40-4,107. Same; calculation of paid-up annuity benefits. - Kansas Statutes

40-4,107

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

      40-4,107.   Same; calculation of paid-up annuitybenefits.For annuity contracts that do not provide cash surrenderbenefits, the presentvalue of any paid-up annuity benefit available as a nonforfeiture option at anytime prior tomaturity shall not be less than the present value of that portion of thematurity value of the paid-up annuity benefit provided under the annuitycontract arising fromconsiderations paid prior tothe time the annuity contract is surrendered in exchange for, or changed to, adeferred paid-upannuity, such present value being calculated for the period prior to thematurity date on the basisof the interest rate specified in the annuity contract for accumulating the netconsiderations todetermine maturity value, and increased by any additional amounts credited bythe company tothe annuity contract. For annuity contracts that do not provide any deathbenefits prior to thecommencement of any annuity payments, present values shall be calculated on thebasis of suchinterest rate and the mortality table specified in the contract for determiningthe maturity value ofthe paid-up annuity benefit. However, in no event shall the present value of apaid-up annuitybenefit be less than the minimum nonforfeiture amount at that time.

      History:   L. 2004, ch. 18, § 7; July 1.