§ 58-37A-25 — Standards of valuation for certificates--Maintenance of excess reserves.

Any standards of valuation for certificates issued before one year after January 1, 1991, shall be those provided by the laws applicable immediately before January 1, 1991. The minimum standards of valuation for certificates issued on or after one year from January 1, 1991, shall be based on the following: (1) For certificates of life insurance--the commissioner's standard ordinary mortality tables applicable to life and health insurers in this state; and (2) For annuity and pure endowment certificates, for total and permanent disability benefits, for accidental death benefits and for noncancelable accident and health benefits--the tables that are authorized for use by life and health insurers in this state. All of the above shall be under valuation methods and standards including interest assumptions in accordance with the laws of this state applicable to life and health insurers issuing policies containing like benefits. The director may accept other standards for valuation if the director finds that the reserves produced by the other standards will not be less in the aggregate than reserves computed in accordance with the minimum valuation standard prescribed in this section. The director may vary the standards of mortality applicable to all benefit contracts on substandard lives or other extra hazardous lives by any society authorized to do business in this state. Any society, with the consent of the insurance supervisory official of the state of domicile of the society and under such conditions, if any, which the director may impose, may establish and maintain reserves on its certificates in excess of the reserves required under this section, but no contractual rights of any benefit member may be affected by maintaining excess reserves.

Legislative History

SL 1990, ch 410, § 25.