CT SB00359

Effective October 1, 2022, replaces Connecticut's minimum nonforfeiture standards for annuity contracts with new calculations based on net considerations, contract charges, and indebtedness.

Minimum nonforfeiture amounts equal net considerations accumulated at specified interest rates, reduced by prior withdrawals, annual contract charges of $50, and any company indebtedness.

Net considerations are defined as 87.5% of gross considerations credited to the contract during each contract year.

Interest rates used are the lesser of 3% per annum or a calculated rate based on the five-year Constant Maturity Treasury Rate (reported by the Federal Reserve) minus 125 basis points, with a floor of 15 basis points (0.15%), with rates subject to redetermination.

For equity-indexed annuity contracts, the 125 basis point reduction may be increased by up to an additional 100 basis points to reflect the equity index benefit value, subject to commissioner approval and market value limitations.