31A-17-510 - Optional reserve calculation. - Utah Statutes

31A-17-510. Optional reserve calculation.
(1) Reserves for all policies and contracts issued prior to January 1, 1994, may becalculated, at the option of the company, according to any standards which produce greateraggregate reserves for all such policies and contracts than the minimum reserves required by thelaws in effect immediately prior to that date. Reserves for any category of policies, contracts, orbenefits as established by the commissioner, issued on or after January 1, 1994, may becalculated, at the option of the company, according to any standards which produce greateraggregate reserves for such category than those calculated according to the minimum standardherein provided, but the rate or rates of interest used for policies and contracts, other than annuityand pure endowment contracts, shall not be higher than the corresponding rate or rates of interestused in calculating any nonforfeiture benefits provided therein.
(2) Any such company which at any time shall have adopted any standard of valuationproducing greater aggregate reserves than those calculated according to the minimum standardherein provided may, with the approval of the commissioner, adopt any lower standard ofvaluation, but not lower than the minimum herein provided; provided, however, that, for thepurposes of this section, the holding of additional reserves previously determined by a qualifiedactuary to be necessary to render the opinion required by Section 31A-17-502 shall not beconsidered to be the adoption of a higher standard of valuation.

Enacted by Chapter 305, 1993 General Session