Computation of minimum standard for annuities

1. Law
2. US Virgin Islands Code
3. Insurance
4. Assets and Liabilities
5. Standard Valuation Act of 2018
6. Computation of minimum standard for annuities

• Except as provided in section 538, the minimum standard of valuation for individual annuity and pure endowment contracts issued on or after the effective date of this subchapter and for annuities and pure endowments under group annuity and pure endowment contracts purchased on or after the effective date of this subchapter is the Commissioner’s reserve valuation methods defined in sections 539 and 540 and the following tables and interest rates:

  • (1) For individual single premium immediate annuity contracts issued on or after the effective date of this subchapter, excluding any disability and accidental death benefits in those contracts: the 1971 Individual Annuity Mortality Table or any individual annuity mortality table adopted after 1980 by the NAIC that is approved by the Commissioner for use in determining the minimum standard of valuation for these contracts, or any modification of these tables approved by the Commissioner and 7 1/2 percent interest;

  • (2) For individual annuity and pure endowment contracts issued on or after the effective date of this subchapter, other than single premium immediate annuity contracts, excluding any disability and accidental death benefits in those contracts: the 1971 Individual Annuity Mortality Table or any individual annuity mortality table adopted after 1980 by the NAIC that is approved by the Commissioner for use in determining the minimum standard of valuation for those contracts, or any modification of these tables approved by the Commissioner, and 5 1/2 percent interest for single premium deferred annuity and pure endowment contracts and 4 1/2 percent interest for all other individual annuity and pure endowment contracts; and

  • (3) For annuities and pure endowments purchased on or after the effective date of this subchapter under group annuity and pure endowment contracts, excluding any disability and accidental death benefits purchased under those contracts: the 1971 Group Annuity Mortality Table, or any group annuity mortality table adopted after 1980 by the NAIC that is approved by the Commissioner for use in determining the minimum standard of valuation for annuities and pure endowments, or any modification of these tables approved by the Commissioner and 7 1/2 percent interest.

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