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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.)