Contracts that provide cash surrender benefits shall comply with all of the following:
(a) Cash surrender benefits available prior to maturity shall not be less than the
present value as of the date of surrender of that portion of the maturity value of
the paid-up annuity benefit which would be provided under the contract at maturity
arising from considerations paid prior to the time of cash surrender reduced by the
amount appropriate to reflect any prior withdrawals from or partial surrenders of
the contract, decreased by the amount of any indebtedness to the company on the contract,
including interest due and accrued on the indebtedness, and increased by any existing
additional amounts credited by the company to the contract.
(b) For purposes of subdivision (a), the present value shall be calculated on the
basis of an interest rate that is not more than 1 percent higher than the interest
rate specified in the contract for accumulating the net considerations to determine
the maturity value.
(c) The cash surrender benefit shall not be less than the minimum nonforfeiture amount
at the time of the surrender.
(d)(1) Except as otherwise provided in paragraph (2), the death benefit shall be at
least equal to the cash surrender benefit.
(2) For contracts issued or delivered on or after January 1, 2016, to persons who
are 65 years of age or older, the death benefit shall be at least equal to the annuity
value or accumulation value, excluding any surrender charges or penalties upon death.
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