{"data":{"id":"us-ky/krs-304.15-340","jurisdiction":"us-ky","citation":"KRS 304.15-340","heading":"Adjusted premiums.","body":"(1) How calculated. This section shall not apply to policies issued on or after the\noperative date of KRS 304.15 -342 as defined therein. Except as provided in\nsubsection (4) of this section, the adjusted premiums for any policy shall be\ncalculated on an annual basis and shall be such uniform percentage of the respective\npremiums specified in the policy for each policy year, excluding any extra\npremiums charged because of impairment or special hazards, that the present value,\nat the date of issue of the policy, of all such adjusted premiums shall be equal to the\nsum of:\n(a) The then present value of the future guaranteed benefits provided for by the\npolicy;\n(b) Two percent (2%) of the amount of insurance, if the insurance be uniform in\namount, or of the equivalen t uniform amount, as hereinafter defined, if the\namount of insurance varies with duration of the policy;\n(c) Forty percent (40%) of the adjusted premium for the first policy year; and\n(d) Twenty-five percent (25%) of either the adjusted premium for the fir st policy\nyear or the adjusted premium for a whole life policy of the same uniform or\nequivalent uniform amount with uniform premiums for the whole of life\nissued at the same age for the same amount of insurance, whichever is less.\n(2) In applying the perc entages specified in paragraphs (c) and (d) of subsection (1) of\nthis section, no adjusted premium shall be deemed to exceed four percent (4%) of\nthe amount of insurance or uniform amount equivalent thereto. Whenever the plan\nor term of a policy has been c hanged, either by request of the insured or\nautomatically in accordance with the provisions of the policy, the date of issue of\nthe changed policy for the purposes of determining a nonforfeiture benefit or cash\nsurrender value shall be the date as of which the age of the insured is determined for\nthe purposes of the changed policy. The date of issue of a policy for the purpose of\nthis section shall be the date as of which the rated age of the insured is determined.\n(3) In the case of a policy providing an a mount of insurance varying with duration of\nthe policy, the equivalent uniform amount thereof for the purpose of this section\nshall be deemed to be the uniform amount of insurance provided by an otherwise\nsimilar policy, containing the same endowment benef it or benefits, if any, issued at\nthe same age and for the same term, the amount of which does not vary with\nduration and the benefits under which have the same present value at the date of\nissue as the benefits under the policy; provided that in the case of a policy providing\na varying amount of insurance issued on the life of a child under age ten (10), the\nequivalent uniform amount may be computed as though the amount of insurance\nprovided by the policy prior to the attainment of age ten (10) were the am ount\nprovided by such policy at age ten (10).\n(4) The adjusted premiums for any policy providing term insurance benefits by rider or\nsupplemental policy provision shall be equal to:\n(a) The adjusted premiums for an otherwise similar policy issued at the sa me age\nwithout such term insurance benefits, increased, during the period for which\npremiums for such term insurance benefits are payable, by\n(b) The adjusted premiums for such term insurance, paragraphs (a) and (b) of this\nsubsection being calculated sepa rately and as specified in subsections (1), (2)\nand (3) of this section, except that, for the purposes of paragraphs (b), (c), and\n(d) of subsection (1) of this section, the amount of insurance or equivalent\nuniform amount of insurance used in the calculation of the adjusted premiums\nreferred to in paragraph (b) of this subsection shall be equal to the excess of\nthe corresponding amount determined for the entire policy over the amount\nused in the calculation of the adjusted premiums in paragraph (a) of this\nsubsection.\n(5) All adjusted premiums and present values referred to in KRS 304.15-310 to 304.15-\n360, inclusive, but not including KRS 304.15 -342 and 304.15 -344 shall for all\npolicies of ordinary insurance be calculated on the basis of the Commissioners 1958\nStandard Ordinary Mortality Table, provided that for any category of ordinary\ninsurance issued on female risks, adjusted premiums and present values may be\ncalculated according to an age not more than six (6) years younger than the actual\nage of the insured, and such calculations for all policies of industrial insurance shall\nbe made on the basis of the Commissioners 1961 Standard Industrial Mortality\nTable. All calculations shall be made on the basis of the rate of interest specified in\nthe policy for calculating cash surrender values and paid -up nonforfeiture benefits\nprovided that such rate of interest shall not exceed four percent (4%) per year except\nthat a rate of interest not exceeding five and one -half percent (5.5%) per year may\nbe used for policies issued on or after June 17, 1978. In calculating the present value\nof any paid-up term insurance with accompanying pure endowment, if any, offered\nas a nonforfeiture benefit for ordinary insurance, the rates of mortality assumed may\nnot be more than t hose shown in the Commissioners 1958 Extended Term\nInsurance Table and for industrial insurance the rates of mortality may not be more\nthan those shown in the Commissioners 1961 Industrial Extended Term Insurance\nTable. For insurance issued on a substandar d basis, the calculation of any such\nadjusted premiums and present values may be based on such other table of mortality\nas may be specified by the insurer and approved by the commissioner.","path":[],"source_url":"https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=17235","current_through":"Includes enactments through the 2026 Regular Session","vintage":"09/05/2026","retrieved_at":"2026-09-05T20:57:44Z","sha256":"7133520bbd0ca557a93cf3056d72589258520cbeb25178b6e690c27c7d556405","source_id":"us-ky","stale":false,"prev":"us-ky/krs-304.15-330","next":"us-ky/krs-304.15-342"},"notice":"GroundRules: Original legal text. Not legal advice."}