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Texas Insurance Code - Section 425.065. Commissioners Annuity Reserve Valuation Method

Legal Research Home > Texas Lawyer > Insurance Code > Texas Insurance Code - Section 425.065. Commissioners Annuity Reserve Valuation Method

§ 425.065. COMMISSIONERS ANNUITY RESERVE VALUATION 
METHOD.  (a) This section applies to an annuity or pure endowment 
contract other than a group annuity or pure endowment contract 
purchased under a retirement or deferred compensation plan 
established or maintained by an employer, including a partnership 
or sole proprietorship, by an employee organization, or by both, 
other than a plan providing individual retirement accounts or 
individual retirement annuities under Section 408, Internal 
Revenue Code of 1986, and that section's subsequent amendments.
	(b)  Reserves according to the commissioners annuity reserve 
method for benefits under an annuity or pure endowment contract, 
excluding any disability or accidental death benefits in the 
contract, are the greatest of the respective excesses of the 
present values on the valuation date of the future guaranteed 
benefits under the contract at the end of each respective contract 
year, including guaranteed nonforfeiture benefits, minus the 
present value on the valuation date of any future valuation 
considerations derived from future gross considerations that are 
required by the contract terms and that become payable before the 
end of the respective contract year.  The future guaranteed 
benefits must be determined by using the mortality table, if any, 
and the interest rate or rates specified in the contract for 
determining guaranteed benefits.  The valuation considerations are 
the portions of the respective gross considerations applied under 
the contract terms to determine nonforfeiture values.

Added by Acts 2005, 79th Leg., ch. 727, § 1, eff. April 1, 2007.           

Last modified: August 11, 2007