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304.6-140 Minimum standards.
(1)
(2)
This subsection applies only to policies and contracts issued prior to January 1,
1948, or such earlier date after June 13, 1944, as shall have been elected by an
insurer as the date on and after which it would comply with the standard
nonforfeiture law. Except as otherwise provided in paragraph (b) of subsection (2)
of this section, the minimum standard for the valuation of all such policies and
contracts shall be that provided by the laws in effect immediately prior to such date,
except that the minimum standard for the valuation of annuities and pure
endowments purchased under group annuity and pure endowment contracts issued
prior to such effective date shall be that provided by the laws in effect immediately
prior to such date but replacing the interest rates specified in such laws by an
interest rate of five percent (5%) per annum. Reserves for all such policies and
contracts may be calculated, at the option of the insurer, according to any standards
which produce greater aggregate reserves for all such policies and contracts than the
minimum reserves required by this subsection.
This subsection applies only to policies and contracts issued on and after January 1,
1948, or such earlier date after June 13, 1944, as shall have been elected by an
insurer as the date on and after which it would comply with the standard
nonforfeiture law, except as otherwise provided in paragraph (b) of this subsection
for group annuity and pure endowment contracts issued prior to such date.
(a) Except as otherwise provided in paragraph (b) of this subsection and in KRS
304.6-145, the minimum standard for the valuation of all such policies and
contracts shall be the commissioners reserve valuation methods defined in
KRS 304.6-150, 304.6-155, and 304.6-180, five and one-half percent (5.5%)
interest for single premium life insurance policies, five percent (5%) interest
for group annuity and pure endowment contracts, four percent (4%) interest
for all other such policies and contracts issued prior to June 17, 1978, four and
one-half percent (4-1/2%) interest for such policies and contracts, other than
annuity and pure endowment contracts, issued on or after June 17, 1978, and
the following tables:
1.
Standard ordinary mortality table. For all ordinary policies of life
insurance issued on the standard basis, excluding any disability and
accidental death benefits in such policies, -- the commissioners 1941
standard ordinary mortality table; provided, however, that the
commissioners 1958 standard ordinary mortality table shall be the table
for such minimum standard for such policies issued on and after January
1, 1966, or such earlier date after June 16, 1960, as shall have been
elected by an insurer as the date on and after which it would use such
table as the basis for minimum cash surrender values and nonforfeiture
benefits under the standard nonforfeiture law and prior to the effective
date of KRS 304.15-342; provided that for any category of such policies
issued on female risks all modified net premiums and present values
referred to in KRS 304.6-130 to 304.6-180, inclusive, may be calculated
according to an age not more than six (6) years younger than the actual
2.
3.
4.
5.
age of the insured; and for such policies issued on or after the effective
date of KRS 304.15-342 the commissioners 1980 standard ordinary
mortality table, or 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-year select mortality factors, or any
ordinary mortality table, adopted after 1980 by the National Association
of Insurance Commissioners, that is approved by regulation promulgated
by the commissioner for use in determining the minimum standard of
valuation for such policies;
Standard industrial mortality table. For all industrial life insurance
policies issued on the standard basis, excluding any disability and
accidental death benefits in such policies, -- the 1941 standard industrial
mortality table; provided, however, that the commissioners 1961
standard industrial mortality table shall be the table for such minimum
standard for such policies issued on and after January 1, 1968, or such
earlier date after June 14, 1962, as shall have been elected by the insurer
as the date on and after which it would use such table as the basis for
minimum cash surrender values and nonforfeiture benefits under the
standard nonforfeiture law or any industrial mortality table, adopted after
1980 by the National Association of Insurance Commissioners, that is
approved by regulation promulgated by the commissioner for use in
determining the minimum standard of valuation for such policies;
Individual annuity mortality table or annuity mortality table. For
individual annuity and pure endowment contracts, excluding any
disability and accidental death benefits in such policies -- the 1937
standard annuity mortality table or, at the option of the insurer, the
annuity mortality table for 1949, ultimate, or any modification of either
of these tables approved by the commissioner;
Group annuity mortality table. For group annuity and pure endowment
contracts, excluding any disability and accidental death benefits in such
policies -- the group annuity mortality table for 1951, any modification
of such table approved by the commissioner, or, at the option of the
insurer, any of the tables or modifications of tables specified for
individual annuity and pure endowment contracts;
Disability table. For total and permanent disability benefits in or
supplementary to ordinary policies or contracts on active and disabled
lives -- 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 tables of disablement rates and
termination rates, adopted after 1980 by the National Association of
Insurance Commissioners, that are approved by regulation promulgated
by the commissioner for use in determining the minimum standard of
valuation for such policies; for policies or contracts issued on or after
(b)
January 1, 1961 and prior to January 1, 1966, either such tables or, at the
option of the insurer, the class (3) disability table (1926), and for
policies issued prior to January 1, 1961, the class (3) disability table
(1926). In addition, any such table shall, for active lives, be combined
with a mortality table permitted for calculating the reserves for life
insurance policies;
6.
Accidental death mortality table. For accidental death benefits in or
supplementary to policies -- for policies issued on or after January 1,
1966, the 1959 accidental death benefits table or any accidental death
benefits table, adopted after 1980 by the National Association of
Insurance Commissioners, that is approved by regulation promulgated
by the commissioner for use in determining the minimum standard of
valuation for such policies; for policies issued on or after January 1,
1961 and prior to January 1, 1966, either such table or, at the option of
the insurer, the inter-company double indemnity mortality table; and for
policies issued prior to January 1, 1961, the inter-company double
indemnity mortality table. Any such table shall be combined with a
mortality table permitted for calculating the reserves for life insurance
policies; and
7.
Group life and other tables. For group life insurance, life insurance
issued on the substandard basis and other special benefits -- such tables
as may be approved by the commissioner.
Except as provided in KRS 304.6-145, the minimum standard for the
valuation of all individual annuity and pure endowment contracts issued prior
to January 1, 1979, excluding any disability and accidental death benefits in
such contracts, shall be the commissioners reserve valuation methods defined
in KRS 304.6-150 and 304.6-155, six percent (6%) interest for single
premium immediate annuity contracts and four percent (4%) interest for all
other contracts, and the 1971 individual annuity mortality table, or any
modification of this table approved by the commissioner.
1.
The minimum standard for the valuation of all annuities and pure
endowments purchased prior to January 1, 1979, under group annuity
and pure endowment contracts, excluding any disability and accidental
death benefits in such contracts, shall be the commissioners reserve
valuation methods defined in KRS 304.6-150 and 304.6-155, six percent
(6%) interest, and the 1971 group annuity mortality table, or any
modification of this table approved by the commissioner.
2.
The minimum standard for the valuation of all individual annuity and
pure endowment contracts issued on or after January 1, 1979, excluding
any disability and accidental death benefits in such contracts, shall be
the commissioners reserve valuation methods defined in KRS 304.6-150
and 304.6-155, seven and one-half percent (7-1/2%) interest for single
premium immediate annuity contracts, five and one-half percent (51/2%) interest for single premium deferred annuity and pure endowment
3.
4.
contracts and four and one-half percent (4-1/2%) interest for all other
individual annuity and pure endowment contracts, and the 1971
individual annuity mortality table, or any individual annuity mortality
table adopted after 1980 by the National Association of Insurance
Commissioners, that is approved by regulation promulgated by the
commissioner for use in determining the minimum standards of
valuation for such contracts, or any modification of these tables
approved by the commissioner.
The minimum standard for the valuation of all annuities and pure
endowments purchased on or after January 1, 1979 under group annuity
and pure endowment contracts, excluding any disability and accidental
death benefits in such contracts, shall be the commissioners reserve
valuation methods defined in KRS 304.6-150 and 304.6-155, seven and
one-half percent (7-1/2%) interest, and the 1971 group annuity mortality
table, or any group annuity mortality table, adopted after 1980 by the
National Association of Insurance Commissioners, that is approved by
regulation promulgated by the commissioner for use in determining the
minimum standards of valuation for such contracts, or any modification
of these tables approved by the commissioner.
The minimum standard for the valuation of all individual annuity and
pure endowment contracts issued on or after July 1, 1976, and prior to
January 1, 1979, and of all annuities and pure endowments purchased on
or after July 1, 1976, and prior to January 1, 1979, under group annuity
and pure endowment contracts, excluding any disability and accidental
death benefits in such contracts, shall be the standard specified in this
paragraph, or, at the option of the insurer with respect to any such
contracts or purchases, the standard specified in paragraph (a) of this
subsection.
Effective: July 15, 2010
History: Amended 2010 Ky. Acts ch. 24, sec. 1003, effective July 15, 2010. -Amended 1996 Ky. Acts ch. 289, sec. 1, effective July 15, 1996. -- Amended 1982
Ky. Acts ch. 263, sec. 9, effective July 15, 1982. -- Amended 1978 Ky. Acts ch. 280,
sec. 2, effective June 17, 1978. -- Amended 1976 Ky. Acts ch. 313, sec. 1. -Amended 1974 Ky. Acts ch. 308, sec. 52. -- Created 1970 Ky. Acts ch. 301, subtit. 6,
sec. 14, effective June 18, 1970.
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