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(1) A company that is licensed and doing business in Utah, and whose reserves are computed subject to the requirements of Subsection 31A-17-502(2), in lieu of the reserves required under Sections 31A-17-514 and 31A-17-515, may hold reserves for ordinary life insurance policies issued directly, or assumed, during the current calendar year, based on the mortality tables and interest rates defined by the valuation manual for net premium reserves and using the methodology defined in Sections 31A-17-507 through 31A-17-512 as they apply to ordinary life insurance, provided that all of the following conditions have been met:
(a) the company has less than $300,000,000 of ordinary life premium;
(b) if the company is a member of a group of life insurers, the group has combined ordinary life premiums of less than $600,000,000;
(c) the appointed actuary has provided an unqualified opinion on the reserves in accordance with Subsection 31A-17-503(2) for the prior calendar year;
(d) any universal life policy with a secondary guarantee issued on or after January 1, 2020, and in force on the company's annual financial statement for the current calendar year-end valuation date, only has secondary guarantees that meets the definition of a non material secondary guarantee as defined in the valuation manual;
(e) the company has filed by July 1 of the calendar year for which valuation under Subsection 31A-17-502(2) is required a statement with its domiciliary commissioner certifying that these conditions are met and that the company intends to calculate reserves as described in this section; and
(f) the company's domiciliary commissioner has not informed the company in writing before September 1 of the calendar year for which valuation under Subsection 31A-17-502(2) is required that the company must comply with the valuation manual requirements for life insurance reserves.
(2) For purposes of Subsections (1)(a) and (b), ordinary life premiums are measured as direct premium plus reinsurance assumed from an unaffiliated company, as reported in the prior calendar year annual statement, excluding premiums for guaranteed issue policies and pre-need life contracts and excluding amounts that represent the transfer of reserves in-force as of the effective date of a reinsurance assumed transaction.