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304.6-040 Liabilities, in general.
In any determination of the financial condition of an insurer, capital stock and
liabilities to be charged against its assets shall include:
(1) The amount of its capital stock outstanding, if any, less the amount of shares
held by the insurer as treasury stock as provided in subsection (3) of KRS
304.6-020;
(2) The amount, estimated consistent with the provisions of Subtitle 6, necessary
to pay all of its unpaid losses and claims incurred on or prior to the date of
statement, whether reported or unreported, together with the expenses of
adjustment or settlement thereof;
(3) With reference to life insurance policies and annuity contracts, and disability
and accidental death benefits in or supplemental thereto:
(a) The amount of reserves on life insurance policies and annuity contracts in
force, valued according to the tables of mortality, rates of interest, and
methods adopted pursuant to KRS 304.6-130 to 304.6-180, inclusive;
(b) Reserves for disability benefits, for both active and disabled lives required
by paragraph (e) of subsection (2) of KRS 304.6-140;
(c) Reserves for accidental death benefits, required by paragraph (f) of
subsection (2) of KRS 304.6-140; and
(d) Any additional reserves which may be required by the commissioner
consistent with applicable customary and general practice in insurance
accounting as set forth in regulations promulgated by the commissioner
but no such additional reserve shall be required of any company solely for
contingent liabilities which may arise under any agreement, filed with and
approved by the commissioner, for the assumption of liability by the
company growing out of the acts of its exclusive agents within the course
and scope of their representation;
(4) Reserves for health insurance required by KRS 304.6-070;
(5) With reference to insurance other than specified in subsections (3) and (4) of
this section, and other than title insurance, the amount of the policy reserves
computed in accordance with Subtitle 6;
(6) Taxes, expenses and other obligations due or accrued at the date of the
statement; and
(7) Deferred tax liabilities as defined in SSAP No. 10.
Effective:July 15, 2010
History: Amended 2010 Ky. Acts ch. 24, sec. 997, effective July 15, 2010. -Amended 2004 Ky. Acts ch. 24, sec. 13, effective July 13, 2004. -- Amended
1978 Ky. Acts ch. 161, sec. 5, effective June 17, 1978. -- Created 1970 Ky. Acts
ch. 301, subtit. 6, sec. 4, effective June 18, 1970.
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