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27-36A-20
Section 27-36A-20 Small company alternative valuation. (a) A company calculating reserves under
this section shall calculate reserves for ordinary life insurance, accident and health insurance
contracts, credit life contracts, group life contracts, annuities, or deposit-type contracts
in this state as if the policies were issued before the operative date of the valuation manual.
For such policies issued after the operative date of the valuation manual, any mortality and
interest rates defined by the valuation manual for net premium reserves shall be used. A company
calculating reserves under this section shall comply with Section 27-36A-4(a) instead of Section
27-36A-4(b) and meet all of the following conditions: (1) The company has less than three
hundred million dollars ($300,000,000) of ordinary life premium. (2) If the company is a member
of a group of life insurers, the group has combined ordinary life premium of less than six
hundred million dollars ($600,000,000). (3) The...
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27-36A-3
Section 27-36A-3 Reserve valuation. (a) Policies and contracts issued prior to the operative
date of the valuation manual. (1) The commissioner shall annually value, or cause to be valued,
the reserve liabilities, hereinafter called reserves, for all outstanding life insurance policies
and annuity and pure endowment contracts of every life insurance company doing business in
this state issued on or after January 1, 1972, and prior to the operative date of the valuation
manual. In calculating reserves, the commissioner may use group methods and approximate averages
for fractions of a year or otherwise. In lieu of the valuation of the reserves required of
any foreign or alien insurer, the commissioner may accept any valuation made, or caused to
be made, by the insurance supervisory official of any state or other jurisdiction when valuation
complies with the minimum standard provided in this chapter. (2) The provisions set forth
in Sections 27-36A-5, 27-36A-6, 27-36A-7, 27-36A-8,...
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27-34-37
Section 27-34-37 Annual statements - Valuation of certificates; reserves. (a) As a part of
the annual statement required under Section 27-34-36, each society shall, on or before March
1, file with the commissioner a valuation of its certificates in force on December 31 last
preceding; provided, however, that the commissioner may, in his discretion for cause shown,
extend the time for filing such valuation for not more than two calendar months. Such report
of valuation shall show, as reserve liabilities, the difference between the present midyear
value of the promised benefits provided in the certificates of such society in force and the
present midyear value of the future net premiums as the same are in practice actually collected,
not including therein any value for the right to make extra assessments and not including
any amount by which the present midyear value of future net premiums exceeds the present midyear
value of promised benefits on individual certificates. At the option of...
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27-36A-5
Section 27-36A-5 Computation of minimum standard. (a) Except as provided in Sections 27-36A-6,
27-36A-7 and 27-36A-14, the minimum standard for the valuation of all the policies and contracts
issued prior to May 28, 1996, shall be that provided by the laws in effect immediately prior
to May 28, 1996. (b) Except as otherwise provided in Sections 27-36A-6, 27-36A-7, and 27-36A-14,
the minimum standard for the valuation of all policies and contracts issued on or after May
28, 1996, shall be the commissioners reserve valuation method defined in Sections 27-36A-8,
27-36A-9, 27-36A-12, and 27-36A-14, three and one-half percent interest, or, in the case of
life insurance policies and contracts, other than annuity and pure endowment contracts, issued
on or after August 23, 1976, four percent interest for the policies issued prior to July 30,
1979, and five and one-half percent interest for single premium life insurance policies and
four and one-half percent interest for all other policies...
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27-36A-4
Section 27-36A-4 Actuarial opinion of reserves. (a) Actuarial opinion prior to the operative
date of the valuation manual as defined by Section 27-36A-15. (1) GENERAL. Every life insurance
company doing business in this state shall annually submit the opinion of a qualified actuary
as to whether the reserves and related actuarial items held in support of the policies and
contracts specified by the commissioner by regulation are computed appropriately, are based
on assumptions which satisfy contractual provisions, are consistent with prior reported amounts,
and comply with applicable laws of this state. The commissioner, by regulation, shall define
the specifics of this opinion and add any other items deemed to be necessary to its scope.
(2) ACTUARIAL ANALYSIS OF RESERVES AND ASSETS SUPPORTING RESERVES. a. Every life insurance
company, except as exempted pursuant to regulation, shall also annually include in the opinion
required by subdivision (1) an opinion of the same qualified...
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27-36A-16
Section 27-36A-16 Requirements of a principle-based valuation. (a) A company must establish
reserves using a principle-based valuation that meets the following conditions for policies
or contracts as specified in the valuation manual: (1) Quantify the benefits and guarantees,
and the funding, associated with the contracts and their risks at a level of conservatism
that reflects conditions that include unfavorable events that have a reasonable probability
of occurring during the lifetime of the contracts. For polices or contracts with significant
tail risk, reflects conditions appropriately adverse to quantify the tail risk. (2) Incorporate
assumptions, risk analysis methods and financial models, and management techniques that are
consistent with, but not necessarily identical to, those utilized within the company's overall
risk assessment process, while recognizing potential differences in financial reporting structures
and any prescribed assumptions or methods. (3) Incorporate...
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27-36A-12
Section 27-36A-12 Reserve calculation - Valuation net premium exceeding the gross premium charged.
(a) If in any contract year the gross premium charged by a company on a policy or contract
issued on or after January 1, 1972, 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 required
for the policy or contract shall be the greater of either the reserve calculated according
to the mortality table, rate of interest, and method actually used for the policy or contract,
or the reserve calculated by 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 by the actual gross premium in each contract year for which the valuation net
premium exceeds the actual gross premium. The minimum valuation standards...
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27-36A-2
Section 27-36A-2 Definitions. For purposes of this chapter, the following definitions shall
apply on or after the operative date of the valuation manual as defined by Section 27-36A-15:
(1) ACCIDENT AND HEALTH INSURANCE. Contracts that incorporate morbidity risk and provide protection
against economic loss resulting from accident, sickness, or medical conditions and as may
be specified in the valuation manual. (2) APPOINTED ACTUARY. A qualified actuary who is appointed
in accordance with the valuation manual to prepare the actuarial opinion required in subsection
(b) of Section 27-36A-4. (3) COMPANY. An entity, which (i) has written, issued, or reinsured
life insurance contracts, accident and health insurance contracts, or deposit-type contracts
in this state and has at least one such policy in force or on claim or (ii) has written, issued,
or reinsured life insurance contracts, accident and health insurance contracts, or deposit-type
contracts in any state and is required to hold a...
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27-36A-13
Section 27-36A-13 Reserve calculation - Indeterminate premium plans. In the case of any plan
of life insurance which provides for future premium determination, the amounts of which are
to be determined by the company based on then estimates of future experience, or in the case
of any plan of life insurance or annuity which is of a nature that the minimum reserves cannot
be determined by the methods described in Sections 27-36A-8, 27-36A-9, and 27-36A-12, the
reserves which are held under any plan shall comply with both of the following: (1) Be appropriate
in relation to the benefits and the pattern of premiums for that plan. (2) Be computed by
a method which is consistent with the principles of this standard valuation law, as determined
by regulations promulgated by the commissioner. (Act 2016-411, ยง2.)...
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27-36A-15
Section 27-36A-15 Valuation manual for policies issued on or after the operative date of the
valuation manual. (a) For policies issued on or after the operative date of the valuation
manual, the standard prescribed in the valuation manual is the minimum standard of valuation
required under subsection (b) of Section 27-36A-3, except as provided under subsection (e)
or (g) of this section, Section 27-36A-19, or Section 27-36A-20. (b) The operative date of
the valuation manual is January 1 of the first calendar year following the first July 1 as
of which all of the following have occurred: (1) The valuation manual has been adopted by
the NAIC by an affirmative vote of at least 42 members, or three-fourths of the members voting,
whichever is greater. (2) The Standard Valuation Law, as amended by the NAIC in 2009, or legislation
including substantially similar terms and provisions, has been enacted by states representing
greater than 75 percent of the direct premiums written as reported in...
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