38.2-1311 - Valuation reserves. - Virginia Statutes

§ 38.2-1311. Valuation reserves.

A. Every insurer licensed to transact the kinds of insurance specified in §§38.2-102, 38.2-106 and 38.2-109 and subject to the applicable provisions ofthis title, shall maintain:

1. Reserves on all of its life insurance policies or certificates and annuitycontracts in force, computed according to the applicable tables of mortalityand interest rates prescribed in this title;

2. Reserves for both reported and unreported (i) disability benefits,including reserves for disabled lives, and (ii) accidental death benefits; and

3. Any additional reserves prescribed by the Commission as necessary onaccount of the insurer's policies, certificates and contracts.

B. For all accident and sickness insurance policies the insurer shallmaintain an active life reserve that shall (i) place a reasonable value onits liabilities under the policies, (ii) be not less than the reserveaccording to appropriate standards set forth in any regulations issued by theCommission and, (iii) be not less in the aggregate than the pro rata grossunearned premiums for those policies.

(1952, c. 317, § 38.1-170; 1962, c. 562; 1986, c. 562.)