§ 5-314. Establishment of reserves using principle-based valuation method
West's Annotated Code of MarylandInsuranceEffective: October 1, 2015
Effective: October 1, 2015
MD Code, Insurance, § 5-314
§ 5-314. Establishment of reserves using principle-based valuation method
(a) For policies and contracts specified in the valuation manual, a company shall establish reserves using a principle-based valuation that:
(1) quantifies the benefits and guarantees, and the funding, associated with the policies or contracts and their risks at a level of conservatism that reflects conditions that include unfavorable events that have a reasonable probability of occurring during the lifetime of the policies or contracts;
(3) incorporates assumptions, risk analysis methods and financial models, and management techniques that are consistent with, but not necessarily identical to, those used within the company's overall risk assessment process, while recognizing potential differences in financial reporting structures and any prescribed assumptions or methods;
(b)(1) A company that uses a principle-based valuation for one or more policies or contracts subject to this section shall:
Credits
Added by Acts 2015, c. 367, § 2, eff. Oct. 1, 2015.
MD Code, Insurance, § 5-314, MD INSURANCE § 5-314
Current through legislation effective through April 9, 2023, from the 2024 Regular Session of the General Assembly. Some statute sections may be more current, see credits for details.
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