Indiana Code
Chapter 12.8. Standard Valuation Law
27-1-12.8-31. Minimum Reserve Requirement Related to Gross Premium

Sec. 31. (a) If in any contract year the gross premium charged by a company on a contract is less than the valuation net premium for the contract calculated by the method used in calculating the reserve, but using the minimum valuation standards of mortality and rate of interest, the minimum reserve required for the contract is the greater of:
(1) the reserve calculated according to the mortality table, rate of interest, and method actually used for the contract; or
(2) the reserve calculated by the method actually used for the contract, but using the minimum valuation standards of mortality and rate of interest and replacing the valuation net premium with the actual gross premium in each contract year for which the valuation net premium exceeds the actual gross premium.
(b) The minimum valuation standards of mortality and rate of interest referred to in this section are the standards specified in sections 24 and 26 of this chapter.
(c) For a life insurance contract issued on or after January 1, 1985:
(1) for which:
(A) the gross premium in the first contract year exceeds the gross premium in the second contract year; and
(B) no comparable additional benefit is provided in the first contract year for the excess; and
(2) that provides an endowment benefit, a cash surrender value, or a combination, in an amount greater than the excess premium;
this section applies as if the method actually used in calculating the reserve for the contract were the method described in section 27(a), 27(b), and 27(d) of this chapter. The minimum reserve on each contract anniversary of a contract described in this subsection is the greater of the minimum reserve calculated in accordance with section 27 of this chapter and the minimum reserve calculated under this section.
As added by P.L.276-2013, SEC.10.

Structure Indiana Code

Indiana Code

Title 27. Insurance

Article 1. Department of Insurance

Chapter 12.8. Standard Valuation Law

27-1-12.8-1. "Accident and Sickness Insurance"

27-1-12.8-2. "Appointed Actuary"

27-1-12.8-3. "Change in Fund Basis"

27-1-12.8-4. "Company"

27-1-12.8-5. "Confidential Information"

27-1-12.8-6. "Contract"

27-1-12.8-7. "Contractholder Behavior"

27-1-12.8-8. "Deposit Type Contract"

27-1-12.8-9. "Issue Year Basis"

27-1-12.8-10. "Life Insurance"

27-1-12.8-11. "Naic"

27-1-12.8-12. "Plan Type"

27-1-12.8-13. "Principal Based Valuation"

27-1-12.8-14. "Qualified Actuary"

27-1-12.8-15. "Reserves"

27-1-12.8-16. "Tail Risk"

27-1-12.8-17. Repealed

27-1-12.8-18. Net Reserve Value of Contracts Issued Before Transition Date or January 1, 1948; Mortality Tables

27-1-12.8-19. Valuation of Contracts, Annuities, and Endowment Contracts After Transition Date or January 1, 1948, and Before Operative Date of Valuation Manual

27-1-12.8-20. Annual Reserve Valuation

27-1-12.8-21. Annual Submission of Qualified Actuary Opinion; Requirements

27-1-12.8-22. Supporting Memorandum; Confidentiality and Privilege

27-1-12.8-23. Annual Submission of Appointed Actuary Opinion; Supporting Memorandum; Requirements

27-1-12.8-24. Minimum Standard for Valuation of Contracts; Mortality Tables

27-1-12.8-25. Minimum Standard for Valuation of Annuities and Pure Endowment Contracts; Mortality Tables

27-1-12.8-26. Interest Rates in Determining Minimum Standard for Valuation

27-1-12.8-27. Reserves According to Commissioners Reserve Valuation Method

27-1-12.8-28. Reserves According to Commissioners Annuity Reserve Method

27-1-12.8-29. Aggregate Reserves

27-1-12.8-30. Reserves; Calculation

27-1-12.8-31. Minimum Reserve Requirement Related to Gross Premium

27-1-12.8-32. Minimum Reserve Requirement for Certain Contracts

27-1-12.8-33. Accident and Sickness Insurance Contracts

27-1-12.8-34. Minimum Standard of Valuation for Contracts Issued on or After Operative Date of Valuation Manual; Operative Date Determination; Changes to Valuation Manual; Requirements

27-1-12.8-35. Principal Based Valuation for Contracts on and After Operative Date of Valuation Manual

27-1-12.8-36. Submission of Data Prescribed by Valuation Manual

27-1-12.8-37. Confidential Information

27-1-12.8-38. Confidential Information; Release

27-1-12.8-39. Exemptions of Certain Products From Requirements

27-1-12.8-40. Conflict of Laws; Application of Chapter