Section 376.410 - Insurance companies to maintain reserves - exemptionsExcept as provided in subdivision (6) of this section, all companies organized under the laws of this state, and engaged in writing policies of accident or health insurance, or combination policies of accident and health insurance, and all other companies transacting such kinds of business in this state, shall maintain reserves thereon in accordance with the following requirements:
(1) On all such policies actually written there shall be maintained an unearned gross premium reserve which reserve may be computed on a pro rata basis or such reserve may be computed at not less than fifty percent of the gross premiums in force;(2) On all such policies written on a noncancellable plan and under the terms of which the company is obligated to renew or continue for a stated period, or to a stated age or for life, there shall be maintained active life reserves and reserves for losses in amounts not less than such minimum standards which the director of the department of commerce and insurance shall determine and prescribe after giving proper consideration to the terms and conditions of the policies involved;(3) On all such policies other than those written on a noncancellable plan there shall be maintained reserves for losses in amounts not less than the minimum standards which the director of the department of commerce and insurance shall determine and prescribe after giving proper consideration to the terms and conditions of the policies involved;(4) In the calculation of reserves required to be maintained under this section, proper credit shall be allowed for reinsurance in other companies licensed to do business in this state;(5) In addition to the minimum reserves mentioned above the director of the department of commerce and insurance may also require such companies to maintain reserves for extraordinary losses in amounts not less than such minimum standards which the director of the department of commerce and insurance shall determine and prescribe after giving proper consideration to the terms and conditions of the policies involved;(6) This section shall not be applicable to total and permanent disability benefits, or to accidental death benefits, contained in or supplementary to life insurance policies or other contracts and for which benefits the standard of valuation is prescribed by section 376.380.