Kentucky Statutes 304.29-251 – Valuation
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(1) Standards of valuation for certificates issued prior to one (1) year after January 1,
1989, shall be those provided by the laws applicable immediately prior to January 1,
1989.
(2) The minimum standards of valuation for certificates issued on or after one (1) year from January 1, 1989, shall be based on the following tables:
(a) 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 any more recent table made applicable to life insurers;
(b) For annuity and pure endowment certificates, for total and permanent disability benefits, for accidental death benefits and for noncancellable accident and health benefits — such tables as are authorized for use by life insurers in this state.
All of the above shall be under valuation methods and standards, including interest assumptions, in accordance with the laws of this state applicable to life insurers issuing policies containing like benefits.
(3) The commissioner may, in his or her discretion, accept other standards for valuation if he or she finds that the reserves produced thereby will not be less in the aggregate than reserves computed in accordance with the minimum valuation standard herein prescribed. The commissioner may, in his or her discretion, vary the standards of mortality applicable to all benefit contracts on substandard lives or other extra hazardous lives by any society authorized to do business in this state.
(4) Any society, with the consent of the commissioner of insurance of the state of domicile of the society and under the conditions, if any, which the commissioner may impose, may establish and maintain reserves on its certificates in excess of the reserves required thereunder, but the contractual rights of any benefit member shall not be affected thereby.
Effective: July 15, 2010
History: Amended 2010 Ky. Acts ch. 24, sec. 1397, effective July 15, 2010. — Created
1988 Ky. Acts ch. 310, sec. 25, effective January 1, 1989.
1989, shall be those provided by the laws applicable immediately prior to January 1,
Terms Used In Kentucky Statutes 304.29-251
- 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: shall mean an adult member who is designated by the laws or rules of the society to be a benefit member under a benefit contract. See Kentucky Statutes 304.29-041
- Laws: shall mean the society's articles of incorporation, constitution and bylaws, however designated. See Kentucky Statutes 304.29-041
- Society: shall mean fraternal benefit society, unless otherwise indicated. See Kentucky Statutes 304.29-041
- State: when applied to a part of the United States, includes territories, outlying possessions, and the District of Columbia. See Kentucky Statutes 446.010
- Year: means calendar year. See Kentucky Statutes 446.010
1989.
(2) The minimum standards of valuation for certificates issued on or after one (1) year from January 1, 1989, shall be based on the following tables:
(a) 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 any more recent table made applicable to life insurers;
(b) For annuity and pure endowment certificates, for total and permanent disability benefits, for accidental death benefits and for noncancellable accident and health benefits — such tables as are authorized for use by life insurers in this state.
All of the above shall be under valuation methods and standards, including interest assumptions, in accordance with the laws of this state applicable to life insurers issuing policies containing like benefits.
(3) The commissioner may, in his or her discretion, accept other standards for valuation if he or she finds that the reserves produced thereby will not be less in the aggregate than reserves computed in accordance with the minimum valuation standard herein prescribed. The commissioner may, in his or her discretion, vary the standards of mortality applicable to all benefit contracts on substandard lives or other extra hazardous lives by any society authorized to do business in this state.
(4) Any society, with the consent of the commissioner of insurance of the state of domicile of the society and under the conditions, if any, which the commissioner may impose, may establish and maintain reserves on its certificates in excess of the reserves required thereunder, but the contractual rights of any benefit member shall not be affected thereby.
Effective: July 15, 2010
History: Amended 2010 Ky. Acts ch. 24, sec. 1397, effective July 15, 2010. — Created
1988 Ky. Acts ch. 310, sec. 25, effective January 1, 1989.