40-4,106. Same; calculation of cash surrender value. - Kansas Statutes

40-4,106

Chapter 40.--INSURANCE Article 4.--GENERAL PROVISIONS RELATING TO LIFE INSURANCE COMPANIES

      40-4,106.   Same; calculation of cash surrendervalue.For annuity contracts that provide cash surrender benefits,thecash surrenderbenefits available prior to maturity shall not be less than the present valueas of the date ofsurrender of that portion of the maturity value of the paid-up annuity benefitthat would beprovided under the contract at maturity arising from considerations paid priorto the time of cashsurrender reduced by the amount appropriate to reflect any prior withdrawalsfrom or partialsurrenders of the contract, such present value being calculated on the basis ofan interest rate notmore than one percent higher than the interest rate specified in the contractfor accumulating thenet considerations to determine maturity value, decreased by the amount of anyindebtedness tothe company on the contract, including interest due and accrued, and increasedby any existingadditional amounts credited by the company to the annuity contract. In no eventshall any cashsurrender benefit be less than the minimum nonforfeiture amount at that time.The death benefitunder such annuity contracts shall at least equal to the cash surrenderbenefit.

      History:   L. 2004, ch. 18, § 6; July 1.