Montana Code 33-2-417. Reserve calculation — indeterminate premium plans — minimum standards for disability plans and accident and health plans
33-2-417. Reserve calculation — indeterminate premium plans — minimum standards for disability plans and accident and health plans. (1) In the case of a plan of life insurance that provides for future premium determination, the amounts of which are to be determined by the insurer based on then estimates of future experience, or in the case of a plan of life insurance or annuity that is of a nature that the minimum reserves cannot be determined by the methods described in 33-2-411 and 33-2-412(3), the reserves that are held under the plan must:
Terms Used In Montana Code 33-2-417
- Accident and health insurance: means contracts that incorporate morbidity risk and provide protection against economic loss resulting from accident, sickness, or medical conditions. See Montana Code 33-2-402
- 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.
- Insurer: means an entity that:
(a)has written, issued, or reinsured life insurance contracts, accident and health insurance contracts, or deposit-type contracts in Montana and has at least one of the named contracts in force or on claim; or
(b)has written, issued, or reinsured life insurance contracts, accident and health insurance contracts, or deposit-type contracts in any state and is required to hold a certificate of authority to write life insurance, accident and health insurance, or deposit-type contracts in Montana. See Montana Code 33-2-402
- Life insurance: means contracts that incorporate mortality risk, including annuity and pure endowment contracts. See Montana Code 33-2-402
- Valuation manual: means the valuation manual adopted by the NAIC in accordance with its model law regarding standard valuation and adopted by the commissioner by rule. See Montana Code 33-2-402
(a)be appropriate in relation to the benefits and the pattern of premiums for that plan; and
(b)be computed by a method that is consistent with the principles of 33-2-407 through 33-2-415.
(2)The commissioner may promulgate a rule containing the minimum standards applicable to the valuation of disability plans issued prior to the operative date of the valuation manual. For accident and health insurance contracts issued on or after the operative date of the valuation manual and after the applicable effective date provided in 33-2-403, the minimum standard of valuation prescribed by the valuation manual must be used.