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The Vermont Statutes Online
Title
08
:
Banking and Insurance
Chapter
103
:
LIFE INSURANCE POLICIES AND ANNUITY CONTRACTS
Subchapter
004A
:
STANDARD VALUATION LAW
§
3791d. Computation of minimum standard
Except as
provided in sections 3791e, 3791f, and 3791m of this subchapter, the minimum
standard for the valuation of policies and contracts issued prior to the
effective date of this subchapter shall be that provided by the laws in effect
immediately prior to that date. Except as otherwise provided in sections 3791e,
3791f, and 3791m of this subchapter, the minimum standard for the valuation of
all policies and contracts issued on or after July 1, 1968 shall be the
Commissioners reserve valuation methods defined in sections 3791g, 3791h,
3791k, and 3791m of this subchapter, three and one-half percent interest, or in
the case of life insurance policies and contracts, other than annuity and pure
endowment contracts, issued on or after April 12, 1973, four percent interest
for policies issued prior to January 1, 1980, five and one-half percent
interest for single premium life insurance policies and four and one-half
percent interest, and for all other policies issued on and after January 1,
1980, and the following tables:
(1) For ordinary
policies of life insurance issued on the standard basis, excluding any
disability and accidental death benefits in the policies: the Commissioners
1941 Standard Ordinary Mortality Table for policies issued prior to the
operative date of section 3766 of this chapter, the Commissioners 1958 Standard
Ordinary Mortality Table for policies issued on or after the operative date of
section 3766 of this chapter and prior to the operative date of section 3768 of
this chapter provided that for any category of policies issued on female risks,
all modified net premiums and present values referred to in this subchapter may
be calculated according to an age not more than six years younger than the actual
age of the insured; and for policies issued on or after the operative date of
section 3768 of this chapter:
(A) the
Commissioners 1980 Standard Ordinary Mortality Table;
(B) at the
election of the company for any one or more specified plans of life insurance,
the Commissioners 1980 Standard Ordinary Mortality Table with Ten-Year Select
Mortality Factors; or
(C) any ordinary
mortality table, adopted after 1980 by the NAIC, that is approved by rule
adopted by the Commissioner for use in determining the minimum standard of
valuation for such policies.
(2) For
industrial life insurance policies issued on the standard basis, excluding any
disability and accidental death benefits in the policies: the 1941 Standard
Industrial Mortality Table for policies issued prior to the operative date of
section 3767 of this chapter, and for policies issued on or after the operative
date of section 3767 of this chapter, the Commissioners 1961 Standard
Industrial Mortality Table or any industrial mortality table adopted after 1980
by the NAIC that is approved by rule adopted by the Commissioner for use in
determining the minimum standard of valuation for the policies.
(3) For
individual annuity and pure endowment contracts, excluding any disability and
accidental death benefits in the policies: the 1937 Standard Annuity Mortality
Table, or at the option of the company, the Annuity Mortality Table for 1949,
Ultimate, or any modification of either of these tables approved by the
Commissioner.
(4) For group
annuity and pure endowment contracts, excluding any disability and accidental
death benefits in the policies: the Group Annuity Mortality Table for 1951, a
modification of the table approved by the Commissioner, or 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 ordinary policies or
contracts: for policies or contracts issued on or after January 1, 1966, 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 any tables of disablement rates and termination rates
adopted after 1980 by the NAIC, that are approved by rule adopted by the
Commissioner for use in determining the minimum standard of valuation for those
policies; for policies or contracts issued on or after January 1, 1961, and
prior to January 1, 1966, either those tables or, at the option of the company,
the Class 3 Disability Table of 1926; and for policies issued prior to January
1, 1961, the Class 3 Disability Table of 1926. Any such table shall, for active
lives, be combined with a mortality table permitted for calculating the reserves
for life insurance policies.
(6) For
accidental death benefits in or supplementary to policies issued on or after
January 1, 1966: the 1959 Accidental Death Benefits Table or any accidental
death benefits table adopted after 1980 by the NAIC approved by rule adopted by
the Commissioner for use in determining the minimum standard of valuation for
those policies, for policies issued on or after January 1, 1961, and prior to
January 1, 1966, either that table or, at the option of the company, the
Inter-Company Double Indemnity Mortality Table; and for policies issued prior
to January 1, 1961, the Inter-Company Double Indemnity Mortality Table. Either
table shall be combined with a mortality table for calculating the reserves for
life insurance policies.
(7) For group
life insurance, life insurance issued on the substandard basis and other
special benefits: tables approved by the Commissioner. (Added 2015, No. 63, §
1, eff. June 17, 2015.)