PARRIS N. GLENDENING, Governor

Ch. 36

(3)      ALL ANNUITIES AND PURE ENDOWMENTS PURCHASED ON OR
AFTER JANUARY 1, 1983, UNDER GROUP ANNUITY CONTRACTS OR PURE
ENDOWMENT CONTRACTS; AND

(4)      THE NET INCREASE, ON OR AFTER JANUARY 1, 1983, IN AMOUNTS
HELD UNDER GUARANTEED INTEREST CONTRACTS.

(C)     APPLICATION OF CALENDAR YEAR STATUTORY VALUATION INTEREST
RATES.

INSTEAD OF THE INTEREST RATES SPECIFIED IN §§ 5-304 AND 5-305 OF THIS
SUBTITLE, THE INTEREST RATES USED TO DETERMINE THE MINIMUM STANDARD
FOR THE VALUATION OF A POLICY, CONTRACT, ANNUITY, OR PURE ENDOWMENT,
OR NET INCREASE DESCRIBED IN SUBSECTION (B) OF THIS SECTION SHALL BE:

(1)      FOR A LIFE INSURANCE POLICY OR AN INDIVIDUAL ANNUITY
CONTRACT OR PURE ENDOWMENT CONTRACT, THE CALENDAR YEAR STATUTORY
VALUATION INTEREST RATE AS DETERMINED UNDER THIS SECTION FOR THE
CALENDAR YEAR IN WHICH THE POLICY OR CONTRACT WAS ISSUED;

(2)      FOR AN ANNUITY OR PURE ENDOWMENT PURCHASED UNDER A
GROUP ANNUITY CONTRACT OR PURE ENDOWMENT CONTRACT, THE CALENDAR
YEAR STATUTORY VALUATION INTEREST RATE AS DETERMINED UNDER THIS
SECTION FOR THE CALENDAR YEAR IN WHICH THE ANNUITY OR PURE ENDOWMENT
WAS PURCHASED; OR

(3)      FOR A NET INCREASE IN AN AMOUNT HELD UNDER A GUARANTEED
INTEREST CONTRACT, THE CALENDAR YEAR STATUTORY VALUATION INTEREST
RATE AS DETERMINED UNDER THIS SECTION FOR THE CALENDAR YEAR IN WHICH
THE NET INCREASE OCCURRED.

(D)     CALENDAR YEAR STATUTORY VALUATION INTEREST RATES.

(1)      FOR PURPOSES OF THE FORMULAS UNDER PARAGRAPH (2) OF THIS
SUBSECTION:

(I)       "I" IS THE CALENDAR YEAR STATUTORY VALUATION
INTEREST RATE;

(II)     "R1" IS THE LESSER OF R AND .09;

(III)    "R2" IS THE GREATER OF R AND .09;

(IV)    "R" IS THE REFERENCE INTEREST RATE DETERMINED UNDER
SUBSECTION (F) OF THIS SECTION; AND

(V)     "W" IS THE WEIGHTING FACTOR DETERMINED UNDER
SUBSECTION (E) OF THIS SECTION.

(2)      (I) EXCEPT AS PROVIDED IN PARAGRAPH (3) OF THIS SUBSECTION,
THE CALENDAR YEAR STATUTORY VALUATION INTEREST RATES SHALL BE
DETERMINED AS PROVIDED IN THIS PARAGRAPH, ROUNDING THE RESULTS TO THE
NEAREST 1/4 PERCENT.

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