KRS 304.6-130: Calculation of reserve liabilities -- Application -- Exceptions -- Annual

valuation.

(1) (a) For policies and contracts issued prior to the operative date of the valuation

manual, the commissioner shall annually value, or cause to be valued, the

reserve liabilities, hereinafter called reserves, for all outstanding life insurance

policies and annuity and pure endowment contracts of every life insurer

transacting business in this state, except that in the case of an alien insurer,

such valuation shal l be limited to its United States business; and may certify

the amount of any such reserves, specifying the mortality table or tables, rate

or rates of interest and methods, net leveled premium method or other, used in

the calculation of such reserves. In calculating such reserves, the

commissioner may use group methods and approximate averages for fractions

of a year or otherwise. In lieu of the valuation of the reserves required of any

foreign or alien insurer, the commissioner may accept any valuation ma de, or

caused to be made, by the insurance supervisory official of any state or other

jurisdiction when such valuation complies with the minimum standard

provided in KRS 304.6 -130 to 304.6 -180 and if the official of such state or

jurisdiction accepts as sufficient and valid for all legal purposes the certificate

of valuation of the commissioner when such certificate states the valuation to

have been made in a specified manner according to which the aggregate

reserves would be at least as large as if they had been computed in the manner

prescribed by law of that state or jurisdiction. Where any such valuation is

made by the commissioner, the commissioner may use the actuary of the

department or employ an actuary for the purpose, and the reasonable

compensation and expenses of the actuary, at a rate approved by the

commissioner, upon demand by the commissioner supported by an itemized

statement of such compensation and expenses, shall be paid by the insurer.

When a domestic insurer furnishes the commissioner wi th a valuation of its

outstanding policies as computed by its own actuary or by an actuary deemed

satisfactory for the purpose by the commissioner, the valuation shall be

verified by the actuary of the department without cost to the insurer.

(b) Any such i nsurer which at any time shall have adopted any standard of

valuation producing greater aggregate reserves than those calculated according

to the minimum standard herein provided may, with the approval of the

commissioner, adopt any lower standard of valua tion, but not lower than the

minimum herein provided.

(c) The provisions of KRS 304.6 -140, 304.6 -141, 304.6 -145, 304.6 -150, 304.6 -

155, 304.6 -160, 304.6 -170, 304.6 -180, and 304.15 -410 shall apply to all

policies and contracts as appropriate, issued on or af ter June 18, 1970, and

prior to the operative date of the valuation manual. The provisions of KRS

304.6-143 and 304.6 -151 shall not apply to the policies and contracts issued

on or after June 18, 1970, and prior to the operative date of the valuation

manual.

(2) (a) Except for a company that is exempt under KRS 304.6 -134, for policies and

contracts issued on or after the operative date of the valuation manual, the

commissioner shall annually value or cause to be valued the reserve liabilities,

hereinafter called reserves, for all outstanding life insurance contracts, annuity

and pure endowment contracts, accident and health contracts, and deposit-type

contracts of every company issued on or after the operative date of the

valuation manual. In lieu of the val uation of the reserves required of a foreign

or alien company, the commissioner may accept a valuation made, or caused

to be made, by the insurance supervisory official of any state or other

jurisdiction when the valuation complies with the minimum standard provided

in KRS 304.6-130 to 304.6-180.

(b) Except for a company that is exempt under KRS 304.6 -134, KRS 304.6 -143

and 304.6-151 shall apply to all policies and contracts issued on or after the

operative date of the valuation manual.