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§ 1105. Reserves

Purdon's Pennsylvania Statutes and Consolidated StatutesTitle 40 P.S. Insurance

Purdon's Pennsylvania Statutes and Consolidated Statutes
Title 40 P.S. Insurance (Refs & Annos)
Chapter 3. Fraternal Benefit Societies
Regulation and Control (Refs & Annos)
40 P.S. § 1105
§ 1105. Reserves
Currentness
A. A beneficial society doing business in this Commonwealth shall, at all times, maintain reserves as follows:
(1) On the life portion, contained in all policies or contracts, reserves shall be based upon a standard table of mortality, approved by the Insurance Commissioner, with interest at a rate also approved by the Insurance Commissioner, and such reserves shall be computed in accordance with the requirements provided by law for the computation of the reserve liability for life insurance.
(2) On the disability portion, except in the case of noncancellable health and accident insurance issued on and after January first, nineteen hundred fifty, contained in all policies or contracts, reserves shall be computed in accordance with the requirements provided by law for the computation of the unearned premium reserve liability for casualty insurance.
(3) For all definite and outstanding claims, reserves shall be calculated in accordance with the requirements provided by law for the computation of reserves against unpaid losses in casualty insurance, other than losses under noncancellable health and accident insurance issued on and after January first, nineteen hundred fifty, compensation or liability insurance.
(4) On the noncancellable health and accident insurance portion contained in all policies or contracts issued on and after January first, nineteen hundred fifty, reserves shall be computed in accordance with the requirements provided by law for the computation of policy and loss reserves for noncancellable health and accident insurance.
(5) Noncancellable health and accident insurance means insurance against disability resulting from sickness, ailment, or bodily injury, under a policy or contract under which the insurer does not have the option to cancel or otherwise terminate the contract at or after the expiration of one year from its effective date.
B. A sum equal to the amount of the reserves required by this section shall be invested in those investments authorized by law for the investment of the reserve funds of life insurance companies.
C. The Insurance Commissioner shall each year approve the computation of the reserve liability, as of the thirty-first day of December of the preceding year, of every beneficial society authorized to make insurance on lives in this Commonwealth.
D. Whenever any beneficial society doing business in this Commonwealth has not on hand the net value of all policies in force after all other debts and claims against it have been provided for, the Insurance Commissioner shall notify such beneficial society to issue no new policies until its funds become equal to its liabilities.

Credits

1937, June 4, P.L. 1643, § 5. Amended 1949, May 20, P.L. 1505, § 1.
40 P.S. § 1105, PA ST 40 P.S. § 1105
Current through Act 11 of the 2024 Regular Session. Some statute sections may be more current, see credits for details.
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