2021 Oregon Revised Statutes
Chapter 733 - Accounting and Investments
Section 733.312 - Amount of required reserves for life insurance policies.


(a) A net level annual premium equal to the present value, at the date of issue, of such benefits provided for after the first policy year, divided by the present value, at the date of issue, of an annuity of one per annum payable on the first and each subsequent anniversary of such policy on which a premium falls due, except that the net level annual premium shall not exceed the net level annual premium on the 19 year premium whole life plan for insurance of the same amount at an age one year higher than the age at issue of such policy.
(b) A net one year term premium for such benefits provided for in the first policy year.
(2) For any life insurance policy issued on or after January 1, 1986, for which the contract premium in the first policy year exceeds that of the second year and for which no comparable additional benefit is provided in the first year for the excess and which provides an endowment benefit or a cash surrender value or a combination thereof in an amount greater than the excess premium, the reserve according to the commissioners reserve valuation method as of any policy anniversary occurring on or before the assumed ending date, which is defined as the first policy anniversary on which the sum of any endowment benefit and any cash surrender value then available is greater than such excess premium, shall, except as otherwise provided in ORS 733.320, be the greater of the reserve as of the policy anniversary calculated as described in subsection (1) of this section and the reserve as of the policy anniversary calculated as described in subsection (1) of this section, but with (i) the value defined in subsection (1)(a) of this section being reduced by 15 percent of the amount of the excess first year premium, (ii) all present values of benefits and premiums being determined without reference to premiums or benefits provided for by the policy after the assumed ending date, (iii) the policy being assumed to mature on such date as an endowment, and (iv) the cash surrender value provided on such date being considered as an endowment benefit. The mortality and interest bases stated in ORS 733.306 and 733.310 shall be used for the purpose of making the comparison.
(3) Reserves according to the commissioners reserve valuation method shall be calculated by a method consistent with subsections (1) and (2) of this section for:
(a) Life insurance policies providing for a varying amount of insurance or requiring the payment of varying premiums;
(b) Group annuity and pure endowment contracts purchased under a retirement plan or plan of deferred compensation, established or maintained by an employer, including a partnership or sole proprietorship, or by an employee organization, or by both, other than a plan providing individual retirement accounts or individual retirement annuities under Section 408 of the Internal Revenue Code, as now or hereafter amended;
(c) Disability and accidental death benefits in all policies and contracts; and
(d) All other benefits, except life insurance and endowment benefits in life insurance policies and benefits provided by all other annuity and pure endowment contracts. [1991 c.401 §23]

Structure 2021 Oregon Revised Statutes

2021 Oregon Revised Statutes

Volume : 18 - Financial Institutions, Insurance

Chapter 733 - Accounting and Investments

Section 733.010 - Assets allowed.

Section 733.020 - Assets not allowed.

Section 733.030 - Liabilities in general.

Section 733.060 - Unearned premium reserve.

Section 733.090 - Unearned premium reserve and fund for title insurance.

Section 733.140 - Disallowance of "wash" transactions.

Section 733.160 - Valuation of assets other than securities.

Section 733.165 - Valuation of securities.

Section 733.210 - Director’s determinations.

Section 733.220 - Establishment and regulation of separate accounts to fund life insurance or annuities.

Section 733.230 - Transactions of separate accounts registered with Securities and Exchange Commission; application of laws and rules to members of separate account management committee.

Section 733.302 - Reserve valuation method for life insurance policies and annuity and pure endowment contracts.

Section 733.304 - Opinion of actuary; rules.

Section 733.306 - Computation of minimum standards for life insurance, industrial insurance, annuities and pure endowment contracts; rules.

Section 733.308 - Computation of minimum standard for annuities and pure endowment contracts; rules.

Section 733.310 - Interest rates for determining minimum standard for valuation.

Section 733.312 - Amount of required reserves for life insurance policies.

Section 733.314 - Amount of required reserves for certain annuity and pure endowment contracts.

Section 733.316 - Aggregate reserves.

Section 733.318 - Alternative standards of valuation.

Section 733.320 - Minimum required reserve for certain policies.

Section 733.322 - Calculation of reserves for plans for which minimum reserves cannot be determined under ORS 733.312, 733.314 or 733.320; rules.

Section 733.325 - Definitions.

Section 733.328 - Annual valuation of reserve liabilities.

Section 733.331 - Opinion of appointed actuary; liabilities of appointed actuary; rules.

Section 733.337 - Confidentiality; permissible disclosures.

Section 733.340 - Exemptions.

Section 733.510 - Investments of insurers; rules.

Section 733.530 - "Corporation," "sovereign," "political subdivision" defined.

Section 733.550 - "Amply secured obligation" defined.

Section 733.560 - "Unencumbered" defined.

Section 733.570 - "Improved real property" defined.

Section 733.578 - Conditions necessary for investments used to provide compensating balances.

Section 733.580 - Investment of required capitalization.

Section 733.600 - Investment in mortgage loans.

Section 733.610 - Investment in real property.

Section 733.620 - Investment in stocks of corporation.

Section 733.630 - Investment in securities or obligations of certain corporations.

Section 733.635 - Approved activities of corporations in which investments authorized.

Section 733.640 - Lending funds; limitations on loans.

Section 733.650 - Investment of funds in certain obligations and other specified items.

Section 733.652 - Investment of funds of separate accounts.

Section 733.654 - Limitation on amount of separate account investments; exceptions.

Section 733.670 - Investment of funds under "prudent investor" standard.

Section 733.680 - Acquisition and retention of personal property generally; purchases or loans for protection of investment property.

Section 733.710 - Investments authorized by prior law; date of eligibility of investment.

Section 733.730 - Approval by board of directors of investments and deposits.

Section 733.740 - Record of investments required.

Section 733.770 - Limitations on investments in property of any one person or single parcel of real estate.

Section 733.780 - Prohibited investments.