US Laws, Codes, Statutes & Cases

                                  TITLE  41
                                  INSURANCE
                                  CHAPTER 32
                         FRATERNAL BENEFIT SOCIETIES
    41-3224.  VALUATION. (1) Standards of valuation for certificates issued
prior to one (1) year after the effective date of this act shall be those
provided by the laws applicable immediately prior to the effective date of
this act.
    (2)  The minimum standards of valuation for certificates issued on or
after one (1) year from the effective date of this act shall be based on the
following tables:
    (a)  For certificates of life insurance -- the commissioner's 1941
    standard ordinary mortality  table, the commissioner's 1941 standard
    industrial mortality table, the commissioner's 1958 standard ordinary
    mortality table, the commissioner's 1980 standard ordinary mortality table
    or any more recent table made applicable to life insurers;
    (b)  For annuity and pure endowment certificates, for total and permanent
    disability benefits, for accidental death benefits and for noncancellable
    accident and health benefits -- such tables as are authorized for use by
    life insurers in this state.
All of the above shall be under valuation methods and standards (including
interest assumptions) in accordance with the laws of this state applicable to
life insurers issuing policies containing like benefits.
    (3)  The director may, in his discretion, accept other standards for
valuation if the director finds that the reserves produced thereby will not be
less in the aggregate than reserves computed in accordance with the minimum
valuation standard herein prescribed. The director may, in his or her
discretion, vary the standards of mortality applicable to all benefit
contracts on substandard lives or other extra hazardous lives by any society
authorized to do business in this state.
    (4)  Any society, with the consent of the director of insurance of the
state of domicile of the society and under such conditions, if any, which the
director may impose, may establish and maintain reserves on its certificates
in excess of the reserves required thereunder, but the contractual rights of
any benefit member shall not be affected thereby.