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304.6-130 Calculation of reserve liabilities -- Application -- Exceptions -- Annual
valuation.
(1)
(a)
(b)
(c)
(2)
(a)
For policies and contracts issued prior to the operative date of the valuation
manual, 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 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, 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 such valuation complies with the minimum standard
provided in KRS 304.6-130 to 304.6-180 and if the official of such state or
jurisdiction accepts as sufficient and valid for all legal purposes the certificate
of valuation of the commissioner 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 commissioner, the commissioner may use the actuary of the
department or employ an actuary for the purpose, and the reasonable
compensation and expenses of the actuary, at a rate approved by the
commissioner, upon demand by the commissioner supported by an itemized
statement of such compensation and expenses, shall be paid by the insurer.
When a domestic insurer furnishes the commissioner with a valuation of its
outstanding policies as computed by its own actuary or by an actuary deemed
satisfactory for the purpose by the commissioner, the valuation shall be
verified by the actuary of the department without cost to the insurer.
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
commissioner, adopt any lower standard of valuation, but not lower than the
minimum herein provided.
The provisions of KRS 304.6-140, 304.6-141, 304.6-145, 304.6-150, 304.6155, 304.6-160, 304.6-170, 304.6-180, and 304.15-410 shall apply to all
policies and contracts as appropriate, issued on or after June 18, 1970, and
prior to the operative date of the valuation manual. The provisions of KRS
304.6-143 and 304.6-151 shall not apply to the policies and contracts issued
on or after June 18, 1970, and prior to the operative date of the valuation
manual.
Except for a company that is exempt under KRS 304.6-134, for policies and
(b)
contracts issued on or after the operative date of the valuation manual, the
commissioner shall annually value or cause to be valued the reserve liabilities,
hereinafter called reserves, for all outstanding life insurance contracts, annuity
and pure endowment contracts, accident and health contracts, and deposit-type
contracts of every company issued on or after the operative date of the
valuation manual. In lieu of the valuation of the reserves required of a foreign
or alien company, the commissioner may accept a valuation made, or caused
to be made, by the insurance supervisory official of any state or other
jurisdiction when the valuation complies with the minimum standard provided
in KRS 304.6-130 to 304.6-180.
Except for a company that is exempt under KRS 304.6-134, KRS 304.6-143
and 304.6-151 shall apply to all policies and contracts issued on or after the
operative date of the valuation manual.
Effective: June 24, 2015
History: Amended 2015 Ky. Acts ch. 57, sec. 10, effective June 24, 2015. -- Amended
2010 Ky. Acts ch. 24, sec. 1002, effective July 15, 2010. -- Created 1970 Ky. Acts
ch. 301, subtit. 6, sec. 13, effective June 18, 1970.
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