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H.B. 1192
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VETOES
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(g) (1) Notwithstanding the requirements of this section, a deferred annuity
contract may contain a provision that the insurer may terminate the contract by
making a single payment calculated under paragraph (2) of this subsection if:
(i) no considerations have been received under the contract for 2
years; and
(ii) the part of the paid-up annuity benefit at maturity under the
contract that is available from the considerations paid before termination would be
less than $20 per month.
(2) The payment shall equal the present value of the part of the paid-up
annuity benefit available under the contract, calculated as of the date of termination,
based on any mortality table and interest rate specified in the contract for
determining the paid-up annuity benefit.
(3) A PAYMENT BY AN INSURER UNDER THIS SECTION SHALL RELIEVE
THE INSURER OF ANY FURTHER OBLIGATION UNDER THE DEFERRED ANNUITY
CONTRACT.
16-504.
[(b) (1) The minimum nonforfeiture amount under an annuity contract that
provides for flexible considerations at any time before or at the start of annuity
payments shall equal the remainder of:
(i) the accumulation until that time, at an interest rate of 1.5% per
year, of the percentages of the net considerations paid before that time, calculated
under paragraph (2) of this subsection, and any existing additional amount credited
by the insurer to the contract; less
(ii) the sum of:
1. any withdrawal from or partial surrender of the contract
accumulated at an interest rate of 1.5% per year; and
2. any indebtedness to the insurer on the contract, including
interest due and accrued.
(2) Subject to paragraph (3) of this subsection, the net considerations for
a given contract year used to calculate the minimum nonforfeiture amount shall equal
the remainder of:
(i) the corresponding gross considerations credited to the contract
during that contract year; less
(ii) the sum of:
1. an annual contract charge of $30; and
2. a collection charge of $1.25 per consideration credited to
the contract during that contract year.
- 4368 -
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