2023 Laws of Puerto Rico › TITLE TWENTY-SIX - Insurance (§§ 101 — 10377) › Subtitle 1 - Insurance Generally (§§ 101 — 4513) › Chapter 5 - Assets and Liabilities (§§ 501-511 — 524) › § 523 - Valuation of life policies

(1) Minimum valuation standard for old policies.— The minimum standards for the valuation of all policies and contracts, except group annuity contracts, issued prior to January 1 of the year this Code becomes operative, shall be that pursuant to the laws in effect immediately prior to the effective date of this Code. Reserves for all such policies and contracts may be calculated, at the option of the insurer, pursuant to any standards which produce greater aggregate reserves for all such policies and contracts than the minimum reserves required by this section.
(2) The minimum valuation standard for policies issued on or after January first of the year in which this Code becomes operative, but before January 1st, 1978.— This subsection shall apply only to policies and contracts, with the exception of group annuity contracts issued on or after January 1 of the year this Code becomes operative, but prior to January 1, 1978.
The minimum standard for the valuation of all such policies and contracts shall be the one-year-full-preliminary-term method, or such other method as may be required by the Commissioner consistent with the basis required for determination of nonforfeiture values and benefits pursuant to § 1328 of this title, three and one-half percent (3 1 / 2 %) interest, and the following tables:
(a) For all ordinary policies of life insurance issued on the standard basis, excluding any disability and accidental death benefits in such policies, the Commissioners’ 1941 Standard Ordinary Mortality Table, or such other table as may be approved by the Commissioner.
(b) For all industrial life insurance policies, excluding any disability and accidental death benefits in such policies, the 1941 Substandard Industrial Mortality Table, or such other recognized mortality table as may be approved by the Commissioner.
(c) For annuity and pure endowment contracts, excluding any disability and accidental death benefits in such policies, the 1937 Standard Annuity Mortality Table.
(d) For total and permanent disability benefits in or supplementary to ordinary policies or contracts, Class Three Disability Table (1926) which, for active lives, shall be combined with a mortality table permitted for calculating the reserves for life insurance policies.
(e) For accidental death benefits in or supplementary to policies, the Inter-Company Double Indemnity Mortality Table, combined with a mortality table permitted for calculating the reserves for life insurance policies.
(f) For group life insurance, life insurance issued on the substandard basis and other special benefits, such tables as may be approved by the Commissioner.
(3) Minimum valuation standard for policies issued on or after January 1, 1978, and for all group annuity contracts.— This subsection shall apply only to policies and contracts issued on or after January 1, 1978, except that it shall also apply to all group annuity contracts issued prior to that date. The minimum valuation standard for said policies and contracts shall be that fixed by the Commissioner through regulations, but such standards shall not be inconsistent with the minimum valuation standards formulated or approved by the National Association of Insurance Commissioners.
History —Ins. Code, added as § 5.080 on Mar. 22, 2003, No. 90, § 1; Apr. 2, 2008, No. 34, § 2.