Section 986 Of Article 13. Insolvency From California Insurance Code >> Division 1. >> Part 2. >> Chapter 1. >> Article 13.
986
. A life insurer issuing policies on a reserve basis is
insolvent whenever its assets are exceeded by the total of the
following: (1) the amount necessary to provide for its liabilities;
(2) the amount of paid-in capital, as defined in Section 36, required
by the provisions of Sections 10510, 10511, and 10512; (3) the
amount necessary to provide for reinsurance of all its outstanding
risks at the following rates:
(a) In the case of contracts issued in a foreign country, upon the
lives of residents thereof, by a domestic insurer authorized to and
doing business in that foreign country, the rates shall be in
accordance with the standard of mortality approved by the
commissioner, as provided by law.
(b) In the case of group insurance, at the rates required by law
for valuation thereof.
(c) In the case of all other outstanding risks written prior to
January 1, 1892, at the rates based upon the American Experience
Table of Mortality with interest at the rate of 4 1/2 percent per
annum.
(d) In the case of all its other outstanding risks written from
and after December 31, 1891, up to and including December 31, 1907,
at rates based upon the Combined Experience or Actuaries' Table of
Mortality with interest at the rate of 4 percent per annum.
(e) In the case of all its other outstanding risks written from
and after December 31, 1907, and prior to the operative date as to
such risks of Article 3a (commencing with Section 10159.1), Chapter
1, Part 2, Division 2, at rates based upon the American Experience
Table of Mortality with interest at the rate of 3 1/2 percent per
annum, and, where applicable, in accordance with Section 10486.9.
(f) In the case of contracts of disability insurance, as defined
in Section 106, according to the standards provided in Section 997.
(g) In the case of all other risks, according to the standards
provided in Article 3a (commencing with Section 10489.1), Chapter 5,
Part 2, Division 2.