Subject 120-2-91 MINIMUM NONFORFEITURE VALUES FOR INDIVIDUAL DEFERRED ANNUITIES
The purpose of this Regulation is to set forth the minimum values of any paid-up annuity, cash surrender, or death benefits available under an annuity contract pursuant to O.C.G.A. Section 33-28-3(e) through (h) and (j).
The minimum values of any paid-up annuity, cash surrender or death benefits available under an annuity contract shall be based upon minimum nonforfeiture amounts as defined in this Regulation Chapter.
|(1)|| The minimum nonforfeiture amount at any
time at or prior to the commencement of any annuity payments shall be equal to
an accumulation up to such time at rates of interest as indicated in Subsection
(3) of the net considerations (as hereinafter defined) paid prior to such time,
decreased by the sum of Paragraphs (a) through (d) below:
|(2)||The net considerations for a given contract year used to define the minimum nonforfeiture amount shall be an amount equal to eighty-seven and one-half percent (87.5%) of the gross considerations credited to the contract during that contract year.|
|(3)|| The interest rate used in determining
minimum nonforfeiture amounts shall be an annual rate of interest determined as
the lesser of three percent (3%) per annum and the following, which shall be
specified in the contract if the interest rate will be reset:
|(4)||During the period or term that a contract provides substantive participation in an equity indexed benefit, it may increase the reduction described in Subsection (3)(b) above by up to an additional 100 basis points to reflect the value of the equity index benefit. The present value at the contract issue date, and at each redetermination date thereafter, of the additional reduction shall not exceed the market value of the benefit. The commissioner may require a demonstration that the present value of the additional reduction does not exceed the market value of the benefit. Lacking such a demonstration that is acceptable to the commissioner, the commissioner may disallow or limit the additional reduction.|
If an provision of this Regulation chapter or the application thereof to any person or circumstance is held invalid by a court of competent jurisdiction, the remainder of the chapter or the applicability of such provision to other persons or circumstances shall not be affected.