304.29-251 Valuation.
(1)
(2)
(3)
(4)
Standards of valuation for certificates issued prior to one (1) year after January 1,
1989, shall be those provided by the laws applicable immediately prior to January 1,
1989.
The minimum standards of valuation for certificates issued on or after one (1) year
from January 1, 1989, 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.
The commissioner may, in his or her discretion, accept other standards for valuation
if he or she 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 commissioner 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.
Any society, with the consent of the commissioner of insurance of the state of
domicile of the society and under the conditions, if any, which the commissioner
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.
Effective: July 15, 2010
History: Amended 2010 Ky. Acts ch. 24, sec. 1397, effective July 15, 2010. -- Created
1988 Ky. Acts ch. 310, sec. 25, effective January 1, 1989.
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