2006 Code of Virginia § 38.2-3723 - Reserves

38.2-3723. Reserves.

A. Each insurer licensed to write credit life insurance in this Commonwealthshall establish and maintain reserves on all such business written in thisCommonwealth. The minimum standard for the valuation for such reserves shallbe on the basis of the net premium method and the Commissioners' 1980Standard Ordinary Mortality Table. Valuation interest rates shall be therates determined for life insurance policies pursuant to 38.2-3132.Reserves may be calculated on an annual or a monthly basis with a reasonableassumption, subject to statistical proof, as to average ages at issue or atexpiration. Tables used in calculating reserves must be filed with andapproved by the Commission.

B. Each insurer licensed to write credit accident and sickness insurance inthis Commonwealth shall establish and maintain reserves on all such businesswritten in this Commonwealth. The minimum standard for the calculation ofsuch reserves shall be the total gross unearned premiums calculated by theactuarial method, but not less than the aggregate amounts calculated as ofthe valuation date by the refund formulas approved for the policies by theCommission pursuant to subsection C of 38.2-3729. It may be assumed thatall business written in any calendar month was written as of the fifteenth ofsuch month.

C. In no event shall the aggregate reserves for all policies, contracts andbenefits be less than the aggregate reserves determined by a qualifiedactuary to be necessary to support fully the insurer's obligations under itspolicies, certificates and contracts.

(1982, c. 223, 38.1-482.12:1; 1986, c. 562, 38.2-3715; 1992, c. 586;2002, c. 72.)