Minnesota Administrative Rules
Agency 120 - Commerce Department
Chapter 2750 - VARIABLE LIFE INSURANCE
RESERVE LIABILITIES
Part 2750.2200 - SCHEDULED PREMIUM POLICIES
Current through Register Vol. 49, No. 27, December 30, 2024
For scheduled premium policies, reserve liabilities for the guaranteed minimum death benefit shall be the reserve needed to provide for the contingency of death occurring when the guaranteed minimum death benefit exceeds the death benefit that would be paid in the absence of the guarantee, and shall be maintained in the general account of the insurer and shall be not less than the greater of the following minimum reserves:
A. The aggregate total of the term costs, if any, covering a period of one full year from the valuation date, of the guarantee on each variable life insurance contract, assuming an immediate one-third depreciation in the current value of the assets of the separate account followed by a net investment return equal to the assumed investment rate; or
B. The aggregate total of the "attained age level" reserves on each variable life insurance contract. The "attained age level" reserve on each variable life insurance contract shall not be less than zero and shall equal the "residue," as described in subitem (1), of the prior year's "attained age level" reserve on the contract, with any such "residue," increased or decreased by a payment computed on an attained age basis as described in subitem (2).
C. The valuation interest rate and mortality table used in computing the two minimum reserves described in item B, subitems (1) and (2) shall conform to permissible standards for the valuation of life insurance contracts. In determining such minimum reserve, the company may employ suitable approximations and estimates, including but not limited to groupings and averages.
Statutory Authority: MS s 61A.20