Indiana Code 27-1-12.8-25. Minimum standard for valuation of annuities and pure endowment contracts; mortality tables
(1) For individual annuity and pure endowment contracts issued before September 1, 1979, excluding disability and accidental death benefits in the contracts, both of the following:
Terms Used In Indiana Code 27-1-12.8-25
- 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.
- Commissioner: means the "insurance commissioner" of this state. See Indiana Code 27-1-2-3
- NAIC: refers to the National Association of Insurance Commissioners. See Indiana Code 27-1-12.8-11
- premium: means money or any other thing of value paid or given in consideration to an insurer, insurance producer, or solicitor on account of or in connection with a contract of insurance and shall include as a part but not in limitation of the above, policy fees, admission fees, membership fees and regular or special assessments and payments made on account of annuities. See Indiana Code 27-1-2-3
(i) The 1971 Individual Annuity Mortality Table.
(ii) A modification of the table that is approved by the commissioner in rules adopted under IC 4-22-2.
(B) Either of the following:
(i) Six percent (6%) interest for single premium immediate annuity contracts.
(ii) Four percent (4%) interest for all other individual annuity and pure endowment contracts.
(2) For individual single premium immediate annuity contracts issued after August 31, 1979, excluding disability and accidental death benefits in the contracts, both of the following:
(A) One (1) of the following:
(i) The 1971 Individual Annuity Mortality Table.
(ii) An individual annuity mortality table adopted after 1980 by the NAIC that is approved by rule adopted by the commissioner under IC 4-22-2 for use in determining the minimum standard of valuation for the contracts.
(iii) A modification of a table described in item (i) or (ii) that is approved by the commissioner in rules adopted under IC 4-22-2.
(B) Seven and one-half percent (7 1/2%) interest.
(3) For individual annuity and pure endowment contracts issued after August 31, 1979, other than single premium immediate annuity contracts, excluding disability and accidental death benefits in the contracts, both of the following:
(A) One (1) of the following:
(i) The 1971 Individual Annuity Mortality Table.
(ii) An individual annuity mortality table adopted after 1980 by the NAIC that is approved by rule adopted by the commissioner under IC 4-22-2 for use in determining the minimum standard of valuation for the contracts.
(iii) A modification of a table described in item (i) or (ii) that is approved by the commissioner in rules adopted under IC 4-22-2.
(B) Either of the following:
(i) Five and one-half percent (5 1/2%) interest for single premium deferred annuity and pure endowment contracts.
(ii) Four and one-half percent (4 1/2%) interest for all other individual annuity and pure endowment contracts.
(4) For annuities and pure endowments purchased before September 1, 1979, under group annuity and pure endowment contracts, excluding disability and accidental death benefits purchased under the contracts, both of the following:
(A) Either of the following:
(i) The 1971 Group Annuity Mortality Table.
(ii) A modification of the table that is approved by the commissioner in rules adopted under IC 4-22-2.
(B) Six percent (6%) interest.
(5) For annuities and pure endowments purchased after August 31, 1979, under group annuity and pure endowment contracts, excluding disability and accidental death benefits purchased under the contracts, both of the following:
(A) One (1) of the following:
(i) The 1971 Group Annuity Mortality Table.
(ii) A group annuity mortality table adopted after 1980 by the NAIC that is approved by rule adopted by the commissioner under IC 4-22-2 for use in determining the minimum standard of valuation for annuities and pure endowments.
(iii) A modification of a table described in item (i) or (ii) that is approved by the commissioner in rules adopted under IC 4-22-2.
(B) Seven and one-half percent (7 1/2%) interest.
(b) After September 1, 1973, a company may file with the commissioner a written notice of the company’s election to comply with this section after a specified date before January 1, 1979, which is the operative date of this section for the company. If a company makes no election, the operative date of this section for the company is January 1, 1979.
As added by P.L.276-2013, SEC.10. Amended by P.L.124-2018, SEC.26.