Minnesota Legislature
Office of the Revisor of Statutes
2007 Minnesota Statutes
This is an historical version of this statute chapter. Also view the most recent published version.
61A.27 CONTINGENCY RESERVE; LIMITATIONS.
Any life insurance company doing business in this state may accumulate and maintain, in
addition to the capital and surplus contributed by its stockholders, and in addition to an amount
equal to the net values of its policies, computed according to the laws of the jurisdiction under
which it is organized, a contingency reserve not exceeding the following respective percentages
of these net values: When the net values are less than $100,000, 20 percent thereof, or the
sum of $10,000, whichever is the greater; when the net values are greater than $100,000, the
percentage thereof measuring the contingency reserve shall decrease one-half of one percent
for each $100,000 of the net values up to $1,000,000; when the net values are greater than
$1,000,000, but do not exceed $25,000,000, the contingency reserve shall not exceed 15 percent
thereof; when the net values are greater than $25,000,000, but do not exceed $150,000,000, the
contingency reserve shall not exceed 12-1/2 percent thereof; when the net values are greater than
$150,000,000, the contingency reserve shall not exceed ten percent thereof; provided, that as the
net values of these policies increase and the maximum percentage measuring the contingency
reserve decreases, the corporation may maintain the contingency reserve already accumulated
hereunder, although for the time being it may exceed the maximum percentage herein prescribed,
but may not add to the contingency reserve when the addition will bring it beyond the maximum
percentage. For cause shown, the commissioner may, at any time and from time to time, permit
any corporation to accumulate and maintain a contingency reserve in excess of the limit above
mentioned for a prescribed period, not exceeding one year under any one permission, by filing
in the commissioner's office a decision stating the reasons therefor and causing the same to be
published in the next annual report. This section shall not apply to any company doing exclusively
a nonparticipating business.
History: 1967 c 395 art 2 s 27; 1986 c 444
Any life insurance company doing business in this state may accumulate and maintain, in
addition to the capital and surplus contributed by its stockholders, and in addition to an amount
equal to the net values of its policies, computed according to the laws of the jurisdiction under
which it is organized, a contingency reserve not exceeding the following respective percentages
of these net values: When the net values are less than $100,000, 20 percent thereof, or the
sum of $10,000, whichever is the greater; when the net values are greater than $100,000, the
percentage thereof measuring the contingency reserve shall decrease one-half of one percent
for each $100,000 of the net values up to $1,000,000; when the net values are greater than
$1,000,000, but do not exceed $25,000,000, the contingency reserve shall not exceed 15 percent
thereof; when the net values are greater than $25,000,000, but do not exceed $150,000,000, the
contingency reserve shall not exceed 12-1/2 percent thereof; when the net values are greater than
$150,000,000, the contingency reserve shall not exceed ten percent thereof; provided, that as the
net values of these policies increase and the maximum percentage measuring the contingency
reserve decreases, the corporation may maintain the contingency reserve already accumulated
hereunder, although for the time being it may exceed the maximum percentage herein prescribed,
but may not add to the contingency reserve when the addition will bring it beyond the maximum
percentage. For cause shown, the commissioner may, at any time and from time to time, permit
any corporation to accumulate and maintain a contingency reserve in excess of the limit above
mentioned for a prescribed period, not exceeding one year under any one permission, by filing
in the commissioner's office a decision stating the reasons therefor and causing the same to be
published in the next annual report. This section shall not apply to any company doing exclusively
a nonparticipating business.
History: 1967 c 395 art 2 s 27; 1986 c 444
Official Publication of the State of Minnesota
Revisor of Statutes