Standard Valuation Law
Rhode Island · Insurance · §§ 27-4.5-1 to 27-4.5-9 · 19 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
- R.I. Gen. Laws § 27-4.5-1Short title and definitions
- R.I. Gen. Laws § 27-4.5-10Minimum standards for accident and health insurance contracts
- R.I. Gen. Laws § 27-4.5-11Rules and regulations
- R.I. Gen. Laws § 27-4.5-12Severability
- R.I. Gen. Laws § 27-4.5-13Valuation manual for policies issued on or after the operative date of the valuation manual
- R.I. Gen. Laws § 27-4.5-14Requirements of a principle-based valuation
- R.I. Gen. Laws § 27-4.5-15Experience reporting for policies in force on or after the operative date of the valuation manual
- R.I. Gen. Laws § 27-4.5-16Confidentiality
- R.I. Gen. Laws § 27-4.5-17Single state exemption
- R.I. Gen. Laws § 27-4.5-2Reserve valuation
- R.I. Gen. Laws § 27-4.5-3Actuarial opinion of reserves
- R.I. Gen. Laws § 27-4.5-4Computation of minimum standard
- R.I. Gen. Laws § 27-4.5-4.1Computation of minimum standard by calendar year of issue
- R.I. Gen. Laws § 27-4.5-5Reserve valuation method — Life insurance and endowment benefits
- R.I. Gen. Laws § 27-4.5-5.1Reserve valuation method — Annuity and pure endowment benefits
- R.I. Gen. Laws § 27-4.5-6Minimum reserves
- R.I. Gen. Laws § 27-4.5-7Optional reserve calculation
- R.I. Gen. Laws § 27-4.5-8Reserve calculation — Valuation net premium exceeding the gross premium charged
- R.I. Gen. Laws § 27-4.5-9Reserve calculation — Indeterminate premium plans
Enacted in other states
Alabama, Arkansas, California, Connecticut, Delaware, Florida, Georgia, Iowa, Kentucky, Minnesota, Mississippi, North Carolina, New Hampshire, New Mexico, Tennessee, Texas, Vermont
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