§ 531. Short title

This subchapter may be cited as the “Standard Valuation Act of 2018”.

§ 532. Definitions

In this subchapter: (a) “Accident and health insurance” means contracts that incorporate morbidity risk and provide protection against economic loss resulting from accident, sickness, or medical conditions and as may be specified in the valuation manual. (b) “Alien company” means an insurer as defined in 22 V.I.C. § 201(3). (c) “Appointed actuary” means a qualified […]

§ 533. Applicability of prior law

(a) The minimum standard for the valuation of policies and contracts issued before March 29, 1968 is the minimum standard provided by the laws in effect immediately before March 29, 1968. (b) Notwithstanding any other requirements as provided in this subchapter, the Standard Valuation Law adopted on March 29, 1968 and encoded at title 22 […]

§ 534. Reserve valuation

(a) The Commissioner shall annually value, or cause to be valued, the reserve for all outstanding life insurance contracts, annuity and pure endowment contracts, accident and health contracts, and deposit-type contracts of every company issued on or after the effective date of this subchapter. In making a valuation, the Commissioner may use the Department’s actuary […]

§ 535. Actuarial opinion of reserves

(a) (1) Every company with outstanding life insurance contracts, accident and health insurance contracts or deposit-type contracts in the Virgin Islands and subject to regulation by the Commissioner shall annually submit the opinion of the appointed actuary stating whether the reserves and related actuarial items held in support of the policies and contracts are: (A) […]

§ 536. Computation of minimum standard

Except as provided in sections 537, 538, and 545, the minimum standard for the valuation of policies and contracts issued before the effective date of this subchapter is that provided by the laws in effect immediately before that date. Except as otherwise provided in sections 537, 538, and 545, the minimum standard for the valuation […]

§ 537. Computation of minimum standard for annuities

Except as provided in section 538, the minimum standard of valuation for individual annuity and pure endowment contracts issued on or after the effective date of this subchapter and for annuities and pure endowments under group annuity and pure endowment contracts purchased on or after the effective date of this subchapter is the Commissioner’s reserve […]

§ 538. Computation of minimum standard by calendar year of issue

(a) The interest rates used in determining the minimum standard for the valuation as provided in subsections (b), (c) and (d) are the calendar year statutory valuation interest rates for the following: (1) Life insurance policies issued in a particular calendar year, on or after the effective date of section 997 of the Standard Nonforfeiture […]

§ 539. Reserve valuation method—life insurance and endowment benefits

(a) Except as otherwise provided in sections 540, 543, and 545, reserves according to the Commissioner’s reserve valuation method, for the life insurance and endowment benefits of policies providing for a uniform amount of insurance and requiring the payment of uniform premiums, are the excess, if any, of the present value, at the date of […]

§ 540. Reserve valuation method—annuity and pure endowment benefits

(a) This section applies to all annuity and pure endowment contracts other than group annuity and pure endowment contracts purchased under a retirement plan or plan of deferred compensation, established or maintained by an employer including a partnership or sole proprietorship or by an employee organization, or by both, other than a plan providing individual […]

§ 541. Minimum reserves

(a) A company’s aggregate reserves for all life insurance policies, excluding disability and accidental death benefits, issued on or after the effective date of this subchapter, may not be less than the aggregate reserves calculated in accordance with the methods set forth in sections 539, 540, 543 and 544 and the mortality table or tables […]

§ 542. Optional reserve calculation

(a) Reserves for policies and contracts issued before the effective date of this subchapter may be calculated, at the option of the company, according to any standards that produce greater aggregate reserves for all such policies and contracts than the minimum reserves required by the laws in effect immediately before the effective date of this […]

§ 543. Reserve calculation—valuation net premium exceeding the gross premium charged

(a) If in any contract year the gross premium charged by a company on a policy or contract is less than the valuation net premium for the policy or contract calculated by the method used in calculating the reserve, but using the minimum valuation standards of mortality and rate of interest, the minimum reserve required […]

§ 544. Reserve calculation—indeterminate premium plans

(a) For a plan of life insurance that provides for future premium determination, the amounts of which are to be determined by the insurance company based on then estimates of future experience, or for a plan of life insurance or annuity that is of a nature that the minimum reserves cannot be determined by the […]

§ 545. Minimum standard for accident and health insurance contracts

For accident and health insurance contracts issued on or after the effective date of this subchapter, the standard prescribed in the valuation manual is the minimum standard of valuation required under section 534(a). For disability, accident and health or sickness insurance contracts issued on or after March 29, 1968, and before the effective date of […]

§ 546. Valuation manual for policies issued on or after the effective date of this subchapter

(a) For policies issued on or after the effective date of this subchapter, the standard prescribed in the valuation manual is the minimum standard of valuation required under section 534(a), except as provided under subsections (e) or (g). (b) The operative date of the valuation manual is January 1, 2017. (c) Unless a change in […]

§ 547. Requirements of a principle-based valuation

(a) A company shall establish reserves using a principle-based valuation that meets the following conditions for policies or contracts as specified in the valuation manual: (1) Quantify the benefits and guarantees, and the funding associated with the contracts and their risks at a level of conservatism that reflects conditions that include unfavorable events that have […]

§ 548. Experience reporting for policies in force on or after the effective date of the valuation manual

A company shall submit mortality, morbidity, policyholder behavior, or expense experience and other data as prescribed in the valuation manual.

§ 549. Confidentiality

(a) For purposes of this section, “Confidential Information” means: (1) A memorandum in support of an opinion submitted under section 535 and any other documents, materials and other information, including, but not limited to, all working papers, and copies thereof, created, produced or obtained by or disclosed to the Commissioner or any other person in […]