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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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