C.R.S. Section 10-7-310
Life and endowment reserves


(1)

Except as otherwise provided in sections 10-7-310.5 and 10-7-313, reserves, according to the commissioners reserve valuation method for the life insurance and endowment benefits of policies providing for a uniform amount of insurance and requiring the payment of uniform premiums, shall be the excess, if any, of the present value, at the date of valuation, of such future guaranteed benefits provided for by such policies over the then present value of any future modified net premiums therefor. The modified net premiums for any such policy shall be such uniform percentage of the respective contract premiums for such benefits that the present value, at the date of issue of the policy, of all such modified net premiums shall be equal to the sum of the then present value of such benefits provided for by the policy and the excess of paragraph (a) of this subsection (1) over paragraph (b) of this subsection (1), as follows:

(a)

A net level annual premium equal to the present value, at the date of issue, of such benefits provided for after the first policy year, divided by the present value, at the date of issue, of an annuity of one per annum payable on the first and each subsequent anniversary of such policy on which a premium falls due; except that such 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 an age one year higher than the age at issue of such policy;

(b)

A net one-year term premium for such benefits provided for in the first policy year.

(1.5)

For any life insurance policy issued on or after January 1, 1985, for which the contract premium in the first policy year exceeds that of the second year and for which no comparable additional benefit is provided in the first year for such excess and which provides an endowment benefit, a cash surrender value, or a combination thereof in an amount greater than such excess premium, the reserve according to the commissioners reserve valuation method as of any policy anniversary occurring on or before the assumed ending date, which for the purposes of this subsection (1.5), means the first policy anniversary on which the sum of any endowment benefit and any cash surrender value then available is greater than such excess premium, shall, except as otherwise provided in section 10-7-313, be the greater of the reserve as of such policy anniversary calculated as described in the introductory portion to and paragraphs (a) and (b) of subsection (1) of this section and the reserve as of such policy anniversary calculated as described in said portion and paragraphs of said subsection (1), but with:

(a)

The value defined in said paragraph (a) being reduced by fifteen percent of the amount of such excess first year premium;

(b)

All present values of benefits and premiums being determined without reference to premiums or benefits provided for by the policy after the assumed ending date;

(c)

The policy being assumed to mature on such date as an endowment; and

(d)

The cash surrender value provided on such date being considered as an endowment benefit. In making the comparison the mortality and interest bases stated in sections 10-7-309 and 10-7-309.5 shall be used.

(2)

Reserves according to the commissioners reserve valuation method for life insurance policies providing for a varying amount of insurance or requiring the payment of varying premiums, group annuity and pure endowment policies purchased under a retirement plan or plan of deferred compensation, established or maintained by an employer (including a partnership or sole proprietorship) or by an employee organization, or by both, other than a plan providing individual retirement accounts or individual retirement annuities under section 408 of the federal “Internal Revenue Code of 1986”, as now or hereafter amended, disability and accidental death benefits in all policies and contracts, and all other benefits, except life insurance and endowment benefits in life insurance policies and benefits provided by all other annuity and pure endowment contracts, shall be calculated by a method consistent with the principles of subsection (1) of this section; except that any extra premiums charged because of impairments or special hazards shall be disregarded in the determination of modified net premiums.

Source: Section 10-7-310 — Life and endowment reserves, https://leg.­colorado.­gov/sites/default/files/images/olls/crs2023-title-10.­pdf (accessed Oct. 20, 2023).

10‑7‑101
Valuation of life policies
10‑7‑102
Life insurance policies - requirements
10‑7‑103
Life insurance policies - prohibition
10‑7‑104
Exceptions
10‑7‑105
Violation
10‑7‑105.5
Lapse of life insurance policy - notice - affidavit of mailing or electronic transmission - legislative declaration
10‑7‑106
Exclusive right of insured in proceeds
10‑7‑107
Nonforfeiture benefits - applicability
10‑7‑108
Regulating vouchers for disbursements
10‑7‑109
Suicide no defense for nonpayment
10‑7‑112
Interest payable on benefits or proceeds
10‑7‑113
Acceleration of benefits
10‑7‑114
Actuarial opinion of reserves - definition - rules
10‑7‑115
Insurable interest - 170 (c) organizations
10‑7‑116
Military sales - rules
10‑7‑201
Group life insurance
10‑7‑202
Policy provisions
10‑7‑203
Employer defined
10‑7‑204
Reciprocal provisions
10‑7‑205
Exemption from execution
10‑7‑206
Issuance and valuation of policies - annual statement
10‑7‑207
Assignment
10‑7‑301
Short title
10‑7‑301.5
Definitions
10‑7‑302
Compulsory policy provisions
10‑7‑303
Computation of cash surrender value
10‑7‑304
Computation of nonforfeiture benefit
10‑7‑305
Adjusted premiums
10‑7‑305.1
Adjusted premiums for new policies
10‑7‑305.2
Future premium determination - standards
10‑7‑306
Calculation of values - supplemental rules
10‑7‑306.1
Calculation of values - new policies
10‑7‑307
Exemptions
10‑7‑308
Waiver prohibited
10‑7‑309
Minimum standard of valuation - rules
10‑7‑309.5
Minimum standards of valuation for new policies - definition
10‑7‑310
Life and endowment reserves
10‑7‑310.5
Individual annuity and pure endowment reserves
10‑7‑311
Minimum aggregate reserves
10‑7‑312
Optional standards
10‑7‑313
Minimum reserves
10‑7‑313.1
Minimum reserves - exceptions
10‑7‑313.2
Minimum standards for other coverages including accident and health insurance contracts - rules
10‑7‑313.3
Valuation manual for policies issued on or after the operative date of the valuation manual - rules
10‑7‑313.4
Requirements of a principle-based valuation
10‑7‑313.6
Experience reporting for policies in force on or after the operative date of the valuation manual
10‑7‑313.8
Confidentiality - definitions
10‑7‑313.9
Single state exemption
10‑7‑314
Automatic premium loans
10‑7‑315
Operative date
10‑7‑316
Effect on existing policies
10‑7‑401
Sales not prohibited
10‑7‑402
Investment contract funds - separate accounts
10‑7‑403
Where benefits are payable in variable amounts
10‑7‑404
Authority to issue variable contracts
10‑7‑405
Construction
10‑7‑501
Short title
10‑7‑502
Exemptions
10‑7‑503
Compulsory contract provisions
10‑7‑504
Minimum nonforfeiture amounts - rules
10‑7‑505
Computation of annuity benefit
10‑7‑506
Computation of cash surrender benefit
10‑7‑507
Computation of paid-up annuity nonforfeiture benefit
10‑7‑508
Determination of maturity date
10‑7‑509
Calculations of values - supplemental rules
10‑7‑510
Effective date - applicability of part
10‑7‑511
Rule-making authority
10‑7‑601
Short title
10‑7‑602
Definitions
10‑7‑603
Licensing
10‑7‑604
Licensure - refusal to issue - suspension - revocation - refusal to renew
10‑7‑605
Forms approval
10‑7‑606
Annual reports
10‑7‑607
Examinations
10‑7‑608
Disclosures
10‑7‑609
General requirements
10‑7‑610
Limited purchase in incontestability period
10‑7‑611
Advertising - legislative intent
10‑7‑612
Fraudulent acts
10‑7‑613
Penalties
10‑7‑614
Unfair trade practices
10‑7‑615
Rules
10‑7‑616
No preemption - Colorado Securities Act - authority of division of securities
10‑7‑617
Application
10‑7‑618
Continuation of business
10‑7‑619
Viatical settlements cash fund - created
10‑7‑620
Severability
10‑7‑701
Short title
10‑7‑702
Definitions
10‑7‑703
Insurance on the life of another
10‑7‑704
Insurable interest
10‑7‑705
Insured’s own life
10‑7‑706
Reliance on statements
10‑7‑707
Consent of insured
10‑7‑708
Prohibited practices
10‑7‑709
Actions to recover death benefits
10‑7‑710
Legitimate insurance transactions
10‑7‑801
Short title
10‑7‑802
Definitions
10‑7‑803
Insurers - duty to compare names of insureds with death master file and to locate beneficiaries
Green check means up to date. Up to date

Current through Fall 2024

§ 10-7-310’s source at colorado​.gov