31A-17-504. Computation of minimum standard. Except as provided in Sections 31A-17-505, 31A-17-506, and 31A-17-513, the minimum standard for the valuation of the life insurance policies and annuity and pure endowment contracts issued before January 1, 1994, shall be that provided by the laws in effect immediately before that date. Except as otherwise provided in Sections 31A-17-505, 31A-17-506, and 31A-17-513, the minimum standard for the valuation of such policies and contracts issued on or after January 1, 1994, shall be the commissioner’s reserve valuation methods defined in Sections 31A-17-507, 31A-17-508, 31A-17-511, and 31A-17-513, 3.5% interest, or in the case of life insurance policies and contracts, other than annuity and pure endowment contracts, issued on or after June 1, 1973, 4% interest for such policies issued before April 2, 1980, 5.5% interest for single premium life insurance policies, and 4.5% interest for all other such policies issued on and after April 2, 1980, and the following tables:
(1)
For an ordinary policy of life insurance issued on the standard basis, excluding any accident and health and accidental death benefits in the policy, the Commissioner’s 1941 Standard Ordinary Mortality Table for such policies issued before the operative date of Subsection 31A-22-408(6)(a), the Commissioner’s 1958 Standard Ordinary Mortality Table for such policies issued on or after the operative date of Subsection 31A-22-408(6)(a) and before the operative date of Subsection 31A-22-408(6)(d), provided that for any category of such policies issued on female risks, all modified net premiums and present values referred to in this section may be calculated according to an age not more than six years younger than the actual age of the insured, and for such policies issued on or after the operative date of Subsection 31A-22-408(6)(d):
Terms Used In Utah Code 31A-17-504
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.
Annuity: means an agreement to make periodical payments for a period certain or over the lifetime of one or more individuals if the making or continuance of all or some of the series of the payments, or the amount of the payment, is dependent upon the continuance of human life. See Utah Code 31A-1-301
Company: means an entity that:
(i)
has written, issued, or reinsured a life insurance contract, accident and health insurance contract, or deposit-type contract in this state and has at least one such policy in force or on claim; or
(ii)
has written, issued, or reinsured a life insurance contract, accident and health insurance contract, or deposit-type contract in any state and is required to hold a certificate of authority to write life insurance, accident and health insurance, or deposit-type contracts in this state. See Utah Code 31A-17-501
Contract: A legal written agreement that becomes binding when signed.
Disability: means a physiological or psychological condition that partially or totally limits an individual's ability to:
(a)
perform the duties of:
(i)
that individual's occupation; or
(ii)
an occupation for which the individual is reasonably suited by education, training, or experience; or
(b)
perform two or more of the following basic activities of daily living:
a risk distributing arrangement providing for compensation or replacement for damages or loss through the provision of a service or a benefit in kind;
(ii)
a contract of guaranty or suretyship entered into by the guarantor or surety as a business and not as merely incidental to a business transaction; and
(iii)
a plan in which the risk does not rest upon the person who makes an arrangement, but with a class of persons who have agreed to share the risk. See Utah Code 31A-1-301
Insured: means a person to whom or for whose benefit an insurer makes a promise in an insurance policy and includes:
life insurance: means a contract that incorporates mortality risk, including annuity and pure endowment contracts, and as may be specified in the valuation manual. See Utah Code 31A-17-501
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 National Association of Insurance Commissioners, that is approved by rule made by the commissioner for use in determining the minimum standard of valuation for such policies.
(2)
For an industrial life insurance policy issued on the standard basis, excluding any accident and health and accidental death benefits in the policy, the 1941 Standard Industrial Mortality Table for the policy issued before the operative date of Subsection 31A-22-408(6)(c), and for such policies issued on or after such operative date, the Commissioner’s 1961 Standard Industrial Mortality Table or any industrial mortality table, adopted after 1980 by the National Association of Insurance Commissioners, that is approved by rule made by the commissioner for use in determining the minimum standard of valuation for such policies.
(3)
For individual annuity and pure endowment contracts, excluding any disability and accidental death benefits in such policies:
(a)
the 1937 Standard Annuity Mortality Table;
(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.
(4)
For group annuity and pure endowment contracts, excluding any accident and health and accidental death benefits in such policies:
(a)
the Group Annuity Mortality Table for 1951, any modification of such table approved by the commissioner; or
(b)
at the option of the company, any of the tables or modifications of tables specified for individual annuity and pure endowment contracts.
(5)
For total and permanent disability benefits in or supplementary to ordinary policies or contracts:
(a)
(i)
for a policy or contract 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 rule made by the commissioner for use in determining the minimum standard of valuation for the policy;
(ii)
for a policy or contract issued on or after January 1, 1961, and before January 1, 1966, either such tables or, at the option of the company, the Class (3) Disability Table (1926); and
(iii)
for a policy issued before January 1, 1961, the Class (3) Disability Table (1926).
(b)
A table described in this Subsection (5) shall, for active lives, be combined with a mortality table permitted for calculating the reserves for life insurance policies.
(6)
For accidental death benefits in or supplementary to 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 rule made by the commissioner for use in determining the minimum standard of valuation for such policies, for policies issued on or after January 1, 1961, and before January 1, 1966, either such table or, at the option of the company, the Inter-Company Double Indemnity Mortality Table, and for policies issued before January 1, 1961, the Inter-Company Double Indemnity Mortality Table. Either table shall be combined with a mortality table for calculating the reserves for life insurance policies.
(7)
For group life insurance, life insurance issued on the substandard basis and other special benefits: such tables as may be approved by the commissioner.
