§ 38.2-3133. Calendar year statutory valuation interest rates
A. The calendar year statutory valuation interest rates, referred to in this section as "I," shall be determined as follows and the results rounded to the nearest one-quarter of one percent:
1. For life insurance,
I=.03 + W (R1-.03) + (W/2) (R2-.09)
where
R1 is the lesser of R and .09,
R2 is the greater of R and .09,
R is the reference interest rate defined in § 38.2-3135, and
W is the weighting factor defined in § 38.2-3134;
2. For single premium immediate annuities, and for annuity benefits involving life contingencies arising from other annuities with cash settlement options, and from guaranteed interest contracts with cash settlement options,
I=.03 + W (R-.03)
where
R is the reference interest rate defined in § 38.2-3135, and
W is the weighting factor defined in § 38.2-3134;
3. For other annuities with cash settlement options and guaranteed interest contracts with cash settlement options, valued on an issue year basis, except as stated in subdivision 2 of this subsection, the formula for life insurance stated in subdivision 1 of this subsection shall apply to annuities and guaranteed interest contracts with guarantee durations in excess of ten years. The formula for single premium immediate annuities stated in subdivision 2 of this subsection shall apply to annuities and guaranteed interest contracts with guarantee duration of ten years or less;
4. For other annuities with no cash settlement options and for guaranteed interest contracts with no cash settlement options, the formula for single premium immediate annuities stated in subdivision 2 of this subsection shall apply;
5. For other annuities with cash settlement options and guaranteed interest contracts with cash settlement options, valued on a change in fund basis, the formula for single premium immediate annuities stated in subdivision 2 of this subsection shall apply.
B. However, if the calendar year statutory valuation interest rate for any life insurance policies issued in any calendar year determined without reference to this sentence differs from the corresponding actual rate for similar policies issued in the immediately preceding calendar year by less than one-half of one percent, the calendar year statutory valuation interest rate for life insurance policies shall equal the corresponding actual rate for the immediately preceding calendar year. For purposes of applying the immediately preceding sentence, the calendar year statutory valuation interest rate for life insurance policies issued in a calendar year shall be determined for 1980, using the reference interest rate defined for 1979, and shall be determined for each later calendar year regardless of when § 38.2-3209 becomes operative.
(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.)
Sections: Previous 38.2-3127 38.2-3127.1 38.2-3128 38.2-3129 38.2-3130 38.2-3131 38.2-3132 38.2-3133 38.2-3134 38.2-3135 38.2-3136 38.2-3137 38.2-3138 38.2-3139 38.2-3140 NextLast modified: April 16, 2009