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304.6-134 Exemption of specific product forms or product lines -- Conditions.
(1)
(2)
(3)
(4)
(5)
The commissioner may exempt specific product forms or product lines of a
domestic company, that is licensed and doing business only in Kentucky, from the
requirements of KRS 304.6-143 if:
(a) The commissioner has issued an exemption in writing to the company and has
not subsequently revoked the exemption in writing; and
(b) The company computes reserves using assumptions and methods used prior to
the operative date of the valuation manual and any requirements established
by the commissioner and promulgated by administrative regulation.
A domestic company that has less than three hundred million dollars
($300,000,000) of ordinary life premiums or a company that is a member of a group
of life insurers that has combined ordinary life premiums of less than six hundred
million dollars ($600,000,000) and that is licensed and doing business in Kentucky
is exempt from the requirements of KRS 304.6-143 and 304.6-151 if:
(a) The company reported total adjusted capital of at least four hundred fifty
percent (450%) of authorized control level risk-based capital in the risk-based
capital report for the prior calendar year;
(b) The appointed actuary has provided an unqualified opinion on the reserves in
accordance with KRS 304.6-171 for the prior calendar year; and
(c) The company has provided a certification by a qualified actuary that any
universal life policy with a secondary guarantee, issued or assumed by the
company after the operative date of the valuation manual, meets the definition
of a nonmaterial secondary guarantee universal life product as defined in the
valuation manual.
For purposes of subsection (2) of this section, ordinary life premiums are measured
as direct, plus reinsurance assumed from an unaffiliated company, from the prior
calendar year annual statement.
A domestic company that meets the requirements of subsection (2) of this section
shall file a statement with the commissioner certifying that these requirements have
been met for the current calendar year based on premiums and other values from the
prior calendar year's financial statements prior to July 1 of the current calendar year.
For a domestic company that files a statement under subsection (4) of this section,
KRS 304.6-130, 304.6-132, 304.6-133, 304.6-140, 304.6-141, 304.6-145, 304.6150, 304.6-155, 304.6-160, 304.6-170, 304.6-171, 304.6-180, and 304.15-410 shall
be applicable; however any references to KRS 304.6-143 and 304.6-151 shall not
apply.
Effective: June 24, 2015
History: Created 2015 Ky. Acts ch. 57, sec. 9, effective June 24, 2015.
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