40-234a. Reserves required for accident and health policies; unearned premium reserves. - Kansas Statutes

40-234a

Chapter 40.--INSURANCE Article 2.--GENERAL PROVISIONS

      40-234a.   Reserves required for accident and health policies; unearnedpremium reserves.For all individual accident and health and group accident and healthinsurance policies, the insurershall maintain reserves which shall place a sound value on itsliabilities under such policies and which shall not be less than thereserves according to the standards set forth in regulations issued bythe commissioner and, unless otherwise specificallyprovided herein, less than the gross pro rata unearnedpremium reserve for such policies.For all individual accident and health and group accident and health insurancepolicies where the exposure to risk is decreasing in equal amounts duringthe contract period and where premium refunds on such policies would becomputed using only the "sum of the digits" or "rule of 78" method, theinsurer shall maintain unearned premium reserves which shall not be lessthan the gross unearned premium reserves computed using the "sum of thedigits" or "rule of 78" unearned premium reserve method.

      History:   L. 1967, ch. 258, § 1; L. 1980, ch. 129, § 1;L. 1985, ch. 159, § 2; July 1.