§ 23-84-109 - Calculation of reserves -- Standards of valuation. - Arkansas Statutes

23-84-109. Calculation of reserves -- Standards of valuation.

(a) Reserves for all policies and contracts issued prior to the applicable operative date of this chapter may be calculated, at the option of the insurer, according to any standards which produce greater aggregate reserves for all the policies and contracts than the minimum reserves required by the laws in effect immediately prior to the date.

(b) Reserves for any category of policies, contracts, or benefits as established by the Insurance Commissioner which are issued on or after the applicable operative date of this chapter may be calculated, at the option of the insurer, according to any standards which produce greater aggregate reserves for the category than those calculated according to the minimum standard provided in this chapter, but the rate or rates of interest used for policies and contracts, other than annuity and pure endowment contracts, shall not be higher than the corresponding rate or rates of interest used in calculating any nonforfeiture benefits provided therein.

(c) (1) Any insurer which at any time shall have adopted any standard of valuation producing greater aggregate reserves than those calculated according to the minimum standard provided in this chapter may adopt, with the approval of the commissioner, any lower standard of valuation, but not lower than the minimum provided in this chapter.

(2) However, for the purposes of this chapter, the holding of additional reserves previously determined by a qualified actuary to be necessary to render the opinion required by 23-84-112 shall not be deemed to be the adoption of a higher standard of valuation.