38.2-3138 - Same - Annuity and pure endowment benefits. - Virginia Statutes

§ 38.2-3138. Same - Annuity and pure endowment benefits.

A. This section shall apply to 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 § 408 of the InternalRevenue Code, as amended.

B. Reserves according to the Commissioners annuity reserve method forbenefits under annuity or pure endowment contracts, excluding any disabilityand accidental death benefits in those contracts, shall be the greatest ofthe respective excesses of the present values, at the date of valuation, ofthe future guaranteed benefits, including guaranteed nonforfeiture benefits,provided for by those contracts at the end of each respective contract year,over the present value at the date of valuation of any future valuationconsiderations derived from future gross considerations required by the termsof the contract that become payable before the end of the respective contractyear. The future guaranteed benefits shall be determined by using themortality table, if any, and the interest rate or rates specified in thosecontracts for determining guaranteed benefits. The valuation considerationsare the portions of the respective gross considerations applied under theterms of those contracts to determine nonforfeiture values.

(Code 1950, § 38-394; 1952, c. 317, § 38.1-456; 1959, Ex. Sess., c. 43; 1962,c. 562; 1975, c. 215; 1979, c. 437; 1982, c. 227; 1986, c. 562.)