KRS 304.29-251: Valuation.

(1) Standards of valuation for certificates issued prior to one (1) year after January 1,

1989, shall be those provided by the laws applicable immediately prior to January 1,

1989.

(2) The minimum standards of valuation for certificates issued on or after one (1) year

from January 1, 1989, shall be based on the following tables:

(a) For certificates of life insurance -- the commissioner's 1941 standard ordinary

mortality table, the commissioner's 1941 standard industrial mortality table,

the commissioner's 1958 standard ordinary mortality table, the commissioner's

1980 standard ordinary mortality table, or any more recent table made

applicable to life insurers;

(b) For annuity and pure endowment certificates, for total and permanent

disability benefits, for acci dental death benefits and for noncancellable

accident and health benefits -- such tables as are authorized for use by life

insurers in this state.

All of the above shall be under valuation methods and standards, including interest

assumptions, in accordan ce with the laws of this state applicable to life insurers

issuing policies containing like benefits.

(3) The commissioner may, in his or her discretion, accept other standards for valuation

if he or she finds that the reserves produced thereby will not be less in the aggregate

than reserves computed in accordance with the minimum valuation standard herein

prescribed. The commissioner may, in his or her discretion, vary the standards of

mortality applicable to all benefit contracts on substandard lives or o ther extra

hazardous lives by any society authorized to do business in this state.

(4) Any society, with the consent of the commissioner of insurance of the state of

domicile of the society and under the conditions, if any, which the commissioner

may impose, may establish and maintain reserves on its certificates in excess of the

reserves required thereunder, but the contractual rights of any benefit member shall

not be affected thereby.