31A-17-505 - Computation of minimum standard for annuities.
31A-17-505. Computation of minimum standard for annuities.
(1) Except as provided in Section 31A-17-506, the minimum standard for the valuation ofall individual annuity and pure endowment contracts issued on or after the operative date of thissection, as defined in Subsection (2), and for all annuities and pure endowments purchased on orafter such operative date under group annuity and pure endowment contracts, shall be thecommissioner's reserve valuation methods defined in Sections 31A-17-507 and 31A-17-508 andthe following tables and interest rates:
(a) for individual annuity and pure endowment contracts issued prior to April 2, 1980,excluding any accident and health and accidental death benefits in the contracts:
(i) (A) the 1971 Individual Annuity Mortality Table; or
(B) any modification of the 1971 Individual Annuity Mortality Table approved by thecommissioner;
(ii) 6% interest for single premium immediate annuity contracts; and
(iii) 4% interest for all other individual annuity and pure endowment contracts;
(b) for individual single premium immediate annuity contracts issued on or after April 2,1980, excluding any accident and health and accidental death benefits in the contracts:
(i) (A) any individual annuity mortality table that is approved by rule by thecommissioner for use in determining the minimum standard of valuation for such contracts; or
(B) any modification of a table described in Subsection (1)(b)(i)(A) approved by thecommissioner; and
(ii) 7.5% interest;
(c) for individual annuity and pure endowment contracts issued on or after April 2, 1980,other than single premium immediate annuity contracts, excluding any accident and health andaccidental death benefits in the contracts:
(i) (A) any individual annuity mortality table that is approved by rule by thecommissioner for use in determining the minimum standard of valuation for such contracts; or
(B) any modification of a table described in Subsection (1)(c)(i)(A) approved by thecommissioner;
(ii) 5.5% interest for single premium deferred annuity and pure endowment contracts; and
(iii) 4.5% interest for all other such individual annuity and pure endowment contracts;
(d) for all annuities and pure endowments purchased prior to April 2, 1980, under groupannuity and pure endowment contracts, excluding any accident and health and accidental deathbenefits purchased under the contracts:
(i) (A) the 1971 Group Annuity Mortality Table; or
(B) any modification of the 1971 Group Annuity Mortality Table approved by thecommissioner; and
(ii) 6.5% interest; and
(e) for all annuities and pure endowments purchased on or after April 2, 1980, undergroup annuity and pure endowment contracts, excluding any accident and health and accidentaldeath benefits purchased under the contracts:
(i) (A) any group annuity mortality table that is approved by rule by the commissioner foruse in determining the minimum standard of valuation for such annuities and pure endowments;or
(B) any modification of a table described in Subsection (1)(e)(i)(A) approved by thecommissioner; and
(ii) 7.5% interest.
(2) (a) After June 1, 1973, any company may file with the commissioner a written noticeof its election to comply with this section after a specified date before January 1, 1979, whichshall be the operative date of this section for the company.
(b) If a company does not make an election under Subsection (2)(a), the operative date ofthis section for the company shall be January 1, 1979.
Amended by Chapter 308, 2002 General Session