NRS695A.490. Standards of valuation for certificates.

      1.  The minimum standards of valuation for certificates issued before July 1, 1964, are those provided by the law applicable immediately before July 1, 1963, but not lower than the standards used in the calculating of rates for those certificates.

      2.  Except as otherwise provided in subsection 4, the minimum standard of valuation for certificates issued on or after July 1, 1964, but before January 1, 1993, is 3.5 percent interest and the following:

      (a) For certificates of life insurance, American Men Ultimate Table of Mortality, with Bowerman’s or Davis’ Extension thereof or with the consent of the Commissioner, the Commissioners 1941 Standard Ordinary Mortality Table, the Commissioners 1941 Standard Industrial Mortality Table or the Commissioners 1958 Standard Ordinary Mortality Table, using the actual age of the insured for male risks and an age not more than 3 years younger than the actual age of the insured for female risks.

      (b) For annuity and pure endowment certificates, excluding any disability and accidental death benefits in those certificates, the 1937 Standard Annuity Mortality Table or the Annuity Mortality Table for 1949, Ultimate, or any modification of either of these tables approved by the Commissioner.

      (c) For total and permanent disability benefits in or supplementary to life insurance certificates, Hunter’s Disability Table, or the Class III Disability Table (1926) modified to conform to the contractual waiting period, or 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. Any such table must, for active lives, be combined with a mortality table permitted for calculating the reserves for life insurance certificates.

      (d) For accidental death benefits in or supplementary to life insurance certificates, the Inter-Company Double Indemnity Mortality Table or the 1959 Accidental Death Benefits Table. Either table must be combined with a mortality table permitted for calculating the reserves for life insurance certificates.

      (e) For noncancellable accident and health benefits, the Class III Disability Table (1926) with conference modifications or, with the consent of the Commissioner, tables based upon the society’s own experience.

      3.  Except as otherwise provided in subsection 4, the minimum standard of valuation for certificates issued on or after January 1, 1993, is:

      (a) For certificates of life insurance, the Commissioners 1980 Standard Ordinary Mortality Table or any more recent table made applicable to life insurance companies; and

      (b) For annuity and pure endowment certificates, total and permanent disability benefits, accidental death benefits and noncancellable accident and health benefits, such tables as are authorized for use by life insurance companies in this state.

      4.  A society may value its certificates in accordance with the valuation standards used for policies containing comparable benefits which are issued in this state by life insurance companies.

      5.  The Commissioner may:

      (a) 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 prescribed in this section.

      (b) Vary the standards of mortality applicable to all benefit contracts on substandard lives or other extra-hazardous lives by any society authorized to do business in this state.

      6.  Any society, with the consent of the commissioner of insurance of the state of domicile of the society and under such conditions, if any, as he or she 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 are not affected thereby.

      (Added to NRS by 1971, 1858; A 1985, 1186; 1991, 242)