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304.6-140 Minimum standards.
(1)
(2)
This subsection applies only to policies and contracts issued prior to January 1,
1948, or such earlier date after June 13, 1944, as shall have been elected by
an insurer as the date on and after which it would comply with the standard
nonforfeiture law. Except as otherwise provided in paragraph (b) of subsection
(2) of this section, the minimum standard for the valuation of all such policies
and contracts shall be that provided by the laws in effect immediately prior to
such date, except that the minimum standard for the valuation of annuities and
pure endowments purchased under group annuity and pure endowment
contracts issued prior to such effective date shall be that provided by the laws
in effect immediately prior to such date but replacing the interest rates specified
in such laws by an interest rate of five percent (5%) per annum. Reserves for
all such policies and contracts may be calculated, at the option of the insurer,
according to any standards which produce greater aggregate reserves for all
such policies and contracts than the minimum reserves required by this
subsection.
This subsection applies only to policies and contracts issued on and after
January 1, 1948, or such earlier date after June 13, 1944, as shall have been
elected by an insurer as the date on and after which it would comply with the
standard nonforfeiture law, except as otherwise provided in paragraph (b) of
this subsection for group annuity and pure endowment contracts issued prior to
such date.
(a) Except as otherwise provided in paragraph (b) of this subsection and in
KRS 304.6-145, the minimum standard for the valuation of all such
policies and contracts shall be the commissioners reserve valuation
methods defined in KRS 304.6-150, 304.6-155, and 304.6-180, five and
one-half percent (5.5%) interest for single premium life insurance policies,
five percent (5%) interest for group annuity and pure endowment
contracts, four percent (4%) interest for all other such policies and
contracts issued prior to June 17, 1978, four and one-half percent
(4-1/2%) interest for such policies and contracts, other than annuity and
pure endowment contracts, issued on or after June 17, 1978, and the
following tables:
1.
Standard ordinary mortality table. For all ordinary policies of life
insurance issued on the standard basis, excluding any disability and
accidental death benefits in such policies, -- the commissioners
1941 standard ordinary mortality table; provided, however, that the
commissioners 1958 standard ordinary mortality table shall be the
table for such minimum standard for such policies issued on and
after January 1, 1966, or such earlier date after June 16, 1960, as
shall have been elected by an insurer as the date on and after which
it would use such table as the basis for minimum cash surrender
values and nonforfeiture benefits under the standard nonforfeiture
law and prior to the effective date of KRS 304.15-342; provided that
for any category of such policies issued on female risks all modified
net premiums and present values referred to in KRS 304.6-130 to
304.6-180, inclusive, may be calculated according to an age not
2.
3.
4.
5.
more than six (6) years younger than the actual age of the insured;
and for such policies issued on or after the effective date of KRS
304.15-342 the commissioners 1980 standard ordinary mortality
table, or at the election of the company for any one (1) or more
specified plans of life insurance, the commissioners 1980 standard
ordinary mortality table with ten-year select mortality factors, or any
ordinary mortality table, adopted after 1980 by the National
Association of Insurance Commissioners, that is approved by
regulation promulgated by the commissioner for use in determining
the minimum standard of valuation for such policies;
Standard industrial mortality table. For all industrial life insurance
policies issued on the standard basis, excluding any disability and
accidental death benefits in such policies, -- the 1941 standard
industrial mortality table; provided, however, that the commissioners
1961 standard industrial mortality table shall be the table for such
minimum standard for such policies issued on and after January 1,
1968, or such earlier date after June 14, 1962, as shall have been
elected by the insurer as the date on and after which it would use
such table as the basis for minimum cash surrender values and
nonforfeiture benefits under the standard nonforfeiture law or any
industrial mortality table, adopted after 1980 by the National
Association of Insurance Commissioners, that is approved by
regulation promulgated by the commissioner for use in determining
the minimum standard of valuation for such policies;
Individual annuity mortality table or annuity mortality table. For
individual annuity and pure endowment contracts, excluding any
disability and accidental death benefits in such policies -- the 1937
standard annuity mortality table or, at the option of the insurer, the
annuity mortality table for 1949, ultimate, or any modification of
either of these tables approved by the commissioner;
Group annuity mortality table. For group annuity and pure
endowment contracts, excluding any disability and accidental death
benefits in such policies -- the group annuity mortality table for 1951,
any modification of such table approved by the commissioner, or, at
the option of the insurer, any of the tables or modifications of tables
specified for individual annuity and pure endowment contracts;
Disability table. For total and permanent disability benefits in or
supplementary to ordinary policies or contracts on active and
disabled lives -- for policies or contracts issued on or after January
1, 1966, the tables of period 2 disablement rates and the 1930 to
1950 termination rates of the 1952 disability study of the society of
actuaries, with due regard to the type of benefit or any tables of
disablement rates and termination rates, adopted after 1980 by the
National Association of Insurance Commissioners, that are
approved by regulation promulgated by the commissioner for use in
determining the minimum standard of valuation for such policies; for
policies or contracts issued on or after January 1, 1961 and prior to
January 1, 1966, either such tables or, at the option of the insurer,
(b)
the class (3) disability table (1926), and for policies issued prior to
January 1, 1961, the class (3) disability table (1926). In addition, any
such table shall, for active lives, be combined with a mortality table
permitted for calculating the reserves for life insurance policies;
6.
Accidental death mortality table. For accidental death benefits in or
supplementary to policies -- for policies issued on or after January 1,
1966, the 1959 accidental death benefits table or any accidental
death benefits table, adopted after 1980 by the National Association
of Insurance Commissioners, that is approved by regulation
promulgated by the commissioner for use in determining the
minimum standard of valuation for such policies; for policies issued
on or after January 1, 1961 and prior to January 1, 1966, either such
table or, at the option of the insurer, the inter-company double
indemnity mortality table; and for policies issued prior to January 1,
1961, the inter-company double indemnity mortality table. Any such
table shall be combined with a mortality table permitted for
calculating the reserves for life insurance policies; and
7.
Group life and other tables. For group life insurance, life insurance
issued on the substandard basis and other special benefits -- such
tables as may be approved by the commissioner.
Except as provided in KRS 304.6-145, the minimum standard for the
valuation of all individual annuity and pure endowment contracts issued
prior to January 1, 1979, excluding any disability and accidental death
benefits in such contracts, shall be the commissioners reserve valuation
methods defined in KRS 304.6-150 and 304.6-155, six percent (6%)
interest for single premium immediate annuity contracts and four percent
(4%) interest for all other contracts, and the 1971 individual annuity
mortality table, or any modification of this table approved by the
commissioner.
1.
The minimum standard for the valuation of all annuities and pure
endowments purchased prior to January 1, 1979, under group
annuity and pure endowment contracts, excluding any disability and
accidental death benefits in such contracts, shall be the
commissioners reserve valuation methods defined in KRS
304.6-150 and 304.6-155, six percent (6%) interest, and the 1971
group annuity mortality table, or any modification of this table
approved by the commissioner.
2.
The minimum standard for the valuation of all individual annuity and
pure endowment contracts issued on or after January 1, 1979,
excluding any disability and accidental death benefits in such
contracts, shall be the commissioners reserve valuation methods
defined in KRS 304.6-150 and 304.6-155, seven and one-half
percent (7-1/2%) interest for single premium immediate annuity
contracts, five and one-half percent (5-1/2%) interest for single
premium deferred annuity and pure endowment contracts and four
and one-half percent (4-1/2%) interest for all other individual annuity
and pure endowment contracts, and the 1971 individual annuity
3.
4.
mortality table, or any individual annuity mortality table adopted after
1980 by the National Association of Insurance Commissioners, that
is approved by regulation promulgated by the commissioner for use
in determining the minimum standards of valuation for such
contracts, or any modification of these tables approved by the
commissioner.
The minimum standard for the valuation of all annuities and pure
endowments purchased on or after January 1, 1979 under group
annuity and pure endowment contracts, excluding any disability and
accidental death benefits in such contracts, shall be the
commissioners reserve valuation methods defined in KRS
304.6-150 and 304.6-155, seven and one-half percent (7-1/2%)
interest, and the 1971 group annuity mortality table, or any group
annuity mortality table, adopted after 1980 by the National
Association of Insurance Commissioners, that is approved by
regulation promulgated by the commissioner for use in determining
the minimum standards of valuation for such contracts, or any
modification of these tables approved by the commissioner.
The minimum standard for the valuation of all individual annuity and
pure endowment contracts issued on or after July 1, 1976, and prior
to January 1, 1979, and of all annuities and pure endowments
purchased on or after July 1, 1976, and prior to January 1, 1979,
under group annuity and pure endowment contracts, excluding any
disability and accidental death benefits in such contracts, shall be
the standard specified in this paragraph, or, at the option of the
insurer with respect to any such contracts or purchases, the
standard specified in paragraph (a) of this subsection.
Effective:July 15, 2010
History: Amended 2010 Ky. Acts ch. 24, sec. 1003, effective July 15, 2010. -Amended 1996 Ky. Acts ch. 289, sec. 1, effective July 15, 1996. -- Amended
1982 Ky. Acts ch. 263, sec. 9, effective July 15, 1982. -- Amended 1978 Ky.
Acts ch. 280, sec. 2, effective June 17, 1978. -- Amended 1976 Ky. Acts
ch. 313, sec. 1. -- Amended 1974 Ky. Acts ch. 308, sec. 52. -- Created 1970 Ky.
Acts ch. 301, subtit. 6, sec. 14, effective June 18, 1970.
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