2012 Kentucky Revised Statutes
CHAPTER 304 INSURANCE CODE
SUBTITLE 6. Assets and Liabilities
6..130 Calculation of reserve liabilities -- Annual valuation.
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<![CDATA[304.6-130 Calculation of reserve liabilities -- Annual valuation.
(1)
(2)
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 herein
provided 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.
Effective: July 15, 2010
History: 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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