Standard Valuation Law
Alabama · Insurance · §§ 27-36A-1 to 27-36A-9 · 20 sections
Overview
The Standard Valuation Law governs how insurers value the liabilities carried on their statutory financial statements, setting minimum reserve standards across lines of business — life, annuity and endowment, accident and health, casualty, title, mortgage guaranty, and unearned premium reserves including marine and transportation — and defining which assets may be admitted in that accounting. It prescribes the methods used to compute reserves, including the commissioners reserve valuation method and a principle-based valuation framework operating under a valuation manual, and requires insurers to maintain aggregate, contingency, and deficiency reserves and to file an annual actuarial opinion attesting that reserves are appropriately computed and comply with state law. It also frames the regulator's supporting authority: required data submissions and their confidential treatment, exemptions for particular products or product lines, penalties for transactions that misstate asset positions, and rulemaking to implement the standards.
Editorial summary generated from the text of this act. It is not part of the statute — read the sections below for the operative language.
Sections covered
- Ala. Code § 27-36A-1Short Title.
- Ala. Code § 27-36A-10Minimum Reserves.
- Ala. Code § 27-36A-11Optional Reserve Calculation.
- Ala. Code § 27-36A-12Reserve Calculation - Valuation Net Premium Exceeding the Gross Premium Charged.
- Ala. Code § 27-36A-13Reserve Calculation - Indeterminate Premium Plans.
- Ala. Code § 27-36A-14Minimum Standard for Accident and Health Insurance Contracts.
- Ala. Code § 27-36A-15Valuation Manual for Policies Issued on or After the Operative Date of the Valuation Manual.
- Ala. Code § 27-36A-16Requirements of a Principle-Based Valuation.
- Ala. Code § 27-36A-17Experience Reporting for Policies in Force on or After the Operative Date of the Valuation Manual.
- Ala. Code § 27-36A-18Confidentiality.
- Ala. Code § 27-36A-19Single State Exemption.
- Ala. Code § 27-36A-2Definitions.
- Ala. Code § 27-36A-20Small Company Alternative Valuation.
- Ala. Code § 27-36A-3Reserve Valuation.
- Ala. Code § 27-36A-4Actuarial Opinion of Reserves.
- Ala. Code § 27-36A-5Computation of Minimum Standard.
- Ala. Code § 27-36A-6Computation of Minimum Standard for Annuities.
- Ala. Code § 27-36A-7Computation of Minimum Standard by Calendar Year of Issue.
- Ala. Code § 27-36A-8Reserve Valuation Method - Life Insurance and Endowment Benefits.
- Ala. Code § 27-36A-9Reserve Valuation Method - Annuity and Pure Endowment Benefits.
Enacted in other states
Arkansas, California, Connecticut, Delaware, Florida, Georgia, Iowa, Kentucky, Minnesota, Mississippi, North Carolina, New Hampshire, New Mexico, Rhode Island, Tennessee, Texas, Vermont
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