Code of Federal Regulations Title 42. Public Health § 42.403.253 Calculation of benefits

(i) Adding the present values on the initial calculation date of—

(ii) Subtracting the total policy reserve on the initial calculation date from the sum of these values.

(i) “Total policy reserve” means the sum of—

(ii) Additional reserve means the amount calculated on a net level reserve basis, using appropriate values to account for lapse, mortality, morbidity, and interest, that on the valuation date represents—

(iii) Net premium means the level portion of the gross premium used in calculating the additional reserve. On the day the policy is issued, the present value of the series of those portions equals the present value of the expected incurred claims over the period that the gross premiums are computed to provide coverage.

(iv) Reserve for future contingent benefits means the amounts, not elsewhere included, that provide for the extension of benefits after insurance coverage terminates. These benefits—