Arizona Laws 20-884. Valuation
A. The standards of valuation for certificates that are issued before January 1, 1996 are the standards of valuation that were in effect immediately before January 1, 1995.
Terms Used In Arizona Laws 20-884
- Annuity: A periodic (usually annual) payment of a fixed sum of money for either the life of the recipient or for a fixed number of years. A series of payments under a contract from an insurance company, a trust company, or an individual. Annuity payments are made at regular intervals over a period of more than one full year.
- Benefit member: means an adult who is a member of a fraternal benefit society and who is designated by the laws or rules of the society to be a benefit member under a benefit contract. See Arizona Laws 20-861
- department: means the department of insurance and financial institutions. See Arizona Laws 20-101
- including: means not limited to and is not a term of exclusion. See Arizona Laws 1-215
- Laws: means the articles of incorporation, constitution and bylaws of the society. See Arizona Laws 20-861
- Society: means a fraternal benefit society. See Arizona Laws 20-861
B. The minimum standards of valuation for certificates that are issued on or after January 1, 1996 shall be based on the following tables:
1. For certificates of life insurance: the commissioner’s 1941 standard ordinary mortality table, the commissioner’s 1941 standard industrial mortality table, the commissioner’s 1958 standard ordinary mortality table, the commissioner’s 1980 standard ordinary mortality table or a more recent table that applies to life insurers.
2. For annuity and pure endowment certificates, total and permanent disability benefits, accidental death benefits and noncancellable accident and health benefits: the tables that are authorized for use by like insurers in this state.
C. The tables listed under subsection B of this section shall be under the valuation methods and standards, including interest assumptions, that are in accordance with the laws of this state applicable to life insurers issuing policies containing like benefits.
D. The director may accept other standards for valuation if the director finds that the reserves produced by those standards will not be less in the aggregate than the reserves computed in accordance with the minimum valuation standards prescribed by this section. The director may vary the standards of mortality that apply to all benefit contracts on substandard lives or other extra hazardous lives issued by a society authorized to do business in this state.
E. With the consent of the insurance director in the domiciliary state of the society and under any conditions that the director of the department of insurance and financial institutions in this state may impose, a society may establish and maintain reserves on its certificates in excess of the reserves required by the standards of valuation, except that the contractual rights of a benefit member are not affected by the excess reserves.