                                 CODE OF VIRGINIA

CALCULATION OF PAID-UP ANNUITY BENEFITS (§ 38.2-3224)

For contracts that do not provide cash surrender benefits, the present value of
any paid-up annuity benefit available as a nonforfeiture option at any time
prior to maturity shall not be less than the present value of that portion of
the maturity value of the paid-up annuity benefit provided under the contract
arising from considerations paid before the time the contract is surrendered in
exchange for, or changed to, a deferred paid-up annuity. The present value shall
be calculated for the period before the maturity date on the basis of the
interest rate specified in the contract for accumulating the net considerations
to determine the maturity value, and increased by any existing additional
amounts credited by the insurer to the contract. For contracts that do not
provide any death benefits before the beginning of any annuity payments, the
present values shall be calculated on the basis of the interest rate and the
mortality table specified in the contract for determining the maturity value of
the paid-up annuity benefit. In no event shall the present value of a paid-up
annuity benefit be less than the minimum nonforfeiture amount at that time.

HISTORY: 1979, c. 437, § 38.1-470.1; 1986, c. 562.