{"data":{"id":"us-ky/krs-304.6-140","jurisdiction":"us-ky","citation":"KRS 304.6-140","heading":"Minimum standards.","body":"(1) This subsection applies only to policies and contracts issued prior to January 1,\n1948, or such earlier date after June 13, 1944, as shall have been elected by an\ninsurer as the date on and after which it would comply with the standard\nnonforfeiture law. E xcept as otherwise provided in paragraph (b) of subsection (2)\nof this section, the minimum standard for the valuation of all such policies and\ncontracts shall be that provided by the laws in effect immediately prior to such date,\nexcept that the minimum s tandard for the valuation of annuities and pure\nendowments purchased under group annuity and pure endowment contracts issued\nprior to such effective date shall be that provided by the laws in effect immediately\nprior to such date but replacing the interest  rates specified in such laws by an\ninterest rate of five percent (5%) per annum. Reserves for all such policies and\ncontracts may be calculated, at the option of the insurer, according to any standards\nwhich produce greater aggregate reserves for all such policies and contracts than the\nminimum reserves required by this subsection.\n(2) This subsection applies only to policies and contracts issued on and after January 1,\n1948, or such earlier date after June 13, 1944, as shall have been elected by an\ninsurer as the date on and after which it would comply with the standard\nnonforfeiture law, except as otherwise provided in paragraph (b) of this subsection\nfor group annuity and pure endowment contracts issued prior to such date.\n(a) Except as otherwise provide d in paragraph (b) of this subsection and in KRS\n304.6-145, the minimum standard for the valuation of all such policies and\ncontracts shall be the commissioners reserve valuation methods defined in\nKRS 304.6-150, 304.6-155, and 304.6 -180, five and one -half percent (5.5%)\ninterest for single premium life insurance policies, five percent (5%) interest\nfor group annuity and pure endowment contracts, four percent (4%) interest\nfor all other such policies and contracts issued prior to June 17, 1978, four and\none-half percent (4 -1/2%) interest for such policies and contracts, other than\nannuity and pure endowment contracts, issued on or after June 17, 1978, and\nthe following tables:\n1. Standard ordinary mortality table. For all ordinary policies of life\ninsurance issued on the standard basis, excluding any disability and\naccidental death benefits in such policies, -- the commissioners 1941\nstandard ordinary mortality table; provided, however, that the\ncommissioners 1958 standard ordinary mortality table shall be th e table\nfor such minimum standard for such policies issued on and after January\n1, 1966, or such earlier date after June 16, 1960, as shall have been\nelected by an insurer as the date on and after which it would use such\ntable as the basis for minimum cash  surrender values and nonforfeiture\nbenefits under the standard nonforfeiture law and prior to the effective\ndate of KRS 304.15-342; provided that for any category of such policies\nissued on female risks all modified net premiums and present values\nreferred to in KRS 304.6 -130 to 304.6-180, inclusive, may be calculated\naccording to an age not more than six (6) years younger than the actual\nage of the insured; and for such policies issued on or after the effective\ndate of KRS 304.15 -342 the commissioners 198 0 standard ordinary\nmortality table, or at the election of the company for any one (1) or more\nspecified plans of life insurance, the commissioners 1980 standard\nordinary mortality table with ten -year select mortality factors, or any\nordinary mortality table, adopted after 1980 by the National Association\nof Insurance Commissioners, that is approved by regulation promulgated\nby the commissioner for use in determining the minimum standard of\nvaluation for such policies;\n2. Standard industrial mortality table . For all industrial life insurance\npolicies issued on the standard basis, excluding any disability and\naccidental death benefits in such policies, -- the 1941 standard industrial\nmortality table; provided, however, that the commissioners 1961\nstandard industrial mortality table shall be the table for such minimum\nstandard for such policies issued on and after January 1, 1968, or such\nearlier date after June 14, 1962, as shall have been elected by the insurer\nas the date on and after which it would use such  table as the basis for\nminimum cash surrender values and nonforfeiture benefits under the\nstandard nonforfeiture law or any industrial mortality table, adopted after\n1980 by the National Association of Insurance Commissioners, that is\napproved by regulati on promulgated by the commissioner for use in\ndetermining the minimum standard of valuation for such policies;\n3. Individual annuity mortality table or annuity mortality table. For\nindividual annuity and pure endowment contracts, excluding any\ndisability a nd accidental death benefits in such policies -- the 1937\nstandard annuity mortality table or, at the option of the insurer, the\nannuity mortality table for 1949, ultimate, or any modification of either\nof these tables approved by the commissioner;\n4. Group annuity mortality table. For group annuity and pure endowment\ncontracts, excluding any disability and accidental death benefits in such\npolicies -- the group annuity mortality table for 1951, any modification\nof such table approved by the commissioner, o r, at the option of the\ninsurer, any of the tables or modifications of tables specified for\nindividual annuity and pure endowment contracts;\n5. Disability table. For total and permanent disability benefits in or\nsupplementary to ordinary policies or contra cts on active and disabled\nlives -- for policies or contracts issued on or after January 1, 1966, the\ntables of period 2 disablement rates and the 1930 to 1950 termination\nrates of the 1952 disability study of the society of actuaries, with due\nregard to t he type of benefit or any tables of disablement rates and\ntermination rates, adopted after 1980 by the National Association of\nInsurance Commissioners, that are approved by regulation promulgated\nby the commissioner for use in determining the minimum stand ard of\nvaluation for such policies; for policies or contracts issued on or after\nJanuary 1, 1961 and prior to January 1, 1966, either such tables or, at the\noption of the insurer, the class (3) disability table (1926), and for\npolicies issued prior to Janu ary 1, 1961, the class (3) disability table\n(1926). In addition, any such table shall, for active lives, be combined\nwith a mortality table permitted for calculating the reserves for life\ninsurance policies;\n6. Accidental death mortality table. For acciden tal death benefits in or\nsupplementary to policies -- for policies issued on or after January 1,\n1966, the 1959 accidental death benefits table or any accidental death\nbenefits table, adopted after 1980 by the National Association of\nInsurance Commissioner s, that is approved by regulation promulgated\nby the commissioner for use in determining the minimum standard of\nvaluation for such policies; for policies issued on or after January 1,\n1961 and prior to January 1, 1966, either such table or, at the option of\nthe insurer, the inter -company double indemnity mortality table; and for\npolicies issued prior to January 1, 1961, the inter -company double\nindemnity mortality table. Any such table shall be combined with a\nmortality table permitted for calculating the reserves for life insurance\npolicies; and\n7. Group life and other tables. For group life insurance, life insurance\nissued on the substandard basis and other special benefits -- such tables\nas may be approved by the commissioner.\n(b) Except as provided in K RS 304.6 -145, the minimum standard for the\nvaluation of all individual annuity and pure endowment contracts issued prior\nto January 1, 1979, excluding any disability and accidental death benefits in\nsuch contracts, shall be the commissioners reserve valuat ion methods defined\nin KRS 304.6 -150 and 304.6 -155, six percent (6%) interest for single\npremium immediate annuity contracts and four percent (4%) interest for all\nother contracts, and the 1971 individual annuity mortality table, or any\nmodification of this table approved by the commissioner.\n1. The minimum standard for the valuation of all annuities and pure\nendowments purchased prior to January 1, 1979, under group annuity\nand pure endowment contracts, excluding any disability and accidental\ndeath benefit s in such contracts, shall be the commissioners reserve\nvaluation methods defined in KRS 304.6-150 and 304.6-155, six percent\n(6%) interest, and the 1971 group annuity mortality table, or any\nmodification of this table approved by the commissioner.\n2. The minimum standard for the valuation of all individual annuity and\npure endowment contracts issued on or after January 1, 1979, excluding\nany disability and accidental death benefits in such contracts, shall be\nthe commissioners reserve valuation methods defined in KRS 304.6-150\nand 304.6 -155, seven and one -half percent (7 -1/2%) interest for single\npremium immediate annuity contracts, five and one -half percent (5 -\n1/2%) interest for single premium deferred annuity and pure endowment\ncontracts and four and one-half percent (4 -1/2%) interest for all other\nindividual annuity and pure endowment contracts, and the 1971\nindividual annuity mortality table, or any individual annuity mortality\ntable adopted after 1980 by the National Association of Insurance\nCommissioners, that is approved by regulation promulgated by the\ncommissioner for use in determining the minimum standards of\nvaluation for such contracts, or any modification of these tables\napproved by the commissioner.\n3. The minimum standard for the valuation  of all annuities and pure\nendowments purchased on or after January 1, 1979 under group annuity\nand pure endowment contracts, excluding any disability and accidental\ndeath benefits in such contracts, shall be the commissioners reserve\nvaluation methods defined in KRS 304.6 -150 and 304.6-155, seven and\none-half percent (7-1/2%) interest, and the 1971 group annuity mortality\ntable, or any group annuity mortality table, adopted after 1980 by the\nNational Association of Insurance Commissioners, that is approved  by\nregulation promulgated by the commissioner for use in determining the\nminimum standards of valuation for such contracts, or any modification\nof these tables approved by the commissioner.\n4. The minimum standard for the valuation of all individual annui ty and\npure endowment contracts issued on or after July 1, 1976, and prior to\nJanuary 1, 1979, and of all annuities and pure endowments purchased on\nor after July 1, 1976, and prior to January 1, 1979, under group annuity\nand pure endowment contracts, excl uding any disability and accidental\ndeath benefits in such contracts, shall be the standard specified in this\nparagraph, or, at the option of the insurer with respect to any such\ncontracts or purchases, the standard specified in paragraph (a) of this\nsubsection.","path":[],"source_url":"https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=16784","current_through":"Includes enactments through the 2026 Regular Session","vintage":"09/05/2026","retrieved_at":"2026-09-05T20:57:38Z","sha256":"3554fe2949bc1fa62b80cd7e2c1dff657d145f08fa6ae44c9a885f37cfb13e02","source_id":"us-ky","stale":false,"prev":"us-ky/krs-304.6-134","next":"us-ky/krs-304.6-141"},"notice":"GroundRules: Original legal text. Not legal advice."}