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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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