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USA Statutes : maine
Title : Title 24-A. MAINE INSURANCE CODE
Chapter : Chapter 11. ASSETS AND LIABILITIES
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Title 24-A - §901-A. Statutory accounting principles; reserves
Title 24-A: MAINE INSURANCE CODE
Chapter 11: ASSETS AND LIABILITIES
Subchapter 1: ASSETS
§901-A. Statutory accounting principles; reserves
1. Principles; admitted assets. In evaluating the financial condition of an insurer, the superintendent shall determine which assets may be recognized as
admitted assets and shall value the insurer's admitted assets and the insurer's liabilities:
A. In accordance with recognized statutory accounting principles as codified by the National Association of Insurance Commissioners
or its successor organization and reflected in the association's accounting practices and procedures manual and valuation
of securities manual and their successor publications; and
[2001, c. 524, §1 (new).]
B. In accordance with any additional accounting practices permitted by the superintendent upon the request of the insurer.
[2001, c. 524, §1 (new).]
[2001, c. 524, §1 (rpr).]
2. Reserve required. If the superintendent finds, in view of the character of investments held by a domestic insurer, that it would be prudent
for the insurer to establish a special reserve for possible losses or fluctuations in the value of its investments, including
realty holdings acquired by mortgage loan default, the superintendent may permit or require the insurer to establish such
a reserve, reasonable in amount, and may require that the reserve be maintained and reported in any statement or report of
the financial condition of the insurer.
[2001, c. 72, §7 (new).]
3. Rules. The superintendent may adopt rules to implement the purposes of this section. Rules adopted pursuant to this subsection
are routine technical rules as defined in Title 5, chapter 375, subchapter II-A.
[2001, c. 72, §7 (new).]
The Revisor's Office cannot provide legal advice or
interpretation of Maine law to the public. If you need legal
advice, please consult
a qualified attorney.
Office of the Revisor of Statutes
7 State House Station
State House Room 108
Augusta, Maine 04333-0007
This page created on: 2005-10-01
Title 24-A - §901. "Assets" defined (REPEALED)
Title 24-A: MAINE INSURANCE CODE
Chapter 11: ASSETS AND LIABILITIES
Subchapter 1: ASSETS
§901. "Assets" defined (REPEALED)
The Revisor's Office cannot provide legal advice or
interpretation of Maine law to the public. If you need legal
advice, please consult
a qualified attorney.
Office of the Revisor of Statutes
7 State House Station
State House Room 108
Augusta, Maine 04333-0007
This page created on: 2005-10-01
Title 24-A - §902. Assets not allowed (REPEALED)
Title 24-A: MAINE INSURANCE CODE
Chapter 11: ASSETS AND LIABILITIES
Subchapter 1: ASSETS
§902. Assets not allowed (REPEALED)
The Revisor's Office cannot provide legal advice or
interpretation of Maine law to the public. If you need legal
advice, please consult
a qualified attorney.
Office of the Revisor of Statutes
7 State House Station
State House Room 108
Augusta, Maine 04333-0007
This page created on: 2005-10-01
Title 24-A - §921. Liabilities, in general (REPEALED)
Title 24-A: MAINE INSURANCE CODE
Chapter 11: ASSETS AND LIABILITIES
Subchapter 2: LIABILITIES (HEADING: PL 2001, c. 72, @9 rp))
§921. Liabilities, in general (REPEALED)
The Revisor's Office cannot provide legal advice or
interpretation of Maine law to the public. If you need legal
advice, please consult
a qualified attorney.
Office of the Revisor of Statutes
7 State House Station
State House Room 108
Augusta, Maine 04333-0007
This page created on: 2005-10-01
Title 24-A - §922. Disallowance of "wash" transactions (REPEALED)
Title 24-A: MAINE INSURANCE CODE
Chapter 11: ASSETS AND LIABILITIES
Subchapter 2: LIABILITIES (HEADING: PL 2001, c. 72, @9 rp))
§922. Disallowance of "wash" transactions (REPEALED)
The Revisor's Office cannot provide legal advice or
interpretation of Maine law to the public. If you need legal
advice, please consult
a qualified attorney.
Office of the Revisor of Statutes
7 State House Station
State House Room 108
Augusta, Maine 04333-0007
This page created on: 2005-10-01
Title 24-A - §923. Unearned premium reserve (REPEALED)
Title 24-A: MAINE INSURANCE CODE
Chapter 11: ASSETS AND LIABILITIES
Subchapter 2: LIABILITIES (HEADING: PL 2001, c. 72, @9 rp))
§923. Unearned premium reserve (REPEALED)
The Revisor's Office cannot provide legal advice or
interpretation of Maine law to the public. If you need legal
advice, please consult
a qualified attorney.
Office of the Revisor of Statutes
7 State House Station
State House Room 108
Augusta, Maine 04333-0007
This page created on: 2005-10-01
Title 24-A - §924. Unearned premium reserve for marine and transportation insurance (REPEALED)
Title 24-A: MAINE INSURANCE CODE
Chapter 11: ASSETS AND LIABILITIES
Subchapter 2: LIABILITIES (HEADING: PL 2001, c. 72, @9 rp))
§924. Unearned premium reserve for marine and transportation insurance (REPEALED)
The Revisor's Office cannot provide legal advice or
interpretation of Maine law to the public. If you need legal
advice, please consult
a qualified attorney.
Office of the Revisor of Statutes
7 State House Station
State House Room 108
Augusta, Maine 04333-0007
This page created on: 2005-10-01
Title 24-A - §925. Health insurance policy reserves (REPEALED)
Title 24-A: MAINE INSURANCE CODE
Chapter 11: ASSETS AND LIABILITIES
Subchapter 2: LIABILITIES (HEADING: PL 2001, c. 72, @9 rp))
§925. Health insurance policy reserves (REPEALED)
The Revisor's Office cannot provide legal advice or
interpretation of Maine law to the public. If you need legal
advice, please consult
a qualified attorney.
Office of the Revisor of Statutes
7 State House Station
State House Room 108
Augusta, Maine 04333-0007
This page created on: 2005-10-01
Title 24-A - §926. Title insurance reserves (REPEALED)
Title 24-A: MAINE INSURANCE CODE
Chapter 11: ASSETS AND LIABILITIES
Subchapter 2: LIABILITIES (HEADING: PL 2001, c. 72, @9 rp))
§926. Title insurance reserves (REPEALED)
The Revisor's Office cannot provide legal advice or
interpretation of Maine law to the public. If you need legal
advice, please consult
a qualified attorney.
Office of the Revisor of Statutes
7 State House Station
State House Room 108
Augusta, Maine 04333-0007
This page created on: 2005-10-01
Title 24-A - §927. Mortgage guaranty contingency reserve (REPEALED)
Title 24-A: MAINE INSURANCE CODE
Chapter 11: ASSETS AND LIABILITIES
Subchapter 2: LIABILITIES (HEADING: PL 2001, c. 72, @9 rp))
§927. Mortgage guaranty contingency reserve (REPEALED)
The Revisor's Office cannot provide legal advice or
interpretation of Maine law to the public. If you need legal
advice, please consult
a qualified attorney.
Office of the Revisor of Statutes
7 State House Station
State House Room 108
Augusta, Maine 04333-0007
This page created on: 2005-10-01
Title 24-A - §941. Definitions
Title 24-A: MAINE INSURANCE CODE
Chapter 11: ASSETS AND LIABILITIES
Subchapter 2-A: PROPERTY CASUALTY INSURANCE RESERVES (HEADING: PL 1991, c. 128 (new))
§941. Definitions
As used in this subchapter, unless the context otherwise indicates, the following terms have the following meanings.
[1991, c. 128 (new).]
1. Covered kinds of insurance. "Covered kinds of insurance" include:
A. Casualty insurance as defined in section 707; and
[1991, c. 128 (new).]
B. Property insurance as defined in section 705. Property insurance written by domestic mutual assessment insurers pursuant
to chapter 51 is not subject to the requirements of this subchapter.
[1991, c. 128 (new).]
[1991, c. 128 (new).]
2. Qualified actuary. "Qualified actuary" means a person who is a member of the American Academy of Actuaries who has obtained a designation either
as a Fellow or an Associate in the Casualty Actuarial Society and, if an Associate, has at least 5 years' experience in actuarial
practice obtained in the kinds of insurance covered in this subsection.
[1991, c. 128 (new).]
The Revisor's Office cannot provide legal advice or
interpretation of Maine law to the public. If you need legal
advice, please consult
a qualified attorney.
Office of the Revisor of Statutes
7 State House Station
State House Room 108
Augusta, Maine 04333-0007
This page created on: 2005-10-01
Title 24-A - §942. Property and casualty insurance reserves; required annual certifications
Title 24-A: MAINE INSURANCE CODE
Chapter 11: ASSETS AND LIABILITIES
Subchapter 2-A: PROPERTY CASUALTY INSURANCE RESERVES (HEADING: PL 1991, c. 128 (new))
§942. Property and casualty insurance reserves; required annual certifications
A reserve certification prepared by a qualified actuary that meets the requirements of this subchapter must be filed annually
on or before March 1st by each insurer writing any of the covered kinds of insurance pursuant to a certificate of authority
issued by the superintendent.
[1991, c. 128 (new).]
The Revisor's Office cannot provide legal advice or
interpretation of Maine law to the public. If you need legal
advice, please consult
a qualified attorney.
Office of the Revisor of Statutes
7 State House Station
State House Room 108
Augusta, Maine 04333-0007
This page created on: 2005-10-01
Title 24-A - §943. Statement of certifying actuary
Title 24-A: MAINE INSURANCE CODE
Chapter 11: ASSETS AND LIABILITIES
Subchapter 2-A: PROPERTY CASUALTY INSURANCE RESERVES (HEADING: PL 1991, c. 128 (new))
§943. Statement of certifying actuary
1. Opinion and statement. The reserve certification must contain an opinion and statement pursuant to this section. The opinion of the certifying,
qualified actuary must be expressed on the letterhead of the actuary, indicate the address of the office rendering the certification
and be manually executed and dated. The statement must include the actuary's relevant experience, the absence in the engagement
of any actual or potential conflict of interest and the actuary's subscription to the code of professional ethics of the Casualty
Actuarial Society.
[1991, c. 128 (new).]
2. Statement content. The actuary's statement must outline the scope of work performed and set out qualifications or limitations respecting the
opinion rendered. If the actuary has relied on other persons to test data underlying the actuary's calculations of required
reserves, the actuary shall state the names of the persons performing those tests and include the extent of testing required
by the actuary as necessary to express an opinion pursuant to subsection 3.
[1991, c. 128 (new).]
3. Opinion content. An opinion expressed must identify any material changes in assumptions or methods employed in any previous certification.
Opinions must state that reserves are calculated in accordance with generally accepted actuarial loss-reserving standards
and are stated fairly and in conformity with sound loss-reserving principles based upon policy provisions and that recorded
reserves make good and sufficient provision for obligations of the insurer.
[1991, c. 128 (new).]
The Revisor's Office cannot provide legal advice or
interpretation of Maine law to the public. If you need legal
advice, please consult
a qualified attorney.
Office of the Revisor of Statutes
7 State House Station
State House Room 108
Augusta, Maine 04333-0007
This page created on: 2005-10-01
Title 24-A - §944. Exceptions (REPEALED)
Title 24-A: MAINE INSURANCE CODE
Chapter 11: ASSETS AND LIABILITIES
Subchapter 2-A: PROPERTY CASUALTY INSURANCE RESERVES (HEADING: PL 1991, c. 128 (new))
§944. Exceptions (REPEALED)
The Revisor's Office cannot provide legal advice or
interpretation of Maine law to the public. If you need legal
advice, please consult
a qualified attorney.
Office of the Revisor of Statutes
7 State House Station
State House Room 108
Augusta, Maine 04333-0007
This page created on: 2005-10-01
Title 24-A - §945. Transition period
Title 24-A: MAINE INSURANCE CODE
Chapter 11: ASSETS AND LIABILITIES
Subchapter 2-A: PROPERTY CASUALTY INSURANCE RESERVES (HEADING: PL 1991, c. 128 (new))
§945. Transition period
The certifications required under this subchapter are due on April 1, 1992 and March 1st of each year thereafter.
[1991, c. 128 (new).]
The Revisor's Office cannot provide legal advice or
interpretation of Maine law to the public. If you need legal
advice, please consult
a qualified attorney.
Office of the Revisor of Statutes
7 State House Station
State House Room 108
Augusta, Maine 04333-0007
This page created on: 2005-10-01
Title 24-A - §946. Required notice
Title 24-A: MAINE INSURANCE CODE
Chapter 11: ASSETS AND LIABILITIES
Subchapter 2-A: PROPERTY CASUALTY INSURANCE RESERVES (HEADING: PL 1991, c. 128 (new))
§946. Required notice
If, subsequent to the date of the required certification, the certifying qualified actuary becomes aware of material facts
that alter the report given, the actuary shall promptly notify the insurer, its board of directors and the superintendent.
[1991, c. 128 (new).]
The Revisor's Office cannot provide legal advice or
interpretation of Maine law to the public. If you need legal
advice, please consult
a qualified attorney.
Office of the Revisor of Statutes
7 State House Station
State House Room 108
Augusta, Maine 04333-0007
This page created on: 2005-10-01
Title 24-A - §947. Rules authorized
Title 24-A: MAINE INSURANCE CODE
Chapter 11: ASSETS AND LIABILITIES
Subchapter 2-A: PROPERTY CASUALTY INSURANCE RESERVES (HEADING: PL 1991, c. 128 (new))
§947. Rules authorized
The superintendent may adopt rules necessary to effectuate this subchapter.
[1991, c. 128 (new).]
The Revisor's Office cannot provide legal advice or
interpretation of Maine law to the public. If you need legal
advice, please consult
a qualified attorney.
Office of the Revisor of Statutes
7 State House Station
State House Room 108
Augusta, Maine 04333-0007
This page created on: 2005-10-01
Title 24-A - §952-A. Actuarial opinion of reserves
Title 24-A: MAINE INSURANCE CODE
Chapter 11: ASSETS AND LIABILITIES
Subchapter 3: LIFE INSURANCE RESERVES
§952-A. Actuarial opinion of reserves
1. General. A life insurer doing business in this State shall annually submit the opinion of a qualified actuary as to whether the reserves
and related actuarial items of that life insurer held in support of the policies and contracts specified by the superintendent
by rule are computed appropriately, are based on assumptions that satisfy contractual provisions, are consistent with prior
reported amounts and comply with applicable laws of this State. The superintendent by rule shall define the specifics of
this opinion and add any other items considered necessary to its scope.
[1993, c. 634, Pt. B, §1 (new); §4 (aff).]
2. Actuarial analysis of reserves and assets supporting those reserves. A life insurer, except as exempted by or pursuant to rule, shall include in the opinion required by subsection 1 an opinion
of the same qualified actuary as to whether the reserves and related actuarial items held in support of the policies and contracts
specified by the superintendent by rule, when considered in light of the assets held by the insurer with respect to the reserves
and related actuarial items, including, but not limited to, the investment earnings on the assets and the considerations anticipated
to be received and retained under the policies and contracts, adequately provide for the insurer's obligations under the policies
and contracts, including, but not limited to, the benefits under and expenses associated with the policies and contracts.
The superintendent may provide by rule for a transition period for establishing any higher reserves that the qualified actuary
may consider necessary in the opinion required by this subsection.
[1993, c. 634, Pt. B, §1 (new); §4 (aff).]
3. Requirement for opinion under subsection 2. An opinion required by subsection 2 is governed by the following provisions.
A. A memorandum, in form and substance acceptable to the superintendent as specified by rule, must be prepared to support the
actuarial opinion.
[1993, c. 634, Pt. B, §1 (new); §4 (aff).]
B. If the insurer fails to provide a supporting memorandum at the request of the superintendent within a period specified by
rule or the superintendent determines that the supporting memorandum provided by the insurer fails to meet the standards prescribed
by the rules or is otherwise unacceptable to the superintendent, the superintendent may engage a qualified actuary at the
expense of the insurer to review the opinion and the basis for the opinion and prepare a supporting memorandum as required
by the superintendent.
[1993, c. 634, Pt. B, §1 (new); §4 (aff).]
[1993, c. 634, Pt. B, §1 (new); §4 (aff).]
4. Requirement for all opinions. An opinion required pursuant to subsection 1 or 2 is governed by the following provisions.
A. The opinion must be submitted with the annual statement reflecting the valuation of reserve liabilities for each year ending
on or after December 31, 1995.
[1993, c. 634, Pt. B, §1 (new); §4 (aff).]
B. The opinion must apply to all business in force, including individual and group health insurance plans, in a form and substance
acceptable to the superintendent as specified by rule.
[1993, c. 634, Pt. B, §1 (new); §4 (aff).]
C. The opinion must be based on standards adopted by the actuarial standards board and on those additional standards as the
superintendent by rule prescribes.
[1993, c. 634, Pt. B, §1 (new); §4 (aff).]
D. In the case of an opinion required to be submitted by a foreign or alien insurer, the superintendent may accept the opinion
filed by that insurer with the insurance supervisory official of another state if the superintendent determines that the opinion
reasonably meets the requirements applicable to an insurer domiciled in this State.
[1993, c. 634, Pt. B, §1 (new); §4 (aff).]
E. For the purposes of this section, "qualified actuary" means a member in good standing of the American Academy of Actuaries
who meets the requirements set forth in the rules of the American Academy of Actuaries.
[1993, c. 634, Pt. B, §1 (new); §4 (aff).]
F. Except in cases of fraud or willful misconduct, a qualified actuary is not liable for damages to any person, other than
the insurer and the superintendent, for any act, error, omission, decision or conduct with respect to the qualified actuary's
opinion.
[1993, c. 634, Pt. B, §1 (new); §4 (aff).]
G. Disciplinary action by the superintendent against the insurer or the qualified actuary must be defined in rules established
by the superintendent.
[1993, c. 634, Pt. B, §1 (new); §4 (aff).]
H. Except as provided in paragraphs K, L and M, any memorandum in support of the opinion and any other documents, materials
or other information provided by the insurer to the superintendent in connection with the memorandum must be kept confidential
by the superintendent and are not public records within the meaning of the freedom of access laws and are not subject to subpoena
or discovery, nor admissible in evidence in any private civil action. The superintendent is authorized to use the documents,
materials or other information in the furtherance of any regulatory or legal action brought as a part of the superintendent's
official duties.
[2001, c. 89, §1 (rpr).]
I. Neither the superintendent nor any person who received documents, materials or other information while acting under the
authority of the superintendent is permitted or required to testify in any private civil action concerning any confidential
documents, materials or information pursuant to paragraph H.
[2001, c. 89, §2 (new).]
J. Disclosure to the superintendent under this section or as a result of sharing of documents, materials or other information
pursuant to section 216 does not constitute a waiver of any applicable privileges or claim of confidentiality in the documents,
materials or other information.
[2001, c. 89, §2 (new).]
K. A memorandum in support of the opinion, and any other documents, materials or other information provided by the life insurer
to the superintendent in connection with the memorandum, may be subject to subpoena for the purpose of defending an action
seeking damages from the actuary submitting the memorandum by reason of an action pursuant to this section or by rule adopted
pursuant to this section.
[2001, c. 89, §2 (new).]
L. The memorandum or other documents, materials or other information may otherwise be released by the superintendent with the
written consent of the life insurer or upon a written request by the American Academy of Actuaries stating that the memorandum
or other documents, materials or other information is required for the purpose of professional disciplinary proceedings and
setting forth procedures satisfactory to the superintendent for preserving the confidentiality of the memorandum or other
documents, materials or other information.
[2001, c. 89, §2 (new).]
M. Once any portion of a memorandum is cited by the life insurer in its marketing or is cited by the life insurer before a
governmental agency other than a state insurance agency or is released by the life insurer to the news media, all portions
of the memorandum become public records.
[2001, c. 89, §2 (new).]
[2001, c. 89, §§1, 2 (amd).]
The Revisor's Office cannot provide legal advice or
interpretation of Maine law to the public. If you need legal
advice, please consult
a qualified attorney.
Office of the Revisor of Statutes
7 State House Station
State House Room 108
Augusta, Maine 04333-0007
This page created on: 2005-10-01
Title 24-A - §952. Calculation of reserve liabilities
Title 24-A: MAINE INSURANCE CODE
Chapter 11: ASSETS AND LIABILITIES
Subchapter 3: LIFE INSURANCE RESERVES
§952. Calculation of reserve liabilities
1. The superintendent 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 shall 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 level premium method or other, used in the calculation of such reserves. In calculating such reserves, he 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, he may accept any valuation made, or caused to be made, by the insurance supervisory official
of any state or other jurisdiction when such valuation complies with the minimum standard herein provided and if the official
of such state or jurisdiction accepts as sufficient and valid for all legal purposes the certificate of valuation of the superintendent
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.
[1973, c. 585, § 12 (amd).]
2. Any such insurer 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 superintendent, adopt any
lower standard of valuation, but not lower than the minimum herein provided.
[1973, c. 585, § 12 (amd).]
The Revisor's Office cannot provide legal advice or
interpretation of Maine law to the public. If you need legal
advice, please consult
a qualified attorney.
Office of the Revisor of Statutes
7 State House Station
State House Room 108
Augusta, Maine 04333-0007
This page created on: 2005-10-01
Title 24-A - §953-A. Applicable interest rates
Title 24-A: MAINE INSURANCE CODE
Chapter 11: ASSETS AND LIABILITIES
Subchapter 3: LIFE INSURANCE RESERVES
§953-A. Applicable interest rates
1. The interest rates used in determining the minimum standard for the valuation of the following shall be the calendar year
statutory valuation interest rates, as defined in this section:
A. All life insurance policies issued in a particular calendar year, on or after the operative date of the Standard Nonforfeiture
Law for Life Insurance, section 2532-A;
[1983, c. 346, § 3 (new).]
B. All individual annuity and pure endowment contracts issued in a particular calendar year on or after January 1, 1984, or
January 1, 1983, at the election of the insurer;
[1983, c. 346, § 3 (new).]
C. All annuities and pure endowments purchased in a particular calendar year on or after January 1, 1984, or January 1, 1983,
at the election of the insurer, under group annuity and pure endowment contracts; and
[1983, c. 346, § 3 (new).]
D. The net increase, if any, in a particular calendar year after January 1, 1984, or January 1, 1983, at the election of the
insurer, in amounts held under guaranteed interest contracts.
[1983, c. 346, § 3 (new).]
An insurer electing January 1, 1983, in lieu of January 1, 1984, in paragraph B, C or D, shall notify the superintendent of
its election by written notice no later than December 31, 1983.
[1983, c. 346, § 3 (new).]
2. The calendar year statutory valuation interest rates, I, shall be determined as follows and the results rounded to the nearest
14 of 1%:
A. For life insurance:
I=. 03 + W (R -.03) + W (R -.09); 1 2 2
[1983, c. 346, § 3 (new).]
B. For single premium immediate annuities and for annuity benefits involving life contingencies arising from other annuities
with cash settlement options and from guaranteed interest contracts with cash settlement options:
I=. 03 + W (R -.03)
div>
where R is the lesser of R and .09, 1
div>
R is the greater of R and .09, 2
p align="center">R is the reference interest rate defined in this section, and W is the weighting factor defined in this section;
[1983, c. 346, § 3 (new).]p align="center">C. For other annuities with cash settlement options and guaranteed interest contracts with cash settlement options, valued
on an issue year basis, except as stated in paragraph B, the formula for life insurance stated in paragraph A shall apply
to annuities and guaranteed interest contracts with guarantee durations in excess of 10 years, and the formula for single
premium immediate annuities stated in paragraph B shall apply to annuities and guaranteed interest contracts with guarantee
duration of 10 years or less;
[1983, c. 346, § 3 (new).]p align="center">D. For other annuities with no cash settlement options and for guaranteed interest contracts with no cash settlement options,
the formula for single premium annuities stated in paragraph B shall apply; and
[1983, c. 346, § 3 (new).]p align="center">E. For other annuities with cash settlement options and guaranteed interest contracts with cash settlement options, valued
on a change in fund basis, the formula for single premium immediate annuities stated in paragraph B shall apply.
[1983, c. 346, § 3 (new).]p align="center">If the calendar year statutory valuation interest rate for any life insurance policies issued in any calendar year, determined
without reference to this sentence, differs from the corresponding actual rate for similar policies issued in the immediately
preceding calendar year by less than 12 of 1%, the calendar year statutory valuation interest rate for those life insurance
policies shall be equal to the corresponding actual rate for the immediately preceding calendar year. For purposes of applying
the immediately preceding sentence, the calendar year statutory valuation interest rate for life insurance policies issued
in a calendar year shall be determined for 1980, by using the reference interest rate defined for 1979, and shall be determined
for each subsequent calendar year, regardless of when the Standard Nonforfeiture Law for Life Insurance, section 2532-A, becomes
operative.
[1983, c. 346, § 3 (new).]
3. The weighting factors in the formulas in subsection 2 are given in the following tables:
A. Weighting Factors for Life Insurance:
Guarantee
Duration Weighting
(Years) Factors
10 or less .50
More than 10, but not more than 20 . 45
More than 20 .35
For life insurance, the guarantee duration is the maximum number of years the life insurance can remain in force on a basis
guaranteed in policy or under options to convert to plans of life insurance with premium rates or nonforfeiture values or
both which are guaranteed in the original policy;
[1983, c. 346, § 3 (new).]
B. Weighting factor for single premium immediate annuities and for annuity benefits involving life contingencies arising from
other annuities with cash settlement options and guaranteed interest contracts with cash settlement options:.80;
[1983, c. 346, § 3 (new).]
C. Weighting factors for other annuities and for guaranteed interest contracts, except as stated in paragraph B, shall be as
specified in subparagraphs (1), (2) and (3), according to the rules and definitions in subparagraphs (4), (5) and (6):
(1) For annuities and guaranteed interest contracts valued on an issue year basis:
Guarantee Weighting Factor
Duration for Plan Type
(Years) A B C
5 or less: .80 .60 .50
More than 5, but not
more than 10: .75 .60 .50
More than 10, but not
more than 20: .65 .50 .45
More than 20: .45 .35 .35;
p align="center">(2) For annuities and guaranteed interest contracts valued on a change in fund basis, the factors shown in subparagraph (1)
increased by:
div>
Plan Type
div>
A B C
.15 ." Headnote="25 .05;
p align="center">(3) For annuities and guaranteed interest contracts valued on an issue year basis, other than those with no cash settlement
options, which do not guarantee interest on considerations received more than one year after issue or purchase and for annuities
and guaranteed interest contracts valued on a change in fund basis which do not guarantee interest rates on considerations
received more than 12 months beyond the valuation date, the factors shown in subparagraph (1) or derived in subparagraph (2)
increased by:
div>
Plan Type
div>
A B C
.05 ." Headnote="05 .05;
p align="center">(4) For other annuities with cash settlement options and guaranteed interest contracts with cash settlement options, the
guarantee duration is the number of years for which the contract guarantees interest rates in excess of the calendar year
statutory valuation interest rate for life insurance policies with guarantee duration in excess of 20 years. For other annuities
with no cash settlement options and for guaranteed interest contracts with no cash settlement options, the guarantee duration
is the number of years from the date of issue or date of purchase to the date annuity benefits are scheduled to commence;
p align="center">(5) Plan type as used in the subparagraphs (1), (2) and (3) tables is defined as follows.
p align="center">(a) Plan Type A. At any time policyholder may withdraw funds, only: With an adjustment to reflect changes in interest rates
or asset values since receipt of the funds by the insurance company; without that adjustment, but in installments over 5 years
or more; as an immediate life annuity; or no withdrawal permitted.
p align="center">(b) Plan Type B. Before expiration of the interest rate guarantee, policyholder may withdraw funds, only: With an adjustment
to reflect changes in interest rates or asset values since receipt of the funds by the insurance company; without that adjustment,
but in installments over 5 years or more; or no withdrawal permitted. At the end of interest rate guarantee, funds may be
withdrawn without that adjustment in a single sum or installments over less than 5 years.
p align="center">(c) Plan Type C. Policyholder may withdraw funds before expiration of interest rate guarantee in a single sum or installments
over less than 5 years, either: Without adjustment to reflect changes in interest rates or asset values since receipt of the
funds by the insurance company; or subject only to a fixed surrender charge stipulated in the contract as a percentage of
the fund; and
p align="center">(6) A company may elect to value guaranteed interest contracts with cash settlement options and annuities with cash settlement
options on either an issue year basis or on a change in fund basis. Guaranteed interest contracts with no cash settlement
options and other annuities with no cash settlement options must be valued on an issue year basis. As used in this section,
an issue year basis of valuation refers to a valuation basis under which the interest rate used to determine the minimum valuation
standard for the entire duration of the annuity or guaranteed interest contract is the calendar year valuation interest rate
for the year of issue or year of purchase of the annuity or guaranteed interest contract, and the change in fund basis of
valuation refers to a valuation basis under which the interest rate used to determine the minimum valuation standard applicable
to each change in the fund held under the annuity or guaranteed interest contract is the calendar year valuation interest
rate for the year of the change in the fund.
[1983, c. 346, § 3 (new).]
4. The reference interest rate referred to in subsection 2 is defined as follows:
A. For all life insurance, the lesser of the average over a period of 36 months and the average over a period of 12 months,
ending on June 30th of the calendar year next preceding the year of issue, of Moody's Corporate Bond Yield Average-Monthly
Average Corporates, as published by Moody's Investors Service, Inc.;
[1983, c. 346, § 3 (new).]
B. For single premium immediate annuities and for annuity benefits involving life contingencies arising from other annuities
with cash settlement options and guaranteed interest contracts with cash settlement options, the average over a period of
12 months, ending on June 30th of the calendar year of issue or year of purchase, of Moody's Corporate Bond Yield Average-Monthly
Average Corporates, as published by Moody's Investors Service, Inc.;
[1983, c. 346, § 3 (new).]
C. For other annuities with cash settlement options and guaranteed interest contracts with cash settlement options, valued
on a year of issue basis, except as stated in paragraph B, with guarantee duration in excess of 10 years, the lesser of the
average over a period of 36 months and the average over a period of 12 months, ending on June 30th of the calendar year of
issue or purchase, of Moody's Corporate Bond Yield Average-Monthly Average Corporates,as published by Moody's Investors Service,
Inc.;
[1983, c. 346, § 3 (new).]
D. For other annuities with cash settlement options and guaranteed interest contracts with cash settlement options, valued
on a year of issue basis, except as stated in paragraph B, with guarantee duration of 10 years or less, the average over a
period of 12 months, ending on June 30th of the calendar year of issue or purchase, of Moody's Corporate Bond Yield Average-Monthly
Average Corporates, as published by Moody's Investors Service, Inc.;
[1983, c. 346, § 3 (new).]
E. For other annuities with no cash settlement options and for guaranteed interest contracts with no cash settlement options,
the average over a period of 12 months, ending on June 30th of the calendar year of issue or purchase, of Moody's Corporate
Bond Yield Average-Monthly Average Corporates, as published by Moody's Investors Service, Inc.; and
[1983, c. 346, § 3 (new).]
F. For other annuities with cash settlement options and guaranteed interest contracts with cash settlement options, valued
on a change in fund basis, except as stated in paragraph B, the average over a period of 12 months, ending on June 30th of
the calendar year of the change in the fund, of Moody's Corporate Bond Yield Average-Monthly Average Corporates, as published
by Moody's Investors Service, Inc.
[1983, c. 346, § 3 (new).]
5. In the event that Moody's Corporate Bond Yield Average-Monthly Average Corporates is no longer published by Moody's Investors
Service, Inc., or in the event that the National Association of Insurance Commissioners determines that Moody's Corporate
Bond Yield Average-Monthly Average Corporates, as published by Moody's Investors Service, Inc. is no longer appropriate for
the determination of the reference interest rate, then an alternative method for determination of the reference interest rate,
which is adopted by the National Association of Insurance Commissioners and approved by regulation promulgated by the superintendent,
may be substituted.
[1983, c. 346, § 3 (new).]
The Revisor's Office cannot provide legal advice or
interpretation of Maine law to the public. If you need legal
advice, please consult
a qualified attorney.
Office of the Revisor of Statutes
7 State House Station
State House Room 108
Augusta, Maine 04333-0007
This page created on: 2005-10-01
Title 24-A - §953. Minimum standards
Title 24-A: MAINE INSURANCE CODE
Chapter 11: ASSETS AND LIABILITIES
Subchapter 3: LIFE INSURANCE RESERVES
§953. Minimum standards
1. This subsection applies only to policies and contracts issued prior to January 1, 1948, or such earlier date after July
21, 1945, as shall have been elected by an insurer as the date on and after which it would comply with the standard nonforfeiture
law.
Except as otherwise provided in subsection 3, the legal minimum standard of value for such life insurance policies issued
on or after the first day of September, 1931, by any life insurer chartered by this State, shall be the American Experience
Table of Mortality with interest at 3 12% per year. Any such life insurer may, at its option, value its insurance policies
issued on and after such day, in accordance with their terms on the basis of the American Men Ultimate Table of Mortality
with interest not higher than 3 12% per year by the net level premium method. Reserves for all such policies and contracts
may be calculated, at the option of the insurer, according to any standards which produce greater aggregate reserves for all
such policies and contracts than the minimum reserves required by this subsection.
[1975, c. 342, §1 (amd).]
2. This subsection applies only to policies and contracts issued on and after January 1, 1948, or the earlier date after July
21, 1945, as shall have been elected by an insurer as the date on and after which it would comply with the standard nonforfeiture
law.
Except as otherwise provided in subsection 3 and section 953-A, the minimum standard for the valuation of all those policies
and contracts shall be the commissioners reserve valuation method defined in section 954, 3 12% interest, or in the case
of policies and contracts, other than annuity and pure endowment contracts, issued on or after December 31, 1975, 4% interest,
and the following tables, or in the case of these policies and contracts, other than annuity and pure endowment contracts,
issued on or after January 1, 1980, 4 12% interest, and the following tables.
A. Standard Ordinary Mortality Table. For all ordinary policies of life insurance issued on the standard basis, excluding any
disability and accidental death benefits in these policies, -- the Commissioners 1941 Standard Ordinary Mortality Table; provided
that the Commissioners 1958 Standard Ordinary Mortality Table shall be the table for the minimum standard for those policies
issued on and after January 1, 1966, or such earlier date after September 12, 1959, as shall have been elected by an insurer
as the date on and after which it would use such table as the basis for minimum cash surrender values and nonforfeiture benefits
under the standard nonforfeiture law and prior to the operative date of the Standard Nonforfeiture Law for Life Insurance,
section 2532-A; provided that for any category of those policies issued on female risks all modified net premiums and present
values referred to in sections 951 to 957 may be calculated according to an age not more than 3 years younger than the actual
age of the insured, or in the case of those policies issued on or after January 1, 1980, according to an age not more than
6 years younger than the actual age of the insured. For those policies issued on or after the operative date of the Standard
Nonforfeiture Law for Life Insurance, section 2532-A, the Commissioners 1980 Standard Ordinary Mortality Table, or at the
election of the company for any one or more specified plans of life insurance, the Commissioners 1980 Standard Ordinary Mortality
Table with Ten-Year Select Mortality Factors or any ordinary mortality table, adopted after 1980 by the National Association
of Insurance Commissioners, that is approved by regulation promulgated by the superintendent for use in determining the minimum
standard of valuation for the policies.
[1983, c. 346, §2 (amd)]
B. Standard Industrial Mortality Table. For all industrial life insurance policies issued on the standard basis, excluding
any disability and accidental death benefits in the policies, -- the 1941 Standard Industrial Mortality Table; provided that
the Commissioners 1961 Standard Industrial Mortality Table, or any industrial mortality table, adopted after 1980 by the National
Association of Insurance Commissioners, that is approved by regulation promulgated by the superintendent for use in determining
the minimum standard of valuation for those policies, shall be the table for the minimum standard for those policies issued
on and after January 1, 1968, or such earlier date after September 1, 1963, as shall have been elected by the insurer as the
date on and after which it would use such table as the basis for minimum cash surrender values and nonforfeiture benefits
under the standard nonforfeiture law.
[1983, c. 346, §2 (amd).]
C. Standard Annuity Mortality Table or Annuity Mortality Table. For individual annuity and pure endowment contracts, excluding
any disability and accidental death benefits in those policies -- the 1937 Standard Annuity Mortality Table or, at the option
of the insurer, the Annuity Mortality Table for 1949, Ultimate, or any modification of either of these tables approved by
the superintendent.
[1983, c. 346, §2 (amd).]
D. Group Annuity Mortality Table. For group annuity and pure endowment contracts, excluding any disability and accidental death
benefits in those policies -- the Group Annuity Mortality Table for 1951, any modification of the table approved by the superintendent,
or, at the option of the insurer, any of the tables or modifications of tables specified for individual annuity and pure endowment
contracts.
[1983, c. 346, §2 (amd).]
E. Class (3)" Headnote=" Disability Table. For total and permanent disability benefits in or supplementary to ordinary policies
or contracts -- for policies or contracts issued on or after January 1, 1966, the tables of Period 2 disablement rates and
the 1930 to 1950 termination rates of the 1952 Disability Study of the Society of Actuaries, with due regard to the type of
benefit or any tables of disablement rates and termination rates, adopted after 1980 by the National Association of Insurance
Commissioners, that are approved by regulation promulgated by the superintendent for use in determining the minimum standard
of valuation for those policies; for policies or contracts issued on or after January 1, 1961 and prior to January 1, 1966,
either those tables or, at the option of the insurer, the Class (3) Disability Table (1926); and for policies issued prior
to January 1, 1961, the Class (3) Disability Table (1926). Any such table shall, for active lives, be combined with a mortality
table permitted for calculating the reserves for life insurance policies.
[1983, c. 346, §2 (amd).]
F. Inter-Company Double Indemnity Mortality Table. For accidental death benefits in or supplementary to policies -- for policies
issued on or after January 1, 1966, the 1959 Accidental Death Benefits Table or any accidental death benefits table, adopted
after 1980 by the National Association of Insurance Commissioners, that is approved by regulation promulgated by the superintendent
for use in determining the minimum standard of valuation for those policies; for policies issued on or after January 1, 1961
and prior to January 1, 1966, either that table or, at the option of the insurer, the Inter-Company Double Indemnity Mortality
Table; and for policies issued prior to January 1, 1961, the Inter-Company Double Indemnity Mortality Table. Either table
shall be combined with a mortality table permitted for calculating the reserves for life insurance policies.
[1983, c. 346, §2 (amd).]
G. Group Life Insurance Tables. For group life insurance, life insurance issued on the substandard basis and other special
benefits -- such table as may be approved by the superintendent.
[1983, c. 346, §2 (amd).]
[1983, c. 346, §2 (amd).]
3. Except as provided in section 953-A, the minimum standard for the valuation of all individual annuity and pure endowment
contracts issued on or after the effective date of this subsection, as defined herein, and for all annuities and pure endowments
purchased on or after the effective date under group annuity and pure endowment contracts, shall be the commissioners reserve
valuation method defined in section 954 and the following tables and interest rates.
A. 1971 Individual Annuity Mortality Table. For individual annuity and pure endowment contracts, excluding any disability and
accidental death benefits in those contracts -- the 1971 Individual Annuity Mortality Table, or any individual annuity mortality
table, adopted after 1980 by the National Association of Insurance Commissioners, that is approved by regulation promulgated
by the superintendent for use in determining the minimum standard of valuation for those contracts, or any modification of
these tables approved by the superintendent, and 6% interest for single premium immediate annuity contracts, and 4% interest
for all other individual annuity and pure endowment contracts, or in the case of these contracts issued on or after January
1, 1980, 7 12% interest for individual single premium immediate annuity contracts, 5 12% interest for single premium deferred
annuity and pure endowment contracts and 4 12% interest for all other individual annuity and pure endowment contracts.
[1983, c. 346, §2 (amd).]
B. 1971 Group Annuity Mortality Table. For all annuities and pure endowments purchased under group annuity and pure endowment
contracts, excluding any disability and accidental death benefits purchased under those contracts -- the 1971 Group Annuity
Mortality Table, or any group annuity mortality table, adopted after 1980 by the National Association of Insurance Commissioners,
that is approved by regulation promulgated by the superintendent for use in determining the minimum standard of valuation
for those annuities and pure endowments, or any modification of these tables approved by the superintendent, and 6% interest,
or in the case of annuities and pure endowments purchased under those contracts on or after January 1, 1980, 7 12% interest.
[1983, c. 346, §2 (amd).]
This subsection shall not apply to any insurer before January 1, 1979, unless the insurer shall have filed with the superintendent
an election to comply with the provisions of this subsection after a specified date before January 1, 1979, provided that
an insurer may elect different dates on which this subsection shall apply to individual and pure endowment contracts and to
group annuity and pure endowment contracts. If an insurer makes no such election, this subsection shall apply to that insurer
on January 1, 1979.
[1983, c. 346, §2 (amd).]
The Revisor's Office cannot provide legal advice or
interpretation of Maine law to the public. If you need legal
advice, please consult
a qualified attorney.
Office of the Revisor of Statutes
7 State House Station
State House Room 108
Augusta, Maine 04333-0007
This page created on: 2005-10-01
Title 24-A - §954. Commissioners reserve valuation method defined
Title 24-A: MAINE INSURANCE CODE
Chapter 11: ASSETS AND LIABILITIES
Subchapter 3: LIFE INSURANCE RESERVES
§954. Commissioners reserve valuation method defined
1. Policies providing for uniform insurance and uniform premiums. Except as otherwise provided in subsection 2 and section 957, reserves according to the commissioners reserve valuation method,
for the life insurance and endowment benefits of policies providing for a uniform amount of insurance and requiring the payment
of uniform premiums, shall be the excess, if any, of the present value, at the date of valuation, of such future guaranteed
benefits provided for by such policies, over the then present value of any future modified net premiums therefor. The modified
net premiums for any such policy shall be such uniform percentage of the respective contract premiums for such benefits that
the present value, at the date of issue of the policy, of all such modified net premiums shall be equal to the sum of the
then present value of such benefits provided for by the policy and the excess of paragraph A over paragraph B as follows:
A. A net level annual premium equal to the present value, at the date of issue, of such benefits provided for after the first
policy year, divided by the present value, at the date of issue, of an annuity of one per year payable on the first and each
subsequent anniversary of such policy on which a premium falls due. Such net level annual premium shall not exceed the net
level annual premium on the 19-year premium whole life plan for insurance of the same amount at an age one year higher than
the age at issue of such policy;
[1979, c. 453, § 5 (new).]
B. A net one-year term premium for those benefits provided in the first policy year.
[1983, c. 346, § 4 (amd).]
[1983, c. 346, § 4 (amd).]
1-A. Reserve. For any life insurance policy issued on or after January 1, 1987, for which the contract premium in the first policy year
exceeds that of the 2nd year and for which no comparable additional benefit is provided in the first year for that excess
and which provides an endowment benefit or a cash surrender value, or a combination thereof, in an amount greater than that
excess premium, the reserve according to the commissioners reserve valuation method as of any policy anniversary occurring
on or before the assumed ending date, defined in this subsection as the first policy anniversary on which the sum of any endowment
benefit and any cash surrender value then available is greater than that excess premium, shall, except as otherwise provided
in section 957, be the greater of the reserve as of that policy anniversary calculated as described in subsection 1 and the
reserve as of that policy anniversary calculated as described in subsection 1, but with the value defined in subsection 1,
paragraph A, being reduced by 15% of the amount of that excess first year premium, all present values of benefits and premiums
being determined without reference to premiums or benefits provided for by the policy after the assumed ending date, the policy
being assumed to mature on that date as an endowment, and the cash surrender value provided on that date being considered
as an endowment benefit. In making this comparison, the mortality and interest bases stated in sections 953 and 953-A shall
be used.
Reserves according to the commissioners reserve valuation method for:
A. Life insurance policies providing for a varying amount of insurance or requiring the payment of varying premiums;
[1983, c. 346, § 5 (new).]
B. Group annuity and pure endowment contracts, purchased under a retirement plan or plan of deferred compensation, established
or maintained by an employer, including a partnership or sole proprietorship, or by an employee organization, or by both,
other than a plan providing individual retirement accounts or individual retirement annuities under the United States Internal
Revenue Code, Section 408, as now or hereafter amended;
[1983, c. 346, § 5 (new).]
C. Disability and accidental death benefits in all policies and contracts; and
[1983, c. 346, § 5 (new).]
D. All other benefits, except life insurance and endowment benefits in life insurance policies and benefits provided by all
other annuity and pure endowment contracts,
[1983, c. 346, § 5 (new).]
shall be calculated by a method consistent with the principles of the preceding provisions of this section, except that any
extra premiums charged because of impairments or special hazards shall be disregarded in the determination of modified net
premiums.
[1983, c. 346, § 5 (new).]
2. Annuity and pure endowment contracts. This subsection shall apply to all annuity and pure endowment contracts other than group annuity and pure endowment contracts
purchased under a retirement plan or plan of deferred compensation, established or maintained by an employer (including a
partnership or sole proprietorship) or by an employee organization, or by both, other than a plan providing individual retirement
accounts or individual retirement annuities under the United States Internal Revenue Code, Section 408, as now or hereafter
amended.
Reserves according to the commissioners annuity reserve method for benefits under annuity or pure endowment contracts, excluding
any disability or accidental death benefits in such contracts, shall be the greatest of the respective excesses of the present
values, at the date of valuation, of the future guaranteed benefits, including guaranteed nonforfeiture benefits, provided
for by such contracts at the end of each respective contract year, over the present value, at the date of valuation, of any
future valuation considerations derived from future gross considerations, required by the terms of such contract, that become
payable prior to the end of such respective contract year. The future guaranteed benefits shall be determined by using 20e
mortality table, if any, and the interest rate, or rates, specified in such contracts for determining guaranteed benefits.
The valuation considerations are the portions of the respective gross considerations applied under the terms of such contracts
to determine nonforfeiture values.
[1979, c. 453, § 5 (rpr).]
The Revisor's Office cannot provide legal advice or
interpretation of Maine law to the public. If you need legal
advice, please consult
a qualified attorney.
Office of the Revisor of Statutes
7 State House Station
State House Room 108
Augusta, Maine 04333-0007
This page created on: 2005-10-01
Title 24-A - §955. Minimum reserves
Title 24-A: MAINE INSURANCE CODE
Chapter 11: ASSETS AND LIABILITIES
Subchapter 3: LIFE INSURANCE RESERVES
§955. Minimum reserves
1. Minimum aggregate reserves for life insurance policies. An insurer's aggregate reserves for all life insurance policies, excluding disability and accidental death benefits, that
are subject to section 953, subsection 2 may not be less than the aggregate reserves calculated in accordance with the method
set forth in sections 954 and 957-A and the mortality table or tables and rate or rates of interest used in calculating nonforfeiture
benefits for these policies.
[1993, c. 634, Pt. B, §2 (new).]
2. Minimum aggregate reserves for all policies. The aggregate reserves for all policies, contracts and benefits may not be less than the aggregate reserves determined necessary
by the qualified actuary in the opinion required by section 952-A.
[1993, c. 634, Pt. B, §2 (new).]
The Revisor's Office cannot provide legal advice or
interpretation of Maine law to the public. If you need legal
advice, please consult
a qualified attorney.
Office of the Revisor of Statutes
7 State House Station
State House Room 108
Augusta, Maine 04333-0007
This page created on: 2005-10-01
Title 24-A - §956. Optional reserve calculation
Title 24-A: MAINE INSURANCE CODE
Chapter 11: ASSETS AND LIABILITIES
Subchapter 3: LIFE INSURANCE RESERVES
§956. Optional reserve calculation
1. Reserve calculation. Reserves for any category of policies, contracts or benefits as established by the superintendent that are subject to section
953, subsection 2, may be calculated at the option of the insurer according to any standards that produce greater aggregate
reserves for that category than those calculated according to the minimum standard provided in section 955, but the rate or
rates of interest used for policies and contracts, other than annuity and pure endowment contracts, may not be higher than
the corresponding rate or rates of interest used in calculating any nonforfeiture benefits provided.
[1993, c. 634, Pt. B, §3 (new).]
2. Lower standard of valuation. Any insurer that adopts any standard of valuation producing greater aggregate reserves than those calculated according to
the minimum standard provided in section 955 may adopt, with the approval of the superintendent, any lower standards of valuation,
but not lower than the minimum required, provided, however, that for the purposes of this section the holding of additional
reserves previously determined necessary by a qualified actuary in the opinion required by section 952-A may not be determined
to be the adoption of a higher standard of valuation.
[1993, c. 634, Pt. B, §3 (new).]
The Revisor's Office cannot provide legal advice or
interpretation of Maine law to the public. If you need legal
advice, please consult
a qualified attorney.
Office of the Revisor of Statutes
7 State House Station
State House Room 108
Augusta, Maine 04333-0007
This page created on: 2005-10-01
Title 24-A - §957-A. Superintendent's authority to approve certain plans
Title 24-A: MAINE INSURANCE CODE
Chapter 11: ASSETS AND LIABILITIES
Subchapter 3: LIFE INSURANCE RESERVES
§957-A. Superintendent's authority to approve certain plans
1. In the case of any plan of life insurance which provides for future premium determination, the amounts of which are to be
determined by the insurance company based on then estimates of future experience, or in the case of any plan of life insurance
or annuity which is of such a nature that the minimum reserves cannot be determined by the methods described in sections 954
and 957, the reserves which are held under any plan of that type must:
A. Be appropriate in relation to the benefits and the pattern of premiums for that plan; and
[1983, c. 346, § 8 (new).]
B. Be computed by a method which is consistent with the principles of this Standard Valuation Law,
[1983, c. 346, § 8 (new).]
as determined by regulations promulgated by the superintendent.
[1983, c. 346, § 8 (new).]
The Revisor's Office cannot provide legal advice or
interpretation of Maine law to the public. If you need legal
advice, please consult
a qualified attorney.
Office of the Revisor of Statutes
7 State House Station
State House Room 108
Augusta, Maine 04333-0007
This page created on: 2005-10-01
Title 24-A - §957. Deficiency reserve
Title 24-A: MAINE INSURANCE CODE
Chapter 11: ASSETS AND LIABILITIES
Subchapter 3: LIFE INSURANCE RESERVES
§957. Deficiency reserve
If the gross premium charged by any life insurer on any policy or contract which is subject to section 953, subsection 2,
is less than the valuation net premium for the policy or contract calculated by the method used in calculating the reserve
thereon, but using the minimum valuation standards of mortality and rate of interest, the minimum reserve required for that
policy or contract shall be the greater of either the reserve calculated according to the mortality table, rate of interest
and method actually used for that policy or contract, or the reserve calculated by the method actually used for that policy
or contract, but using the minimum valuation standards of mortality and rate of interest and replacing the valuation net premium
by the actual gross premium in each contract year for which the valuation net premium exceeds the actual gross premium. The
minimum valuation standards of mortality and rate of interest referred to in this section are those standards stated in sections
953 and 953-A.
[1983, c. 346, § 7 (amd).]
div>
For any life insurance policy issued on or after January 1, 1987, for which the gross premium in the first policy year exceeds
that of the 2nd year and for which no comparable additional benefit is provided in the first year for that excess and which
provides an endowment benefit or a cash surrender value or a combination thereof in an amount greater than that excess premium,
the foregoing provisions of this section shall be applied as if the method actually used in calculating the reserve for that
policy were the method described in section 954, ignoring the 2nd paragraph of section 954. The minimum reserve at each policy
anniversary of such a policy shall be the greater of the minimum reserve calculated in accordance with section 954, including
the 2nd paragraph of that section, and the minimum reserve calculated in accordance with this section 957.
[1983, c. 346, §7 (new).]
The Revisor's Office cannot provide legal advice or
interpretation of Maine law to the public. If you need legal
advice, please consult
a qualified attorney.
Office of the Revisor of Statutes
7 State House Station
State House Room 108
Augusta, Maine 04333-0007
This page created on: 2005-10-01
Title 24-A - §958-A. Interest rates extended
Title 24-A: MAINE INSURANCE CODE
Chapter 11: ASSETS AND LIABILITIES
Subchapter 3: LIFE INSURANCE RESERVES
§958-A. Interest rates extended
Notwithstanding section 958, the changes in the interest rates for life insurance specified in this subchapter and in sections
2528 to 2534, which were made by the Amendatory Acts of 1979, shall continue to apply to life insurance policies issued on
or after January 1, 1980 and prior to the operative date of the Standard Nonforfeiture Law for Life Insurance, section 2532-A.
[1983, c. 346, § 9 (new).]
The Revisor's Office cannot provide legal advice or
interpretation of Maine law to the public. If you need legal
advice, please consult
a qualified attorney.
Office of the Revisor of Statutes
7 State House Station
State House Room 108
Augusta, Maine 04333-0007
This page created on: 2005-10-01
Title 24-A - §958. Interest rates
Title 24-A: MAINE INSURANCE CODE
Chapter 11: ASSETS AND LIABILITIES
Subchapter 3: LIFE INSURANCE RESERVES
§958. Interest rates
All changes in the interest rates specified in this subchapter and in sections 2528 to 2534, which were made by the Amendatory
Acts of 1979, shall become ineffective as to contracts or policies issued on or after November 1, 1987, unless expressly extended
by law.
[1979, c. 453, § 8 (new).]
The Revisor's Office cannot provide legal advice or
interpretation of Maine law to the public. If you need legal
advice, please consult
a qualified attorney.
Office of the Revisor of Statutes
7 State House Station
State House Room 108
Augusta, Maine 04333-0007
This page created on: 2005-10-01
Title 24-A - §981. Valuation of bonds (REPEALED)
Title 24-A: MAINE INSURANCE CODE
Chapter 11: ASSETS AND LIABILITIES
Subchapter 4: VALUATION OF ASSETS (HEADING: PL 2001, c. 72, @10 (rp))
§981. Valuation of bonds (REPEALED)
The Revisor's Office cannot provide legal advice or
interpretation of Maine law to the public. If you need legal
advice, please consult
a qualified attorney.
Office of the Revisor of Statutes
7 State House Station
State House Room 108
Augusta, Maine 04333-0007
This page created on: 2005-10-01
Title 24-A - §982. Valuation of other securities (REPEALED)
Title 24-A: MAINE INSURANCE CODE
Chapter 11: ASSETS AND LIABILITIES
Subchapter 4: VALUATION OF ASSETS (HEADING: PL 2001, c. 72, @10 (rp))
§982. Valuation of other securities (REPEALED)
The Revisor's Office cannot provide legal advice or
interpretation of Maine law to the public. If you need legal
advice, please consult
a qualified attorney.
Office of the Revisor of Statutes
7 State House Station
State House Room 108
Augusta, Maine 04333-0007
This page created on: 2005-10-01
Title 24-A - §983. Valuation of property (REPEALED)
Title 24-A: MAINE INSURANCE CODE
Chapter 11: ASSETS AND LIABILITIES
Subchapter 4: VALUATION OF ASSETS (HEADING: PL 2001, c. 72, @10 (rp))
§983. Valuation of property (REPEALED)
The Revisor's Office cannot provide legal advice or
interpretation of Maine law to the public. If you need legal
advice, please consult
a qualified attorney.
Office of the Revisor of Statutes
7 State House Station
State House Room 108
Augusta, Maine 04333-0007
This page created on: 2005-10-01
Title 24-A - §984. Valuation of purchase money mortgages (REPEALED)
Title 24-A: MAINE INSURANCE CODE
Chapter 11: ASSETS AND LIABILITIES
Subchapter 4: VALUATION OF ASSETS (HEADING: PL 2001, c. 72, @10 (rp))
§984. Valuation of purchase money mortgages (REPEALED)
The Revisor's Office cannot provide legal advice or
interpretation of Maine law to the public. If you need legal
advice, please consult
a qualified attorney.
Office of the Revisor of Statutes
7 State House Station
State House Room 108
Augusta, Maine 04333-0007
This page created on: 2005-10-01
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