                                 CODE OF VIRGINIA

RESERVE VALUATION METHOD; ANNUITY AND PURE ENDOWMENT BENEFITS (§ 38.2-1373)

A. This section shall apply to all annuity and pure endowment contracts other
than group annuity and pure endowment contracts purchased under a retirement
plan or plan of deferred compensation, established or maintained by an employer,
including a partnership or sole proprietorship, or by an employee organization,
or both, other than a plan providing individual retirement accounts or
individual retirement annuities under &#xA7; 408 of the Internal Revenue Code,
as now or hereafter amended.

B. Reserves according to the Commissioners annuity reserve method for benefits
under annuity or pure endowment contracts, excluding any disability and
accidental death benefits in the contracts, shall be the greatest of the
respective excesses of the present values, at the date of valuation, of the
future guaranteed benefits, including guaranteed nonforfeiture benefits,
provided for by the contracts at the end of each respective contract year, over
the present value, at the date of valuation, of any future valuation
considerations derived from future gross considerations, required by the terms
of the contract, that become payable prior to the end of the respective contract
year. The future guaranteed benefits shall be determined by using the mortality
table, if any, and the interest rate, or rates, specified in those contracts for
determining guaranteed benefits. The valuation considerations are the portions
of the respective gross considerations applied under the terms of those
contracts to determine nonforfeiture values.

HISTORY: 2014, c. 571.