Section 5-312 - Same - Reserve calculation for indeterminate premium plans.
§ 5-312. Same - Reserve calculation for indeterminate premium plans.
(a) Scope of section.- This section applies to:
(1) a plan of life insurance that provides for future premiums to be determined by the insurer based on estimates of future experience; and
(2) a plan of life insurance or annuity that is of a nature that precludes determining the minimum reserves by the methods described in §§ 5-307, 5-308, and 5-311 of this subtitle.
(b) Required reserves.- In accordance with regulations adopted by the Commissioner, the reserves that are held under a plan described in subsection (a) of this section shall:
(1) be appropriate in relation to the benefits and pattern of premiums for that plan; and
(2) be computed by a method that is consistent with the principles of this subtitle.
[An. Code 1957, art. 48A, § 83; 1995, ch. 36.]