§ 4223. Standard nonforfeiture law for annuities. (a) (1) In the case\nof contracts issued on or after the operative date of this section, no\ncontract of annuity, except as provided in subsection (b) of this\nsection, shall be delivered or issued for delivery in this state unless\nit contains in substance the following provisions, or corresponding\nprovisions that in the opinion of the superintendent are at least as\nfavorable to the contract holder, upon cessation of payment of\nconsiderations under the contract.\n (A) That upon cessation of payment of considerations under a contract,\nthe company will grant a paid-up annuity benefit on a plan stipulated in\nthe contract of such value as is specified in subsections (d), (f), (g)\nand (i) of this section.\n (B) If a contract provides for a full or partial lump sum settlement\nat maturity, or at any other time, that upon full or partial surrender\nof the contract at the commencement of any annuity payments or prior\nthereto at times specified in the contract (which shall not be less\nfrequently than once every ten years after the issuance of the\ncontract), the company will pay in lieu of any paid-up annuity benefit a\ncash surrender benefit (for the portion of the contract surrendered, if\nthe contract permits partial surrenders) in an amount meeting the\nrequirements of paragraph one of subsection (e) of this section. The\ncontract may provide for a cash surrender benefit on any other date or\ndates meeting the requirements of paragraph one or two of subsection (e)\nof this section. The company shall reserve the right to defer the\npayment of such cash surrender benefit for a period of six months after\ndemand therefor with surrender of the contract. This subparagraph shall\nnot apply to any contract qualified for special tax treatment under\nsubsection (b) of section four hundred three of the Internal Revenue\nCode to the extent such application would prevent such qualification.\n (C) A statement of the mortality table, if any, and interest rates\nused in calculating any minimum paid-up annuity during the period it is\nguaranteed, and any cash surrender or death benefits that are guaranteed\nunder the contract, and any times at which such guaranteed benefits are\npayable, together with sufficient information to determine the amounts\nof such benefits and, if the contract provides for the determination of\nany cash surrender value in accordance with a market-value adjustment\nformula authorized by paragraph two of subsection (e) of this section, a\nbrief description of the formula and the circumstances in which it is\napplied, together with a statement that a detailed description has been\nfiled with the superintendent.\n (D) A statement that any paid-up annuity, cash surrender or death\nbenefits that may be available under the contract are not less than the\nminimum benefits required by any statute of the state in which the\ncontract is delivered and an explanation of the manner in which such\nbenefits are altered by the existence of any additional amounts credited\nby the company to the contract, any indebtedness to the company on the\ncontract or any prior withdrawals from or partial surrenders of the\ncontract.\n (E) (i) Except as provided in item (ii) of this subparagraph, a\nstatement that the annuity benefits at the time of their commencement\nwill not be less than those that would be provided by the application of\nan amount, hereinafter defined, to purchase any single consideration\nimmediate annuity contract offered by the company at the time to the\nsame class of annuitants. For contracts that provide cash surrender\nbenefits, such amount shall be the greater of the cash surrender benefit\nor ninety-five percent of what the cash surrender benefit would be if\nthere were no withdrawal charge. For contracts that do not provide cash\nsurrender benefits, such amount shall be the present value of the\npaid-up annuity benefit provided under the contract in accordan
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