§ 24-A §960 — Requirements for principle-based reserves

1.
Scope.
This section applies to all policies and contracts for which principle-based reserving is required by the valuation manual, unless exempted by the superintendent in accordance with the following standards:
2.
Standards.
An insurer shall establish reserves for policies and contracts subject to this section using a valuation methodology that meets all applicable requirements of the valuation manual and that:
3.
Oversight and controls.
An insurer using a principle-based valuation for one or more policies or contracts subject to this section as specified in the valuation manual shall:
4.
Formulaic components.
A principle-based valuation may include a formulaic reserve component and must do so when prescribed by the valuation manual or required by the superintendent.
5.
Applicability of rules.
Rules adopted by the superintendent pursuant to this subchapter before January 1, 2014 do not apply to policies, contracts or actuarial opinions issued on or after the operative date of the valuation manual unless expressly made applicable by rule or order of the superintendent.

Legislative History

PL 2013, c. 238, Pt. C, §9 (NEW).