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Searching 2021-2022 Session

The Vermont Statutes Online

 

Title 8 : Banking and Insurance

Chapter 103 : LIFE INSURANCE POLICIES AND ANNUITY CONTRACTS

Subchapter 004A : Standard Valuation Law

(Cite as: 8 V.S.A. § 3791b)
  • § 3791b. Reserve valuation

    (a)(1) Policies and contracts issued prior to the operative date of the Valuation Manual. The Commissioner shall annually value, or cause to be valued, the reserve liabilities, hereinafter called reserves, for all outstanding life insurance policies and annuity and pure endowment contracts of every life company doing business in this State issued on or after the effective date of July 1, 1968 and prior to the operative date of the Valuation Manual. In calculating reserves, the Commissioner may use group methods and approximate averages for fractions of a year or otherwise. In making a valuation, the Commissioner may use the Department's actuary or employ an actuary for that purpose, and the reasonable compensation and expenses of the actuary, at a rate approved by the Commissioner, upon demand by the Commissioner supported by an itemized statement of such compensation and expenses, shall be paid by the insurer. In lieu of the valuation of the reserves required of a foreign or alien company, the Commissioner may accept a valuation made, or caused to be made, by the insurance supervisory official of any state or other jurisdiction when the valuation complies with the minimum standard provided in this subchapter.

    (2) The provisions set forth in sections 3791d-3791m of this subchapter shall apply to all policies and contracts, as appropriate, subject to this subchapter issued on or after July 1, 1968 and prior to the operative date of the Valuation Manual and the provisions set forth in sections 3791n and 3791o of this subchapter shall not apply to any such policies and contracts.

    (3) The minimum standard for the valuation of policies and contracts issued prior to July 1, 1968 shall be that provided by the laws in effect immediately prior to that date.

    (b)(1) Policies and contracts issued on or after the operative date of the Valuation Manual. The Commissioner shall annually value, or cause to be valued, the reserve liabilities, hereinafter called reserves, for all outstanding life insurance contracts, annuity and pure endowment contracts, accident and health contracts, and deposit-type contracts of every company issued on or after the operative date of the Valuation Manual. In making a valuation, the Commissioner may use the Department's actuary or employ an actuary for that purpose, and the reasonable compensation and expenses of the actuary, at a rate approved by the Commissioner, upon demand by the Commissioner supported by an itemized statement of such compensation and expenses, shall be paid by the insurer. In lieu of the valuation of the reserves required of a foreign or alien company, the Commissioner may accept a valuation made, or caused to be made, by the insurance supervisory official of any state or other jurisdiction when the valuation complies with the minimum standard provided in this subchapter.

    (2) The provisions set forth in sections 3791n and 3791o of this subchapter shall apply to all policies and contracts issued on or after the operative date of the Valuation Manual. (Added 2015, No. 63, § 1, eff. June 17, 2015.)