38.2-3224 - Calculation of paid-up annuity benefits. - Virginia Statutes

§ 38.2-3224. Calculation of paid-up annuity benefits.

For contracts that do not provide cash surrender benefits, the present valueof any paid-up annuity benefit available as a nonforfeiture option at anytime prior to maturity shall not be less than the present value of thatportion of the maturity value of the paid-up annuity benefit provided underthe contract arising from considerations paid before the time the contract issurrendered in exchange for, or changed to, a deferred paid-up annuity. Thepresent value shall be calculated for the period before the maturity date onthe basis of the interest rate specified in the contract for accumulating thenet considerations to determine the maturity value, and increased by anyexisting additional amounts credited by the insurer to the contract. Forcontracts that do not provide any death benefits before the beginning of anyannuity payments, the present values shall be calculated on the basis of theinterest rate and the mortality table specified in the contract fordetermining the maturity value of the paid-up annuity benefit. In no eventshall the present value of a paid-up annuity benefit be less than the minimumnonforfeiture amount at that time.

(1979, c. 437, § 38.1-470.1; 1986, c. 562.)