(a) An association shall reserve a family group life insurance certificate on which
the association charges a group premium that is not reduced on the death of an insured
as provided by this section.
(b) An association shall maintain reserves on each of its family group life insurance
certificates using one of the following methods:
(1) the reserves must be equal to the reserves that would be required under Section 887.401 on individual life insurance certificates on the lives of the two oldest living members
of the family group, with the amount of insurance for those two members determined
assuming that the elder of the two will die first;
(2) the reserves must be equal to the reserves required under Section 887.401 on individual life insurance certificates on the lives of the living members of the
family group, with the amount of insurance for each member of the family group determined
assuming that each member will die first; or
(3) any other table or method of computing reserves approved in advance by the commissioner.
(c) An association may select the method to be used to compute the reserves under
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