Computation of minimum standard

1. Law
2. US Virgin Islands Code
3. Insurance
4. Assets and Liabilities
5. Standard Valuation Act of 2018
6. Computation of minimum standard

• Except as provided in sections 537, 538, and 545, the minimum standard for the valuation of policies and contracts issued before the effective date of this subchapter is that provided by the laws in effect immediately before that date. Except as otherwise provided in sections 537, 538, and 545, the minimum standard for the valuation of all policies and contracts issued on or after the effective date of this subchapter is the Commissioner’s reserve valuation methods defined in sections 539, 540, 543, and 545, plus 3 1/2 percent interest, and the following tables:

  • (1) For all policies of life insurance issued on or after the effective date of section 997 of the Standard Nonforfeiture Law of 2018 for Life Insurance, 22 V.I.C., subch. III:

    • (A) The Commissioner’s 1980 Standard Ordinary Mortality Table;

    • (B) At the election of the company for any one or more specified plans of life insurance, the Commissioner’s 1980 Standard Ordinary Mortality Table with Ten-Year Select Mortality Factors; or

    • (C) Any ordinary mortality table adopted after 1980 by the NAIC that is approved by the Commissioner for use in determining the minimum standard of valuation for the policies.

  • (2) For individual annuity and pure endowment contracts, excluding any disability and accidental death benefits in the policies:

    • (A) the 1937 Standard Annuity Mortality Table; or

    • (B) at the option of the company, the Annuity Mortality Table for 1949 Ultimate; or

    • (C) any modification of either of these tables approved by the Commissioner.

  • (3) For group annuity and pure endowment contracts, excluding any disability and accidental death benefits in the policies:

    • (A) The Group Annuity Mortality Table for 1951;

    • (B) a modification of the table approved by the Commissioner; or

    • (C) at the option of the company, any of the tables or modifications of tables specified for individual annuity and pure endowment contracts.

  • (4) For total and permanent disability benefits in or supplementary to ordinary policies or contracts, or policies or contracts issued on or after the effective date of this subchapter: 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 NAIC that are approved by the Commissioner for use in determining the minimum standard of valuation for those policies;

  • (5) For accidental death benefits in or supplementary to policies issued on or after the effective date of this subchapter: the 1959 Accidental Death Benefits Table or any accidental death benefits table adopted after 1980 by the NAIC that is approved by regulation promulgated by the Commissioner for use in determining the minimum standard of valuation; and

  • (6) For group life insurance, life insurance issued on the substandard basis and other special benefits: tables approved by the Commissioner.

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