§ 26-6-203 — Reserve calculation; valuation net premium exceeding gross premium charged

(a) If in any contract year the gross premium charged by
any insurer on any policy or contract is less than the valuation
net premium for the policy or contract calculated by the method
used in calculating the reserve thereon but using the minimum
valuation standards of mortality and rate of interest, the
minimum reserve for the policy or contract shall be the greater
of either the reserve calculated according to:
(i) The mortality table, rate of interest and method
actually used for the policy or contract; or
(ii) The method actually used for the policy or
contract but using the minimum valuation standards of mortality
and rate of interest and replacing the valuation net premium
with the actual gross premium in each contract year for which
the valuation net premium exceeds the actual gross premium. The
minimum valuation standards of mortality and rate of interest
referred to in this section are the standards stated in W.S.
26-6-205(b) and 26-6-206(b). However, for any life insurance
policy issued on or after January 1, 1998 for which the gross
premium in the first policy year exceeds that of the second year
and for which no comparable additional benefit is provided in
the first year for such excess and which provides an endowment
benefit or a cash surrender value or a combination thereof in an
amount greater than such excess premium, the foregoing
provisions of this subsection shall be applied as if the method
actually used in calculating the reserve for such policy were
the method described in W.S. 26-6-205(c)(i). The minimum reserve
at each policy anniversary of such a policy shall be the greater
of the minimum reserve calculated in accordance with W.S.
26-6-205(c) and (d), and the minimum reserve calculated in
accordance with this subsection.