§431:5-303  Active life reserves andunearned premium reserves for noncancellable disability insurance.  (a) The legal minimum standard for computing the active life reserve, including theunearned premium reserve, of noncancellable disability policies shall be basedon conference modification of class III disability experience with interest notto exceed three and one-half per cent a year on the full preliminary termbasis.

(b)  The tables shall be extended to cover theprovisions of such policies on such bases as the commissioner may approve forpolicies:

(1)  With a waiting period of less than three months;or

(2)  Providing benefits at ages beyond the limits ofconference modification of class III disability experience.

(c)  The reserve for losses undernoncancellable disability policies shall be based on conference modification ofclass III disability experience, except that for claims of less thantwenty-seven months' duration, the reserve may be taken as equivalent to theprospective claim payments for three and one-half times the elapsed period ofdisability.  In no case shall the reserve be less than the equivalent of sevenweeks' claim payments.

(d)  The commissioner shall modify theapplication of the tables and requirements prescribed in this section topolicies or to claims arising under policies in accordance with the waitingperiod contained in such policies and in accordance with any limitation as tothe time for which indemnity is payable. [L 1987, c 347, pt of §2]