§ 27-4.4-7 - Calculation of paid-up annuity benefits.
SECTION 27-4.4-7
§ 27-4.4-7 Calculation of paid-up annuitybenefits. – For contracts which do not provide cash surrender benefits, the present valueof any paid-up annuity benefit available as a nonforfeiture option at any timeprior to maturity shall not be less than the present value of that portion ofthe maturity value of the paid-up annuity benefit provided under the contractarising from considerations paid prior to the time the contract is surrenderedin exchange for, or changed to, a deferred paid-up annuity, the present valuebeing calculated for the period prior to the maturity date on the basis of theinterest rate specified in the contract for accumulating the net considerationto determine the maturity value, and increased by any existing additionalamount credited by the company to the contract. For contracts that do notprovide any death benefits prior to the commencement of any annuity payments,the present values shall be calculated on the basis of the interest rate andthe mortality table specified in the contract for determining the maturityvalue of the paid-up annuity benefit. In no event shall the present value of apaid-up annuity benefit be less than the minimum nonforfeiture amount at thattime.