Sec. 24. (a) Except as provided in sections 25, 26, and 33 of this chapter, the minimum standard for the valuation of contracts issued before the operative date of the Valuation Manual specified in section 34 of this chapter and on or after the transition date selected by the company under IC 27-1-12-12, the transition date in no event to be later than January 1, 1948, is:

(1) the commissioners reserve valuation methods described in sections 27, 28, 31, and 33 of this chapter;

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Terms Used In Indiana Code 27-1-12.8-24

  • 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.
  • Commissioner: means the "insurance commissioner" of this state. See Indiana Code 27-1-2-3
  • Department: means "the department of insurance" of this state. See Indiana Code 27-1-2-3
  • Insurance: means a contract of insurance or an agreement by which one (1) party, for a consideration, promises to pay money or its equivalent or to do an act valuable to the insured upon the destruction, loss or injury of something in which the other party has a pecuniary interest, or in consideration of a price paid, adequate to the risk, becomes security to the other against loss by certain specified risks; to grant indemnity or security against loss for a consideration. See Indiana Code 27-1-2-3
  • life insurance: means insurance under a contract that incorporates mortality risk, including annuity and pure endowment contracts. See Indiana Code 27-1-12.8-10
  • NAIC: refers to the National Association of Insurance Commissioners. See Indiana Code 27-1-12.8-11
  • premium: means money or any other thing of value paid or given in consideration to an insurer, insurance producer, or solicitor on account of or in connection with a contract of insurance and shall include as a part but not in limitation of the above, policy fees, admission fees, membership fees and regular or special assessments and payments made on account of annuities. See Indiana Code 27-1-2-3
  • reserves: means reserve liabilities. See Indiana Code 27-1-12.8-15
(2) three and one-half percent (3 1/2%) interest; or

(3) in the case of life insurance contracts (other than annuity and pure endowment contracts) issued after August 31, 1973:

(A) four percent (4%) interest for contracts issued before September 1, 1979;

(B) five and one-half percent (5 1/2%) interest for single premium life insurance contracts; and

(C) four and one-half percent (4 1/2%) interest for all other contracts issued after August 31, 1979.

     (b) In addition to the minimum standards specified in subsection (a), the following tables apply:

(1) For ordinary contracts of life insurance issued on the standard basis, excluding disability and accidental death benefits in the contracts:

(A) the Commissioners 1941 Standard Ordinary Mortality Table for contracts issued before the operative date of the fifth paragraph of IC 27-1-12-7(d);

(B) for any category of contracts issued:

(i) on male risks; and

(ii) on or after the operative date of the fifth paragraph of IC 27-1-12-7(d) and before the operative date of IC 27-1-12-7(dd);

the Commissioners 1958 Standard Ordinary Mortality Table;

(C) for any category of contracts issued:

(i) on female risks; and

(ii) on or after the operative date of the fifth paragraph of IC 27-1-12-7(d) and before the operative date of IC 27-1-12-7(dd);

the Commissioners 1958 Standard Ordinary Mortality Table with all modified net premiums and present values referred to in sections 19 through 40 of this chapter calculated according to an age not more than six (6) years younger than the actual age of the insured; and

(D) for contracts issued on or after the operative date of IC 27-1-12-7(dd):

(i) the Commissioners 1980 Standard Ordinary Mortality Table;

(ii) at the election of the company for one (1) or more specified plans of life insurance, the Commissioners 1980 Standard Ordinary Mortality Table with Ten-Year Select Mortality Factors; or

(iii) an ordinary mortality table, adopted after 1980 by the NAIC, which is approved by rule adopted by the department under IC 4-22-2 for use in determining the minimum standard of valuation for the contracts.

(2) For industrial life insurance contracts issued on the standard basis, excluding disability and accidental death benefits in the contracts:

(A) the 1941 Standard Industrial Mortality Table for contracts bearing a date of issue before the operative date of the seventh paragraph of IC 27-1-12-7(d); and

(B) for contracts bearing a date of issue that is the same as or later than the operative date described in clause (A), the Commissioners 1961 Standard Industrial Mortality Table or an industrial mortality table adopted after 1980 by the NAIC that is approved by rule adopted by the department under IC 4-22-2 for use in determining the minimum standard of valuation for the contracts.

(3) For individual annuity and pure endowment contracts, excluding disability and accidental death benefits in the contracts:

(A) the 1937 Standard Annuity Mortality Table; or

(B) at the option of the company, the Annuity Mortality Table for 1949, Ultimate; or

(C) a modification of a table specified in clause (A) or (B) that is approved by the commissioner in rules adopted under IC 4-22-2.

(4) For group annuity and pure endowment contracts, excluding disability and accidental death benefits in the contracts:

(A) the Group Annuity Mortality Table for 1951;

(B) a modification of the table approved by the commissioner in rules adopted under IC 4-22-2; or

(C) at the option of the company, any of the tables or modifications of tables specified for individual annuity and pure endowment contracts.

(5) For total and permanent disability benefits in or supplementary to contracts:

(A) for contracts issued after December 31, 1965, 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 tables of disablement rates and termination rates adopted after 1980 by the NAIC, that are approved by rule adopted by the department under IC 4-22-2 for use in determining the minimum standard of valuation for those contracts;

(B) for contracts issued after December 31, 1960, and before January 1, 1966:

(i) the tables described in clause (A); or

(ii) at the option of the company, the Class (3) Disability Table (1926); and

(C) for contracts issued before January 1, 1961, the Class (3) Disability Table (1926).

Any table described in this subdivision must, for active lives, be combined with a mortality table permitted for calculating the reserves for life insurance contracts.

(6) For accidental death benefits in or supplementary to contracts issued after December 31, 1965:

(A) the 1959 Accidental Death Benefits Table or any accidental death benefits table adopted after 1980 by the NAIC that is approved by rule adopted by the commissioner under IC 4-22-2 for use in determining the minimum standard of valuation for the contracts;

(B) for contracts issued after December 31, 1960, and before January 1, 1966:

(i) the table described in clause (A); or

(ii) at the option of the company, the Inter-Company Double Indemnity Mortality Table; and

(C) for contracts issued before January 1, 1961, the Inter-Company Double Indemnity Mortality Table.

A table described in this subdivision must be combined with a mortality table for calculating the reserves for life insurance contracts.

(7) For group life insurance, life insurance issued on the substandard basis, and other special benefits, tables approved by the commissioner in rules adopted under IC 4-22-2.

As added by P.L.276-2013, SEC.10. Amended by P.L.124-2018, SEC.25.

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