OAR 836-031-0240
Premium Reserves

(1)

The following provisions apply to premium reserves generally:

(a)

An insurer must maintain unearned premium reserves for all contracts with respect to the period of coverage beyond the date of valuation for which premiums, other than premiums paid in advance, have been paid;

(b)

If premiums due and unpaid are carried as an asset, an insurer must treat such premiums as premiums in force, subject to unearned premium reserve determination for which premiums, other than premiums paid in advance, have been paid. An insurer must carry the value of unpaid commissions, premium taxes and the cost of collection associated with due and unpaid premiums as an offsetting liability;

(c)

The gross premiums paid in advance for a period of coverage commencing after the next premium due date that follows the date of valuation may be appropriately discounted to the valuation date and shall be held either as a separate liability or as an addition to the unearned premium reserve that would otherwise be required as a minimum.

(2)

The following are minimum standards for unearned premium reserves:

(a)

The minimum unearned premium reserve with respect to any contract is the pro rata unearned modal premium that applies to the premium period beyond the valuation date. Such premium must be determined on the basis of:

(A)

The valuation net modal premium on the contract reserve basis applying to the contract; or

(B)

The gross modal premium for the contract if no contract reserve applies.

(b)

Notwithstanding subsection (a) of this section, the sum of the unearned premium and contract reserves for all contracts of the insurer subject to contract reserve requirements shall not be less than the gross modal unearned premium reserve on all such contracts as of the date of valuation. Such sum shall never be less than the expected claims for the period beyond the valuation date represented by such unearned premium reserve, to the extent not provided for elsewhere.

(3)

An insurer may employ suitable approximations and estimates, including but not limited to groupings, averages and aggregate estimation in computing premium reserves. Such approximations or estimates must be tested periodically to determine their continuing adequacy and reliability.

Source: Rule 836-031-0240 — Premium Reserves, https://secure.­sos.­state.­or.­us/oard/view.­action?ruleNumber=836-031-0240.

836‑031‑0200
Scope, Authority 836‑031‑0210
Definitions, Application and Explanation of Technical Terms Used 836‑031‑0220
Principles Governing Reserves 836‑031‑0230
Claim Reserves 836‑031‑0240
Premium Reserves 836‑031‑0250
Contract Reserves 836‑031‑0260
Reinsurance 836‑031‑0270
Specific Standards for Morbidity 836‑031‑0280
Specific Standards for Interest 836‑031‑0290
Specific Standards for Mortality 836‑031‑0300
Reserves for Waiver of Premium 836‑031‑0400
Allowed Assets 836‑031‑0410
Title Insurance Unearned Premium Reserve 836‑031‑0600
Purpose 836‑031‑0605
Valuation Manual 836‑031‑0610
Authority 836‑031‑0620
Scope 836‑031‑0630
Definitions 836‑031‑0640
General Requirements 836‑031‑0670
Statement of Actuarial Opinion Based On an Asset Adequacy Analysis 836‑031‑0680
Description of Actuarial Memorandum Including an Asset Adequacy Analysis and Regulatory Asset Adequacy Summary 836‑031‑0690
Additional Considerations for Analysis 836‑031‑0750
Purpose, Authority and Applicability 836‑031‑0755
Applicability 836‑031‑0760
Definitions 836‑031‑0765
General Calculation Requirements for Basic Reserves and Premium Deficiency Reserves 836‑031‑0770
Calculation of Minimum Valuation Standard for Policies with Guaranteed Nonlevel Gross Premiums or Guaranteed Nonlevel Benefits (Other than Universal Life Policies) 836‑031‑0775
Calculation of Minimum Valuation Standard for Flexible Premium and Fixed Premium Universal Life Insurance Policies that Contain Provisions Resulting in the Ability of a Policyowner to Keep a Policy in Force Over a Secondary Guarantee Period 836‑031‑0800
Purpose, authority 836‑031‑0805
Definitions 836‑031‑0810
2001 CSO Preferred Class Structure Table 836‑031‑0815
Conditions 836‑031‑0855
Recoupment of Assessments by Oregon Insurance Guaranty Association
Last Updated

Jun. 8, 2021

Rule 836-031-0240’s source at or​.us