described in
subsection (a) are the uniform percentage of the respective contract
premiums for the benefits such that the present value (on the date of
issue of the contract) of all modified net premiums is equal to the sum
of the then present value of the benefits provided for by the contract
plus the excess of subdivision (1) over subdivision (2), as follows:
(1) A net level annual premium equal to the present value (on the
date of issue) of the benefits provided for after the first contract
year, divided by the present value (at the date of issue) of an
annuity of one (1) per annum payable on the first and each
subsequent anniversary of the contract on which a premium falls
due. However, the net level annual premium must not exceed the
net level annual premium on the nineteen (19) year premium
whole life plan for insurance of the same amount at an insured
age one (1) year greater than the age of the insured on the date of
issue of the contract.
(2) A net one (1) year term premium for the benefits provided for
in the first contract year.
(c) For a life insurance contract issued on or after January 1, 1985:
(1) for which:
(A) the contract premium in the first contract year exceeds the
contract premium in the second contract year; and
(B) no comparable additional benefit is provided in the first
contract year for the excess; and
(2) that provides an endowment benefit, a cash surrender value,
or a combination, in an amount greater than the excess premium;
the reserve according to the commissioners reserve valuation method
on a contract anniversary that occurs on or before the assumed ending
date (defined to be the first contract anniversary on which the sum of
any endowment benefit and any cash surrender value then available is
greater than the excess premium) is, except as provided in section 31
of this chapter, the reserve determined under subsection (d).
(d) For purposes of subsection (c), the reserve is the greater of:
(1) the reserve on the contract anniversary calculated under
subsections (a) and (b); or
(2) the reserve as of the contract anniversary calculated under
subsections (a) and (b) with:
(A) the value described in subsection (b)(1) reduced by fifteen
percent (15%) of the amount of the excess first year premium;
(B) all present values of benefits and premiums determined
without reference to premiums or benefits provided for by the
contract after the assumed ending date;
(C) the contract assumed to mature on the assumed ending date
as an endowment; and
(D) the cash surrender value provided on the assumed ending
date considered as an endowment benefit.
In making the comparison described in this subsection, the mortality
and interest bases specified in sections 24 and 26 of this chapter must
be used.
(e) Reserves according to the commissioners reserve valuation
method must be calculated by a method consistent with the principles
of this section for the following:
(1) A life insurance contract that provides for a varying amount
of insurance or requires the payment of varying premiums.
(2) A group annuity or a pure endowment contract that is
purchased under a retirement plan or plan of deferred
compensation that is established or maintained by:
(A) an employer (including a partnership or sole
proprietorship);
(B) an employee organization; or
(C) both;
other than a plan that provides individual retirement accounts or
individual retirement annuities under Section 408 of the Internal
Revenue Code.
(3) Disability and accidental death benefits provided in any
contract.
(4) All other benefits, except life insurance and endowment
benefits in a life insurance contract and benefits provided by any
other annuity or pure endowment contract.