§ 10-7-507 — Computation of paid-up annuity nonforfeiture benefit

(1) For
contracts which do not provide cash surrender benefits, the present value of any
paid-up annuity benefit available as a nonforfeiture option at any time prior to
maturity shall not be less than the present value of that portion of the maturity
value of the paid-up annuity benefit provided under the contract arising from
considerations paid prior to the time the contract is surrendered in exchange for, or
changed to, a deferred paid-up annuity, such present value being calculated for the
period prior to the maturity date on the basis of the interest rate specified in the
contract for accumulating the net considerations to determine such maturity value,
and increased by any existing additional amounts credited by the company to the
contract.

(2) For contracts which do not provide any death benefits prior to the
commencement of any annuity payments, such present values shall be calculated
on the basis of such interest rate and the mortality table specified in the contract
for determining the maturity value of the paid-up annuity benefit. However, in no
event shall the present value of a paid-up annuity benefit be less than the minimum
nonforfeiture amount at the time of the insured's death.

Legislative History

Source: L. 77: Entire part added, p. 530, � 11, effective July 1.