40-4,103. Same; nonforfeiture requirements.
40-4,103
40-4,103. Same; nonforfeiture requirements.(a) Except as stated inK.S.A. 2009 Supp.40-4,102, and amendments thereto,in the case of anyannuity contract issued on or after the operative date of this act as definedinK.S.A. 2009 Supp.40-4,113, andamendments thereto, no annuity contract, shall be delivered or issued fordelivery in this stateunless such annuity contract contains in substance the following provisions, orcorrespondingprovisions which in the opinion of the commissioner are at least as favorableto the holder ofsuch annuity contract, upon cessation of payment of considerations under theannuity contract:
(1) That upon cessation of payment of considerations under an annuitycontract, or uponthe written request of the owner of an annuity contract, the company shallgranta paid-up annuitybenefit on a plan stipulated in the contract of such value as is specified inK.S.A. 2009 Supp.40-4,105, 40-4,106, 40-4,107, 40-4,108 and 40-4,110, andamendments thereto;
(2) if an annuity contract provides for a lump sum settlement at maturity, orat any othertime, that upon surrender of such annuity contract at or prior to thecommencement of anyannuity payments, the company shall pay in lieu of a paid-up annuity benefit acash surrenderbenefit of such amount as is specified inK.S.A. 2009 Supp.40-4,105, 40-4,106,40-4,108 and 40-4,110 andamendments thereto. Thecompany may reserve the right to defer the payment of the cash surrenderbenefit for a period notto exceed six months after demand therefor with surrender of the annuitycontract after making awritten request to and receiving written approval from the commissioner. The request shalladdress the necessity and equitability to all policyholders of the deferral;
(3) a statement of the mortality table, if any, and interest rates used in calculating anyminimum paid-up annuity, cash surrender or death benefits that are guaranteedunder the annuitycontract, together with sufficient information to determine the amounts of thebenefits; and
(4) a statement that any paid-up annuity, cash surrender or death benefitsthat may beavailable under the annuity contract are not less than the minimum benefitsrequired by anystatute of the state in which the annuity contract is delivered and anexplanation of the manner inwhich the benefits are altered by the existence of any additional amountscredited by thecompany to the annuity contract, any indebtedness to the company on the annuitycontract or anyprior withdrawals from or partial surrenders of the annuity contract.
(b) Notwithstanding the requirements of this section, a deferred annuitycontract mayprovide that if no considerations have been received under a contract for aperiod of two fullyears and the portion of the paid-up annuity benefit at maturity on the planstipulated in the annuity contract arising from prior consideration paid wouldbe less than $20 monthly, the company may, at its option, terminate the annuitycontract by payment in cash of the then present value of the portion of thepaid-up annuity benefit, calculated on the basison the mortalitytable, if any, and interest rate specified in the annuity contract fordetermining the paid-upannuity benefit, and by this payment shall be relieved of any furtherobligation under the annuity contract.
History: L. 2004, ch. 18, § 3; July 1.