CHAPTER 43. RESERVES

Sec.


43.1.    Life insurance benefits.
43.2.    Manner of computation.

Authority

   The provisions of this Chapter 43 issued under section 5 of the act of June 4, 1937 (P. L. 1643, No. 342) (40 P. S. §  1105), unless otherwise noted.

Source

   The provisions of this Chapter 43 adopted July 23, 1948, unless otherwise noted.

§ 43.1. Life insurance benefits.

 Beneficial societies subject to section 5 of the act of June 4, 1937 (P. L. 1643, No. 342) (40 P. S. §  1105) shall maintain reserves on life insurance benefits provided in certificates issued on and after January 1, 1948; which may not be less than reserves based on either of the following standards:

   (1)  The American Experience Table of Mortality or the old Standard Industrial Table of Mortality with interest assumption not to exceed 3.5% per annum. The reserves shall be computed by the net level premium method or by any standard modification thereof (such as the Illinois Standard Modification).

   (2)  The Commissioners’ 1941 Standard Ordinary Table of Mortality or the 1941 Standard Industrial Table of Mortality with interest assumption not to exceed 3% per annum. The reserves shall be computed by the Commissioners’ reserve valuation method.

Cross References

   This section cited in 31 Pa. Code §  43.2 (relating to manner of computation).

§ 43.2. Manner of computation.

 Values incorporated in a certificate issued under §  43.1 (relating to life insurance benefits) shall be computed in a manner consistent with the reserve basis in such certificate as adopted in accordance with this section.


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