{"data":{"id":"us-ky/krs-304.6-131","jurisdiction":"us-ky","citation":"KRS 304.6-131","heading":"Definitions for KRS 304.6-130 to 304.6-180.","body":"As used in KRS 304.6 -130 to 304.6 -180, unless the context requires otherwise, the\nfollowing definitions shall apply on or after the operative date of the valuation manual, as\ndefined in subsection (11) of this section:\n(1) \"Accident and health insurance\" means contracts that incorporate morbidity risk and\nprovide protection against economic loss resulting from accident, sickness, or\nmedical conditions and as may be specified in the valuation manual;\n(2) \"Appointed actuary\" means a qualified actuary who is appointed in accordance with\nthe valuation manual to prepare the actuarial opinion required by KRS 304.6-171(6)\nto (10);\n(3) \"Company\" means an entity which has written, issued, or reissued life insurance,\naccident and health insurance, or deposit-type contracts:\n(a) In Kentucky and has at least one (1) policy in force or a claim; or\n(b) In any state and is required to hold a certificate of authority to write life\ninsurance, accident and health insurance, or deposit -type contracts in this\nstate;\n(4) \"Deposit-type contract\" means a contract that does not incorporate mortality or\nmorbidity risks and as may be specified in the valuation manual;\n(5) \"Life insurance\" means contracts that incorporate mortality risk, including annuity\nand pure endowment contracts, and as may be specified in the valuation manual;\n(6) \"NAIC\" means the National Association of Insurance Commissioners;\n(7) \"Policyholder behavior\" means any action a policyholder, contract holder, or any\nother person with the right to elect options may take  under a policy or contract\nsubject to KRS 304.6 -130 to 304.6-180, excluding events of mortality that result in\nbenefits prescribed in their essential aspects by the terms of the policy or contract,\nincluding but not limited to:\n(a) Lapse;\n(b) Withdrawal;\n(c) Transfer;\n(d) Deposit;\n(e) Premium payment;\n(f) Loan;\n(g) Annuitization; or\n(h) Benefit elections;\n(8) \"Principle-based valuation\" means a reserve valuatio n that uses one (1) or more\nmethods or one (1) or more assumptions determined by the company and is required\nto comply with KRS 304.6-151 as specified in the valuation manual;\n(9) \"Qualified actuary\" means an individual who is qualified to sign the applica ble\nstatement of actuarial opinion in accordance with the American Academy of\nActuaries qualification standards for actuaries signing the statements and who meets\nthe requirements specified in the valuation manual;\n(10) \"Tail risk\" means a risk that occurs  either where the frequency of low -probability\nevents is higher than expected under a normal probability distribution or when there\nare observed events of very significant size or magnitude; and\n(11) \"Valuation manual\" means the manual of valuation instruc tions adopted by the\nNAIC and any subsequent amendments.","path":[],"source_url":"https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=44427","current_through":"Includes enactments through the 2026 Regular Session","vintage":"09/05/2026","retrieved_at":"2026-09-05T20:57:38Z","sha256":"d912667bec458325664af09fe524feabb84dd1d2aa4f96d6bff0ace8483b839e","source_id":"us-ky","stale":false,"prev":"us-ky/krs-304.6-130","next":"us-ky/krs-304.6-132"},"notice":"GroundRules: Original legal text. Not legal advice."}