§ 7123 — Reserve calculation for indeterminate premium plans

Pennsylvania § 7123

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

Text

(a) Applicability.--This section shall apply to either of the following:

(1) A plan of life insurance that provides for future premium determination, the amounts of which are to be determined by the insurance company based on then estimates of future experience.

(2) A plan of life insurance or annuity that is of a nature that the minimum reserves cannot be determined by the methods described in any of the following:

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

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

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

(b) Nature and calculation of reserves.--The reserves that are held under a plan under this section shall be:

(1) Appropriate in relation to the benefits and the pattern of premiums for the plan.

(2) Computed by a method that is consistent with the principles of this chapter, as determined by regulation.

Legislative History

Cross References.Section 7123 is referred to in sections 7103, 7120 of this title.