Utah Code 31A-17-505. Computation of minimum standard for annuities

31A-17-505. Computation of minimum standard for annuities.

(1)

Except as provided in Section 31A-17-506, the minimum standard of valuation for individual annuity and pure endowment contracts issued on or after the operative date of this section, as defined in Subsection (2), and for annuities and pure endowments purchased on or after such operative date under group annuity and pure endowment contracts, shall be the commissioner’s reserve valuation methods defined in Sections 31A-17-507 and 31A-17-508 and the following tables and interest rates:

Terms Used In Utah Code 31A-17-505

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.
Annuity: means an agreement to make periodical payments for a period certain or over the lifetime of one or more individuals if the making or continuance of all or some of the series of the payments, or the amount of the payment, is dependent upon the continuance of human life. See Utah Code 31A-1-301
Company: means an entity that:

(i)	has written, issued, or reinsured a life insurance contract, accident and health insurance contract, or deposit-type contract in this state and has at least one such policy in force or on claim; or

(ii)

has written, issued, or reinsured a life insurance contract, accident and health insurance contract, or deposit-type contract in any state and is required to hold a certificate of authority to write life insurance, accident and health insurance, or deposit-type contracts in this state. See Utah Code 31A-17-501

Individual: means a natural person. See Utah Code 31A-1-301

Premium: includes , however designated:

(i)	an assessment;

(ii)	a membership fee;

(iii)

a required contribution; or

(iv)

monetary consideration. See Utah Code 31A-1-301

(a)

for individual annuity and pure endowment contracts issued before April 2, 1980, excluding any accident and health and accidental death benefits in the contracts:

(i)

(A)	the 1971 Individual Annuity Mortality Table; or

(B)	any modification of the 1971 Individual Annuity Mortality Table approved by the commissioner;

(ii)	6% interest for single premium immediate annuity contracts; and

(iii)

4% interest for all other individual annuity and pure endowment contracts;

(b)

for individual single premium immediate annuity contracts issued on or after April 2, 1980, excluding any accident and health and accidental death benefits in the contracts:

(i)

(A)	any individual annuity mortality table that is approved by rule made by the commissioner for use in determining the minimum standard of valuation for such contracts; or

(B)	any modification of a table described in Subsection (1)(b)(i)(A) approved by the commissioner; and

(ii)	7.5% interest;

(c)

for individual annuity and pure endowment contracts issued on or after April 2, 1980, other than single premium immediate annuity contracts, excluding any accident and health and accidental death benefits in the contracts:

(i)

(A)	any individual annuity mortality table that is approved by rule made by the commissioner for use in determining the minimum standard of valuation for such contracts; or

(B)	any modification of a table described in Subsection (1)(c)(i)(A) approved by the commissioner;

(ii)	5.5% interest for single premium deferred annuity and pure endowment contracts; and

(iii)

4.5% interest for all other such individual annuity and pure endowment contracts;

(d)

for the annuities and pure endowments purchased before April 2, 1980, under group annuity and pure endowment contracts, excluding any accident and health and accidental death benefits purchased under the contracts:

(i)

(A)	the 1971 Group Annuity Mortality Table; or

(B)	any modification of the 1971 Group Annuity Mortality Table approved by the commissioner; and

(ii)	6.5% interest; and

(e)

for the annuities and pure endowments purchased on or after April 2, 1980, under group annuity and pure endowment contracts, excluding any accident and health and accidental death benefits purchased under the contracts:

(i)

(A)	any group annuity mortality table that is approved by rule made by the commissioner for use in determining the minimum standard of valuation for such annuities and pure endowments; or

(B)	any modification of a table described in Subsection (1)(e)(i)(A) approved by the commissioner; and

(ii)	7.5% interest.

(2)

(a)	After June 1, 1973, any company may file with the commissioner a written notice of its election to comply with this section after a specified date before January 1, 1979, which shall be the operative date of this section for the company.

(b)	If a company does not make an election under Subsection (2)(a), the operative date of this section for the company shall be January 1, 1979.

Amended by Chapter 163, 2016 General Session

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