Oklahoma § 36-4030.4 - Conditions for approval of annuity contracts by

§ 36-4030.4. Conditions for approval of annuity contracts by

Commissioner - Conditions for termination of contracts.

A. In the case of contracts issued on or after November 1,

2000, except as provided in Section 4030.3 of this title, no

contract of annuity, except as stated in Section 4030.13 of this

title, shall be delivered or issued for delivery in this state

unless it contains in substance the following provisions, or

corresponding provisions which in the opinion of the Insurance

Commissioner are at least as favorable to the contract holder, upon

cessation of payment of considerations under the contract:

1. That upon cessation of payment of considerations under a

contract, the company shall grant a paid-up annuity benefit on a

plan stipulated in the contract of such value as is specified in

Sections 4030.6, 4030.7, 4030.9 and 4030.11 of this title;

2. If a contract provides for a lump sum settlement at

maturity, or at any other time, that upon surrender of the contract

at or prior to the commencement of any annuity payments, the company

shall pay in lieu of a paid-up annuity benefit a cash surrender

benefit of such amount as is specified in Sections 4030.6, 4030.7,

4030.9 and 4030.11 of this title. The company may reserve the right

to defer the payment of the cash surrender benefit for a period not

to exceed six (6) months after demand therefor with surrender of the

contract after making written request and receiving the written

approval of the Commissioner. The request shall address the

necessity and equitability to all policyholders of the deferral;

Oklahoma Statutes - Title 36. Insurance

3. A statement of the mortality table, if any, and interest

rates used in calculating any minimum paid-up annuity, cash

surrender or death benefits that are guaranteed under the contract,

together with sufficient information to determine the amounts of the

benefits; and

4. A statement that any paid-up annuity, cash surrender or

death benefits that may be available under the contract are not less

than the minimum benefits required by any statute of the state in

which the contract is delivered and an explanation of the manner in

which the benefits are altered by the existence of any additional

amounts credited by the company to the contract, any indebtedness to

the company on the contract or any prior withdrawals from or partial

surrenders of the contract.

B. Notwithstanding the requirements of this section, a deferred

annuity contract may provide that if no considerations have been

received under a contract for a period of two (2) full years and the

portion of the paid-up annuity benefit at maturity on the plan

stipulated in the contract arising from prior considerations paid

would be less than Twenty Dollars ($20.00) monthly, the company may

at its option terminate the contract by payment in cash of the then

present value of the portion of the paid-up annuity benefit,

calculated on the basis on the mortality table, if any, and interest

rate specified in the contract for determining the paid-up annuity

benefit, and by this payment shall be relieved of any further

obligation under the contract.

Added by Laws 2000, c. 353, § 18, eff. Nov. 1, 2000. Amended by

Laws 2004, c. 274, § 13, eff. July 1, 2004.