Sec. 28. (a) This section applies to an annuity or a pure endowment contract other than a group annuity or pure endowment contract that is purchased under a retirement plan or plan of deferred compensation that is established or maintained by:
(1) an employer (including a partnership or sole proprietorship);
(2) an employee organization; or
(3) both;
other than a plan providing individual retirement accounts or individual retirement annuities under Section 408 of the Internal Revenue Code.
(b) Reserves according to the commissioners annuity reserve method for benefits under an annuity or a pure endowment contract, excluding disability and accidental death benefits in a contract, is the greatest of the respective excesses of:
(1) the present value (on the date of valuation) of the future guaranteed benefits, including guaranteed nonforfeiture benefits, provided for by the contract at the end of each respective contract year; over
(2) the present value (on the date of valuation) of any future valuation considerations derived from future gross considerations required by the terms of the contract, that become payable before the end of the respective contract year.
The future guaranteed benefits must be determined by using any mortality table, if applicable, and the interest rate or rates specified in the contracts for determining guaranteed benefits. The valuation considerations are the portion of the respective gross considerations applied under the terms of a contract to determine the nonforfeiture value.
As added by P.L.276-2013, SEC.10.
Structure Indiana Code
Article 1. Department of Insurance
Chapter 12.8. Standard Valuation Law
27-1-12.8-1. "Accident and Sickness Insurance"
27-1-12.8-2. "Appointed Actuary"
27-1-12.8-3. "Change in Fund Basis"
27-1-12.8-5. "Confidential Information"
27-1-12.8-7. "Contractholder Behavior"
27-1-12.8-8. "Deposit Type Contract"
27-1-12.8-9. "Issue Year Basis"
27-1-12.8-10. "Life Insurance"
27-1-12.8-13. "Principal Based Valuation"
27-1-12.8-14. "Qualified Actuary"
27-1-12.8-20. Annual Reserve Valuation
27-1-12.8-21. Annual Submission of Qualified Actuary Opinion; Requirements
27-1-12.8-22. Supporting Memorandum; Confidentiality and Privilege
27-1-12.8-23. Annual Submission of Appointed Actuary Opinion; Supporting Memorandum; Requirements
27-1-12.8-24. Minimum Standard for Valuation of Contracts; Mortality Tables
27-1-12.8-26. Interest Rates in Determining Minimum Standard for Valuation
27-1-12.8-27. Reserves According to Commissioners Reserve Valuation Method
27-1-12.8-28. Reserves According to Commissioners Annuity Reserve Method
27-1-12.8-29. Aggregate Reserves
27-1-12.8-30. Reserves; Calculation
27-1-12.8-31. Minimum Reserve Requirement Related to Gross Premium
27-1-12.8-32. Minimum Reserve Requirement for Certain Contracts
27-1-12.8-33. Accident and Sickness Insurance Contracts
27-1-12.8-36. Submission of Data Prescribed by Valuation Manual
27-1-12.8-37. Confidential Information
27-1-12.8-38. Confidential Information; Release
27-1-12.8-39. Exemptions of Certain Products From Requirements