SB375-SA2,2,106
632.435
(4) (a) With respect to contracts providing for flexible considerations,
7the minimum nonforfeiture amount at any time at or prior to the commencement of
8any annuity payments shall be equal to an accumulation up to such time at a rate
9of interest of
3% 1.5% per year of percentages of the net considerations paid prior to
10such time, decreased by the sum of any prior withdrawals from or partial surrenders
11of the contract accumulated at a rate of interest of
3% 1.5% per year and the amount
12of any indebtedness to the company on the contract, including interest due and
13accrued, and increased by any existing additional amounts credited by the company
1to the contract. The net considerations for a given contract year for purposes of this
2subsection shall be an amount not less than zero and shall be equal to the
3corresponding gross considerations credited to the contract during the contract year
4less an annual contract charge of $30 and less a collection charge of $1.25 per
5consideration credited to the contract during that contract year. The percentages of
6net considerations shall be 65% of the net consideration for the first contract year and
787.5% of the net considerations for the 2nd and later contract years, except that the
8percentage shall be 65% of the portion of the total net consideration for any renewal
9contract year which exceeds by not more than 2 times the sum of those portions of
10the net considerations in all prior contract years for which the percentage was 65%.".
SB375-SA2,2,14
12"
(4) Interest rate for individual deferred annuities. The treatment of section
13632.435 (4) (a) of the statutes first applies to annuity contracts issued on the effective
14date of this subsection.".
