C.R.S. Section 10-7-504
Minimum nonforfeiture amounts

  • rules

(1)

The minimum values specified in sections 10-7-505 to 10-7-508 and 10-7-509 (1) of any paid-up annuity, cash surrender, or death benefits available under an annuity contract shall be based upon the following minimum nonforfeiture amounts:

(a)

Intentionally left blank —Ed.

(I)

The minimum nonforfeiture amount at any time at or prior to the commencement of any annuity payments shall be equal to an accumulation up to such time at a rate of interest authorized by subsection (3) of this section of the net considerations, as defined in subsection (2) of this section, paid prior to such time, decreased by the following:

(A)

The sum of any prior withdrawals from or partial surrenders of the contract accumulated at a rate of interest authorized by subsection (3) of this section;

(B)

An annual contract charge of fifty dollars, accumulated at rates of interest authorized by subsection (3) of this section;

(C)

The amount of any indebtedness to the company on the contract, including interest due and accrued.
(II)(Deleted by amendment, L. 2004, p. 818, § 2, effective July 1, 2004.)(b) and (c)(Deleted by amendment, L. 2004, p. 818, § 2, effective July 1, 2004.)(2) The net considerations for a given contract year used to define the minimum nonforfeiture amount shall be equal to eighty-seven and one-half percent of the gross considerations credited to the contract during such contract year.

(3)

Intentionally left blank —Ed.

(a)

The interest rate used to determine minimum nonforfeiture amounts shall be the lesser of the following:

(I)

Three percent per annum; or

(II)

If specified in the contract that the interest rate will reset, the five-year constant maturity treasury rate reported by the federal reserve as of a specified date or averaged over a period reduced by one hundred twenty-five basis points so long as:

(A)

The rate is rounded to the nearest one-twentieth of one percent;

(B)

The reset is specified in the contract to be no longer than fifteen months before the contract issue or redetermination date under sub-subparagraph (E) of this subparagraph (II);

(C)

The resulting interest is not less than fifteen one-hundredths percent;

(D)

The interest rate applies for an initial period and may be redetermined for additional periods;

(E)

Any redetermination date, basis, and period is stated in the contract; and

(F)

The basis is the date or average over a specified period that produces the value of the five-year constant maturity treasury rate used at each redetermination date.

(b)

During the period or term that a contract provides substantive participation in an equity indexed benefit, the contract may increase the reduction authorized in subparagraph (II) of paragraph (a) of this subsection (3) by an additional rate not to exceed one hundred basis points to reflect the value of the equity indexed benefit. The present value of the additional reduction at the contract issue date and at each redetermination date shall not exceed the market value of the benefit. The commissioner may disallow or limit the additional reduction.

(c)

The commissioner may adopt rules to implement paragraph (b) of this subsection (3) and to provide further adjustments to the minimum forfeiture amounts for contracts that provide substantive participation in an equity indexed benefit and for other contracts for which the commissioner determines adjustments are justified.

Source: Section 10-7-504 — Minimum nonforfeiture amounts - rules, https://leg.­colorado.­gov/sites/default/files/images/olls/crs2023-title-10.­pdf (accessed Oct. 20, 2023).

10‑7‑101
Valuation of life policies 10‑7‑102
Life insurance policies - requirements 10‑7‑103
Life insurance policies - prohibition 10‑7‑104
Exceptions 10‑7‑105
Violation 10‑7‑105.5
Lapse of life insurance policy - notice - affidavit of mailing or electronic transmission - legislative declaration 10‑7‑106
Exclusive right of insured in proceeds 10‑7‑107
Nonforfeiture benefits - applicability 10‑7‑108
Regulating vouchers for disbursements 10‑7‑109
Suicide no defense for nonpayment 10‑7‑112
Interest payable on benefits or proceeds 10‑7‑113
Acceleration of benefits 10‑7‑114
Actuarial opinion of reserves - definition - rules 10‑7‑115
Insurable interest - 170 (c) organizations 10‑7‑116
Military sales - rules 10‑7‑201
Group life insurance 10‑7‑202
Policy provisions 10‑7‑203
Employer defined 10‑7‑204
Reciprocal provisions 10‑7‑205
Exemption from execution 10‑7‑206
Issuance and valuation of policies - annual statement 10‑7‑207
Assignment 10‑7‑301
Short title 10‑7‑301.5
Definitions 10‑7‑302
Compulsory policy provisions 10‑7‑303
Computation of cash surrender value 10‑7‑304
Computation of nonforfeiture benefit 10‑7‑305
Adjusted premiums 10‑7‑305.1
Adjusted premiums for new policies 10‑7‑305.2
Future premium determination - standards 10‑7‑306
Calculation of values - supplemental rules 10‑7‑306.1
Calculation of values - new policies 10‑7‑307
Exemptions 10‑7‑308
Waiver prohibited 10‑7‑309
Minimum standard of valuation - rules 10‑7‑309.5
Minimum standards of valuation for new policies - definition 10‑7‑310
Life and endowment reserves 10‑7‑310.5
Individual annuity and pure endowment reserves 10‑7‑311
Minimum aggregate reserves 10‑7‑312
Optional standards 10‑7‑313
Minimum reserves 10‑7‑313.1
Minimum reserves - exceptions 10‑7‑313.2
Minimum standards for other coverages including accident and health insurance contracts - rules 10‑7‑313.3
Valuation manual for policies issued on or after the operative date of the valuation manual - rules 10‑7‑313.4
Requirements of a principle-based valuation 10‑7‑313.6
Experience reporting for policies in force on or after the operative date of the valuation manual 10‑7‑313.8
Confidentiality - definitions 10‑7‑313.9
Single state exemption 10‑7‑314
Automatic premium loans 10‑7‑315
Operative date 10‑7‑316
Effect on existing policies 10‑7‑401
Sales not prohibited 10‑7‑402
Investment contract funds - separate accounts 10‑7‑403
Where benefits are payable in variable amounts 10‑7‑404
Authority to issue variable contracts 10‑7‑405
Construction 10‑7‑501
Short title 10‑7‑502
Exemptions 10‑7‑503
Compulsory contract provisions 10‑7‑504
Minimum nonforfeiture amounts - rules 10‑7‑505
Computation of annuity benefit 10‑7‑506
Computation of cash surrender benefit 10‑7‑507
Computation of paid-up annuity nonforfeiture benefit 10‑7‑508
Determination of maturity date 10‑7‑509
Calculations of values - supplemental rules 10‑7‑510
Effective date - applicability of part 10‑7‑511
Rule-making authority 10‑7‑601
Short title 10‑7‑602
Definitions 10‑7‑603
Licensing 10‑7‑604
Licensure - refusal to issue - suspension - revocation - refusal to renew 10‑7‑605
Forms approval 10‑7‑606
Annual reports 10‑7‑607
Examinations 10‑7‑608
Disclosures 10‑7‑609
General requirements 10‑7‑610
Limited purchase in incontestability period 10‑7‑611
Advertising - legislative intent 10‑7‑612
Fraudulent acts 10‑7‑613
Penalties 10‑7‑614
Unfair trade practices 10‑7‑615
Rules 10‑7‑616
No preemption - Colorado Securities Act - authority of division of securities 10‑7‑617
Application 10‑7‑618
Continuation of business 10‑7‑619
Viatical settlements cash fund - created 10‑7‑620
Severability 10‑7‑701
Short title 10‑7‑702
Definitions 10‑7‑703
Insurance on the life of another 10‑7‑704
Insurable interest 10‑7‑705
Insured’s own life 10‑7‑706
Reliance on statements 10‑7‑707
Consent of insured 10‑7‑708
Prohibited practices 10‑7‑709
Actions to recover death benefits 10‑7‑710
Legitimate insurance transactions 10‑7‑801
Short title 10‑7‑802
Definitions 10‑7‑803
Insurers - duty to compare names of insureds with death master file and to locate beneficiaries
Green check means up to date. Up to date

Current through Fall 2024

§ 10-7-504’s source at colorado​.gov