Active life reserves and unearned premium reserves for noncancellable disability insurance.

Checkout our iOS App for a better way to browser and research.

§431:5-303 Active life reserves and unearned premium reserves for noncancellable disability insurance. (a) The legal minimum standard for computing the active life reserve, including the unearned premium reserve, of noncancellable disability policies shall be based on conference modification of class III disability experience with interest not to exceed three and one-half per cent a year on the full preliminary term basis.

(b) The tables shall be extended to cover the provisions of such policies on such bases as the commissioner may approve for policies:

(1) With a waiting period of less than three months; or

(2) Providing benefits at ages beyond the limits of conference modification of class III disability experience.

(c) The reserve for losses under noncancellable disability policies shall be based on conference modification of class III disability experience, except that for claims of less than twenty-seven months' duration, the reserve may be taken as equivalent to the prospective claim payments for three and one-half times the elapsed period of disability. In no case shall the reserve be less than the equivalent of seven weeks' claim payments.

(d) The commissioner shall modify the application of the tables and requirements prescribed in this section to policies or to claims arising under policies in accordance with the waiting period contained in such policies and in accordance with any limitation as to the time for which indemnity is payable. [L 1987, c 347, pt of §2]


Download our app to see the most-to-date content.