(a) Each year, an association shall compute its reserve liability on all outstanding insurance certificates.
(b) To make the computation, an association:
(1) shall use the net premium basis in accordance with the reserve table and interest rate adopted by the association and approved by the commissioner; and
(2) may use group methods and approximate averages for fractions of a year.
(c) The reserve liability may be computed on not more than a one-year preliminary term.
(d) As soon as practical each year, the commissioner shall compute or cause to be computed the reserve liability of each association. To make the computation, the commissioner may use group methods and approximate averages for fractions of a year.