§36-1505. Liabilities - Mandatory securities valuation reserves.
303 words·~1 min read·
/ok/title-36-insurance/36-1505·A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
A. In any determination of the financial condition of an insurer, capital stock and liabilities to be charged against its assets shall include:
1. The amount of its capital stock outstanding, if any.
2. The amount, estimated consistent with the provisions of this Code, necessary to pay all of its unpaid losses and claims incurred on or prior to the date of statement, whether reported or unreported, together with the expenses of adjustment or settlement thereof.
3. With reference to life and disability insurance and annuity contracts:
(a)The amount of reserves on life insurance policies and annuity contracts in force, valued according to the tables of mortality, rates of interest, and methods adopted pursuant to this Code which are applicable thereto,
(b)Reserves for disability benefits, for both active and disabled lives,
(c)Reserves for accidental death benefits, and
(d)Any additional reserves which may be required by the Insurance Commissioner consistent with practice formulated or approved by the National Association of Insurance Commissioners, on account of such insurance.
4. With reference to insurance other than specified in subsection 3 this section, and other than title insurance, the amount of reserves equal to the unearned portions of the gross premiums charged on policies in force, computed in accordance with this article.
5. Taxes, expenses and other obligations due or accrued at the date of the statement.
B. All life insurance companies and fraternal benefit societies shall establish and maintain mandatory securities valuation reserves in accordance with the guidelines established by the National Association of Insurance Commissioners. Life insurance companies without mandatory securities valuation reserves as of December 31, 1989, shall begin accruing twenty percent (20%) of the mandatory securities value reserves per year and have reserves in accordance with the required guidelines within five
(5)years. Laws 1957, p. 281, § 1505.