§ 7120 — Minimum reserves

Pennsylvania § 7120

• Jurisdiction: Pennsylvania
• Title 40: INSURANCE
• Part: PART IV
• Ch. 71: RESERVE LIABILITIES
• Subch.: VALUATION OF RESERVES FOR CONTRACTS AND POLICIES

Text

(a) Amount calculated.--A company's aggregate reserves for all life insurance policies, excluding disability and accidental death benefits, issued on or after May 17, 1921, shall not be less than the aggregate reserves calculated by using the mortality table or tables and rate or rates of interest used in calculating nonforfeiture benefits for the policies and in accordance with the methods set forth in:

(1) Section 7118 (relating to reserve valuation method for life insurance and endowment benefits).

(2) Section 7119 (relating to reserve valuation method for annuity and pure endowment benefits).

(3) Section 7122 (relating to reserve calculation for valuation net premium exceeding gross premium charged).

(4) Section 7123 (relating to reserve calculation for indeterminate premium plans).

(b) Amount necessary to render actuarial opinion.--The aggregate reserves for all policies, contracts and benefits shall not be less than the aggregate reserves determined by the appointed actuary to be necessary to render the opinion required by section 7113 (relating to actuarial opinion of reserves prior to operative date of valuation manual) or 7114 (relating to actuarial opinion of reserves on or after operative date of valuation manual).

Legislative History

Cross References.Section 7120 is referred to in section 7103 of this title.