§ 27-4.4-3. Nonforfeiture requirements.
(a) In the case of contracts issued on or after July 7, 2004, no contract of annuity,
except as stated in § 27-4.4-2, 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
commissioner of insurance are at least as favorable to the contract holder, upon cessation
of payment of considerations under the contract:
(1) That upon cessation of payment of considerations under a contract, or upon written
request of the contract owner, the company shall grant a paid-up annuity benefit on
a plan stipulated in the contract of such value as is specified in §§ 27-4.4-5 — 27-4.4-8 and 27-4.4-10;
(2) If a 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 §§ 27-4.4-5, 27-4.4-6, 27-4.4-8, and 27-4.4-10. The company may reserve the right to defer the payment of the cash surrender benefit
for a period not to exceed six (6) months after demand therefore with surrender of
the contract after making a written request and receiving written approval of the
commissioner. The request shall address the necessity and equitability to all policyholders
of the deferral;
(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 the benefits; and
(4) A statement that any paid-up annuity, cash surrender, or death benefits that may be
available under the 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 the 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 section, any deferred 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 the
period would be less than twenty dollars ($20.00) monthly, the company may at its
option terminate the contract by payment in cash of the then present value of the
portion of the paid-up annuity benefit, calculated on the basis on the mortality table,
if any, and interest rate specified in the contract for determining the paid-up annuity
benefit, and by the payment shall be relieved of any further obligation under the
contract.