R590. Insurance, Administration.R590-117. Valuation of Liabilities.
R590-117-1. Authority.
This rule is promulgated by the commissioner pursuant to Sections 31A-2-201 and 31A-17-402.
R590-117-2. Purpose and Scope.
(1) The purpose of this rule is to:
(a) define statutory liabilities; and
(b) establish a hierarchy of statutory requirements and accounting standards for the valuation of a liability.
(2) This rule applies to any person transacting insurance business under Title 31A, Insurance Code.
R590-117-3. Definitions.
Terms used in this rule are defined in Section 31A-1-301. Additional terms are defined as follows:
(1) "Liabilities" shall include reserves for payment of future obligations.
R590-117-4. Reported Liabilities and Valuation Hierarchy.
(1) Reported liabilities include:
(a) any liability provided for or contemplated by the annual statement blank or other reporting form prescribed by the commissioner under Section 31A-2-202; and
(b) any other liability known to the reporting insurer, except a liability specifically exempted or precluded by the reporting form.
(2) The value of a reported liability shall be computed according to the first applicable method, in ascending order, from the following list:
(a) a specific provision of Title 31A, Insurance Code;
(b) a department rule that supersedes Rule R590-117;
(c) a procedure adopted or recommended by the National Association of Insurance Commissioners;
(d) generally accepted accounting principles; or
(e) values a prudent person would establish and are accepted by the commissioner.
R590-117-5. Severability.
If any provision of this rule, Rule R590-117, or its application to any person or situation is held invalid, such invalidity does not affect any other provision or application of this rule that can be given effect without the invalid provision or application. The remainder of this rule shall be given effect without the invalid provision or application.
KEY: insurance companies, rules and procedures
Date of Last Change: November 8, 2021
Notice of Continuation: January 26, 2022
Authorizing, and Implemented or Interpreted Law: 31A-17-402
