Kentucky Statutes 304.6-040 – Liabilities, in general
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In any determination of the financial condition of an insurer, capital stock and liabilities to be charged against its assets shall include:
(1) The amount of its capital stock outstanding, if any, less the amount of shares held by the insurer as treasury stock as provided in subsection (3) of KRS § 304.6-020;
(2) The amount, estimated consistent with the provisions of Subtitle 6, necessary to pay all of its unpaid losses and claims incurred on or prior to the date of statement, whether reported or unreported, together with the expenses of adjustment or settlement thereof;
(3) With reference to life insurance policies and annuity contracts, and disability and accidental death benefits in or supplemental thereto:
(a) The amount of reserves on life insurance policies and annuity contracts in force, valued according to the tables of mortality, rates of interest, and methods adopted pursuant to KRS § 304.6-130 to KRS § 304.6-180, inclusive;
(b) Reserves for disability benefits, for both active and disabled lives required by paragraph (e) of subsection (2) of KRS § 304.6-140;
(c) Reserves for accidental death benefits, required by paragraph (f) of subsection
(2) of KRS § 304.6-140; and
(d) Any additional reserves which may be required by the commissioner consistent with applicable customary and general practice in insurance accounting as set forth in regulations promulgated by the commissioner but no such additional reserve shall be required of any company solely for contingent liabilities which may arise under any agreement, filed with and approved by the commissioner, for the assumption of liability by the company growing out of the acts of its exclusive agents within the course and scope of their representation;
(4) Reserves for health insurance required by KRS § 304.6-070;
(5) With reference to insurance other than specified in subsections (3) and (4) of this section, and other than title insurance, the amount of the policy reserves computed in accordance with Subtitle 6;
(6) Taxes, expenses and other obligations due or accrued at the date of the statement;
and
(7) Deferred tax liabilities as defined in SSAP No. 10.
Effective: July 15, 2010
History: Amended 2010 Ky. Acts ch. 24, sec. 997, effective July 15, 2010. — Amended
2004 Ky. Acts ch. 24, sec. 13, effective July 13, 2004. — Amended 1978 Ky. Acts ch.
161, sec. 5, effective June 17, 1978. — Created 1970 Ky. Acts ch. 301, subtit. 6, sec.
4, effective June 18, 1970.
(1) The amount of its capital stock outstanding, if any, less the amount of shares held by the insurer as treasury stock as provided in subsection (3) of KRS § 304.6-020;
Terms Used In Kentucky Statutes 304.6-040
- 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.
- Assets: (1) The property comprising the estate of a deceased person, or (2) the property in a trust account.
- Company: may extend and be applied to any corporation, company, person, partnership, joint stock company, or association. See Kentucky Statutes 446.010
- Liabilities: The aggregate of all debts and other legal obligations of a particular person or legal entity.
- Settlement: Parties to a lawsuit resolve their difference without having a trial. Settlements often involve the payment of compensation by one party in satisfaction of the other party's claims.
- SSAP: means the statements of statutory accounting principles in the accounting practices and procedures manual. See Kentucky Statutes 304.6-005
(2) The amount, estimated consistent with the provisions of Subtitle 6, necessary to pay all of its unpaid losses and claims incurred on or prior to the date of statement, whether reported or unreported, together with the expenses of adjustment or settlement thereof;
(3) With reference to life insurance policies and annuity contracts, and disability and accidental death benefits in or supplemental thereto:
(a) The amount of reserves on life insurance policies and annuity contracts in force, valued according to the tables of mortality, rates of interest, and methods adopted pursuant to KRS § 304.6-130 to KRS § 304.6-180, inclusive;
(b) Reserves for disability benefits, for both active and disabled lives required by paragraph (e) of subsection (2) of KRS § 304.6-140;
(c) Reserves for accidental death benefits, required by paragraph (f) of subsection
(2) of KRS § 304.6-140; and
(d) Any additional reserves which may be required by the commissioner consistent with applicable customary and general practice in insurance accounting as set forth in regulations promulgated by the commissioner but no such additional reserve shall be required of any company solely for contingent liabilities which may arise under any agreement, filed with and approved by the commissioner, for the assumption of liability by the company growing out of the acts of its exclusive agents within the course and scope of their representation;
(4) Reserves for health insurance required by KRS § 304.6-070;
(5) With reference to insurance other than specified in subsections (3) and (4) of this section, and other than title insurance, the amount of the policy reserves computed in accordance with Subtitle 6;
(6) Taxes, expenses and other obligations due or accrued at the date of the statement;
and
(7) Deferred tax liabilities as defined in SSAP No. 10.
Effective: July 15, 2010
History: Amended 2010 Ky. Acts ch. 24, sec. 997, effective July 15, 2010. — Amended
2004 Ky. Acts ch. 24, sec. 13, effective July 13, 2004. — Amended 1978 Ky. Acts ch.
161, sec. 5, effective June 17, 1978. — Created 1970 Ky. Acts ch. 301, subtit. 6, sec.
4, effective June 18, 1970.