MI SB0624

Amends Michigan's standard nonforfeiture law for individual deferred annuities by modifying how minimum nonforfeiture amounts are calculated starting January 1, 2005.

Changes the interest rate calculation methodology to use the lesser of 3% per annum or the 5-year constant maturity treasury rate minus 125 basis points, with a minimum floor of 0.15%.

Allows insurers to add up to an additional 100 basis points to the interest rate reduction for contracts providing equity indexed benefits, subject to director approval that the value does not exceed market value of the benefit.

Requires the interest rate to be specified in the contract and allows for redetermination at additional periods with specified basis and dates.

Transitions insurers from the previous 1.5% fixed interest rate method (available until January 1, 2005) to the new variable interest rate methodology on and after January 1, 2005.