§ 27-4.5-7 - Optional reserve calculation. - Rhode Island Statutes

SECTION 27-4.5-7

   § 27-4.5-7  Optional reserve calculation.– (a) Reserves for all policies and contracts issued prior to January 1, 1994,may be calculated, at the option of the company, according to any standardsconsistent with the laws in effect immediately prior to that date.

   (b) Reserves for any category of policies, contracts, orbenefits as established by the commissioner of insurance, issued on or afterthe January 1, 1994, may be calculated, at the option of the company, accordingto any standards which produce greater aggregate reserves for the category thanthose calculated according to the minimum standard provided in this chapter,but the rate or rates of interest used for policies and contracts, other thanannuity and pure endowment contracts, shall not be higher than thecorresponding rate or rates of interest used in calculating any nonforfeiturebenefits provided in them.

   (c) Any company which at any time shall have adopted anystandard of valuation producing greater aggregate reserves than thosecalculated according to the minimum standard provided in this chapter may, withthe approval of the commissioner of insurance, adopt any lower standard ofvaluation, but not lower than the minimum provided in this chapter; providedthat, for the purposes of this section, the holding of additional reservespreviously determined by a qualified actuary to be necessary to render theopinion required by § 27-4.5-3 shall not be deemed to be the adoption of ahigher standard of valuation.