Rhode Island Code of Regulations
Title 230 - Department of Business Regulation
Chapter 20 - Insurance
Subchapter 25 - LIFE AND ANNUITIES
Part 7 - Modified Guaranteed Annuities (230-RICR-20-25-7)
Section 230-RICR-20-25-7.8 - Reserve Liabilities

Universal Citation: 230 RI Code of Rules 20 25 7.8

Current through September 18, 2024

A. Reserve liabilities for modified guaranteed annuities shall be established in accordance with actuarial procedures that recognize:

1. That assets of the separate account are based on market values;

2. The variable nature of benefits provided; and

3. Any mortality guarantees.

B. As a minimum, the separate account liability will equal the surrender value based upon the market-value adjustment formula contained in the contract. If that liability is greater than the market value of the assets, a transfer of assets will be made into the separate account so that the market value of the assets at least equals that of the liabilities. Also, any additional reserve that is needed to cover future guaranteed benefits will also be set up by the valuation actuary.

C. The market-value adjustment formula, the interest guarantees, and the degree to which projected cash flow of assets and liabilities are matched must also be considered. Each year, the valuation actuary must provide an opinion on whether the assets in the separate account are adequate to provide all future benefits that are guaranteed.

Disclaimer: These regulations may not be the most recent version. Rhode Island may have more current or accurate information. We make no warranties or guarantees about the accuracy, completeness, or adequacy of the information contained on this site or the information linked to on the state site. Please check official sources.
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