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Texas Insurance Code - Section 425.053. Annual Valuation Of Reserves

Legal Research Home > Texas Lawyer > Insurance Code > Texas Insurance Code - Section 425.053. Annual Valuation Of Reserves

§ 425.053. ANNUAL VALUATION OF RESERVES.  (a) The 
department shall annually value or have valued the reserves for all 
outstanding life insurance policies and annuity and pure endowment 
contracts of each life insurance company engaged in business in 
this state.  The department may certify the amount of those 
reserves, specifying the mortality table or tables, rate or rates 
of interest, and methods, including the net level premium method or 
another method, used in computing those reserves.
	(b)  In computing reserves under Subsection (a), the 
department may use group methods and approximate averages for 
fractions of a year or otherwise.
	(c)  Instead of valuing the reserves as required by 
Subsection (a) for a foreign or alien company, the department may 
accept any valuation made by or for the insurance supervisory 
official of another state or jurisdiction if:
		(1)  the valuation complies with the minimum standard 
provided by this subchapter;  and
		(2)  the official accepts as sufficient and valid for 
all legal purposes a certificate of valuation made by the 
department that states the valuation was made in a specified manner 
according to which the aggregate reserves would be at least as large 
as they would be if computed in the manner prescribed by the law of 
that state or jurisdiction.

Added by Acts 2005, 79th Leg., ch. 727, § 1, eff. April 1, 2007.           

Last modified: August 11, 2007