Mississippi Code
Chapter 29 - Fraternal Societies
§ 83-29-43. Annual reports

In addition to the annual report herein required, every society shall report annually to the commissioner of insurance on or before the first day of March a valuation by a competent actuary of its certificates in force on the thirty-first day of December last preceding. This valuation shall not be considered or regarded as a test of the financial solvency of the society, but as an indication of the ability of the society to pay the benefits promised under its certificates without change in benefits or in rates of contribution; and each society shall be held to be legally solvent as long as the funds belonging to the society are equal to or in excess of its matured liabilities. For the purposes of this valuation, the society may divide the certificates in its life insurance department into classes or sections according to the rates of contribution charged from time to time.
The method of valuation used shall be such as to produce not less than the net level premium reserves or, if part or the whole of the first year's contributions is used for expenses, the reserve according to the full preliminary term method of valuation or, as to all business hereafter written, the reserve according to the Illinois standard of valuation, the net premiums valued being the net premiums according to the valuation basis used, with due regard to the method used by the society in computing the member's age at entry or at re-rating. If, due to a readjustment or to a change of a member's plan of insurance, the regular rate of contribution paid by the member is lower than the regular rate of contribution he should have paid according to his attained age at the date of readjustment or change of plan of insurance, an additional reserve shall be set up equal to the additional liability caused by the payment of such reduced regular rate of contribution. If a member is paying a regular rate of contribution which is used solely for the payment of benefits, which is in excess of the valuation net premium according to the member's age at entry, or at re-rating, credit may be taken in the valuation for such regular contributions to an amount not greater than the present value of the benefits promised the said member, as at the date of valuation.
The table of mortality used in the valuation shall be the national fraternal congress table of mortality as adopted by the national fraternal congress August 23, 1899, or any other table of mortality recognized by the law of any state as a legal basis for the computation of premiums or reserves for life insurance companies or fraternal societies, or at its option a society may use a table based on its own experience of at least twenty (20) years and covering not less than one hundred thousand (100,000) lives, provided the mortality table used shall reasonably represent the actual mortality experience of the society. The tables used for the valuation of benefits dependent upon total and permanent disability shall be tables based upon reliable experience, and the society may value its life insurance benefits and disability benefits as one contract or may value such benefits separately.
The rate of interest used in the valuation shall not be greater than the average net rate which the society earned on its admitted assets during the five (5) years immediately preceding the date of the valuation.
Any society which shall show by the above method of valuation at four percent (4%) interest per annum or less that the admitted assets belonging to its life insurance department, or any class or section thereof, are at least equal to the reserve determined by the valuation of the certificates of such department, or class or section thereof, together with accrued liabilities under such certificates, may grant to the members in such department, or class or section thereof, any form of withdrawal equities or surrender values, not greater in value in any individual case than the reserve under the certificate, or make loans to them not greater than the value of such withdrawal equities or surrender values, and may make distribution of such portion of the surplus over and above such reserves and accrued liabilities, or may transfer such portion of the said surplus to the assets belonging to any other class or section of the society as may be determined by its board of directors or trustees upon the advice of its actuary.
A report of such valuation and an explanation of the facts concerning the condition of the society, of each class or section, thereby disclosed shall be printed and mailed to each beneficiary member of the society not later than June 1st of each year; or, in lieu thereof, such report of valuation and showing of the society's condition as thereby disclosed may be published in the society's official paper and the issue containing the same mailed to each beneficiary member of the society. The laws of such society shall provide that if the stated periodical contributions of the members are insufficient to pay all matured death and disability claims in full and to provide for the creation and maintenance of the funds required by its laws, additional, increased, or extra rates of contribution shall be collected from the members to meet such deficiency. Such laws may provide that, upon the written application or consent of the member, his certificate may be charged with its proportion of any deficiency disclosed by valuation, with interest not exceeding five percent (5%) per annum.

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