(a)Repealed by Laws 1994, ch. 76, § 3.
(b)Except as otherwise provided in W.S. 26-6-206 and
26-6-207 the minimum standard for the valuation of all policies
and contracts subject to this article issued prior to the
effective date of the standard valuation law shall be that
provided by the laws in effect immediately prior to that date.
Except as otherwise provided in W.S. 26-6-206 and 26-6-207 the
minimum standard for the valuation of all policies and contracts
subject to this article issued on or after the effective date of
the standard valuation law and prior to the operative date of
the valuation manual shall be the commissioners' reserve
valuation method defined in subsections (c) and (e) of this
section, W.S. 26-6-203 and 26-6-207, three and one-half percent
(3 1/2%) interest or four
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(a) Repealed by Laws 1994, ch. 76, § 3.
(b) Except as otherwise provided in W.S. 26-6-206 and
26-6-207 the minimum standard for the valuation of all policies
and contracts subject to this article issued prior to the
effective date of the standard valuation law shall be that
provided by the laws in effect immediately prior to that date.
Except as otherwise provided in W.S. 26-6-206 and 26-6-207 the
minimum standard for the valuation of all policies and contracts
subject to this article issued on or after the effective date of
the standard valuation law and prior to the operative date of
the valuation manual shall be the commissioners' reserve
valuation method defined in subsections (c) and (e) of this
section, W.S. 26-6-203 and 26-6-207, three and one-half percent
(3 1/2%) interest or four percent (4%) interest for life
insurance policies and contracts other than annuity and pure
endowment contracts issued on or after July 1, 1975 and prior to
May 20, 1981, five and one-half percent (5 1/2%) interest for
single premium life insurance policies, and four and one-half
percent (4 1/2%) interest for all other such policies issued on
or after May 20, 1981, and the following tables:
(i) For ordinary policies of life insurance issued on
the standard basis, excluding any disability and accidental
death benefits in those policies:
(A) The commissioners' 1941 standard ordinary
mortality table for such policies issued prior to the effective
date of W.S. 26-16-208(a);
(B) The commissioners' 1958 standard ordinary
mortality table for such policies issued on or after the
effective date of W.S. 26-16-208(a) and prior to the operative
date of W.S. 26-16-209, provided that for any category of such
policies issued on female risks all modified net premiums and
present values referred to in this subsection may be calculated
according to an age not more than six (6) years younger than the
actual age of the insured; and
(C) For such policies issued on or after the
operative date of W.S. 26-16-209:
(I) The commissioners' 1980 standard
ordinary mortality table; or
(II) At the election of the company for any
one (1) or more specified plans of life insurance, the
commissioners' 1980 standard ordinary mortality table with ten
(10) year select mortality factors; or
(III) Any ordinary mortality table adopted
after 1980 by the National Association of Insurance
Commissioners and approved by regulation the commissioner
promulgates for use in determining the minimum standard of
valuation for those policies.
(ii) For industrial life insurance policies issued on
the standard basis, excluding any disability and accidental
death benefits in those policies:
(A) The 1941 standard industrial life insurance
policies for such policies issued prior to the effective date of
W.S. 26-16-208(b);
(B) For such policies issued on or after the
effective date of W.S. 26-16-208(b), the commissioners' 1961
standard industrial mortality table or any industrial mortality
table adopted after 1980 by the National Association of
Insurance Commissioners and approved by regulation the
commissioner promulgates for use in determining the minimum
standard of valuation for those policies.
(iii) For individual annuity and pure endowment
contracts, excluding any disability and accidental death
benefits in those policies, the 1937 standard annuity mortality
table, or, at the insurer's option, the annuity mortality table
for 1949, ultimate, or any modification of either of these
tables the commissioner approves;
(iv) For group annuity and pure endowment contracts,
excluding any disability and accidental death benefits in those
policies, the group annuity mortality table for 1951, any
modification of that table the commissioner approves, or, at the
insurer's option, any of the tables or modifications of tables
specified for individual annuity and pure endowment contracts;
(v) For total and permanent disability benefits in or
supplementary to ordinary policies or contracts, the following
tables, provided any such table, for active lives, shall be
combined with a mortality table permitted for calculating the
reserves for life insurance policies:
(A) For policies or contracts issued on or after
January 1, 1966, the tables of period 2 disablement rates and
the 1930 to 1950 termination rates of the 1952 disability study
of the Society of Actuaries, with due regard to the type of
benefit, or any table of disablement rates and termination rates
the National Association of Insurance Commissioners adopts after
1980 and is approved by regulation the commissioner promulgates
for use in determining the minimum standard of valuation for
those policies;
(B) For policies or contracts issued on or after
January 1, 1961 and prior to January 1, 1966, either such tables
or, at the option of the company, the Class 3 Disability Table
of 1926; and
(C) For policies issued prior to January 1,
1961, the Class 3 Disability Table of 1926.
(vi) For accidental death benefits in or
supplementary to policies, the following tables, provided any
table shall be combined with a mortality table for calculating
the reserves for life insurance policies:
(A) For policies issued on or after January 1,
1966, the 1959 accidental death benefits table or any accidental
death benefits table the National Association of Insurance
Commissioners adopts after 1980 and is approved by regulation
the commissioner promulgates for use in determining the minimum
standard of valuation of those policies;
(B) For policies issued on or after January 1,
1961 and prior to January 1, 1966, either such table or, at the
option of the company, the Inter-Company Double Indemnity
Mortality Table;
(C) For policies issued prior to January 1,
1961, the Inter-Company Double Indemnity Mortality Table.
(vii) For group life insurance, life insurance issued
on the substandard basis and other special benefits, any tables
the commissioner approves.
(c) Except as provided in W.S. 26-6-203, 26-6-207 and
subsection (e) of this section reserves according to the
commissioners' reserve valuation method:
(i) For the life insurance and endowment benefits of
policies providing for a uniform amount of insurance and
requiring the payment of uniform premiums, shall be the excess,
if any, of the present value, at the date of valuation, of the
future guaranteed benefits provided by those policies, over the
then present value of any future modified net policy premiums.
The modified net premiums for any such policy shall be a uniform
percentage of the contract premiums for the benefits such that
the present value, at the date of issue of the policy, of all
the modified net premiums shall be equal to the sum of the then
present value of the benefits provided by the policy and the
excess of (1) over (2) as follows: (1) A net level annual
premium equal to the present value, at the date of issue, of the
benefits provided after the first policy year, divided by the
present value at the date of issue, of an annuity of one (1) per
annum payable on each policy anniversary on which a premium
falls due. The net level annual premium shall not exceed the net
level annual premium on the nineteen (19) year premium whole
life plan for insurance of the same amount at an age one (1)
year higher than the age at issue of the policy; (2) A net one
(1) year term premium for benefits provided in the first policy
year;
(ii) For any life insurance policy issued on or after
January 1, 1998 for which the contract 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
the excess and which provides an endowment benefit or a cash
surrender value or a combination thereof in an amount greater
than the excess premium, the reserve according to the
commissioners' reserve valuation method as of any policy
anniversary occurring on or before the assumed ending date
defined herein as the first policy anniversary on which the sum
of any endowment benefit and any cash surrender value then
available is greater than the excess premium, except as
otherwise provided in W.S. 26-6-203, shall be the greater of the
reserve as of the policy anniversary calculated as described in
paragraph (i) of this subsection and the reserve as of the
policy anniversary calculated as described in that paragraph,
but with:
(A) The value defined in subdivision (1) of
paragraph (i) of this subsection being reduced by fifteen
percent (15%) of the amount of such excess first year premium;
(B) All present values of benefits and premiums
being determined without reference to premiums or benefits
provided for by the policy after the assumed ending date;
(C) The policy being assumed to mature on such
date as an endowment;
(D) The cash surrender value provided on such
date being considered as an endowment benefit; and
(E) In making the comparison specified in this
paragraph the mortality and interest bases stated in subsections
(b) and (h) of this section shall be used.
(d) Reserves according to the commissioners' reserve
valuation method for benefits provided by the following policies
or contracts shall be calculated by a method consistent with the
principles of subsection (c) of this section:
(i) Life insurance policies providing for a varying
amount of insurance or requiring the payment of varying
premiums;
(ii) Group annuity and pure endowment contracts
purchased under a retirement or deferred compensation plan
established or maintained by an employer, an employee
organization or both, other than a plan providing individual
retirement accounts or annuities under section 408 of the
Internal Revenue Code;
(iii) Disability and accidental death benefits in all
policies and contracts; and
(iv) All other benefits, except life insurance and
endowment benefits in life insurance policies and benefits
provided by other annuity and pure endowment contracts.
(e) This section applies to annuity and pure endowment
contracts other than group annuity and pure endowment contracts
purchased under a retirement or deferred compensation plan
established or maintained by an employer, including a
partnership or sole proprietorship, an employee organization, or
both, and other than a plan providing individual retirement
accounts or annuities under section 408 of the Internal Revenue
Code. Reserves according to the commissioners' annuity reserve
method for benefits under annuity or pure endowment contracts,
excluding disability and accidental death benefits in those
contracts, shall be the greatest of the excesses of the present
values, at the date of valuation, of any future guaranteed
benefits, including guaranteed nonforfeiture benefits, provided
by those contracts at the end of each contract year, over the
present value, at the date of valuation, of any future valuation
considerations derived from future gross considerations required
by the terms of the contract that are payable prior to the end
of the contract year. The future guaranteed benefits shall be
determined by using the mortality table and the interest rates
specified in the contracts for determining guaranteed benefits.
The valuation considerations are the portions of the gross
considerations applied under the contracts to determine
nonforfeiture values.
(f) No insurer's aggregate reserves for all life insurance
policies, excluding disability and accidental death benefits,
shall be less than the aggregate reserves calculated in
accordance with the method set forth in subsections (b), (c),
(d), (e) and (h) of this section and W.S. 26-6-203, and the
mortality tables and rates of interest used in calculating
nonforfeiture benefits for those policies. In no event shall the
aggregate reserves for all policies, contracts and benefits be
less than the aggregate reserves determined by the appointed
actuary to be necessary to render the opinion required by W.S.