PARRIS N. GLENDENING, Governor                                   Ch. 36

8-445. VALUATION OF CERTIFICATES.

(A)     IN GENERAL.

(1)      AS PART OF THE ANNUAL STATEMENT REQUIRED BY § 8-444 OF THIS
SUBTITLE, ON OR BEFORE MARCH 1 OF EACH YEAR, EACH SOCIETY SHALL FILE
WITH THE COMMISSIONER A VALUATION OF ITS CERTIFICATES IN FORCE ON
DECEMBER 31 OF THE IMMEDIATELY PRECEDING YEAR.

(2)      FOR CAUSE SHOWN, THE COMMISSIONER MAY EXTEND THE TIME
FOR FILING THE VALUATION UNTIL NOT LATER THAN MAY 1.

(3)      EXCEPT AS PROVIDED IN PARAGRAPH (4) OF THIS SUBSECTION, THE
VALUATION REQUIRED UNDER THIS SECTION SHALL SHOW, AS RESERVE
LIABILITIES, THE DIFFERENCE BETWEEN:

(I)      THE PRESENT MIDYEAR VALUE OF THE PROMISED BENEFITS
PROVIDED IN THE CERTIFICATES OF THE SOCIETY IN FORCE; AND

(II)     THE PRESENT MIDYEAR VALUE OF THE FUTURE NET
PREMIUMS AS THEY ARE ACTUALLY COLLECTED, NOT INCLUDING:

1.        ANY VALUE FOR THE RIGHT TO MAKE EXTRA
ASSESSMENTS; OR

2.        ANY AMOUNT BY WHICH THE PRESENT MIDYEAR VALUE
OF FUTURE NET PREMIUMS EXCEEDS THE PRESENT MIDYEAR VALUE OF PROMISED
BENEFITS ON INDIVIDUAL CERTIFICATES.

(4)      AT THE OPTION OF THE SOCIETY, INSTEAD OF USING THE
VALUATION METHOD DESCRIBED IN PARAGRAPH (3) OF THIS SUBSECTION, THE
VALUATION MAY SHOW THE NET TABULAR VALUE THAT:

(I)       FOR CERTIFICATES ISSUED ON OR BEFORE DECEMBER 31, 1963,
IS DETERMINED IN ACCORDANCE WITH THE LAW APPLICABLE ON OR BEFORE
DECEMBER 31, 1963; AND

(II)     FOR CERTIFICATES ISSUED AFTER DECEMBER 31, 1963, MAY
NOT BE LESS THAN THE RESERVES DETERMINED ACCORDING TO THE
COMMISSIONERS' RESERVE VALUATION METHOD DESCRIBED IN SUBSECTION (B) OF
THIS SECTION.

(5)      (I) IF THE PREMIUM CHARGED IS LESS THAN THE TABULAR NET
PREMIUM ACCORDING TO THE BASIS OF VALUATION USED, AN ADDITIONAL
RESERVE EQUAL TO THE PRESENT VALUE OF THE DEFICIENCY IN THE PREMIUMS
SHALL BE SET UP AND MAINTAINED AS A LIABILITY.

(II) THE RESERVE LIABILITIES SHALL BE ADJUSTED PROPERLY IF
THE MIDYEAR OR TABULAR VALUES ARE NOT APPROPRIATE.

(B)     RESERVE VALUATION METHOD — LIFE INSURANCE AND ENDOWMENT
BENEFITS.

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