§ 26.1-35-06 — Reserve valuation - Annuity and pure endowment benefits method

North Dakota § 26.1-35-06

• Jurisdiction: North Dakota
• Title 26.1: Insurance
• Ch. 26.1-35: Standard Valuation Law

Text

1. This section applies 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 federal Internal Revenue Code of 1954, as amended.
2. Reserves according to the commissioner annuity reserve method for benefits under
annuity or pure endowment contracts, excluding any disability and accidental death
benefits in the contracts, must 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 the 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 contracts, that become payable prior to the end of the respective contract
year. The future guaranteed benefits must be determined by using the mortality tables,
if any, and the interest rate, or rates, specified in the contracts for determining
guaranteed benefits. The valuation considerations are the portions of the respective
gross considerations applied under the terms of the contracts to determine
nonforfeiture values.