Nebraska § 44-403 Life insurance; standard of valuation;
policies issued prior to operative date of law

Nebraska Statutes

§ 44-403 — Life insurance; standard of valuation; policies issued prior to operative date of law

Nebraska § 44-403

Ch. 44Insurance

This text of Nebraska § 44-403 (Life insurance; standard of valuation; policies issued prior to operative date of law) is published on Counsel Stack Legal Research, covering Nebraska primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook

Neb. Rev. Stat. § 44-403 (2026).

Text

This section
shall apply to only those policies and contracts issued prior to the operative
date defined in section  44-407.07  (the Standard Nonforfeiture Law for Life
Insurance). All such valuations made by the Department of Insurance, or by
its authority, shall be according to the standard of valuation adopted by
the company, which standard shall be stated in its annual report to the department.
Such standard of valuation, whether on the net level premium, preliminary
term, any modified preliminary term, or select and ultimate reserve basis,
for all such policies issued after July 17, 1913, shall be according to the
American Experience or Actuaries' Table of Mortality, with not less than three
and not more than four percent compound interest. When the preliminary term
basis is used it s

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This section
shall apply to only those policies and contracts issued prior to the operative
date defined in section 44-407.07 (the Standard Nonforfeiture Law for Life
Insurance). All such valuations made by the Department of Insurance, or by
its authority, shall be according to the standard of valuation adopted by
the company, which standard shall be stated in its annual report to the department.
Such standard of valuation, whether on the net level premium, preliminary
term, any modified preliminary term, or select and ultimate reserve basis,
for all such policies issued after July 17, 1913, shall be according to the
American Experience or Actuaries' Table of Mortality, with not less than three
and not more than four percent compound interest. When the preliminary term
basis is used it shall not exceed one year. Insurance against total and permanent
mental or physical disability resulting from accident or disease, or against
accidental death, combined with a policy of life insurance, shall be valued
on the basis of the mean reserve, being one-half of the additional annual
premium charged therefor. Except as otherwise provided in subsection (3) of section 44-8907 for
all annuities and pure endowments purchased on or after the operative date
of such subsection under group annuity
and pure endowment contracts, the legal minimum standard for the valuation
of annuities shall be McClintock's Table of Mortality Among Annuitants, or
the American Experience Table of Mortality, with compound interest at three
and one-half percent per annum for individual annuities and five percent per
annum for group annuities, but annuities deferred ten or more years, and written
in connection with life or term insurance, shall be valued on the same mortality
table from which the consideration or premiums were computed, with compound
interest not higher than three and one-half percent per annum. The legal standard
for the valuation of industrial policies shall be the American Experience
Table of Mortality, with compound interest at not less than three nor more
than three and one-half percent per annum,
except that any life insurance company
may voluntarily value its industrial policies written on the weekly payment
plan according to the Standard Industrial Mortality Table or the Substandard
Industrial Mortality Table. Reserves for all such policies and contracts may
be calculated, at the option of the company, according to any standards which
produce greater aggregate reserves for all such policies and contracts than
the minimum reserves required by this section.

Legislative History

Source: Laws 1913, c. 154, § 94, p. 437; R.S.1913, § 3231; Laws 1919, c. 190, tit. V, art. VI, § 2, p. 618; C.S.1922, § 7830; C.S.1929, § 44-502; Laws 1943, c. 106, § 1(2), p. 355; R.S.1943, § 44-403; Laws 1973, LB 309, § 1; Laws 1979, LB 354, § 1; Laws 2014, LB755, § 13.