§ 58-24-120. Valuation. - North Carolina Statutes

§58‑24‑120.  Valuation.

(a)        Standards ofvaluation for certificates issued prior to one year after the effective date ofthis Article shall be those provided by the laws applicable immediately priorto January 1, 1988.

(b)        The minimumstandards of valuation for certificates issued on or after one year fromJanuary 1, 1988, shall be based on the following tables:

(1)        For certificates oflife insurance – the Commissioner's 1941 Standard Ordinary Mortality Table, theCommissioner's 1941 Standard Industrial Mortality Table, the Commissioner's1958 Standard Ordinary Mortality Table, the Commissioner's 1980 StandardOrdinary Mortality Table or any more recent table made applicable to lifeinsurers;

(2)        For annuity and pureendowment certificates, for total and permanent disability benefits, foraccidental death benefits and for non‑cancellable accident and healthbenefits – such tables as are authorized for use by life insurers in thisState.

All of the above shall be undervaluation methods and standards (including interest assumptions) in accordancewith the laws of this State applicable to life insurers issuing policiescontaining like benefits.

(c)        The Commissionermay, in his or her discretion, accept other standards for valuation if theCommissioner finds that the reserves produced thereby will not be less in theaggregate than reserves computed in accordance with the minimum valuationstandard herein prescribed.  The Commissioner may, in his or her discretion,vary the standards of mortality applicable to all benefit contracts onsubstandard lives or other extra hazardous lives by any society authorized todo business in this State.

(d)        Any society, withthe consent of the Commissioner of the state of domicile of the society andunder such conditions, if any, which the Commissioner may impose, may establishand maintain reserves on its certificates in excess of the reserves requiredthereunder, but the contractual rights of any benefit member shall not beaffected thereby. (1987, c. 483, s. 2; 1991, c. 720, s. 4.)