Pennsylvania Consolidated & Unconsolidated Statutes
Chapter 71 - Reserve Liabilities
Section 7115 - Computation of minimum standard

(a) Applicability.--This section shall govern the minimum standard for the valuation of a company's policies and contracts except as provided in the following sections:
(1) Section 7116 (relating to computation of minimum standard for annuities).
(2) Section 7117 (relating to computation of minimum standard by calendar year of issue).
(3) Section 7124 (relating to minimum standard for accident and health insurance contracts).
(b) Policies and contracts issued prior to May 17, 1921.--The minimum standard for the valuation of policies and contracts issued prior to May 17, 1921, shall be as provided by the laws in effect immediately prior to May 17, 1921.
(c) Policies and contracts issued on or after May 17, 1921.--The minimum standard for the valuation of policies and contracts issued on or after May 17, 1921, shall be, together with the tables referenced under subsection (d), the commissioners reserve valuation methods established under sections 7118 (relating to reserve valuation method for life insurance and endowment benefits), 7119 (relating to reserve valuation method for annuity and pure endowment benefits), 7122 (relating to reserve calculation for valuation net premium exceeding gross premium charged) and 7124:
(1) Three and one-half percent interest.
(2) Four percent interest for life insurance policies and contracts, other than annuity and pure endowment contracts, issued on or after June 23, 1976, and prior to January 1, 1979.
(3) Four and one-half percent interest for policies issued on or after January 1, 1979.
(d) Applicable tables.--Together with the requirements under subsection (c), the tables and other provisions of this section shall govern:
(1) For ordinary policies of life insurance issued on the standard basis, excluding disability and accidental death benefits in these policies, the following tables shall apply:
(i) The Commissioners 1941 Standard Ordinary Mortality Table for policies issued prior to the operative date of section 410A(d)(2) of The Insurance Company Law of 1921.
(ii) The Commissioners 1958 Standard Ordinary Mortality Table for policies issued on or after the operative date of section 410A(d)(2) of The Insurance Company Law of 1921 and prior to the operative date of section 410A(e) of The Insurance Company Law of 1921. For policies issued on female risks, all modified net premiums and present values referred to in this subparagraph may be calculated according to any age not more than six years younger than the actual age of the insured.
(iii) For policies issued on or after the operative date of section 410A(e) of The Insurance Company Law of 1921, the calculation shall be in accordance with the following tables as specified by regulation:
(A) The Commissioners 1980 Standard Ordinary Mortality Table.
(B) At the election of the company for any one or more specified plans of life insurance, the Commissioners 1980 Standard Ordinary Mortality Table with Ten-Year Select Mortality Factors.
(C) Any ordinary mortality table that is adopted after 1980 by NAIC and approved by regulation for use in determining the minimum standard of valuation for the policies.
(2) For industrial life insurance policies issued on the standard basis, excluding disability and accidental death benefits in these policies, the following tables shall apply:
(i) The 1941 Standard Industrial Mortality Table for policies issued prior to the operative date of section 410A(d)(3) of The Insurance Company Law of 1921.
(ii) For policies issued on or after the operative date of section 410A(d)(3) of The Insurance Company Law of 1921, the Commissioners 1961 Standard Industrial Mortality Table or any industrial mortality table that is adopted after 1980 by NAIC and approved by regulation for use in determining the minimum standard of valuation for the policies.
(3) For individual annuity and pure endowment contracts, excluding disability and accidental death benefits in these policies, any of the following shall apply:
(i) The 1937 Standard Annuity Mortality Table.
(ii) At the option of the company, the Annuity Mortality Table for 1949, Ultimate.
(iii) Any modification of either of the tables under subparagraphs (i) and (ii) as approved by the commissioner.
(4) For group annuity and pure endowment contracts, excluding disability and accidental death benefits in the contracts, any of the following shall apply:
(i) The Group Annuity Mortality Table for 1951 or any modification of the table approved by the commissioner, with interest at 3.5%.
(ii) At the option of the company, the 1971 Group Annuity Mortality Table or any modification of the table approved by the commissioner, in which event 5% interest shall be used in determining the minimum standard for the valuation of the contracts.
(iii) At the option of the company, any of the tables or modifications of tables specified for individual annuity and pure endowment contracts.
(5) For total and permanent disability benefits in or supplementary to ordinary policies or contracts, the following shall apply:
(i) For policies or contracts issued on or after January 1, 1966:
(A) the tables of Period 2 disablement rates and the 1930 to 1950 termination rates of the 1952 Disability Study of the Society of Actuaries, with due regard to the type of benefit; or
(B) any tables of disablement rates and termination rates that are adopted after 1980 by NAIC and approved by regulation for use in determining the minimum standard of valuation for the policies or contracts.
(ii) For policies or contracts issued on or after January 1, 1961, and prior to January 1, 1966:
(A) any of the tables under subparagraph (i); or
(B) at the option of the company, the Class (3) Disability Table (1926).
(iii) For policies issued prior to January 1, 1961, the Class (3) Disability Table (1926).
A table under this paragraph shall, for active lives, be combined with a mortality table permitted for calculating the reserves for life insurance policies.
(6) For accidental death benefits in or supplementary to policies, the following shall apply:
(i) For policies issued on or after January 1, 1966:
(A) the 1959 Accidental Death Benefits Table; or
(B) any accidental death benefits table that is adopted after 1980 by NAIC and approved by regulation for use in determining the minimum standard of valuation for the policies.
(ii) For policies issued on or after January 1, 1961, and prior to January 1, 1966:
(A) any of the tables under subparagraph (i); or
(B) at the option of the company, the Inter-Company Double Indemnity Mortality Table.
(iii) For policies issued prior to January 1, 1961, the Inter-Company Double Indemnity Mortality Table.
A table under this paragraph shall be combined with a mortality table permitted for calculating the reserves for life insurance policies.
(7) For group life insurance, life insurance issued on the substandard basis and other special benefits, those tables approved by the commissioner shall apply.

Cross References. Section 7115 is referred to in sections 7103, 7118, 7122 of this title.