| | | 2. With respect to contracts providing for fixed scheduled | considerations, minimum nonforfeiture amounts shall be calculated | on the assumption that considerations are paid annually in | advance and shall be defined as for contracts with flexible | considerations which are paid annually with 2 exceptions: |
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| | A. The portion of the net consideration for the first | contract year to be accumulated shall be the sum of 65% of | the net consideration for the first contract year plus 22 | 1/2% of the excess of the net consideration for the first | contract year over the lesser of the net considerations for | the 2nd and 3rd contract years; and |
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| | B. The annual contract charge shall be the lesser of $30 or | 10% of the gross annual consideration. |
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| | | 3. With respect to contracts providing for a single | consideration, minimum nonforfeiture amounts shall be defined as | for contracts with flexible considerations, except that the | percentage of net consideration used to determine the minimum | nonforfeiture amount shall be equal to 90% and the net | consideration shall be the gross consideration less a contract | charge of $75. |
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| | | 4.__Notwithstanding this section, an insurer may elect to | | apply provisions of this section related to the rate of interest | | used to determine minimum nonforfeiture amounts on a contract | | form basis. |
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| | | This subsection is repealed 2 years from the effective date of | | this subsection. |
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| | | Emergency clause. In view of the emergency cited in the preamble, | | this Act takes effect when approved. |
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