§3791d. Computation of minimum standard

Link to law: http://legislature.vermont.gov/statutes/section/08/103/03791d
Published: 2015

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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.)
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