§ 27-1-12.5-2 — Provisions of contract

Indiana § 27-1-12.5-2

• Jurisdiction: Indiana
• Title 27: INSURANCE
• Art. 1: DEPARTMENT OF INSURANCE
• Ch. 12.5: Nonforfeiture Provisions of Annuity Contracts

Text

(a) No annuity contract shall be delivered or
issued for delivery in this state unless it contains in substance the
following provisions, or corresponding provisions, which in the opinion
of the insurance commissioner are at least as favorable to the contract
holder, upon cessation of payment of considerations under the contract:
(1) Upon:
(A) cessation of payment of considerations under an annuity
contract; or
(B) the written request of the contract holder;
the company shall grant a paid-up annuity benefit on a plan
stipulated in the contract of such value as is specified in sections
4, 5, 6, 7, and 9 of this chapter.
(2) If an annuity contract provides for a lump sum settlement at
maturity, or at any other time, that upon surrender of the contract
at or prior to the commencement of any annuity payments, the
company shall pay in lieu of any paid-up annuity benefit a cash
surrender benefit of such amount as is specified in sections 4, 5,
7, and 9 of this chapter. The company may reserve the right to
defer the payment of such cash surrender benefit for a period of
not more than six (6) months after demand therefor with surrender
of the contract but only after:
(A) submitting to the commissioner a written request that
addresses the:
(i) necessity of the deferral; and
(ii) equitability of the deferral for all the company's contract
holders; and
(B) receiving the commissioner's written approval to defer.
(3) A statement of the mortality table, if any, and interest rates
used in calculating any minimum paid-up annuity, cash surrender
or death benefits that are guaranteed under the contract, together
with sufficient information to determine the amounts of such
benefits.
(4) A statement that any paid-up annuity, cash surrender or death
benefits that may be available under the annuity contract are not
less than the minimum benefits required by any statute of the state
in which the contract is delivered and an explanation of the
manner in which such benefits are altered by the existence of any
additional amounts credited by the company to the contract, any
indebtedness to the company on the contract or any prior
withdrawals from or partial surrenders of the contract.
(b) Notwithstanding the requirements of this chapter, any annuity
contract may provide that if no considerations have been received
under a contract for a period of two (2) full years and the portion of the
paid-up annuity benefit at maturity on the plan stipulated in the
contract arising from considerations paid prior to such period would be
less than twenty dollars ($20.00) monthly, the company may at its
option terminate such contract by payment in cash of the then present
value of such portion of the paid-up annuity benefit, calculated on the
basis of the mortality table, if any, and interest rate specified in the
contract for determining the paid-up annuity benefit, and by such
payment shall be relieved of any further obligation under such contract.
As added by Acts 1977, P.L.286, SEC.1. Amended by
P.L.59-2004, SEC.1.