{"data":{"id":"us-ok/okla.-stat.-tit.-36-36-4030.5","jurisdiction":"us-ok","citation":"Okla. Stat. tit. 36, § 36-4030.5","heading":"Minimum nonforfeiture amounts","body":"A. The minimum values as specified in Sections 4030.6, 4030.7,\n\n4030.8, 4030.9 and 4030.11 of this title, of any paid-up annuity,\n\ncash surrender or death benefits available under an annuity contract\n\nshall be based upon minimum nonforfeiture amounts as defined in this\n\nsection.\n\nB. 1. The minimum nonforfeiture amount at any time at or prior\n\nto the commencement of any annuity payments shall be equal to an\n\naccumulation up to such time at rates of interest as indicated in\n\nsubsection C of this section of the net considerations, as\n\nhereinafter defined, paid prior to such time, decreased by the sum\n\nof:\n\na. any prior withdrawals from or partial surrenders of\n\nthe contract accumulated at rates of interest\n\nindicated in subsection C of this section,\n\nb. an annual contract charge of Fifty Dollars ($50.00),\n\naccumulated at rates of interest indicated in\n\nsubsection C of this section,\n\nc. any premium tax paid by the company for the contract,\n\naccumulated at rates of interest indicated in\n\nsubsection C of this section, and\n\nd. the amount of any indebtedness to the company on the\n\ncontract including interest due and accrued.\n\n2. The net considerations for a given contract year used to\n\ndefine the minimum nonforfeiture amount shall be an amount equal to\n\neighty-seven and one-half percent (87.5%) of the gross\n\nconsiderations credited to the contract during that contract year.\n\nC. The interest rate used in determining minimum nonforfeiture\n\namounts shall be an annual rate of interest determined as the lesser\n\nof three percent (3%) per annum and the following, which shall be\n\nspecified in the contract if the interest rate will be reset:\n\n1. The five-year Constant Maturity Treasury Rate reported by\n\nthe Federal Reserve as of a date, or average over a period, rounded\n\nto the nearest one-twentieth of one percent (1/20 of 1%), specified\n\nin the contract no longer than fifteen (15) months prior to the\n\ncontract issue date or redetermination date under paragraph 4 of\n\nthis subsection;\n\n2. Reduced by one hundred twenty-five (125) basis points;\n\n3. If the resulting interest rate is not less than fifteen one-\n\nhundredths of one percent (.15%); and\n\n4. The interest rate shall apply for an initial period and may\n\nbe redetermined for additional periods. The redetermination date,\n\nbasis and period, if any, shall be stated in the contract. The\n\nbasis is the date or average over a specified period that produces\n\nthe value of the five-year Constant Maturity Treasury Rate to be\n\nused at each redetermination date.\n\nD. During the period or term that a contract provides\n\nsubstantive participation in an equity indexed benefit, it may\n\nincrease the reduction described in paragraph 2 of subsection C of\n\nthis section by up to an additional one hundred (100) basis points\n\nto reflect the value of the equity index benefit. The present value\n\nat the contract issue date, and at each redetermination date\n\nthereafter, of the additional reduction shall not exceed the market\n\nvalue of the benefit. The Commissioner may require a demonstration\n\nthat the present value of the additional reduction does not exceed\n\nthe market value of the benefit. Lacking such a demonstration that\n\nis acceptable to the Commissioner, the Commissioner may disallow or\n\nlimit the additional reduction.\n\nE. The Commissioner may adopt rules to implement the provisions\n\nof paragraph 4 of subsection C of this section and to provide for\n\nfurther adjustments to the calculation of minimum nonforfeiture\n\namounts for contracts that provide substantive participation in an\n\nequity index benefit and for other contracts that the Commissioner\n\ndetermines are justified.","path":["OK Code","Title 36"],"source_url":"https://www.oklegislature.gov/OK_Statutes/CompleteTitles/os36.pdf","current_through":"2026-08-14","vintage":"open-us-law v2026.08, retrieved 2026-09-14","retrieved_at":"2026-09-14T18:32:36Z","sha256":"c9ffb09d6a9c726ace353513a8514ea15686f85883758a92d0ffe525c388bcc8","source_id":"us-ok","stale":false,"prev":"us-ok/okla.-stat.-tit.-36-36-4030.4","next":"us-ok/okla.-stat.-tit.-36-36-4030.6"},"notice":"GroundRules: Original legal text. Not legal advice."}