HB 184: "An Act relating to individual deferred annuities; and providing for an effective date."
00 HOUSE BILL NO. 184 01 "An Act relating to individual deferred annuities; and providing for an effective date." 02 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 03 * Section 1. AS 21.45.305(c) is amended to read: 04 (c) The minimum values as specified in (d) - (g) and (i) of this section of any 05 paid-up annuity, cash surrender, or death benefits available under an annuity contract 06 shall be based upon minimum nonforfeiture amounts as defined in this section: 07 (1) With respect to contracts providing for flexible considerations, the 08 minimum nonforfeiture amount at any time at or before the commencement of any 09 annuity payments shall be equal to an accumulation up to that time at a rate of interest 10 of one and one-half percent [THREE PER CENT] a year of percentages of the net 11 considerations as defined in this paragraph paid before that time, decreased by the sum 12 of (A) any prior withdrawals from or partial surrenders of the contract accumulated at 13 a rate of interest of one and one-half percent [THREE PER CENT] a year; and (B) 14 the amount of any indebtedness to the company on the contract, including interest due 15 and accrued, and increased by any existing additional amounts credited by the
01 company to the contract. The net considerations for a given contract year used to 02 define the minimum nonforfeiture amount shall be an amount not less than zero and 03 shall be equal to the corresponding gross considerations credited to the contract during 04 that contract year less an annual contract charge of $30 and less a collection charge of 05 $1.25 per consideration credited to the contract during that contract year. The 06 percentages of net considerations shall be 65 percent [PER CENT] of the net 07 consideration for the first contract year and 87 1/2 percent [PER CENT] of the net 08 considerations for the second and later contract years. Notwithstanding the provisions 09 of the preceding sentence, the percentage shall be 65 percent [PER CENT] of the 10 portion of the total net consideration for any renewal contract year which exceeds by 11 not more than two times the sum of those portions of the net considerations in all prior 12 contract years for which the percentage was 65 percent [PER CENT]. 13 (2) With respect to contracts providing for fixed scheduled 14 considerations, minimum nonforfeiture amounts shall be calculated on the assumption 15 that considerations are paid annually in advance and shall be defined as for contracts 16 with flexible considerations which are paid annually with two exceptions: 17 (A) the portion of the net consideration for the first contract 18 year to be accumulated shall be the sum of 65 percent [PER CENT] of the net 19 consideration for the first contract year plus 22 1/2 percent [PER CENT] of 20 the excess of the net consideration for the first contract year over the lesser of 21 the net considerations for the second and third contract years; 22 (B) the annual contract charge shall be the lesser of $30 or 10 23 percent [PER CENT] of the gross annual consideration. 24 (3) With respect to contracts providing for a single consideration, 25 minimum nonforfeiture amounts shall be defined as for contracts with flexible 26 considerations except that the percentage of net consideration used to determine the 27 minimum nonforfeiture amount shall be equal to 90 percent [PER CENT] and the net 28 consideration shall be the gross consideration less a contract charge of $75. 29 * Sec. 2. This Act takes effect July 1, 2003.