§ 26-16-407 — Minimum paid-up annuity benefit available as a nonforfeiture option

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, with the 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 the maturity value, and increased by
any existing additional amounts credited by the company to the
contract. For contracts which do not provide any death benefits
prior to the commencement of any annuity payments, the present
values shall be calculated on the basis of the interest rate and
the mortality table specified in the contract for determining
the maturity value of the paid-up annuity benefit. The present
value of a paid-up annuity benefit shall not be less than the
minimum nonforfeiture amount at that time.