{"data":{"id":"us-ky/krs-304.6-150","jurisdiction":"us-ky","citation":"KRS 304.6-150","heading":"Commissioners reserve valuation method defined.","body":"(1) Except as otherwise provided in KRS 304.6 -141, 304.6 -155, and 304.6 -180,\nreserves according to the commissioners reserve valuation method, for the life\ninsurance and endowment benefits of policies providing for a uniform amount of\ninsurance and requiring t he payment of uniform premiums shall be the excess, if\nany, of the present value, at the date of valuation, of such future guaranteed benefits\nprovided for by such policies, over the then present value of any future modified net\npremiums therefor. The modi fied net premiums for any such policy shall be such\nuniform percentage of the respective contract premiums for such benefits that the\npresent value, at the date of issue of the policy, of all such modified net premiums\nshall be equal to the sum of the then  present value of such benefits provided for by\nthe policy and the excess of (a) over (b), as follows:\n(a) Net level annual premium. A net level annual premium equal to the present\nvalue, at the date of issue, of such benefits provided for after the first policy\nyear, divided by the present value, at the date of issue, of an annuity of one (1)\nper annum payable on the first and each subsequent anniversary of such policy\non which a premium falls due. Such net level annual premium shall not\nexceed the net level annual premium on the nineteen (19) year premium whole\nlife plan for insurance of the same amount at an age one (1) year higher than\nthe age at issue of such policy.\n(b) Net one (1) year term premium. A net one (1) year term premium for such\nbenefits provided for in the first policy year.\nProvided that for any life insurance policy issued on or after January 1, 1986, for\nwhich the contract premium in the first policy year exceeds that of the second year\nand for which no comparable additional benefit is provided in the first year for such\nexcess and which provides an endowment benefit or a cash surrender value or a\ncombination thereof in an amount greater than such excess premium, the reserve\naccording to the commissioners reserve valuation method as of a ny policy\nanniversary occurring on or before the assumed ending date defined herein as the\nfirst policy anniversary on which the sum of any endowment benefit and any cash\nsurrender value then available is greater than such excess premium shall, except as\notherwise provided in KRS 304.6 -180, be the greater of the reserve as of such\npolicy anniversary calculated as described in the preceding subsection and the\nreserve as of such policy anniversary calculated as described in that subsection, but\nwith the value  defined in paragraph (a) of that subsection being reduced by fifteen\npercent (15%) of the amount of such excess first year premium, all present values of\nbenefits and premiums being determined without reference to premiums or benefits\nprovided for by the policy after the assumed ending date, the policy being assumed\nto mature on such date as an endowment, and the cash surrender value provided on\nsuch date being considered as an endowment benefit. In making the above\ncomparison the mortality and interest bases stated in KRS 304.6-140 and 304.6-145\nshall be used.\n(2) Reserves according to the commissioners reserve valuation method for:\n(a) Life insurance policies providing for a varying amount of insurance or\nrequiring the payment of varying premiums,\n(b) Group annuity and pure endowment contracts purchased under a retirement\nplan or plan of deferred compensation, established or maintained by an\nemployer (including a partnership or sole proprietorship) or by an employee\norganization, or by both, other than a p lan providing individual retirement\naccounts or individual retirement annuities under Section 408 of the Internal\nRevenue Code, as now or hereafter amended,\n(c) Disability and accidental death benefits in all policies and contracts, and\n(d) All other benef its, except life insurance and endowment benefits in life\ninsurance policies and benefits provided by all other annuity and pure\nendowment contracts, shall be calculated by a method consistent with the\nprovisions of this section, except that any extra prem iums charged because of\nimpairments or special hazards shall be disregarded in the determination of\nmodified net premiums.","path":[],"source_url":"https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=44435","current_through":"Includes enactments through the 2026 Regular Session","vintage":"09/05/2026","retrieved_at":"2026-09-05T20:57:38Z","sha256":"237687dbeefc5674009bcdfbf9c6f8e11cbc3656b85c53459d08a9d7aa78b5e9","source_id":"us-ky","stale":false,"prev":"us-ky/krs-304.6-145","next":"us-ky/krs-304.6-151"},"notice":"GroundRules: Original legal text. Not legal advice."}