376.370. Director to value reserves, methods. - Missouri Statutes

Director to value reserves, methods.

376.370. 1. The director of the department of insurance, financialinstitutions and professional registration shall annually value, or cause tobe valued, the reserve liabilities, herein called "reserves", for alloutstanding life insurance policies and annuities and pure endowment contractsof every life insurance company doing business in this state, and may certifythe amount of any such reserves, specifying the mortality table or tables,rate or rates of interest and methods, net level premium method or other, usedin the calculation of such reserves. In calculating such reserves, he may usegroup methods and approximate averages for fractions of a year or otherwise.In lieu of the valuation of the reserves herein required of any foreign oralien company, he may accept any valuation made, or caused to be made, by theinsurance supervisory official of any state or other jurisdiction when suchvaluation complies with the minimum standard herein provided and if theofficial of such state or jurisdiction accepts as sufficient and valid for alllegal purposes the certificate of valuation of the director when suchcertificate states the valuation to have been made in a specified manneraccording to which the aggregate reserves would be at least as large as ifthey had been computed in the manner prescribed by the law of that state orjurisdiction.

2. Reserves for all policies and contracts issued prior to August 28,1993, may be calculated, at the option of the company, according to anystandards which produce greater aggregate reserves for all such policies andcontracts than the minimum reserves required by the laws in effect immediatelyprior to such date. Reserves for any category of policies, contracts orbenefits as established by the director, issued on or after August 28, 1993,may be calculated, at the option of the company, according to any standardswhich produce greater aggregate reserves for such category than thosecalculated according to the minimum standard herein provided, but the rate orrates of interest used for policies and contracts, other than annuity and pureendowment contracts, shall not be higher than the corresponding rate or ratesof interest used in calculating any nonforfeiture benefits provided therein.Any such company which at any time shall have adopted any standard ofvaluation producing greater aggregate reserves than those calculated accordingto the minimum standard herein provided may, with the approval of thedirector, adopt any lower standard of valuation, but not lower than theminimum herein provided; however, for purposes of this subsection, the holdingof additional reserves previously determined by a qualified actuary to benecessary to render the opinion required by subsection 4 of section 376.380shall not be deemed to be the adoption of a higher standard of valuation.

(RSMo 1939 § 5831, A.L. 1943 p. 596, A.L. 1947 V. I p. 335, A.L. 1961 p. 176, A.L. 1993 H.B. 709)

Prior revisions: 1929 § 5720; 1919 § 6131; 1909 § 6925