The weighting factors referred to in the formulas in § 38.2-3133 are given inthe following tables:
1. Weighting Factors for Life Insurance:
Guarantee Weighting Duration Factors (Years) 10 or less .50 More than 10, but not more than 20 .45 More than 20 .35
For life insurance, the guarantee duration is the maximum number of years thelife insurance can remain in force on a basis guaranteed in the policy orunder options to convert to plans of life insurance with premium rates ornonforfeiture values or both that are guaranteed in the original policy.
2. Weighting factor for single premium immediate annuities and for annuitybenefits involving life contingencies arising from other annuities with cashsettlement options and guaranteed interest contract with cash settlementoptions:
.80
3. Weighting factors for other annuities and for guaranteed interestcontracts, except as stated in subdivision 2 of this section, shall be asspecified in tables a, b, and c below, according to the rules and definitionsin subdivisions 4, 5 and 6 of this section:
a. For annuities and guaranteed interest contracts valued on an issue yearbasis:
Guarantee Weighting Factor Duration For Plan Type (Years) A B C 5 or less: .80 .60 .50 More than 5, but not more than 10: .75 .60 .50 More than 10, but not more than 20: .65 .50 .45 More than 20: .45 .35 .35
b. For annuities and guaranteed interest contracts valued on a change in fund basis, the factors shown in table a increased by: .15 .25 .05
c. For annuities and guaranteed interest contracts valued on an issue year basis, other than those with no cash settlement options, that do not guarantee interest on considerations received more than one year after issue or purchase and for annuities and guaranteed interest contracts valued on a change in fund basis that do not guarantee interest rates on considerations received more than twelve months beyond the valuation date, the factors shown in table a or derived in table b increased by: .05 .05 .05
4. For other annuities with cash settlement options and guaranteed interestcontracts with cash settlement options, the guarantee duration is the numberof years for which the contract guarantees interest rates in excess of thecalendar year statutory valuation interest rates for life insurance policieswith guarantee duration in excess of twenty years. For other annuities withno cash settlement options and for guaranteed interest contracts with no cashsettlement options, the guarantee duration is the number of years from thedate of issue or date of purchase to the date annuity benefits are scheduledto begin.
5. Plan type as used in the above tables is defined as follows:
Plan Type A: At any time policyholders may withdraw funds only (i) with anadjustment to reflect changes in interest rates or asset values since receiptof the funds by the insurer, (ii) without that adjustment but in installmentsover five years or more, (iii) as an immediate life annuity, or (iv) nowithdrawal permitted.
Plan Type B: Before expiration of the interest rate guarantee, thepolicyholder may withdraw funds only (i) with an adjustment to reflectchanges in interest rates or asset values since receipt of the funds by theinsurer, (ii) without that adjustment but in installments over five years ormore, or (iii) no withdrawal permitted. At the end of the interest rateguarantee, funds may be withdrawn without the adjustment in a single sum orin installments over less than five years.
Plan Type C: The policyholder may withdraw funds before expiration of theinterest rate guarantee in a single sum or in installments over less thanfive years either (i) without adjustment to reflect changes in interest rateor asset values since receipt of the funds by the insurer, or (ii) subjectonly to a fixed surrender charge stipulated in the contract as a percentageof the fund.
6. An insurer may elect to value guaranteed interest contracts with cashsettlement options and annuities with cash settlement options on either anissue-year basis or on a change-in-fund basis. Guaranteed interest contractswith no cash settlement options and other annuities with no cash settlementoptions must be valued on an issue-year basis. As used in §§ 38.2-3132through 38.2-3136, an issue-year basis of valuation refers to a valuationbasis under which the interest rate used to determine the minimum valuationstandard for the entire duration of the annuity or guaranteed interestcontract is the calendar year valuation interest rate for the year of issueor year of purchase of the annuity or guaranteed interest contract. As usedin §§ 38.2-3132 through 38.2-3136, the change-in-fund basis of valuationrefers to a valuation basis under which the interest rate used to determinethe minimum valuation standard applicable to each change in the fund heldunder the annuity or guaranteed interest contract is the calendar yearvaluation interest rate for the year of the change in the fund.
(Code 1950, § 38-394; 1952, c. 317, § 38.1-456; 1959, Ex. Sess., c. 43; 1962,c. 562; 1975, c. 215; 1979, c. 437; 1982, c. 227; 1986, c. 562.)
The weighting factors referred to in the formulas in § 38.2-3133 are given inthe following tables:
1. Weighting Factors for Life Insurance:
Guarantee Weighting Duration Factors (Years) 10 or less .50 More than 10, but not more than 20 .45 More than 20 .35
For life insurance, the guarantee duration is the maximum number of years thelife insurance can remain in force on a basis guaranteed in the policy orunder options to convert to plans of life insurance with premium rates ornonforfeiture values or both that are guaranteed in the original policy.
2. Weighting factor for single premium immediate annuities and for annuitybenefits involving life contingencies arising from other annuities with cashsettlement options and guaranteed interest contract with cash settlementoptions:
.80
3. Weighting factors for other annuities and for guaranteed interestcontracts, except as stated in subdivision 2 of this section, shall be asspecified in tables a, b, and c below, according to the rules and definitionsin subdivisions 4, 5 and 6 of this section:
a. For annuities and guaranteed interest contracts valued on an issue yearbasis:
Guarantee Weighting Factor Duration For Plan Type (Years) A B C 5 or less: .80 .60 .50 More than 5, but not more than 10: .75 .60 .50 More than 10, but not more than 20: .65 .50 .45 More than 20: .45 .35 .35
b. For annuities and guaranteed interest contracts valued on a change in fund basis, the factors shown in table a increased by: .15 .25 .05
c. For annuities and guaranteed interest contracts valued on an issue year basis, other than those with no cash settlement options, that do not guarantee interest on considerations received more than one year after issue or purchase and for annuities and guaranteed interest contracts valued on a change in fund basis that do not guarantee interest rates on considerations received more than twelve months beyond the valuation date, the factors shown in table a or derived in table b increased by: .05 .05 .05
4. For other annuities with cash settlement options and guaranteed interestcontracts with cash settlement options, the guarantee duration is the numberof years for which the contract guarantees interest rates in excess of thecalendar year statutory valuation interest rates for life insurance policieswith guarantee duration in excess of twenty years. For other annuities withno cash settlement options and for guaranteed interest contracts with no cashsettlement options, the guarantee duration is the number of years from thedate of issue or date of purchase to the date annuity benefits are scheduledto begin.
5. Plan type as used in the above tables is defined as follows:
Plan Type A: At any time policyholders may withdraw funds only (i) with anadjustment to reflect changes in interest rates or asset values since receiptof the funds by the insurer, (ii) without that adjustment but in installmentsover five years or more, (iii) as an immediate life annuity, or (iv) nowithdrawal permitted.
Plan Type B: Before expiration of the interest rate guarantee, thepolicyholder may withdraw funds only (i) with an adjustment to reflectchanges in interest rates or asset values since receipt of the funds by theinsurer, (ii) without that adjustment but in installments over five years ormore, or (iii) no withdrawal permitted. At the end of the interest rateguarantee, funds may be withdrawn without the adjustment in a single sum orin installments over less than five years.
Plan Type C: The policyholder may withdraw funds before expiration of theinterest rate guarantee in a single sum or in installments over less thanfive years either (i) without adjustment to reflect changes in interest rateor asset values since receipt of the funds by the insurer, or (ii) subjectonly to a fixed surrender charge stipulated in the contract as a percentageof the fund.
6. An insurer may elect to value guaranteed interest contracts with cashsettlement options and annuities with cash settlement options on either anissue-year basis or on a change-in-fund basis. Guaranteed interest contractswith no cash settlement options and other annuities with no cash settlementoptions must be valued on an issue-year basis. As used in §§ 38.2-3132through 38.2-3136, an issue-year basis of valuation refers to a valuationbasis under which the interest rate used to determine the minimum valuationstandard for the entire duration of the annuity or guaranteed interestcontract is the calendar year valuation interest rate for the year of issueor year of purchase of the annuity or guaranteed interest contract. As usedin §§ 38.2-3132 through 38.2-3136, the change-in-fund basis of valuationrefers to a valuation basis under which the interest rate used to determinethe minimum valuation standard applicable to each change in the fund heldunder the annuity or guaranteed interest contract is the calendar yearvaluation interest rate for the year of the change in the fund.
(Code 1950, § 38-394; 1952, c. 317, § 38.1-456; 1959, Ex. Sess., c. 43; 1962,c. 562; 1975, c. 215; 1979, c. 437; 1982, c. 227; 1986, c. 562.)
The weighting factors referred to in the formulas in § 38.2-3133 are given inthe following tables:
1. Weighting Factors for Life Insurance:
Guarantee Weighting Duration Factors (Years) 10 or less .50 More than 10, but not more than 20 .45 More than 20 .35
For life insurance, the guarantee duration is the maximum number of years thelife insurance can remain in force on a basis guaranteed in the policy orunder options to convert to plans of life insurance with premium rates ornonforfeiture values or both that are guaranteed in the original policy.
2. Weighting factor for single premium immediate annuities and for annuitybenefits involving life contingencies arising from other annuities with cashsettlement options and guaranteed interest contract with cash settlementoptions:
.80
3. Weighting factors for other annuities and for guaranteed interestcontracts, except as stated in subdivision 2 of this section, shall be asspecified in tables a, b, and c below, according to the rules and definitionsin subdivisions 4, 5 and 6 of this section:
a. For annuities and guaranteed interest contracts valued on an issue yearbasis:
Guarantee Weighting Factor Duration For Plan Type (Years) A B C 5 or less: .80 .60 .50 More than 5, but not more than 10: .75 .60 .50 More than 10, but not more than 20: .65 .50 .45 More than 20: .45 .35 .35
b. For annuities and guaranteed interest contracts valued on a change in fund basis, the factors shown in table a increased by: .15 .25 .05
c. For annuities and guaranteed interest contracts valued on an issue year basis, other than those with no cash settlement options, that do not guarantee interest on considerations received more than one year after issue or purchase and for annuities and guaranteed interest contracts valued on a change in fund basis that do not guarantee interest rates on considerations received more than twelve months beyond the valuation date, the factors shown in table a or derived in table b increased by: .05 .05 .05
4. For other annuities with cash settlement options and guaranteed interestcontracts with cash settlement options, the guarantee duration is the numberof years for which the contract guarantees interest rates in excess of thecalendar year statutory valuation interest rates for life insurance policieswith guarantee duration in excess of twenty years. For other annuities withno cash settlement options and for guaranteed interest contracts with no cashsettlement options, the guarantee duration is the number of years from thedate of issue or date of purchase to the date annuity benefits are scheduledto begin.
5. Plan type as used in the above tables is defined as follows:
Plan Type A: At any time policyholders may withdraw funds only (i) with anadjustment to reflect changes in interest rates or asset values since receiptof the funds by the insurer, (ii) without that adjustment but in installmentsover five years or more, (iii) as an immediate life annuity, or (iv) nowithdrawal permitted.
Plan Type B: Before expiration of the interest rate guarantee, thepolicyholder may withdraw funds only (i) with an adjustment to reflectchanges in interest rates or asset values since receipt of the funds by theinsurer, (ii) without that adjustment but in installments over five years ormore, or (iii) no withdrawal permitted. At the end of the interest rateguarantee, funds may be withdrawn without the adjustment in a single sum orin installments over less than five years.
Plan Type C: The policyholder may withdraw funds before expiration of theinterest rate guarantee in a single sum or in installments over less thanfive years either (i) without adjustment to reflect changes in interest rateor asset values since receipt of the funds by the insurer, or (ii) subjectonly to a fixed surrender charge stipulated in the contract as a percentageof the fund.
6. An insurer may elect to value guaranteed interest contracts with cashsettlement options and annuities with cash settlement options on either anissue-year basis or on a change-in-fund basis. Guaranteed interest contractswith no cash settlement options and other annuities with no cash settlementoptions must be valued on an issue-year basis. As used in §§ 38.2-3132through 38.2-3136, an issue-year basis of valuation refers to a valuationbasis under which the interest rate used to determine the minimum valuationstandard for the entire duration of the annuity or guaranteed interestcontract is the calendar year valuation interest rate for the year of issueor year of purchase of the annuity or guaranteed interest contract. As usedin §§ 38.2-3132 through 38.2-3136, the change-in-fund basis of valuationrefers to a valuation basis under which the interest rate used to determinethe minimum valuation standard applicable to each change in the fund heldunder the annuity or guaranteed interest contract is the calendar yearvaluation interest rate for the year of the change in the fund.
(Code 1950, § 38-394; 1952, c. 317, § 38.1-456; 1959, Ex. Sess., c. 43; 1962,c. 562; 1975, c. 215; 1979, c. 437; 1982, c. 227; 1986, c. 562.)
