§ 27-1-12.8-30 — Reserves; calculation

Indiana § 27-1-12.8-30

• Jurisdiction: Indiana
• Title 27: INSURANCE
• Art. 1: DEPARTMENT OF INSURANCE
• Ch. 12.8: Standard Valuation Law

Text

(a) Reserves for contracts issued before the
transition date selected by a company under IC 27-1-12-12, the
transition date in no event to be later than January 1, 1948, may be
calculated (at the option of the company) according to any standards
that produce greater aggregate reserves for all of the contracts than the
minimum reserves required by the laws in effect immediately before
the transition date.
(b) Reserves for a category, established by the commissioner, of
contracts or benefits issued on or after the transition date selected by
a company under IC 27-1-12-12, the transition date in no event to be
later than January 1, 1948, may be calculated (at the option of the
company) according to any standards that produce greater aggregate
reserves for the category than the aggregate reserves calculated
according to the minimum standard under this chapter. However, the
rates of interest used for contracts other than annuity and pure
endowment contracts must not be greater than the corresponding rate
of interest used in calculating nonforfeiture benefits provided in the
contracts.
(c) A company that adopts a standard of valuation that produces
greater aggregate reserves than the aggregate reserves calculated under
sections 19 through 40 of this chapter may adopt a lower standard of
valuation with the approval of the commissioner. However, the lower
standard of valuation must not be lower than the minimum standard
provided under this chapter. For purposes of this subsection, the
holding of additional reserves previously determined by the appointed
actuary to be necessary to render an opinion required by section 21 or
23 of this chapter is not the adoption of a higher standard of valuation.

Legislative History

As added by P.L.276-2013, SEC.10.