§ 5-312. Policies and contracts issued on or after operative date of Standard Nonforfeiture Law -- 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.

HISTORY: An. Code 1957, art. 48A, § 83; 1995, ch. 36.