Code of Virginia - Title 38.2 Insurance - Section 38.2-3126 Annual valuation of reserves

§ 38.2-3126. Annual valuation of reserves

A. The Commission shall annually value or have valued the reserve liabilities, referred to in this article as "reserves," for all outstanding life insurance policies and annuity and pure endowment contracts of each life insurer doing business in this Commonwealth. For an alien insurer the valuation shall be limited to its United States business. The Commission may certify the amount of the reserves, specifying the mortality table, interest rates and net level premium or other methods to be used in calculating the reserves. In calculating the reserves, the Commission may use group methods and approximate averages for suitable periods. The Commission may accept a certificate of valuation from the insurer for the reserve liability for the disability provision incorporated in life insurance policies if the Commission is satisfied, by using general averages and percentages, that the reserve has been computed in accordance with this article.

B. On or before the last day of February of each year, every domestic incorporated life insurer shall furnish the Commission the necessary data for determining the valuation of all of its policies outstanding on the last preceding December 31. For good cause shown, the Commission may extend an insurer's deadline for submitting this data.

(Code 1950, § 38-390; 1952, c. 317, § 38.1-452; 1986, c. 562; 1990, c. 333.)

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Last modified: April 3, 2009