ORS 733.306
Computation of minimum standards for life insurance, industrial insurance, annuities and pure endowment contracts

  • rules

Except as otherwise provided in ORS 733.308 (Computation of minimum standard for annuities and pure endowment contracts) and 733.310 (Interest rates for determining minimum standard for valuation), the minimum standard for the valuation of all outstanding life insurance policies and annuity and pure endowment contracts issued prior to the operative date stated in ORS 743.204 (Standard Nonforfeiture Law for Life Insurance) for the Standard Nonforfeiture Law for Life Insurance shall be that provided by the laws of this state in effect immediately prior to that operative date. Except as otherwise provided in ORS 733.308 (Computation of minimum standard for annuities and pure endowment contracts) and 733.310 (Interest rates for determining minimum standard for valuation), the minimum standard for the valuation of all such policies and contracts issued on or after the operative date stated in ORS 743.204 (Standard Nonforfeiture Law for Life Insurance) for the Standard Nonforfeiture Law for Life Insurance shall be the commissioners reserve valuation methods defined in ORS 733.312 (Amount of required reserves for life insurance policies), 733.314 (Amount of required reserves for certain annuity and pure endowment contracts) and 733.320 (Minimum required reserve for certain policies), three and one-half percent interest, or in the case of life insurance policies and contracts, other than annuity and pure endowment contracts, issued on or after January 1, 1974, four percent interest for such policies issued prior to January 1, 1978, five and one-half percent interest for single premium life insurance policies and four and one-half percent interest for all other such policies issued on and after January 1, 1978, and the following tables:

(1)

For all ordinary policies of life insurance issued on the standard basis, excluding any disability and accidental death benefits in such policies:

(a)

The Commissioners 1941 Standard Ordinary Mortality Table for such policies issued prior to the operative date stated in ORS 743.216 (Adjusted premiums) (5) for the Standard Nonforfeiture Law for Life Insurance;

(b)

The Commissioners 1958 Standard Ordinary Mortality Table for such policies issued on or after the operative date stated in ORS 743.216 (Adjusted premiums) (5) for the Standard Nonforfeiture Law for Life Insurance and prior to the operative date stated in ORS 743.215 (Calculation of adjusted premiums) for the Standard Nonforfeiture Law for Life Insurance, except that for any category of such policies issued on female risks, all modified net premiums and present values referred to in ORS 733.300 (Short title) to 733.340 (Exemptions) and sections 14 to 17, chapter 547, Oregon Laws 2015, may be calculated according to an age not more than six years younger than the actual age of the insured; and

(c)

For such policies issued on or after the operative date stated in ORS 743.215 (Calculation of adjusted premiums) for the Standard Nonforfeiture Law for Life Insurance:

(A)

The Commissioners 1980 Standard Ordinary Mortality Table;

(B)

At the election of the insurer for any one or more specified plans of life insurance, the Commissioners 1980 Standard Ordinary Mortality Table with Ten-Year Select Mortality Factors; or

(C)

Any ordinary mortality table, adopted after 1980 by the National Association of Insurance Commissioners, that is approved by rule adopted by the Director of the Department of Consumer and Business Services for use in determining the minimum standard of valuation for such policies.

(2)

For all industrial life insurance policies issued on the standard basis, excluding any disability and accidental death benefits in such policies:

(a)

The 1941 Standard Industrial Mortality Table for such policies issued prior to the operative date defined in ORS 743.216 (Adjusted premiums) (7) of the Standard Nonforfeiture Law for Life Insurance; and

(b)

For such policies issued on or after such operative date, the Commissioners 1961 Standard Industrial Mortality Table or any industrial mortality table, adopted after 1980 by the National Association of Insurance Commissioners, that is approved by rule adopted by the director for use in determining the minimum standard of valuation for such policies.

(3)

For individual annuity and pure endowment contracts, excluding any disability and accidental death benefits in such policies:

(a)

The 1937 Standard Annuity Mortality Table;

(b)

At the option of the insurer, the Annuity Mortality Table for 1949, Ultimate; or

(c)

Any modification of either table referred to in paragraph (a) or (b) of this subsection that is approved by the director.

(4)

For group annuity and pure endowment contracts, excluding any disability and accidental death benefits in such policies:

(a)

The Group Annuity Mortality Table for 1951;

(b)

Any modification of the table referred to in paragraph (a) of this subsection that is approved by the director; or

(c)

At the option of the insurer, any of the tables or modifications of tables specified for individual annuity and pure endowment contracts.

(5)

Intentionally left blank —Ed.

(a)

For total and permanent disability benefits in or supplementary to ordinary policies or contracts:

(A)

For policies or contracts issued on or after January 1, 1966, 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 or any tables of disablement rates and termination rates adopted after 1980 by the National Association of Insurance Commissioners, that are approved by rule adopted by the director for use in determining the minimum standard of valuation for such policies;

(B)

For policies or contracts issued on or after January 1, 1961 and prior to January 1, 1966, either the tables referred to in subparagraph (A) of this paragraph or, at the option of the insurer, the Class (3) Disability Table (1926); and

(C)

For policies issued prior to January 1, 1961 the Class (3) Disability Table (1926).

(b)

Any table referred to in paragraph (a) of this subsection shall, for active lives, be combined with a mortality table permitted for calculating the reserves for life insurance policies.

(6)

For accidental death benefits in or supplementary to policies:

(a)

For policies issued on or after January 1, 1966, the 1959 Accidental Death Benefits Table or any accidental death benefits table adopted after 1980 by the National Association of Insurance Commissioners, that is approved by rule adopted by the director for use in determining the minimum standard of valuation for such policies.

(b)

For policies issued on or after January 1, 1961, and prior to January 1, 1966, either the table referred to in paragraph (a) of this subsection or, at the option of the insurer, the Inter-Company Double Indemnity Mortality Table.

(c)

For policies issued prior to January 1, 1961, the Inter-Company Double Indemnity Mortality Table.

(7)

The table used under subsection (6)(a), (b) or (c) of this section shall be combined with a mortality table for calculating the reserves for life insurance policies.

(8)

For group life insurance, life insurance issued on the substandard basis and other special benefits, an insurer may use tables therefor that are approved by the director. [1991 c.401 §20]

Source: Section 733.306 — Computation of minimum standards for life insurance, industrial insurance, annuities and pure endowment contracts; rules, https://www.­oregonlegislature.­gov/bills_laws/ors/ors733.­html.

733.010
Assets allowed
733.020
Assets not allowed
733.030
Liabilities in general
733.040
Reinsurance credit
733.050
Increase of inadequate reserves
733.060
Unearned premium reserve
733.070
Unearned premium reserve for marine and transportation insurance trip risks
733.080
Reserves for health insurance
733.090
Unearned premium reserve and fund for title insurance
733.095
Unearned premium reserve for home protection insurance
733.100
Contingency reserve liability for mortgage insurance
733.115
Establishing reserves for variable life insurance and annuity policies
733.140
Disallowance of “wash” transactions
733.150
Alternative accounting for assets and liabilities
733.160
Valuation of assets other than securities
733.165
Valuation of securities
733.170
Accounts and records
733.210
Director’s determinations
733.220
Establishment and regulation of separate accounts to fund life insurance or annuities
733.230
Transactions of separate accounts registered with Securities and Exchange Commission
733.300
Short title
733.302
Reserve valuation method for life insurance policies and annuity and pure endowment contracts
733.304
Opinion of actuary
733.306
Computation of minimum standards for life insurance, industrial insurance, annuities and pure endowment contracts
733.308
Computation of minimum standard for annuities and pure endowment contracts
733.310
Interest rates for determining minimum standard for valuation
733.312
Amount of required reserves for life insurance policies
733.314
Amount of required reserves for certain annuity and pure endowment contracts
733.316
Aggregate reserves
733.318
Alternative standards of valuation
733.320
Minimum required reserve for certain policies
733.322
Calculation of reserves for plans for which minimum reserves cannot be determined under ORS 733.312, 733.314 or 733.320
733.325
Definitions
733.328
Annual valuation of reserve liabilities
733.331
Opinion of appointed actuary
733.334
Data submission in accordance with valuation manual
733.337
Confidentiality
733.340
Exemptions
733.510
Investments of insurers
733.520
Current operating requirements exempted
733.530
“Corporation,” “sovereign,” “political subdivision” defined
733.540
“Obligation” defined
733.550
“Amply secured obligation” defined
733.560
“Unencumbered” defined
733.570
“Improved real property” defined
733.575
Prohibited use of funds as compensating balances
733.578
Conditions necessary for investments used to provide compensating balances
733.580
Investment of required capitalization
733.590
Investment in obligations of sovereign, political subdivision thereof or corporation
733.600
Investment in mortgage loans
733.610
Investment in real property
733.620
Investment in stocks of corporation
733.630
Investment in securities or obligations of certain corporations
733.635
Approved activities of corporations in which investments authorized
733.640
Lending funds
733.650
Investment of funds in certain obligations and other specified items
733.652
Investment of funds of separate accounts
733.654
Limitation on amount of separate account investments
733.656
Limitation on securities owned or controlled by separate account investments
733.658
Applicability of separate account investment limitations
733.670
Investment of funds under “prudent investor” standard
733.680
Acquisition and retention of personal property generally
733.685
Investment of funds by home protection insurer
733.690
Investment of funds in title plant
733.695
Investment of funds in obligations that are not investment quality
733.700
Investment of funds in health care service facilities
733.710
Investments authorized by prior law
733.720
Investments subject to additional limitations and requirements
733.730
Approval by board of directors of investments and deposits
733.740
Record of investments required
733.750
Disposal of investments on order of director
733.760
Insurance required on buildings on property which is security for loan
733.770
Limitations on investments in property of any one person or single parcel of real estate
733.780
Prohibited investments
Green check means up to date. Up to date