2005 Minnesota Statutes - 61A.27 — Contingency reserve; limitations.

     61A.27 Contingency reserve; limitations.  


    Any life insurance company doing business in this state may 
 accumulate and maintain, in addition to the capital and surplus 
 contributed by its stockholders, and in addition to an amount 
 equal to the net values of its policies, computed according to 
 the laws of the jurisdiction under which it is organized, a 
 contingency reserve not exceeding the following respective 
 percentages of these net values:  When the net values are less 
 than $100,000, 20 percent thereof, or the sum of $10,000, 
 whichever is the greater; when the net values are greater than 
 $100,000, the percentage thereof measuring the contingency 
 reserve shall decrease one-half of one percent for each $100,000 
 of the net values up to $1,000,000; when the net values are 
 greater than $1,000,000, but do not exceed $25,000,000, the 
 contingency reserve shall not exceed 15 percent thereof; when 
 the net values are greater than $25,000,000, but do not exceed 
 $150,000,000, the contingency reserve shall not exceed 12-1/2 
 percent thereof; when the net values are greater than 
 $150,000,000, the contingency reserve shall not exceed ten 
 percent thereof; provided, that as the net values of these 
 policies increase and the maximum percentage measuring the 
 contingency reserve decreases, the corporation may maintain the 
 contingency reserve already accumulated hereunder, although for 
 the time being it may exceed the maximum percentage herein 
 prescribed, but may not add to the contingency reserve when the 
 addition will bring it beyond the maximum percentage.  For cause 
 shown, the commissioner may, at any time and from time to time, 
 permit any corporation to accumulate and maintain a contingency 
 reserve in excess of the limit above mentioned for a prescribed 
 period, not exceeding one year under any one permission, by 
 filing in the commissioner's office a decision stating the 
 reasons therefor and causing the same to be published in the 
 next annual report.  This section shall not apply to any company 
 doing exclusively a nonparticipating business.  


    HIST: 1967 c 395 art 2 s 27; 1986 c 444