§3791h. Reserve valuation method-annuity and pure endowment benefits

Link to law: http://legislature.vermont.gov/statutes/section/08/103/03791h
Published: 2015

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The Vermont Statutes Online



Title

08

:
Banking and Insurance






Chapter

103

:
LIFE INSURANCE POLICIES AND ANNUITY CONTRACTS






Subchapter

004A
:
STANDARD VALUATION LAW










 

§

3791h. Reserve valuation method-annuity and pure endowment benefits

(a) 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 of the Internal Revenue Code, as may be

amended.

(b) Reserves

according to the Commissioners annuity reserve method for benefits under

annuity or pure endowment contracts, excluding any disability and accidental

death benefits in the 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 the 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 the contract, that

become payable prior to the end of the 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 the contracts for determining

guaranteed benefits. The valuation considerations are the portions of the

respective gross considerations applied under the terms of the contracts to

determine nonforfeiture values. (Added 2015, No. 63, § 1.)
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