§ 38.2-3723. Reserves
A. Each insurer licensed to write credit life insurance in this Commonwealth shall establish and maintain reserves on all such business written in this Commonwealth. The minimum standard for the valuation for such reserves shall be on the basis of the net premium method and the Commissioners' 1980 Standard Ordinary Mortality Table. Valuation interest rates shall be the rates determined for life insurance policies pursuant to § 38.2-3132. Reserves may be calculated on an annual or a monthly basis with a reasonable assumption, subject to statistical proof, as to average ages at issue or at expiration. Tables used in calculating reserves must be filed with and approved by the Commission.
B. Each insurer licensed to write credit accident and sickness insurance in this Commonwealth shall establish and maintain reserves on all such business written in this Commonwealth. The minimum standard for the calculation of such reserves shall be the total gross unearned premiums calculated by the actuarial method, but not less than the aggregate amounts calculated as of the valuation date by the refund formulas approved for the policies by the Commission pursuant to subsection C of § 38.2-3729. It may be assumed that all business written in any calendar month was written as of the fifteenth of such month.
C. In no event shall the aggregate reserves for all policies, contracts and benefits be less than the aggregate reserves determined by a qualified actuary to be necessary to support fully the insurer's obligations under its policies, certificates and contracts.
(1982, c. 223, § 38.1-482.12:1; 1986, c. 562, § 38.2-3715; 1992, c. 586; 2002, c. 72.)
Sections: Previous 38.2-3717 38.2-3718 38.2-3719 38.2-3720 38.2-3721 38.2-3722 38.2-3723 38.2-3724 38.2-3725 38.2-3726 38.2-3727 38.2-3728 38.2-3729 38.2-3730 38.2-3731 NextLast modified: April 16, 2009