Section 760IAC1-7-8. Variable annuity income benefits

   Variable Annuity Income Benefits. The following additional rules and regulations shall apply to any Class I(c) Contract which provides annuity income benefits, the amount of which may vary by reason of experience factors derived from a segregated investment account or accounts:

(a) In the case of any individual Class I(c) Contract, the mortality and investment increment factors used in computing the dollar amount of variable annuity income benefits or other contractual payments or values shall not produce a larger initial payment than would be produced by the use of the Annuity Mortality Table for 1949, Ultimate, and an annual investment increment assumption of 5%, except with the approval of the Department.

(b) Any Class I(c) Contract providing variable annuity income benefits may include a provision providing for stabilization of income through the use of an income stabilization reserve established pursuant to such provision.

(c) Any Class I(c) Contract providing variable annuity income benefits may contain a provision, applicable in the event of the surrender of such contract, for the payment of the value thereof over a period of time specified in the contract.

(d) Any individual Class I(c) Contract providing variable annuity income benefits delivered or issued for delivery in this state, and any certificate evidencing variable annuity income benefits under a Class I(c) Contract on a group basis, shall contain a statement of the essential features of the procedure to be followed by the insurance company in determining the dollar amount of annuity income benefits or other contractual payments or values thereunder and shall state in clear terms that such amount may decrease or increase according to such procedure. Each such contract and certificate shall contain on its first page, in a prominent position, a clear statement that the annuity income benefits or other contractual payments or values thereunder are on a basis which may vary according to the experience of assets in an account or accounts to which such individual or group contract is related.

(Department of Insurance; Reg 7,VIII; filed Feb 3, 1964, 9:40 am: Rules and Regs. 1965, p. 99; filed Mar 18, 1970, 10:20 am: Rules and Regs. 1971, p. 207; readopted filed Sep 14, 2001, 12:22 p.m.: 25 IR 530; readopted filed Nov 27, 2007, 4:01 p.m.: 20071226-IR-760070717RFA; readopted filed Nov 26, 2013, 3:43 p.m.: 20131225-IR-760130479RFA)