§ 27-4.5-5.1 - Reserve valuation method – Annuity and pure endowment benefits. - Rhode Island Statutes

SECTION 27-4.5-5.1

   § 27-4.5-5.1  Reserve valuation method– Annuity and pure endowment benefits. – (a) This section shall apply to all annuity and pure endowment contracts otherthan group annuity and pure endowment contracts purchased under a retirementplan or plan of deferred compensation, established or maintained by anemployer, including a partnership or sole proprietorship, or by an employeeorganization, or by both, other than a plan providing individual retirementaccounts or individual retirement annuities under 26 U.S.C. § 408.

   (b) Reserves according to the commissioner's annuity reservemethod for benefits under annuity or pure endowment contracts, excluding anydisability and accidental death benefits in those contracts, shall be thegreatest of the respective excesses of the present values, at the date ofvaluation, of the future guaranteed benefits, including guaranteednonforfeiture benefits, provided for by the contracts at the end of eachcontract year, over the present value, at the date of valuation, of any futurevaluation considerations derived from future gross considerations, required bythe terms of the contract, that become payable prior to the end of eachcontract year. The future guaranteed benefits shall be determined by using themortality table, if any, and the interest rate, or rates, specified in thecontracts for determining guaranteed benefits. The valuation considerations arethe portions of the gross considerations applied under the terms of thecontracts to determine nonforfeiture values.