News

The Insurance Compact has a new state-specific resource on the Insurer Resource page of the Insurance Compact Website, Adoption of Model 805 as Reported by IC Member Departments. The new resource facilitates compliance with amendments to the following Uniform Standards that took effect on October 13, 2021.

• INDIVIDUAL DEFERRED NON-VARIABLE ANNUITY CONTRACT STANDARDS
• INDIVIDUAL DEFERRED VARIABLE ANNUITY CONTRACTS
• ADDITIONAL STANDARDS FOR INDEX-LINKED CREDITING FEATURE FOR DEFERRED NON-VARIABLE ANNUITIES AND THE GENERAL ACCOUNT PORTION OF INDIVIDUAL DEFERRED VARIABLE ANNUITY CONTRACT
• ADDITIONAL STANDARDS FOR BONUS BENEFITS FOR INDIVIDUAL DEFERRED VARIABLE ANNUITY CONTRACT
• ADDITIONAL STANDARDS FOR BONUS BENEFITS (for Individual Deferred Non-Variable Annuities)
• ADDITIONAL STANDARDS FOR MARKET VALUE ADJUSTMENT FEATURE PROVIDED THROUGH THE GENERAL ACCOUNT

The definition for nonforfeiture rate under these amendments now requires the minimum nonforfeiture law applicable to a Compact product filing to follow each state’s minimum nonforfeiture rate law in effect at the time a product is issued.

“Nonforfeiture rate” is the interest rate used in determining the minimum nonforfeiture amount in compliance with NAIC Annuity Nonforfeiture Model Regulation, model #806 and NAIC Standard Nonforfeiture Law for Individual Deferred Annuities, model #805, except that the minimum nonforfeiture rate must be consistent with the minimum nonforfeiture interest rate prescribed in the law of the state in which the policy is delivered or issued for delivery. The nonforfeiture rate will be determined at issue (initial nonforfeiture rate) and, if applicable, for each subsequent redetermination period (redetermination nonforfeiture rate).

If after reviewing the new resource you have additional questions, please reach out to the Insurance Compact Office.