31A-17-508. Reserve valuation method -- Annuity and pure endowment benefits.
(1) This section shall apply to all annuity and pure endowment contracts other than group
annuity and pure endowment contracts purchased under a retirement plan or plan of deferred
compensation, established or maintained by an employer, including a partnership or sole
proprietorship, or by an employee organization, or by both, other than a plan providing individual
retirement accounts or individual retirement annuities under Section 408, Internal Revenue Code.
(2) Reserves according to the commissioner's annuity reserve method for benefits under
annuity or pure endowment contracts, excluding any accident and health and accidental death
benefits in such contracts, shall be the greatest of the respective excesses of the present values, at
the date of valuation, of the future guaranteed benefits, including guaranteed nonforfeiture
benefits, provided for by such contracts at the end of each respective contract year, over the
present value, at the date of valuation, of any future valuation considerations derived from future
gross considerations, required by the terms of such contract, that become payable prior to the end
of such respective contract year. The future guaranteed benefits shall be determined by using the
mortality table, if any, and the interest rate, or rates, specified in such contracts for determining
guaranteed benefits. The valuation considerations are the portions of the respective gross
considerations applied under the terms of such contracts to determine nonforfeiture values.
Amended by Chapter 116, 2001 General Session
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Last revised: Thursday, May 28, 2009