2006 Kentucky Revised Statutes - .130   Calculation of reserve liabilities, annual valuation.

304.6-130 Calculation of reserve liabilities, annual valuation. (1) The executive director 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 insurer transacting business in this state, except that in the case of an alien insurer, such valuation shall be limited to its United States business; and may certify the amount of any such reserves, specifying the mortality table or tables, rate or rates of interest and methods, net leveled premium method or other, used in the calculation of such reserves. In calculating such reserves, he 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, he may accept any valuation made, or caused to be made, by the insurance supervisory official of any state or other jurisdiction when such valuation complies with the minimum standard herein provided and if the official of such state or jurisdiction accepts as sufficient and valid for all legal purposes the certificate of valuation of the executive director when such certificate states the valuation to have been made in a specified manner according to which the aggregate reserves would be at least as large as if they had been computed in the manner prescribed by law of that state or jurisdiction. Where any such valuation is made by the executive director, he may use the actuary of the office or employ an actuary for the purpose, and the reasonable compensation and expenses of the actuary, at a rate approved by the executive director, upon demand by the executive director supported by an itemized statement of such compensation and expenses, shall be paid by the insurer. When a domestic insurer furnishes the executive director with a valuation of its outstanding policies as computed by its own actuary or by an actuary deemed satisfactory for the purpose by the executive director, the valuation shall be verified by the actuary of the office without cost to the insurer. (2) Any such insurer which at any time shall have adopted any standard of valuation producing greater aggregate reserves than those calculated according to the minimum standard herein provided may, with the approval of the executive director, adopt any lower standard of valuation, but not lower than the minimum herein provided. Effective: June 18, 1970 History:Created 1970 Ky. Acts ch. 301, subtit. 6, sec. 13, effective June 18, 1970. Legislative Research Commission Note (6/20/2005). 2005 Ky. Acts chs. 11, 85, 95, 97, 98, 99, 123, and 181 instruct the Reviser of Statutes to correct statutory references to agencies and officers whose names have been changed in 2005 legislation confirming the reorganization of the executive branch. Such a correction has been made in this section.