Utah Code 31A-17-509. Minimum reserves

31A-17-509. Minimum reserves.

(1)

In no event shall a company‘s aggregate reserves for life insurance policies, excluding accident and health and accidental death benefits, issued on or after January 1, 1994, be less than the aggregate reserves calculated in accordance with the methods set forth in Sections 31A-17-507, 31A-17-508, 31A-17-511, and 31A-17-512 and the mortality table or tables and rate or rates of interest used in calculating nonforfeiture benefits for such policies.

Terms Used In Utah Code 31A-17-509

Actuary: is a s defined by the commissioner by rule, made in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act. 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

Insurance: includes :

(i)	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

Rate: means :

(i)	the cost of a given unit of insurance; or

(ii)

for property or casualty insurance, that cost of insurance per exposure unit either expressed as:

(A)	a single number; or

(B)

a pure premium rate, adjusted before the application of individual risk variations based on loss or expense considerations to account for the treatment of:

(I)

expenses;

(II)	profit; and

(III)	individual insurer variation in loss experience. See Utah Code 31A-1-301
(2)	In no event shall the aggregate reserves for policies, contracts, and benefits be less than the aggregate reserves determined by the appointed actuary to be necessary to render the opinion required by Section 31A-17-503.

Amended by Chapter 163, 2016 General Session

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