For contracts which do not provide cash surrender benefits, the present value of any
paid-up annuity benefit available as a nonforfeiture option at any time before maturity
shall not be less than the present value of that portion of the maturity value of
the paid-up annuity benefit provided under the contract arising from considerations
paid before the time when the contract is surrendered in exchange for or changed to
a deferred paid-up annuity, such present value being calculated for the period before
the maturity date on the basis of the interest rate specified in the contract for
accumulating the net considerations to determine such maturity value, and increased
by any existing additional amounts credited by the company to the contract. For contracts which do not provide any death benefits before the commencement of any
annuity payments, the present values shall be calculated on the basis of such interest
rate and the mortality table specified in the contract for determining the maturity
value of the paid-up annuity benefit. The present value of a paid-up annuity benefit shall not be less than the minimum
nonforfeiture amount at that time.
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