(a) Standards of valuation for certificates issued prior to January 1, 1992, shall be those provided by the laws applicable immediately prior to January 1, 1991.
Terms Used In Tennessee Code 56-25-601
Annuity: A periodic (usually annual) payment of a fixed sum of money for either the life of the recipient or for a fixed number of years. A series of payments under a contract from an insurance company, a trust company, or an individual. Annuity payments are made at regular intervals over a period of more than one full year.
Benefit member: means an adult member who is designated by the laws or rules of the society to be a benefit member under a benefit contract. See Tennessee Code 56-25-104
Laws: means the society's articles of incorporation, charter, constitution and bylaws, however designated. See Tennessee Code 56-25-104
Society: means fraternal benefit society, unless otherwise indicated. See Tennessee Code 56-25-104
State: when applied to the different parts of the United States, includes the District of Columbia and the several territories of the United States. See Tennessee Code 1-3-105
(b)(1) The minimum standards of valuation for certificates issued on or after January 1, 1992, shall be based on the following tables:
(A) For certificates of life insurance, the commissioner‘s 1941 standard ordinary mortality table, the commissioner’s 1941 standard industrial mortality table, the commissioner’s 1958 standard ordinary mortality table, the commissioner’s 1980 standard ordinary mortality table or any more recent table made applicable to life insurers; and(B) For annuity and pure endowment certificates, for total and permanent disability benefits, for accidental death benefits and for noncancellable accident and health benefits, the tables as are authorized for use by life insurers in this state.(2) All certificates in subdivision (b)(1) shall be under valuation methods and standards, including interest assumptions, in accordance with the laws of this state applicable to life insurers issuing policies containing like benefits.(c) The commissioner has the discretion to accept other standards for valuation, if the commissioner finds that the reserves produced thereby will not be less in the aggregate than reserves computed in accordance with the minimum valuation standard herein prescribed. The commissioner has the discretion to vary the standards of mortality applicable to all benefit contracts on substandard lives or other hazardous lives by any society authorized to do business in this state.(d) Any society, with the consent of the commissioner of the state of domicile of the society and under such conditions, if any, which the commissioner of commerce and insurance of Tennessee may impose, may establish and maintain reserves on its certificates in excess of the reserves required thereunder, but the contractual rights of any benefit member shall not be affected by the excess reserves.
