California Code of Regulations
Title 10 - Investment
Chapter 5 - Insurance Commissioner
Subchapter 3 - Insurers
Article 12.4 - Valuation of Universal Life Insurance Policies
Section 2544.5 - Excess Interest Guarantee Reserves
In the event a guarantee of interest greater than the maximum valuation interest rate permitted by Section 10489.4 of the California Insurance Code extends more than one year beyond the policy anniversary date previous to the date of valuation, the greatest of the present values of future guaranteed cash values and death benefits payable less required future premiums will be determined at the date of valuation using such maximum valuation interest rate (or rates) for policies issued in the same year as the year of issue of the policy valued and the mortality rates specified by Section 10489.2 of the California Insurance Code. The minimum reserve shall be the greatest of the values calculated in accordance with Sections 2544.3, 2544.4 or 2544.5 of this Regulation.
1. New section
filed 10-17-91; operative 11-18-91 (Register 92, No. 3).
2. Amendment of
NOTE filed 3-22-2016; operative 7-1-2016 (Register 2016, No.
13).
Note: Authority cited: Sections 720, 790.10, 10489.93, 12921 and 12926, Insurance Code. Reference: Section 10489.93, Insurance Code.