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- Alaska Statutes.
- Title 21. Insurance
- Chapter 18. Assets and Liabilities
- Section 86. Premium Reserves For Health Insurance.
previous: Section 84
. Claim Reserves For Health Insurance.
next: Section 90
. Loss Reserves, Liability Insurance, and Workers' Compensation. [Repealed, Sec. 53 Ch 96 SLA 2004].
AS 21.18.086. Premium Reserves For Health Insurance.
- (a) Unearned premium reserves must be established for the period of coverage for which premiums, other than premiums paid
in advance, have been paid beyond the date of valuation.
- (b) Due and unpaid premiums that are carried as an asset in the annual statement must be treated as premiums in force and
are subject to the unearned premium reserve requirements of this section. Unpaid commissions, premium taxes, and costs
of collection associated with due and unpaid premiums must be carried in the annual statement as an offsetting
- (c) Gross premiums paid in advance for a period of coverage starting after the next premium due date following the
valuation date may be discounted to the valuation date and must be held as a separate liability in the annual statement
or as an addition to the unearned premium reserve established in this section.
- (d) The minimum unearned premium reserve for a policy is the pro rata unearned modal premium that applies to the valuation
period beyond the date of valuation. If a policy reserve is required for a policy, the unearned modal premium is the
valuation net modal premium on the policy reserve. If no policy reserve is required for a policy, the unearned modal
premium is the gross modal premium for the policy.
- (e) The sum of the unearned premium and policy reserves for all policies may not be less than the gross modal unearned
premium reserve on all policies as of the date of valuation. The total unearned premium and policy reserves may not be
less than the expected claims for the period after the valuation date represented by the unearned premium reserve.
- (f) An insurer may use approximations and estimates in determining premium reserves, including groupings, averages, and
aggregate estimates. The approximations or estimates must be tested periodically and not less frequently than
triennially to determine adequacy.
- (g) Premium reserves based on the 1964 or 1985 Commissioners' Individual Disability Tables must include policies on
premium waiver as in-force contracts and establish a minimum reserve for a waiver of premium benefit equal to the
unearned modal valuation net premium being waived.
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