§ 27-4.5-4.1 Computation of minimumstandard by calendar year of issue. – (a) Applicability. The interest rates used in determining the minimumstandards for the valuation of: (1) all life insurance policies issued on orafter January 1, 1994; (2) all individual annuity and pure endowment contractsissued in a particular calendar year on or after January 1, 1994; (3) allannuities and pure endowments purchased in a particular calendar year on orafter January 1, 1994, under group annuity and pure endowment contracts; and(4) the net increase, if any, in a particular calendar year after January 1,1994, in amounts held under guaranteed interest contracts; shall be thecalendar year statutory valuation interest rates as defined in this section.
(b) Calendar year statutory valuation interest rates.(1) The calendar year statutory valuation interest rates, "I", shallbe determined as follows and the results rounded to the nearer one-quarter ofone percent (.25%), where R1 is the lesser of R and .09, R2 is the greater of Rand .09, R is the reference interest rate as defined in this section, and W isthe weighting factor as defined in this section:
(i) For life insurance:
I = .03 + W(R1 -.03) + W/2(R2 -.09);
(ii) For single premium immediate annuities and for annuitybenefits involving life contingencies arising from other annuities with cashsettlement options and from guaranteed interest contracts with cash settlementoptions:
I = .03 + W(R1 -.03);
(iii) For other annuities with cash settlement options andguaranteed interest contracts with cash settlement options, valued on an issuedyear basis, except as stated in subdivision (b)(1)(ii), the formula for lifeinsurance stated in subdivision (b)(1)(i) shall apply to annuities andguaranteed interest contracts with guarantee durations in excess of ten (10)years and the formula for single premium immediate annuities stated insubdivision (b)(1)(ii) shall apply to annuities and guaranteed interestcontracts with guarantee duration of ten (10) years or less;
(iv) For other annuities with no cash settlement options andfor guaranteed interest contracts with no cash settlement options, the formulafor single premium immediate annuities stated in subdivision (b)(1)(ii) shallapply; and
(v) For other annuities with cash settlement options andguaranteed interest contracts with cash settlement options, valued on a changein fund basis, the formula for single premium immediate annuities stated insubdivision (b)(1)(ii) shall apply; and
(2) If the calendar year statutory valuation interest ratefor any life insurance policies issued in any calendar year determined withoutreference to this subsection differs from the corresponding actual rate forsimilar policies issued in the immediately preceding calendar year by less thanone-half of one percent (.5%), the calendar year statutory valuation interestrate for those life insurance policies shall be equal to the correspondingactual rate for the immediately preceding calendar year.
(c) Weighting factors. (1) The weightingfactors referred to in the formulas stated in subdivisions (b)(1)(i) and (ii)are as follows:
SEE THE BOOK FOR THE PROPER TABLE.
For life insurance, the guarantee duration is the maximumnumber of years the life insurance can remain in force on a basis guaranteed inthe policy or under options to convert to plans of life insurance with premiumrates or nonforfeiture values or both which are guaranteed in the originalpolicy;
(2) Weighting factor for single premium immediate annuitiesand for annuity benefits involving life contingencies arising from otherannuities with cash settlement options and guaranteed interest contracts withcash settlement options is .80;
(3) Weighting factors for other annuities and for guaranteedinterest contracts, except as stated in subdivision (c)(2), shall be asspecified in paragraphs (i), (ii) and (iii) in this subdivision, according tothe rules and definitions in paragraphs (iv), (v) and (vi) in this subdivision:
(i) For annuities and guaranteed interest contracts valued onan issue year basis:
SEE THE BOOK FOR THE PROPER TABLE.
(ii) For annuities and guaranteed interest contracts valuedon a change in fund basis, the factors show in subdivision (c)(3)(i) increasedby:
SEE THE BOOK FOR THE PROPER TABLE.
(iii) For annuities and guaranteed interest contracts valuedon an issued year basis, other than those with no cash settlement options,which do not guarantee interest on considerations received more than one yearafter issue or purchase and for annuities and guaranteed interest contractsvalued on a change in fund basis which do not guarantee interest rates onconsideration received more than twelve (12) months beyond the valuation date,the factors shown in subdivision (c)(3)(i) or derived in subdivision (c)(3)(ii)increased by:
SEE THE BOOK FOR THE PROPER TABLE.
(iv) For other annuities with cash settlement options andguaranteed interest contracts with cash settlement options, the guaranteeduration is the number of years for which the contract guarantees interestrates in excess of the calendar year statutory valuation interest rate for lifeinsurance policies with guarantee durations in excess of twenty (20) years. Forother annuities with no cash settlement options and for guaranteed interestcontracts with no cash settlement options, the guaranteed duration is thenumber of years from the date of issue or date of purchase to the date annuitybenefits are scheduled to commence;
(v) Plan Type as used in the tables in this subdivision isdefined as follows:
(A) Plan Type A: At any time the policyholder may withdrawfunds only (I) with an adjustment to reflect changes in interest rates or assetvalues since receipt of the funds by the insurance company, or (II) without anadjustment but installments over five (5) years or more, or (III) as animmediate life annuity, or (IV) no withdrawal permitted;
(B) Plan Type B: Before expiration of the interest rateguarantee, the policyholder may withdraw funds only (I) with an adjustment toreflect changes in interest rates or asset values since receipt of the funds bythe insurance company, or (II) without an adjustment but in installments overfive (5) years or more, or (III) no withdrawal permitted. At the end of theinterest rate guarantee, funds may be withdrawn without the adjustment in asingle sum or installments over less than five (5) years; and
(C) Plan Type C: The policyholder may withdraw funds beforethe expiration of interest rate guarantee in a single sum or installments overless than five (5) years either (I) without adjustment to reflect changes ininterest rates or asset values since receipt of the funds by the insurancecompany, or (II) subject only to a fixed surrender charge stipulated in thecontract as a percentage of the fund; and
(vi) A company may elect to value guaranteed interestcontracts with cash settlement options and annuities with cash settlementoptions on either an issue year basis or on a change in fund basis. Guaranteedinterest contracts with no cash settlement options and other annuities with nocash settlement options must be valued on an issue year basis. As used in thissection, "issue year basis of valuation" refers to a valuation basis underwhich the interest rate used to determine the minimum valuation standard forthe entire duration of the annuity or guaranteed interest contract is thecalendar year valuation interest rate for the year of issue or year of purchaseof the annuity or guaranteed interest contract, and "change in fund basis ofvaluation" refers to a valuation basis under which the interest rate used todetermine the minimum valuation standard applicable to each change in the fundheld under the annuity or guaranteed interest contract is the calendar yearvaluation interest rate for the year of the change in the fund.
(d) Reference interest rate. Reference interest ratereferred to in subsection (b) is defined as follows:
(1) For all life insurance, the lesser of the average over aperiod of thirty-six (36) months and the average over a period of twelve (12)months, ending on June 30 of the calendar year next preceding the year ofissue, of the monthly average of the composite yield on seasoned corporatebonds, as published by Moody's Investors Service, Inc.;
(2) For single premium immediate annuities and for annuitybenefits involving life contingencies arising from other annuities with cashsettlement options and guaranteed interest contracts with cash settlementoptions, the average over a period of twelve (12) months, ending on June 30 ofthe calendar year of issue or year of purchase, of the monthly average of thecomposite yield on seasoned corporate bonds, as published by Moody's InvestorsService, Inc.;
(3) For other annuities with cash settlement options andguaranteed interest contracts with cash settlement options, valued on a year ofissue basis, except as stated in subdivision (d)(2), with guarantee duration inexcess of ten (10) years, the lesser of the average over a period of thirty-six(36) months and the average over a period of twelve (12) months, ending on June30 of the calendar year of issue or purchase, of the monthly average of thecomposite yield on seasoned corporate bonds, as published by Moody's InvestorsService, Inc.;
(4) For other annuities with cash settlement options andguaranteed interest contracts with cash settlement options, valued on a year ofissue basis, except as stated in subdivision (d)(2), with guarantee duration often (10) years or less, the average over a period of twelve (12) months, endingon June 30 of the calendar year of issue or purchase, of the monthly average ofthe composite yield on seasoned corporate bonds, as published by Moody'sInvestors Service, Inc.;
(5) For other annuities with no cash settlement options andfor guaranteed interest contracts with no cash settlement options, the averageover a period of twelve (12) months, ending on June 30 of the calendar year ofissue or purchase, of the monthly average of the composite yield on seasonedcorporate bonds, as published by Moody's Investors Service, Inc.; and
(6) For other annuities with cash settlement options andguaranteed interest contracts with cash settlement options, valued on a changein fund basis, except as stated in subdivision (d)(2), the average over aperiod of twelve (12) months, ending on June 30 of the calendar year of thechange in the fund, of the monthly average of the composite yield on seasonedcorporate bonds, as published by Moody's Investors Service, Inc.
(e) Alternative method for determining reference interestrates. In the event that the monthly average of the composite yield onseasoned corporate bonds is no longer published by Moody's Investors Service,Inc., or in the event that the National Association of Insurance Commissionersdetermines that the monthly average of the composite yield on seasonedcorporate bonds as published by Moody's Investors Service, Inc. is no longerappropriate for the determination of the reference interest rate, then analternative method for determination of the reference interest rate, which isadopted by the National Association of Insurance Commissioners and approved byregulation promulgated by the commissioner of insurance, may be substituted.
§ 27-4.5-4.1 Computation of minimumstandard by calendar year of issue. – (a) Applicability. The interest rates used in determining the minimumstandards for the valuation of: (1) all life insurance policies issued on orafter January 1, 1994; (2) all individual annuity and pure endowment contractsissued in a particular calendar year on or after January 1, 1994; (3) allannuities and pure endowments purchased in a particular calendar year on orafter January 1, 1994, under group annuity and pure endowment contracts; and(4) the net increase, if any, in a particular calendar year after January 1,1994, in amounts held under guaranteed interest contracts; shall be thecalendar year statutory valuation interest rates as defined in this section.
(b) Calendar year statutory valuation interest rates.(1) The calendar year statutory valuation interest rates, "I", shallbe determined as follows and the results rounded to the nearer one-quarter ofone percent (.25%), where R1 is the lesser of R and .09, R2 is the greater of Rand .09, R is the reference interest rate as defined in this section, and W isthe weighting factor as defined in this section:
(i) For life insurance:
I = .03 + W(R1 -.03) + W/2(R2 -.09);
(ii) For single premium immediate annuities and for annuitybenefits involving life contingencies arising from other annuities with cashsettlement options and from guaranteed interest contracts with cash settlementoptions:
I = .03 + W(R1 -.03);
(iii) For other annuities with cash settlement options andguaranteed interest contracts with cash settlement options, valued on an issuedyear basis, except as stated in subdivision (b)(1)(ii), the formula for lifeinsurance stated in subdivision (b)(1)(i) shall apply to annuities andguaranteed interest contracts with guarantee durations in excess of ten (10)years and the formula for single premium immediate annuities stated insubdivision (b)(1)(ii) shall apply to annuities and guaranteed interestcontracts with guarantee duration of ten (10) years or less;
(iv) For other annuities with no cash settlement options andfor guaranteed interest contracts with no cash settlement options, the formulafor single premium immediate annuities stated in subdivision (b)(1)(ii) shallapply; and
(v) For other annuities with cash settlement options andguaranteed interest contracts with cash settlement options, valued on a changein fund basis, the formula for single premium immediate annuities stated insubdivision (b)(1)(ii) shall apply; and
(2) If the calendar year statutory valuation interest ratefor any life insurance policies issued in any calendar year determined withoutreference to this subsection differs from the corresponding actual rate forsimilar policies issued in the immediately preceding calendar year by less thanone-half of one percent (.5%), the calendar year statutory valuation interestrate for those life insurance policies shall be equal to the correspondingactual rate for the immediately preceding calendar year.
(c) Weighting factors. (1) The weightingfactors referred to in the formulas stated in subdivisions (b)(1)(i) and (ii)are as follows:
SEE THE BOOK FOR THE PROPER TABLE.
For life insurance, the guarantee duration is the maximumnumber of years the life insurance can remain in force on a basis guaranteed inthe policy or under options to convert to plans of life insurance with premiumrates or nonforfeiture values or both which are guaranteed in the originalpolicy;
(2) Weighting factor for single premium immediate annuitiesand for annuity benefits involving life contingencies arising from otherannuities with cash settlement options and guaranteed interest contracts withcash settlement options is .80;
(3) Weighting factors for other annuities and for guaranteedinterest contracts, except as stated in subdivision (c)(2), shall be asspecified in paragraphs (i), (ii) and (iii) in this subdivision, according tothe rules and definitions in paragraphs (iv), (v) and (vi) in this subdivision:
(i) For annuities and guaranteed interest contracts valued onan issue year basis:
SEE THE BOOK FOR THE PROPER TABLE.
(ii) For annuities and guaranteed interest contracts valuedon a change in fund basis, the factors show in subdivision (c)(3)(i) increasedby:
SEE THE BOOK FOR THE PROPER TABLE.
(iii) For annuities and guaranteed interest contracts valuedon an issued year basis, other than those with no cash settlement options,which do not guarantee interest on considerations received more than one yearafter issue or purchase and for annuities and guaranteed interest contractsvalued on a change in fund basis which do not guarantee interest rates onconsideration received more than twelve (12) months beyond the valuation date,the factors shown in subdivision (c)(3)(i) or derived in subdivision (c)(3)(ii)increased by:
SEE THE BOOK FOR THE PROPER TABLE.
(iv) For other annuities with cash settlement options andguaranteed interest contracts with cash settlement options, the guaranteeduration is the number of years for which the contract guarantees interestrates in excess of the calendar year statutory valuation interest rate for lifeinsurance policies with guarantee durations in excess of twenty (20) years. Forother annuities with no cash settlement options and for guaranteed interestcontracts with no cash settlement options, the guaranteed duration is thenumber of years from the date of issue or date of purchase to the date annuitybenefits are scheduled to commence;
(v) Plan Type as used in the tables in this subdivision isdefined as follows:
(A) Plan Type A: At any time the policyholder may withdrawfunds only (I) with an adjustment to reflect changes in interest rates or assetvalues since receipt of the funds by the insurance company, or (II) without anadjustment but installments over five (5) years or more, or (III) as animmediate life annuity, or (IV) no withdrawal permitted;
(B) Plan Type B: Before expiration of the interest rateguarantee, the policyholder may withdraw funds only (I) with an adjustment toreflect changes in interest rates or asset values since receipt of the funds bythe insurance company, or (II) without an adjustment but in installments overfive (5) years or more, or (III) no withdrawal permitted. At the end of theinterest rate guarantee, funds may be withdrawn without the adjustment in asingle sum or installments over less than five (5) years; and
(C) Plan Type C: The policyholder may withdraw funds beforethe expiration of interest rate guarantee in a single sum or installments overless than five (5) years either (I) without adjustment to reflect changes ininterest rates or asset values since receipt of the funds by the insurancecompany, or (II) subject only to a fixed surrender charge stipulated in thecontract as a percentage of the fund; and
(vi) A company may elect to value guaranteed interestcontracts with cash settlement options and annuities with cash settlementoptions on either an issue year basis or on a change in fund basis. Guaranteedinterest contracts with no cash settlement options and other annuities with nocash settlement options must be valued on an issue year basis. As used in thissection, "issue year basis of valuation" refers to a valuation basis underwhich the interest rate used to determine the minimum valuation standard forthe entire duration of the annuity or guaranteed interest contract is thecalendar year valuation interest rate for the year of issue or year of purchaseof the annuity or guaranteed interest contract, and "change in fund basis ofvaluation" refers to a valuation basis under which the interest rate used todetermine the minimum valuation standard applicable to each change in the fundheld under the annuity or guaranteed interest contract is the calendar yearvaluation interest rate for the year of the change in the fund.
(d) Reference interest rate. Reference interest ratereferred to in subsection (b) is defined as follows:
(1) For all life insurance, the lesser of the average over aperiod of thirty-six (36) months and the average over a period of twelve (12)months, ending on June 30 of the calendar year next preceding the year ofissue, of the monthly average of the composite yield on seasoned corporatebonds, as published by Moody's Investors Service, Inc.;
(2) For single premium immediate annuities and for annuitybenefits involving life contingencies arising from other annuities with cashsettlement options and guaranteed interest contracts with cash settlementoptions, the average over a period of twelve (12) months, ending on June 30 ofthe calendar year of issue or year of purchase, of the monthly average of thecomposite yield on seasoned corporate bonds, as published by Moody's InvestorsService, Inc.;
(3) For other annuities with cash settlement options andguaranteed interest contracts with cash settlement options, valued on a year ofissue basis, except as stated in subdivision (d)(2), with guarantee duration inexcess of ten (10) years, the lesser of the average over a period of thirty-six(36) months and the average over a period of twelve (12) months, ending on June30 of the calendar year of issue or purchase, of the monthly average of thecomposite yield on seasoned corporate bonds, as published by Moody's InvestorsService, Inc.;
(4) For other annuities with cash settlement options andguaranteed interest contracts with cash settlement options, valued on a year ofissue basis, except as stated in subdivision (d)(2), with guarantee duration often (10) years or less, the average over a period of twelve (12) months, endingon June 30 of the calendar year of issue or purchase, of the monthly average ofthe composite yield on seasoned corporate bonds, as published by Moody'sInvestors Service, Inc.;
(5) For other annuities with no cash settlement options andfor guaranteed interest contracts with no cash settlement options, the averageover a period of twelve (12) months, ending on June 30 of the calendar year ofissue or purchase, of the monthly average of the composite yield on seasonedcorporate bonds, as published by Moody's Investors Service, Inc.; and
(6) For other annuities with cash settlement options andguaranteed interest contracts with cash settlement options, valued on a changein fund basis, except as stated in subdivision (d)(2), the average over aperiod of twelve (12) months, ending on June 30 of the calendar year of thechange in the fund, of the monthly average of the composite yield on seasonedcorporate bonds, as published by Moody's Investors Service, Inc.
(e) Alternative method for determining reference interestrates. In the event that the monthly average of the composite yield onseasoned corporate bonds is no longer published by Moody's Investors Service,Inc., or in the event that the National Association of Insurance Commissionersdetermines that the monthly average of the composite yield on seasonedcorporate bonds as published by Moody's Investors Service, Inc. is no longerappropriate for the determination of the reference interest rate, then analternative method for determination of the reference interest rate, which isadopted by the National Association of Insurance Commissioners and approved byregulation promulgated by the commissioner of insurance, may be substituted.
§ 27-4.5-4.1 Computation of minimumstandard by calendar year of issue. – (a) Applicability. The interest rates used in determining the minimumstandards for the valuation of: (1) all life insurance policies issued on orafter January 1, 1994; (2) all individual annuity and pure endowment contractsissued in a particular calendar year on or after January 1, 1994; (3) allannuities and pure endowments purchased in a particular calendar year on orafter January 1, 1994, under group annuity and pure endowment contracts; and(4) the net increase, if any, in a particular calendar year after January 1,1994, in amounts held under guaranteed interest contracts; shall be thecalendar year statutory valuation interest rates as defined in this section.
(b) Calendar year statutory valuation interest rates.(1) The calendar year statutory valuation interest rates, "I", shallbe determined as follows and the results rounded to the nearer one-quarter ofone percent (.25%), where R1 is the lesser of R and .09, R2 is the greater of Rand .09, R is the reference interest rate as defined in this section, and W isthe weighting factor as defined in this section:
(i) For life insurance:
I = .03 + W(R1 -.03) + W/2(R2 -.09);
(ii) For single premium immediate annuities and for annuitybenefits involving life contingencies arising from other annuities with cashsettlement options and from guaranteed interest contracts with cash settlementoptions:
I = .03 + W(R1 -.03);
(iii) For other annuities with cash settlement options andguaranteed interest contracts with cash settlement options, valued on an issuedyear basis, except as stated in subdivision (b)(1)(ii), the formula for lifeinsurance stated in subdivision (b)(1)(i) shall apply to annuities andguaranteed interest contracts with guarantee durations in excess of ten (10)years and the formula for single premium immediate annuities stated insubdivision (b)(1)(ii) shall apply to annuities and guaranteed interestcontracts with guarantee duration of ten (10) years or less;
(iv) For other annuities with no cash settlement options andfor guaranteed interest contracts with no cash settlement options, the formulafor single premium immediate annuities stated in subdivision (b)(1)(ii) shallapply; and
(v) For other annuities with cash settlement options andguaranteed interest contracts with cash settlement options, valued on a changein fund basis, the formula for single premium immediate annuities stated insubdivision (b)(1)(ii) shall apply; and
(2) If the calendar year statutory valuation interest ratefor any life insurance policies issued in any calendar year determined withoutreference to this subsection differs from the corresponding actual rate forsimilar policies issued in the immediately preceding calendar year by less thanone-half of one percent (.5%), the calendar year statutory valuation interestrate for those life insurance policies shall be equal to the correspondingactual rate for the immediately preceding calendar year.
(c) Weighting factors. (1) The weightingfactors referred to in the formulas stated in subdivisions (b)(1)(i) and (ii)are as follows:
SEE THE BOOK FOR THE PROPER TABLE.
For life insurance, the guarantee duration is the maximumnumber of years the life insurance can remain in force on a basis guaranteed inthe policy or under options to convert to plans of life insurance with premiumrates or nonforfeiture values or both which are guaranteed in the originalpolicy;
(2) Weighting factor for single premium immediate annuitiesand for annuity benefits involving life contingencies arising from otherannuities with cash settlement options and guaranteed interest contracts withcash settlement options is .80;
(3) Weighting factors for other annuities and for guaranteedinterest contracts, except as stated in subdivision (c)(2), shall be asspecified in paragraphs (i), (ii) and (iii) in this subdivision, according tothe rules and definitions in paragraphs (iv), (v) and (vi) in this subdivision:
(i) For annuities and guaranteed interest contracts valued onan issue year basis:
SEE THE BOOK FOR THE PROPER TABLE.
(ii) For annuities and guaranteed interest contracts valuedon a change in fund basis, the factors show in subdivision (c)(3)(i) increasedby:
SEE THE BOOK FOR THE PROPER TABLE.
(iii) For annuities and guaranteed interest contracts valuedon an issued year basis, other than those with no cash settlement options,which do not guarantee interest on considerations received more than one yearafter issue or purchase and for annuities and guaranteed interest contractsvalued on a change in fund basis which do not guarantee interest rates onconsideration received more than twelve (12) months beyond the valuation date,the factors shown in subdivision (c)(3)(i) or derived in subdivision (c)(3)(ii)increased by:
SEE THE BOOK FOR THE PROPER TABLE.
(iv) For other annuities with cash settlement options andguaranteed interest contracts with cash settlement options, the guaranteeduration is the number of years for which the contract guarantees interestrates in excess of the calendar year statutory valuation interest rate for lifeinsurance policies with guarantee durations in excess of twenty (20) years. Forother annuities with no cash settlement options and for guaranteed interestcontracts with no cash settlement options, the guaranteed duration is thenumber of years from the date of issue or date of purchase to the date annuitybenefits are scheduled to commence;
(v) Plan Type as used in the tables in this subdivision isdefined as follows:
(A) Plan Type A: At any time the policyholder may withdrawfunds only (I) with an adjustment to reflect changes in interest rates or assetvalues since receipt of the funds by the insurance company, or (II) without anadjustment but installments over five (5) years or more, or (III) as animmediate life annuity, or (IV) no withdrawal permitted;
(B) Plan Type B: Before expiration of the interest rateguarantee, the policyholder may withdraw funds only (I) with an adjustment toreflect changes in interest rates or asset values since receipt of the funds bythe insurance company, or (II) without an adjustment but in installments overfive (5) years or more, or (III) no withdrawal permitted. At the end of theinterest rate guarantee, funds may be withdrawn without the adjustment in asingle sum or installments over less than five (5) years; and
(C) Plan Type C: The policyholder may withdraw funds beforethe expiration of interest rate guarantee in a single sum or installments overless than five (5) years either (I) without adjustment to reflect changes ininterest rates or asset values since receipt of the funds by the insurancecompany, or (II) subject only to a fixed surrender charge stipulated in thecontract as a percentage of the fund; and
(vi) A company may elect to value guaranteed interestcontracts with cash settlement options and annuities with cash settlementoptions on either an issue year basis or on a change in fund basis. Guaranteedinterest contracts with no cash settlement options and other annuities with nocash settlement options must be valued on an issue year basis. As used in thissection, "issue year basis of valuation" refers to a valuation basis underwhich the interest rate used to determine the minimum valuation standard forthe entire duration of the annuity or guaranteed interest contract is thecalendar year valuation interest rate for the year of issue or year of purchaseof the annuity or guaranteed interest contract, and "change in fund basis ofvaluation" refers to a valuation basis under which the interest rate used todetermine the minimum valuation standard applicable to each change in the fundheld under the annuity or guaranteed interest contract is the calendar yearvaluation interest rate for the year of the change in the fund.
(d) Reference interest rate. Reference interest ratereferred to in subsection (b) is defined as follows:
(1) For all life insurance, the lesser of the average over aperiod of thirty-six (36) months and the average over a period of twelve (12)months, ending on June 30 of the calendar year next preceding the year ofissue, of the monthly average of the composite yield on seasoned corporatebonds, as published by Moody's Investors Service, Inc.;
(2) For single premium immediate annuities and for annuitybenefits involving life contingencies arising from other annuities with cashsettlement options and guaranteed interest contracts with cash settlementoptions, the average over a period of twelve (12) months, ending on June 30 ofthe calendar year of issue or year of purchase, of the monthly average of thecomposite yield on seasoned corporate bonds, as published by Moody's InvestorsService, Inc.;
(3) For other annuities with cash settlement options andguaranteed interest contracts with cash settlement options, valued on a year ofissue basis, except as stated in subdivision (d)(2), with guarantee duration inexcess of ten (10) years, the lesser of the average over a period of thirty-six(36) months and the average over a period of twelve (12) months, ending on June30 of the calendar year of issue or purchase, of the monthly average of thecomposite yield on seasoned corporate bonds, as published by Moody's InvestorsService, Inc.;
(4) For other annuities with cash settlement options andguaranteed interest contracts with cash settlement options, valued on a year ofissue basis, except as stated in subdivision (d)(2), with guarantee duration often (10) years or less, the average over a period of twelve (12) months, endingon June 30 of the calendar year of issue or purchase, of the monthly average ofthe composite yield on seasoned corporate bonds, as published by Moody'sInvestors Service, Inc.;
(5) For other annuities with no cash settlement options andfor guaranteed interest contracts with no cash settlement options, the averageover a period of twelve (12) months, ending on June 30 of the calendar year ofissue or purchase, of the monthly average of the composite yield on seasonedcorporate bonds, as published by Moody's Investors Service, Inc.; and
(6) For other annuities with cash settlement options andguaranteed interest contracts with cash settlement options, valued on a changein fund basis, except as stated in subdivision (d)(2), the average over aperiod of twelve (12) months, ending on June 30 of the calendar year of thechange in the fund, of the monthly average of the composite yield on seasonedcorporate bonds, as published by Moody's Investors Service, Inc.
(e) Alternative method for determining reference interestrates. In the event that the monthly average of the composite yield onseasoned corporate bonds is no longer published by Moody's Investors Service,Inc., or in the event that the National Association of Insurance Commissionersdetermines that the monthly average of the composite yield on seasonedcorporate bonds as published by Moody's Investors Service, Inc. is no longerappropriate for the determination of the reference interest rate, then analternative method for determination of the reference interest rate, which isadopted by the National Association of Insurance Commissioners and approved byregulation promulgated by the commissioner of insurance, may be substituted.
