Florida Regulations 69O-162.105: Group Annuity or Pure Endowment Contracts
Current as of: 2024 | Check for updates
|
Other versions
The 1994 GAR Table shall be used for determining the minimum standard of valuation for any annuity or pure endowment purchased on or after July 1, 1998 under a group annuity or pure endowment contract.
(1) For valuation dates on or after the effective date of this rule and on or before December 31, 1998, a company may, at its option, value its reserves using the mortality table in effect prior to the adoption of this rule if it estimates and holds an additional reserve.
(2) The additional reserve for (1) would be based on ratios of reserve factors using the 1994 GAR table and the table in effect prior to the adoption of this rule, which is the 1983 group annuity mortality table.
(3) The reserve based on the 1983 Group Mortality table will be allocated to segments which correspond to the ratios calculated in (2).
(4) The additional reserve will equal the larger of zero and the sum of the products obtained by multiplying the factors from (2) by the corresponding segment in (3).
Specific Authority 624.308, 625.121(5)(i) FS. Law Implemented 624.307(1), 625.121 FS. History-New 12-23-98, Formerly 4-162.105.
Terms Used In Florida Regulations 69O-162.105
- Annuity: A periodic (usually annual) payment of a fixed sum of money for either the life of the recipient or for a fixed number of years. A series of payments under a contract from an insurance company, a trust company, or an individual. Annuity payments are made at regular intervals over a period of more than one full year.
- Contract: A legal written agreement that becomes binding when signed.
(2) The additional reserve for (1) would be based on ratios of reserve factors using the 1994 GAR table and the table in effect prior to the adoption of this rule, which is the 1983 group annuity mortality table.
(3) The reserve based on the 1983 Group Mortality table will be allocated to segments which correspond to the ratios calculated in (2).
(4) The additional reserve will equal the larger of zero and the sum of the products obtained by multiplying the factors from (2) by the corresponding segment in (3).
Specific Authority 624.308, 625.121(5)(i) FS. Law Implemented 624.307(1), 625.121 FS. History-New 12-23-98, Formerly 4-162.105.