WILLIAM DONALD SCHAEFER, Governor Ch. 300

above comparison the mortality and interest bases stated in
paragraphs (a-1) and (a-3) shall be used.

Reserves according to the Commissioners reserve valuation
method for (i) life insurance policies providing for a varying
amount of insurance or requiring the payment of varying premiums,
(ii) group annuity and 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 accounts or
individual retirement annuities under Section 408 of the Internal
Revenue Code, as amended, (iii) disability and accidental death
benefits AND BENEFITS FOR LONG-TERM HOME HEALTH CARE AND
LONG-TERM CARE IN A NURSING HOME OR OTHER RELATED INSTITUTION in
all policies and contracts, and (iv) all other benefits, except
life and endowment insurance benefits in life insurance policies
and benefits provided by all other annuity and pure endowment
contracts, shall be calculated by a method consistent with the
principles of subsection (b-1), except that any extra premiums
charged because of impairments or special hazards shall be
disregarded in the determination of modified net premiums.

(b-2) This section shall apply to all annuity and
pure endowment contracts other than group annuity and 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 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 AND
BENEFITS FOR LONG-TERM HOME HEALTH CARE AND LONG-TERM CARE IN A
NURSING HOME OR OTHER RELATED INSTITUTION 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.

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