§ 5-308. Reserve valuation method for annuity and pure endowment benefits
West's Annotated Code of MarylandInsurance
MD Code, Insurance, § 5-308
§ 5-308. Reserve valuation method for annuity and pure endowment benefits
(a)(1) Except as provided in paragraph (2) of this subsection, this section applies to all annuity contracts and pure endowment contracts.
(i) group annuity contracts or pure endowment contracts purchased under a retirement plan or plan of deferred compensation, established or maintained by an employer, an employee organization, or both, unless the plan provides individual retirement accounts or individual retirement annuities under § 408 of the Internal Revenue Code; or
(b)(1)(i) For benefits under an annuity contract or pure endowment contract to which this section applies, the reserve according to the Commissioners annuity reserve method shall be the greatest of the amounts determined for each respective contract year under subparagraph (ii) of this paragraph.
(ii) For each contract year, there shall be determined the amount by which the present value, at the date of valuation, of the future guaranteed benefits, including guaranteed nonforfeiture benefits, under the contract at the end of the contract year exceeds the present value, at the date of valuation, of any future valuation considerations derived from future gross considerations that are required by the terms of the contract and become payable prior to the end of the contract year.
Credits
Added by Acts 1995, c. 36, § 1, eff. Oct. 1, 1997.
Formerly Art. 48A, § 83.
MD Code, Insurance, § 5-308, MD INSURANCE § 5-308
Current with all legislation from the 2023 Regular Session of the General Assembly. Some statute sections may be more current, see credits for details.
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