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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










 

§

3791j. Optional reserve calculation

(a) Reserves for

policies and contracts issued prior to July 1, 1968 may be calculated, at the

option of the company, according to any standards that produce greater

aggregate reserves for all such policies and contracts than the minimum

reserves required by the laws in effect immediately prior to that date.

(b) Reserves for

any category of policies, contracts or benefits established by the

Commissioner, issued on or after July 1, 1968 may be calculated, at the option

of the company, according to any standards that produce greater aggregate

reserves for the category than those calculated according to the minimum

standard provided herein, but the rate or rates of interest used for policies

and contracts, other than annuity and pure endowment contracts, shall not be

greater than the corresponding rate or rates of interest used in calculating

any nonforfeiture benefits provided in the policies or contracts.

(c) A company,

which adopts at any time a standard of valuation producing greater aggregate

reserves than those calculated according to the minimum standard provided under

this subchapter, may adopt a lower standard of valuation with the approval of

the Commissioner, but not lower than the minimum provided herein; provided

that, for the purposes of this section, the holding of additional reserves

previously determined by the appointed actuary to be necessary to render the

opinion required by section 3791c of this subchapter shall not be deemed to be

the adoption of a higher standard of valuation. (Added 2015, No. 63, § 1, eff.

June 17, 2015.)