{"formats":[{"name":"JSON","format":"json","url":"\/downloads\/2025\/code-json\/38.2-4125.json"},{"name":"Plain Text","format":"text","url":"\/downloads\/2025\/code-text\/38.2-4125.txt"},{"name":"XML","format":"xml","url":"\/downloads\/2025\/code-xml\/38.2-4125.xml"},{"name":"HTML","format":"html","url":"\/downloads\/2025\/code-html\/38.2-4125.html"}],"law_id":65445,"edition_id":1,"section_id":65445,"structure_id":13776,"section_number":"38.2-4125","catch_line":"Valuations","history":"Code 1950, \u00a7\u00a7 38-316, 38.1-624; 1952, c. 317, \u00a7 38.1-638.45; 1968, c. 654; 1975, c. 262; 1986, c. 562.","full_text":"A\n\nThe report of valuation shall show, as reserve liabilities, the difference between the present midyear value of the promised benefits provided in the certificates of the society in force and the present midyear value of the future net premiums as they are in practice actually collected, not including any value for the right to make extra assessments and not including any amount by which the present midyear value of future net premiums exceeds the present midyear value of promised benefits on individual certificates. At the option of any society, the valuation may show the net tabular value instead of the above value. The net tabular value as to certificates issued prior to June 28, 1969, shall be determined in accordance with the provisions of law applicable prior to June 28, 1968, and as to certificates issued on or after June 28, 1969, shall not be less than the reserves determined according to the Commissioners’ reserve valuation method as defined in subsection C of this section. 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. The reserve liabilities shall be properly adjusted in the event that the midyear or tabular values are not appropriate.B\n\nA society may value its certificates in accordance with valuation standards authorized by the laws of this Commonwealth for the valuation of policies issued by life insurers.C\n\nReserves according to the Commissioners’ reserve valuation method, for the life insurance and endowment benefits of certificates providing for a uniform amount of insurance and requiring the payment of uniform premiums shall be any excess of the present value, at the date of valuation, of the future guaranteed benefits provided for by those certificates, over the then present value of any future modified net premiums therefor. The modified net premiums for any such certificate shall be a uniform percentage of the respective contract premiums for the benefits that the present value, at the date of issue of the certificate, of all modified net premiums shall equal the sum of the then present value of the benefits provided for by the certificate and the excess of 1 over 2, as follows:1\n\nA net-level premium equal to the present value, at the date of issue, of the benefits provided for after the first certificate year, divided by the present value, at the date of issue, of an annual annuity of one dollar payable on each anniversary of the certificate on which a premium falls due. However, the net-level annual premium shall not exceed the net-level annual premium on the nineteen-year premium whole life plan for insurance of the same amount at any age one year higher than the age at issue of the certificate; and2\n\nA net one-year term premium for the benefits provided for in the first certificate year. Reserves according to the Commissioners’ reserve valuation method for (i) life insurance benefits for varying amounts of benefits or requiring the payment of varying premiums, (ii) annuity and pure endowment benefits, (iii) disability and accidental death benefits in all certificates and contracts, and (iv) all other benefits except life insurance and endowment benefits, shall be calculated by a method consistent with the principles of this subsection.D\n\nThe present value of deferred payments due under incurred claims or matured certificates shall be deemed a liability of the society and shall be computed upon mortality and interest standards prescribed in subsections E through G of this section.E\n\nThe valuation and underlying data shall be certified by a competent actuary or, at the expense of the society, verified by the actuary of the department of insurance of the state of domicile of the society.F\n\nThe minimum standards of valuation for certificates issued prior to June 28, 1969, shall be those provided by the law applicable immediately prior to June 28, 1968, but not lower than the standards used in the calculating of rates for those certificates.G\n\nThe minimum standard of valuation for certificates issued after June 28, 1969, shall be 3 1\/2 percent interest and the following tables:1\n\nFor certificates of life insurance, American Men Ultimate Table of Mortality, with Bowerman’s or Davis’ Extension thereof or with the consent of the Commission, the Commissioners 1941 Standard Ordinary Mortality Table, the Commissioners 1941 Standard Industrial Mortality Table or the Commissioners 1958 Standard Ordinary Mortality Table, using actual age of the insured for male risks and an age not more than three years younger than the actual age of the insured for female risks;2\n\nFor annuity and pure endowment certificates, excluding any disability and accidental death benefits in the certificates, the 1937 Standard Annuity Mortality Table or the Annuity Mortality Table for 1949, Ultimate, or any modification of either of these tables approved by the Commission;3\n\nFor total and permanent disability benefits in or supplementary to life insurance certificates, Hunter’s Disability Table, or the Class III Disability Table (1926) modified to conform to the contractual waiting period, or 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. Any of these tables shall, for active lives, be combined with a mortality table permitted for calculating the reserves for life insurance certificates;4\n\nFor accidental death benefits in or supplementary to life insurance certificates, The Inter-Company Double Indemnity Mortality Table or the 1959 Accidental Death Benefits Table. Either table shall be combined with a mortality table permitted for calculating the reserves for life insurance certificates; and5\n\nFor noncancellable accident and health benefits, the Class III Disability Table (1926) with conference modifications or, with the consent of the Commission, tables based upon the society’s own experience.H\n\nThe Commission may, in its discretion, accept other standards for valuation if it finds that the reserves produced by those standards will not be less in the aggregate than reserves computed in accordance with the minimum valuation standard prescribed in this section. The Commission may, in its discretion, vary the standards of mortality applicable to all certificates of insurance on substandard lives or other extra hazardous lives by any society licensed to do business in this Commonwealth. Whenever the mortality experience under all certificates valued on the same mortality table exceeds the expected mortality according to that table for a period of three consecutive years, the Commission may require additional reserves that it deems necessary on account of the certificates.I\n\nAny society, with the consent of the commissioner of insurance of the state of domicile of the society and under any conditions he may impose, may establish and maintain reserves on its certificates in excess of the reserves required by the state. However, the contractual rights of any insured member shall not be affected by the excess reserves.","order_by":null,"text":{"0":{"id":237953,"text":"The report of valuation shall show, as reserve liabilities, the difference between the present midyear value of the promised benefits provided in the certificates of the society in force and the present midyear value of the future net premiums as they are in practice actually collected, not including any value for the right to make extra assessments and not including any amount by which the present midyear value of future net premiums exceeds the present midyear value of promised benefits on individual certificates. At the option of any society, the valuation may show the net tabular value instead of the above value. The net tabular value as to certificates issued prior to June 28, 1969, shall be determined in accordance with the provisions of law applicable prior to June 28, 1968, and as to certificates issued on or after June 28, 1969, shall not be less than the reserves determined according to the Commissioners’ reserve valuation method as defined in subsection C of this section. 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. The reserve liabilities shall be properly adjusted in the event that the midyear or tabular values are not appropriate.","type":"section","prefixes":["A"],"prefix":"A","entire_prefix":"A","prefix_anchor":"A","level":1,"next_prefix":"B"},"1":{"id":237954,"text":"A society may value its certificates in accordance with valuation standards authorized by the laws of this Commonwealth for the valuation of policies issued by life insurers.","type":"section","prefixes":["B"],"prefix":"B","entire_prefix":"B","prefix_anchor":"B","level":1,"prior_prefix":"A","next_prefix":"C"},"2":{"id":237955,"text":"Reserves according to the Commissioners’ reserve valuation method, for the life insurance and endowment benefits of certificates providing for a uniform amount of insurance and requiring the payment of uniform premiums shall be any excess of the present value, at the date of valuation, of the future guaranteed benefits provided for by those certificates, over the then present value of any future modified net premiums therefor. The modified net premiums for any such certificate shall be a uniform percentage of the respective contract premiums for the benefits that the present value, at the date of issue of the certificate, of all modified net premiums shall equal the sum of the then present value of the benefits provided for by the certificate and the excess of 1 over 2, as follows:","type":"section","prefixes":["C"],"prefix":"C","entire_prefix":"C","prefix_anchor":"C","level":1,"prior_prefix":"B","next_prefix":"C1"},"3":{"id":237956,"text":"A net-level premium equal to the present value, at the date of issue, of the benefits provided for after the first certificate year, divided by the present value, at the date of issue, of an annual annuity of one dollar payable on each anniversary of the certificate on which a premium falls due. However, the net-level annual premium shall not exceed the net-level annual premium on the nineteen-year premium whole life plan for insurance of the same amount at any age one year higher than the age at issue of the certificate; and","type":"section","prefixes":["C","1"],"prefix":"1","entire_prefix":"C1","prefix_anchor":"C1","level":2,"prior_prefix":"C","next_prefix":"C2"},"4":{"id":237957,"text":"A net one-year term premium for the benefits provided for in the first certificate year. Reserves according to the Commissioners’ reserve valuation method for (i) life insurance benefits for varying amounts of benefits or requiring the payment of varying premiums, (ii) annuity and pure endowment benefits, (iii) disability and accidental death benefits in all certificates and contracts, and (iv) all other benefits except life insurance and endowment benefits, shall be calculated by a method consistent with the principles of this subsection.","type":"section","prefixes":["C","2"],"prefix":"2","entire_prefix":"C2","prefix_anchor":"C2","level":2,"prior_prefix":"C1","next_prefix":"D"},"5":{"id":237958,"text":"The present value of deferred payments due under incurred claims or matured certificates shall be deemed a liability of the society and shall be computed upon mortality and interest standards prescribed in subsections E through G of this section.","type":"section","prefixes":["D"],"prefix":"D","entire_prefix":"D","prefix_anchor":"D","level":1,"prior_prefix":"C2","next_prefix":"E"},"6":{"id":237959,"text":"The valuation and underlying data shall be certified by a competent actuary or, at the expense of the society, verified by the actuary of the department of insurance of the state of domicile of the society.","type":"section","prefixes":["E"],"prefix":"E","entire_prefix":"E","prefix_anchor":"E","level":1,"prior_prefix":"D","next_prefix":"F"},"7":{"id":237960,"text":"The minimum standards of valuation for certificates issued prior to June 28, 1969, shall be those provided by the law applicable immediately prior to June 28, 1968, but not lower than the standards used in the calculating of rates for those certificates.","type":"section","prefixes":["F"],"prefix":"F","entire_prefix":"F","prefix_anchor":"F","level":1,"prior_prefix":"E","next_prefix":"G"},"8":{"id":237961,"text":"The minimum standard of valuation for certificates issued after June 28, 1969, shall be 3 1\/2 percent interest and the following tables:","type":"section","prefixes":["G"],"prefix":"G","entire_prefix":"G","prefix_anchor":"G","level":1,"prior_prefix":"F","next_prefix":"G1"},"9":{"id":237962,"text":"For certificates of life insurance, American Men Ultimate Table of Mortality, with Bowerman’s or Davis’ Extension thereof or with the consent of the Commission, the Commissioners 1941 Standard Ordinary Mortality Table, the Commissioners 1941 Standard Industrial Mortality Table or the Commissioners 1958 Standard Ordinary Mortality Table, using actual age of the insured for male risks and an age not more than three years younger than the actual age of the insured for female risks;","type":"section","prefixes":["G","1"],"prefix":"1","entire_prefix":"G1","prefix_anchor":"G1","level":2,"prior_prefix":"G","next_prefix":"G2"},"10":{"id":237963,"text":"For annuity and pure endowment certificates, excluding any disability and accidental death benefits in the certificates, the 1937 Standard Annuity Mortality Table or the Annuity Mortality Table for 1949, Ultimate, or any modification of either of these tables approved by the Commission;","type":"section","prefixes":["G","2"],"prefix":"2","entire_prefix":"G2","prefix_anchor":"G2","level":2,"prior_prefix":"G1","next_prefix":"G3"},"11":{"id":237964,"text":"For total and permanent disability benefits in or supplementary to life insurance certificates, Hunter’s Disability Table, or the Class III Disability Table (1926) modified to conform to the contractual waiting period, or 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. Any of these tables shall, for active lives, be combined with a mortality table permitted for calculating the reserves for life insurance certificates;","type":"section","prefixes":["G","3"],"prefix":"3","entire_prefix":"G3","prefix_anchor":"G3","level":2,"prior_prefix":"G2","next_prefix":"G4"},"12":{"id":237965,"text":"For accidental death benefits in or supplementary to life insurance certificates, The Inter-Company Double Indemnity Mortality Table or the 1959 Accidental Death Benefits Table. Either table shall be combined with a mortality table permitted for calculating the reserves for life insurance certificates; and","type":"section","prefixes":["G","4"],"prefix":"4","entire_prefix":"G4","prefix_anchor":"G4","level":2,"prior_prefix":"G3","next_prefix":"G5"},"13":{"id":237966,"text":"For noncancellable accident and health benefits, the Class III Disability Table (1926) with conference modifications or, with the consent of the Commission, tables based upon the society’s own experience.","type":"section","prefixes":["G","5"],"prefix":"5","entire_prefix":"G5","prefix_anchor":"G5","level":2,"prior_prefix":"G4","next_prefix":"H"},"14":{"id":237967,"text":"The Commission may, in its discretion, accept other standards for valuation if it finds that the reserves produced by those standards will not be less in the aggregate than reserves computed in accordance with the minimum valuation standard prescribed in this section. The Commission may, in its discretion, vary the standards of mortality applicable to all certificates of insurance on substandard lives or other extra hazardous lives by any society licensed to do business in this Commonwealth. Whenever the mortality experience under all certificates valued on the same mortality table exceeds the expected mortality according to that table for a period of three consecutive years, the Commission may require additional reserves that it deems necessary on account of the certificates.","type":"section","prefixes":["H"],"prefix":"H","entire_prefix":"H","prefix_anchor":"H","level":1,"prior_prefix":"G5","next_prefix":"I"},"15":{"id":237968,"text":"Any society, with the consent of the commissioner of insurance of the state of domicile of the society and under any conditions he may impose, may establish and maintain reserves on its certificates in excess of the reserves required by the state. However, the contractual rights of any insured member shall not be affected by the excess reserves.","type":"section","prefixes":["I"],"prefix":"I","entire_prefix":"I","prefix_anchor":"I","level":1,"prior_prefix":"H"}},"ancestry":[{"id":13776,"edition_id":1,"name":"Regulation","identifier":"6","label":"article","depth":3,"order_by":1,"parent_id":13775,"metadata":{},"date_created":"2026-06-26 03:45:51","date_modified":"2026-06-26 03:45:51","permalink":{"id":216595,"object_type":"structure","relational_id":13776,"identifier":"6","token":"38.2\/41\/6","url":"\/38.2\/41\/6\/","edition_id":1,"permalink":0,"preferred":1}},{"id":13775,"edition_id":1,"name":"Fraternal Benefit Societies","identifier":"41","label":"chapter","depth":2,"order_by":1,"parent_id":12698,"metadata":{},"date_created":"2026-06-26 03:45:51","date_modified":"2026-06-26 03:45:51","permalink":{"id":216491,"object_type":"structure","relational_id":13775,"identifier":"41","token":"38.2\/41","url":"\/38.2\/41\/","edition_id":1,"permalink":0,"preferred":1}},{"id":12698,"edition_id":1,"name":"Insurance","identifier":"38.2","label":"title","depth":1,"order_by":1,"parent_id":null,"metadata":{},"date_created":"2026-06-26 03:43:49","date_modified":"2026-06-26 03:43:49","permalink":{"id":210661,"object_type":"structure","relational_id":12698,"identifier":"38.2","token":"38.2","url":"\/38.2\/","edition_id":1,"permalink":0,"preferred":1}}],"structure_contents":[{"id":65309,"structure_id":13776,"section_number":"38.2-4123","catch_line":"Exemptions","url":"\/38.2-4123\/","token":"38.2\/41\/6\/38.2-4123","metadata":false},{"id":59062,"structure_id":13776,"section_number":"38.2-4124","catch_line":"Taxation","url":"\/38.2-4124\/","token":"38.2\/41\/6\/38.2-4124","metadata":false},{"id":65445,"structure_id":13776,"section_number":"38.2-4125","catch_line":"Valuations","url":"\/38.2-4125\/","token":"38.2\/41\/6\/38.2-4125","metadata":false},{"id":54786,"structure_id":13776,"section_number":"38.2-4126","catch_line":"Reports to be filed","url":"\/38.2-4126\/","token":"38.2\/41\/6\/38.2-4126","metadata":false},{"id":85566,"structure_id":13776,"section_number":"38.2-4127","catch_line":"Annual license","url":"\/38.2-4127\/","token":"38.2\/41\/6\/38.2-4127","metadata":false},{"id":68059,"structure_id":13776,"section_number":"38.2-4128","catch_line":"Examination of societies; no adverse publications","url":"\/38.2-4128\/","token":"38.2\/41\/6\/38.2-4128","metadata":false},{"id":83277,"structure_id":13776,"section_number":"38.2-4129","catch_line":"Admission; foreign or alien society","url":"\/38.2-4129\/","token":"38.2\/41\/6\/38.2-4129","metadata":false},{"id":68139,"structure_id":13776,"section_number":"38.2-4130","catch_line":"Injunction; liquidation; receivership of domestic society","url":"\/38.2-4130\/","token":"38.2\/41\/6\/38.2-4130","metadata":false},{"id":72578,"structure_id":13776,"section_number":"38.2-4131","catch_line":"Suspension, revocation or refusal of license of foreign or alien society","url":"\/38.2-4131\/","token":"38.2\/41\/6\/38.2-4131","metadata":false},{"id":55877,"structure_id":13776,"section_number":"38.2-4132","catch_line":"Licensing of agents","url":"\/38.2-4132\/","token":"38.2\/41\/6\/38.2-4132","metadata":false},{"id":59395,"structure_id":13776,"section_number":"38.2-4133","catch_line":"Unfair methods of competition and unfair and deceptive acts and practices","url":"\/38.2-4133\/","token":"38.2\/41\/6\/38.2-4133","metadata":false},{"id":65176,"structure_id":13776,"section_number":"38.2-4134","catch_line":"Penalties","url":"\/38.2-4134\/","token":"38.2\/41\/6\/38.2-4134","metadata":false},{"id":62524,"structure_id":13776,"section_number":"38.2-4135","catch_line":"Exemption of certain societies","url":"\/38.2-4135\/","token":"38.2\/41\/6\/38.2-4135","metadata":false},{"id":66864,"structure_id":13776,"section_number":"38.2-4136","catch_line":"Societies previously existing; reincorporation; amendments","url":"\/38.2-4136\/","token":"38.2\/41\/6\/38.2-4136","metadata":false},{"id":73856,"structure_id":13776,"section_number":"38.2-4137","catch_line":"Exemption of member representatives of certain societies","url":"\/38.2-4137\/","token":"38.2\/41\/6\/38.2-4137","metadata":false}],"previous_section":{"id":59062,"structure_id":13776,"section_number":"38.2-4124","catch_line":"Taxation","url":"\/38.2-4124\/","token":"38.2\/41\/6\/38.2-4124","metadata":false},"next_section":{"id":54786,"structure_id":13776,"section_number":"38.2-4126","catch_line":"Reports to be filed","url":"\/38.2-4126\/","token":"38.2\/41\/6\/38.2-4126","metadata":false},"metadata":false,"official_url":"https:\/\/law.lis.virginia.gov\/vacode\/38.2-4125\/","history_text":"

The record of this law\u2019s original creation isn\u2019t available online. It has been modified 4 times. Those modifications are cataloged by \u201cThe Acts of Assembly,\u201d a state publication, by year and chapter. Those modifications that can be read on the General Assembly\u2019s website will be linked accordingly. Those modifications are as follows: in 1952, chapter 317; in 1968, chapter 654; in 1975, chapter 262; in 1986, chapter 562.<\/p>","references":[{"id":54786,"section_number":"38.2-4126","catch_line":"Reports to be filed","order_by":null,"url":"\/38.2-4126\/"}],"refers_to":false,"permalink":{"id":216605,"object_type":"law","relational_id":65445,"identifier":"38.2-4125","token":"38.2\/41\/6\/38.2-4125","url":"\/38.2-4125\/","edition_id":1,"permalink":0,"preferred":1},"url":"\/38.2-4125\/","token":"38.2\/41\/6\/38.2-4125","dublin_core":{"Title":"Valuations","Type":"Text","Format":"text\/html","Identifier":"\u00a7 38.2-4125","Relation":"Code of Virginia"},"html":"\n\t\t\t\t\t\t

A.<\/span> The report of valuation shall show, as reserve liabilities, the difference between the present midyear value of the promised benefits provided in the certificates<\/span> of the society<\/span> in force and the present midyear value of the future net premiums<\/span> as they are in practice actually collected, not including any value for the right to make extra assessments and not including any amount by which the present midyear value of future net premiums<\/span> exceeds the present midyear value of promised benefits on individual certificates<\/span>. At the option of any society<\/span>, the valuation may show the net tabular value instead of the above value. The net tabular value as to certificates<\/span> issued prior to June 28, 1969, shall be determined in accordance with the provisions of law<\/span> applicable prior to June 28, 1968, and as to certificates<\/span> issued on or after June 28, 1969, shall not be less than the reserves determined according to the Commissioners<\/span>’ reserve valuation method as defined in subsection C of this section. 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<\/span> shall be set up and maintained as a liability. The reserve liabilities shall be properly adjusted in the event that the midyear or tabular values are not appropriate. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

B.<\/span> A society<\/span> may value its certificates<\/span> in accordance with valuation standards authorized by the laws<\/span><\/span> of this Commonwealth for the valuation of policies issued by life insurers<\/span>. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

C.<\/span> Reserves according to the Commissioners<\/span>’ reserve valuation method, for the life insurance<\/span> and endowment benefits of certificates<\/span> providing for a uniform amount of insurance<\/span> and requiring the payment of uniform premiums<\/span> shall be any excess of the present value, at the date of valuation, of the future guaranteed benefits provided for by those certificates<\/span>, over the then present value of any future modified net premiums<\/span> therefor. The modified net premiums<\/span> for any such certificate<\/span> shall be a uniform percentage of the respective contract<\/span> premiums<\/span> for the benefits that the present value, at the date of issue<\/span> of the certificate<\/span>, of all modified net premiums<\/span> shall equal the sum of the then present value of the benefits provided for by the certificate<\/span> and the excess of 1 over 2, as follows: <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

1.<\/span> A net-level premium equal to the present value, at the date of issue<\/span>, of the benefits provided for after the first certificate<\/span> year, divided by the present value, at the date of issue<\/span>, of an annual annuity of one dollar payable on each anniversary of the certificate<\/span> on which a premium falls due. However, the net-level annual premium shall not exceed the net-level annual premium on the nineteen-year premium whole life plan for insurance<\/span> of the same amount at any age one year higher than the age at issue<\/span> of the certificate<\/span>; and <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

2.<\/span> A net one-year term premium for the benefits provided for in the first certificate<\/span> year. Reserves according to the Commissioners<\/span>’ reserve valuation method for (i) life insurance<\/span> benefits for varying amounts of benefits or requiring the payment of varying premiums<\/span>, (ii) annuity and pure endowment benefits, (iii) disability and accidental death benefits in all certificates<\/span> and contracts<\/span>, and (iv) all other benefits except life insurance<\/span> and endowment benefits, shall be calculated by a method consistent with the principles of this subsection. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

D.<\/span> The present value of deferred payments due under incurred claims or matured certificates<\/span> shall be deemed a liability of the society<\/span> and shall be computed upon mortality and interest standards prescribed in subsections E through G of this section. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

E.<\/span> The valuation and underlying data shall be certified by a competent actuary or, at the expense of the society<\/span>, verified by the actuary of the department of insurance<\/span> of the state<\/span> of domicile of the society<\/span>. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

F.<\/span> The minimum standards of valuation for certificates<\/span> issued prior to June 28, 1969, shall be those provided by the law<\/span> applicable immediately prior to June 28, 1968, but not lower than the standards used in the calculating of rates<\/span><\/span> for those certificates<\/span>. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

G.<\/span> The minimum standard of valuation for certificates<\/span> issued after June 28, 1969, shall be 3 1\/2 percent interest and the following tables: <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

1.<\/span> For certificates<\/span> of life insurance<\/span>, American Men Ultimate Table of Mortality, with Bowerman’s or Davis’ Extension thereof or with the consent of the Commission<\/span>, the Commissioners<\/span> 1941 Standard Ordinary Mortality Table, the Commissioners<\/span> 1941 Standard Industrial Mortality Table or the Commissioners<\/span> 1958 Standard Ordinary Mortality Table, using actual age of the insured for male risks and an age not more than three years younger than the actual age of the insured for female risks; <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

2.<\/span> For annuity and pure endowment certificates<\/span>, excluding any disability and accidental death benefits in the certificates<\/span>, the 1937 Standard Annuity Mortality Table or the Annuity Mortality Table for 1949, Ultimate, or any modification of either of these tables approved by the Commission<\/span>; <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

3.<\/span> For total and permanent disability benefits in or supplementary to life insurance<\/span> certificates<\/span>, Hunter’s Disability Table, or the Class III Disability Table (1926) modified to conform to the contractual waiting period, or the tables of Period 2 disablement rates<\/span><\/span> and the 1930 to 1950 termination rates<\/span><\/span> of the 1952 Disability Study of the Society<\/span> of Actuaries with due regard to the type of benefit. Any of these tables shall, for active lives, be combined with a mortality table permitted for calculating the reserves for life insurance<\/span> certificates<\/span>; <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

4.<\/span> For accidental death benefits in or supplementary to life insurance<\/span> certificates<\/span>, The Inter-Company<\/span> Double Indemnity Mortality Table or the 1959 Accidental Death Benefits Table. Either table shall be combined with a mortality table permitted for calculating the reserves for life insurance<\/span> certificates<\/span>; and <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

5.<\/span> For noncancellable accident and health benefits, the Class III Disability Table (1926) with conference modifications or, with the consent of the Commission<\/span>, tables based upon the society<\/span>’s own experience. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

H.<\/span> The Commission<\/span> may, in its discretion, accept other standards for valuation if it finds that the reserves produced by those standards will not be less in the aggregate than reserves computed in accordance with the minimum valuation standard prescribed in this section. The Commission<\/span> may, in its discretion, vary the standards of mortality applicable to all certificates<\/span> of insurance<\/span> on substandard lives or other extra hazardous lives by any society<\/span> licensed to do business in this Commonwealth. Whenever the mortality experience under all certificates<\/span> valued on the same mortality table exceeds the expected mortality according to that table for a period of three consecutive years, the Commission<\/span> may require additional reserves that it deems necessary on account of the certificates<\/span>. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

I.<\/span> Any society<\/span>, with the consent of the commissioner of insurance<\/span> of the state<\/span> of domicile of the society<\/span> and under any conditions he may impose, may establish and maintain reserves on its certificates<\/span> in excess of the reserves required by the state<\/span>. However, the contractual rights of any insured member shall not be affected by the excess reserves. <\/i><\/a><\/p><\/section>","plain_text":" CODE OF VIRGINIA\n\nVALUATIONS (\u00a7 38.2-4125)\n\nA. The report of valuation shall show, as reserve liabilities, the difference\nbetween the present midyear value of the promised benefits provided in the\ncertificates of the society in force and the present midyear value of the future\nnet premiums as they are in practice actually collected, not including any value\nfor the right to make extra assessments and not including any amount by which\nthe present midyear value of future net premiums exceeds the present midyear\nvalue of promised benefits on individual certificates. At the option of any\nsociety, the valuation may show the net tabular value instead of the above\nvalue. The net tabular value as to certificates issued prior to June 28, 1969,\nshall be determined in accordance with the provisions of law applicable prior to\nJune 28, 1968, and as to certificates issued on or after June 28, 1969, shall\nnot be less than the reserves determined according to the Commissioners’\nreserve valuation method as defined in subsection C of this section. If the\npremium charged is less than the tabular net premium according to the basis of\nvaluation used, an additional reserve equal to the present value of the\ndeficiency in the premiums shall be set up and maintained as a liability. The\nreserve liabilities shall be properly adjusted in the event that the midyear or\ntabular values are not appropriate.\n\nB. A society may value its certificates in accordance with valuation standards\nauthorized by the laws of this Commonwealth for the valuation of policies issued\nby life insurers.\n\nC. Reserves according to the Commissioners’ reserve valuation method, for\nthe life insurance and endowment benefits of certificates providing for a\nuniform amount of insurance and requiring the payment of uniform premiums shall\nbe any excess of the present value, at the date of valuation, of the future\nguaranteed benefits provided for by those certificates, over the then present\nvalue of any future modified net premiums therefor. The modified net premiums\nfor any such certificate shall be a uniform percentage of the respective\ncontract premiums for the benefits that the present value, at the date of issue\nof the certificate, of all modified net premiums shall equal the sum of the then\npresent value of the benefits provided for by the certificate and the excess of\n1 over 2, as follows:\n\n 1. A net-level premium equal to the present value, at the date of issue, of\n the benefits provided for after the first certificate year, divided by the\n present value, at the date of issue, of an annual annuity of one dollar\n payable on each anniversary of the certificate on which a premium falls due.\n However, the net-level annual premium shall not exceed the net-level annual\n premium on the nineteen-year premium whole life plan for insurance of the same\n amount at any age one year higher than the age at issue of the certificate;\n and\n\n 2. A net one-year term premium for the benefits provided for in the first\n certificate year. Reserves according to the Commissioners’ reserve\n valuation method for (i) life insurance benefits for varying amounts of\n benefits or requiring the payment of varying premiums, (ii) annuity and pure\n endowment benefits, (iii) disability and accidental death benefits in all\n certificates and contracts, and (iv) all other benefits except life insurance\n and endowment benefits, shall be calculated by a method consistent with the\n principles of this subsection.\n\nD. The present value of deferred payments due under incurred claims or matured\ncertificates shall be deemed a liability of the society and shall be computed\nupon mortality and interest standards prescribed in subsections E through G of\nthis section.\n\nE. The valuation and underlying data shall be certified by a competent actuary\nor, at the expense of the society, verified by the actuary of the department of\ninsurance of the state of domicile of the society.\n\nF. The minimum standards of valuation for certificates issued prior to June 28,\n1969, shall be those provided by the law applicable immediately prior to June\n28, 1968, but not lower than the standards used in the calculating of rates for\nthose certificates.\n\nG. The minimum standard of valuation for certificates issued after June 28,\n1969, shall be 3 1\/2 percent interest and the following tables:\n\n 1. For certificates of life insurance, American Men Ultimate Table of\n Mortality, with Bowerman’s or Davis’ Extension thereof or with the\n consent of the Commission, the Commissioners 1941 Standard Ordinary Mortality\n Table, the Commissioners 1941 Standard Industrial Mortality Table or the\n Commissioners 1958 Standard Ordinary Mortality Table, using actual age of the\n insured for male risks and an age not more than three years younger than the\n actual age of the insured for female risks;\n\n 2. For annuity and pure endowment certificates, excluding any disability and\n accidental death benefits in the certificates, the 1937 Standard Annuity\n Mortality Table or the Annuity Mortality Table for 1949, Ultimate, or any\n modification of either of these tables approved by the Commission;\n\n 3. For total and permanent disability benefits in or supplementary to life\n insurance certificates, Hunter’s Disability Table, or the Class III\n Disability Table (1926) modified to conform to the contractual waiting period,\n or the tables of Period 2 disablement rates and the 1930 to 1950 termination\n rates of the 1952 Disability Study of the Society of Actuaries with due regard\n to the type of benefit. Any of these tables shall, for active lives, be\n combined with a mortality table permitted for calculating the reserves for\n life insurance certificates;\n\n 4. For accidental death benefits in or supplementary to life insurance\n certificates, The Inter-Company Double Indemnity Mortality Table or the 1959\n Accidental Death Benefits Table. Either table shall be combined with a\n mortality table permitted for calculating the reserves for life insurance\n certificates; and\n\n 5. For noncancellable accident and health benefits, the Class III Disability\n Table (1926) with conference modifications or, with the consent of the\n Commission, tables based upon the society’s own experience.\n\nH. The Commission may, in its discretion, accept other standards for valuation\nif it finds that the reserves produced by those standards will not be less in\nthe aggregate than reserves computed in accordance with the minimum valuation\nstandard prescribed in this section. The Commission may, in its discretion, vary\nthe standards of mortality applicable to all certificates of insurance on\nsubstandard lives or other extra hazardous lives by any society licensed to do\nbusiness in this Commonwealth. Whenever the mortality experience under all\ncertificates valued on the same mortality table exceeds the expected mortality\naccording to that table for a period of three consecutive years, the Commission\nmay require additional reserves that it deems necessary on account of the\ncertificates.\n\nI. Any society, with the consent of the commissioner of insurance of the state\nof domicile of the society and under any conditions he may impose, may establish\nand maintain reserves on its certificates in excess of the reserves required by\nthe state. However, the contractual rights of any insured member shall not be\naffected by the excess reserves.\n\nHISTORY: Code 1950, \u00a7\u00a7 38-316, 38.1-624; 1952, c. 317, \u00a7 38.1-638.45; 1968,\nc. 654; 1975, c. 262; 1986, c. 562.","edition":{"id":1,"name":"2025","slug":"2025","date_created":"2026-06-21 22:39:22","date_modified":"2026-06-21 22:39:22","current":1,"order_by":1,"last_import":null}}