HARRY HUGHES, Governor

3219

PURE ENDOWMENT CONTRACTS PURCHASED UNDER A RETIREMENT PLAN OR
PLAN OF DEFERRED COMPENSATION, ESTABLISHED OR MAINTAINED BY
AN EMPLOYER (INCLUDING A PARTNERSHIP OR SOLE PROPRIETORSHIP)
OR BY AN EMPLOYEE ORGANIZATION, OR BY BOTH, OTHER THAN A
PLAN PROVIDING INDIVIDUAL RETIREMENT RETIREMENT ACCOUNTS OR
INDIVIDUAL RETIREMENT ANNUITIES UNDER SECTION 408 OF THE
INTERNAL REVENUE CODE, AS AMENDED.

RESERVES ACCORDING TO THE COMMISSIONERS ANNUITY RESERVE
METHOD FOR BENEFITS UNDER ANNUITY OR PURE ENDOWMENT
CONTRACTS, EXCLUDING ANY DISABILITY AND ACCIDENTAL DEATH
BENEFITS IN THESE CONTRACTS, SHALL BE THE GREATEST OF THE
RESPECTIVE EXCESSES OF THE PRESENT VALUES, AT THE DATE OF
VALUATION, OF THE FUTURE GUARANTEED BENEFITS, INCLUDING
GUARANTEED NONFORFEITURE BENEFITS, PROVIDED FOR BY THESE
CONTRACTS AT THE END OF EACH RESPECTIVE CONTRACT YEAR, OVER
THE PRESENT VALUE, AT THE DATE OF VALUATION, OF ANY FUTURE
VALUATION CONSIDERATIONS DERIVED FROM FUTURE GROSS
CONSIDERATIONS, REQUIRED BY THE TERMS OF THE CONTRACT, THAT
BECOME PAYABLE PRIOR TO THE END OF THE RESPECTIVE CONTRACT
YEAR. THE FUTURE GUARANTEED BENEFITS SHALL BE DETERMINED BY
USING THE MORTALITY TABLE, IF ANY, AND THE INTEREST RATE, OR
RATES, SPECIFIED IN THESE CONTRACTS FOR DETERMINING
GUARANTEED BENEFITS. THE VALUATION CONSIDERATIONS ARE THE
PORTIONS OF THE RESPECTIVE GROSS CONSIDERATIONS APPLIED
UNDER THE TERMS OF THESE CONTRACTS TO DETERMINE
NONFORFEITURE VALUES.

(c)  [In no event shall an] AN insurer's
aggregate reserves for all life insurance policies,
excluding disability and accidental death benefits, MAY NOT
be less than the aggregate reserves calculated in accordance
with the [method] METHODS set forth in [paragraph b]
PARAGRAPHS (B-l), (B-2), AND (E) and the mortality table or
tables and rate or rates of interest used in calculating
nonforfeiture benefits for such policies.

(d)  Reserves for any category of policies,
contracts or benefits as established by the Commissioner,
may be calculated, at the option of the insurer, according
to any standards which produce greater aggregate reserves
for such category than those calculated according to the
minimum standard herein provided, but the rate or rates of
interest used FOR POLICIES AND CONTRACTS, OTHER THAN ANNUITY
AND PURE ENDOWMENT CONTRACTS, [shall] MAY not be higher than
the corresponding rate or rates of interest used in
calculating any nonforfeiture benefits provided for therein.
[Provided, however, that reserves for participating life
insurance policies may, with the consent of the
Commissioner, be calculated according to a rate of interest
lower than the rate of interest used in calculating the
nonforfeiture benefits in such policies, with the further
proviso that if such lower rate differs from the rate used
in the calculation of the nonforfeiture benefits by more
than one-half percent (1/2%) the insurer issuing such
policies shall file with the Commissioner a plan providing
for such equitable increases, of any, in the cash surrender