State Codes and Statutes
Statutes > North-carolina > Chapter_58 > GS_58-58-45Part 2. Financial Provisions.
§ 58‑58‑45. Financial Provisions.
The valuation of the reserveson the policies and bonds of every life insurance company incorporated by thelaws of this State shall be based upon any recognized standard of valuation andmortality table as the Commissioner should deem best for the security of thebusiness and the safety of the persons insured. The Commissioner shall annuallyvalue or cause to be valued the reserves on all policies and annuities of eachdomestic company and may accept the valuation of such reserves made by thecompany upon such evidence of its correctness as he may require. Upon thisvaluation being made by the Commissioner and a certificate thereof furnished byhim, each company shall pay to such officer, to defray the expenses thereof,the sum of one cent (1¢) for every thousand dollars ($1,000) of the wholeamount insured by its policies so valued. The reserve fund hereinbeforeprovided for shall not be available for or used for any other purpose than thedischarge of policy obligations, but is a trust fund to be held and expendedonly for the benefit of policyholders. In case of the insolvency of thecompany, the reserve on outstanding policies may, with the consent of theCommissioner, be used for the reinsurance of its policies to the extent oftheir pro rata part thereof. (1903, c. 536, s. 4; 1905, c. 410; Rev., s. 4777;1907, c. 1000, s. 7; C.S., s. 6461; 1945, c. 379.)
