(a) Issuance prior to May 17, 1921.--Reserves for policies and contracts issued prior to May 17, 1921, may be calculated, at the option of the company, according to any standards that produce greater aggregate reserves for all these policies and contracts than the minimum reserves required by law.
(b) Issuance on or after May 17, 1921.--Reserves for any category of policies, contracts or benefits established by the commissioner, issued on or after May 17, 1921, may be calculated, at the option of the company, according to any standards that produce greater aggregate reserves for the category than those calculated according to the minimum standard provided under this chapter, but the rate or rates of interest used for policies and contracts, other than annuity and pure endowment contracts, shall not be greater than the corresponding rate or rates of interest used in calculating any nonforfeiture benefits provided in the policies or contracts.
(c) Adoption of alternative standards.--The following shall apply:
(1) Subject to paragraph (2), a company that adopts at any time a standard of valuation producing greater aggregate reserves than those calculated according to the minimum standard provided under this chapter may adopt a lower standard of valuation with the approval of the commissioner, but not lower than the minimum provided in this chapter.
(2) For the purposes of this section, the holding of additional reserves previously determined by the appointed actuary to be necessary to render the opinion required by section 7113 (relating to actuarial opinion of reserves prior to operative date of valuation manual) or 7114 (relating to actuarial opinion of reserves on or after operative date of valuation manual) shall not be deemed to be the adoption of a higher standard of valuation.
Cross References. Section 7121 is referred to in section 7103 of this title.
Structure Pennsylvania Consolidated & Unconsolidated Statutes
Pennsylvania Consolidated & Unconsolidated Statutes
Chapter 71 - Reserve Liabilities
Section 7101 - Scope of chapter
Section 7103 - Special applicability provisions
Section 7104 - Notice regarding operative date of valuation manual
Section 7113 - Actuarial opinion of reserves prior to operative date of valuation manual
Section 7114 - Actuarial opinion of reserves on or after operative date of valuation manual
Section 7115 - Computation of minimum standard
Section 7116 - Computation of minimum standard for annuities
Section 7117 - Computation of minimum standard by calendar year of issue
Section 7118 - Reserve valuation method for life insurance and endowment benefits
Section 7119 - Reserve valuation method for annuity and pure endowment benefits
Section 7120 - Minimum reserves
Section 7121 - Optional reserve calculation
Section 7122 - Reserve calculation for valuation net premium exceeding gross premium charged
Section 7123 - Reserve calculation for indeterminate premium plans
Section 7124 - Minimum standard for accident and health insurance contracts
Section 7125 - Valuation manual for policies issued on or after operative date of valuation manual
Section 7126 - Requirements of principle-based valuation
Section 7131 - Confidential information defined
Section 7132 - General rule for confidential information
Section 7133 - Private civil actions
Section 7134 - Use of confidential information by department
Section 7136 - No waiver of privilege or confidentiality
Section 7137 - Limited exceptions
Section 7141 - Single-state company exemption