Sec. 887.405. COMPUTATION OF RESERVE LIABILITY. (a) Each year, an association shall compute its reserve liability on all outstanding insurance certificates.
(b) To make the computation, an association:
(1) shall use the net premium basis in accordance with the reserve table and interest rate adopted by the association and approved by the commissioner; and
(2) may use group methods and approximate averages for fractions of a year.
(c) The reserve liability may be computed on not more than a one-year preliminary term.
(d) As soon as practical each year, the commissioner shall compute or cause to be computed the reserve liability of each association. To make the computation, the commissioner may use group methods and approximate averages for fractions of a year.
Added by Acts 2001, 77th Leg., ch. 1419, Sec. 1, eff. June 1, 2003.
Section: Previous 887.358 887.359 887.360 887.401 887.402 887.403 887.404 887.405 887.406 887.407 887.451 887.452 887.453 887.454 887.455 NextLast modified: September 28, 2016