Document ID: chunk:federal_register_of_legislation:F2023L00208:front:0:p6
Version: federal_register_of_legislation:F2023L00208
Segment Type: other
Provision Reference: 
Character Range: 13933–16883

be made for the multiple lives and relevant policy conditions.
    31.         For immediate life annuities which provide a return of the balance of the purchase price on the death of the annuitant, the minimum termination value is determined as the value, at the rate prescribed in Attachment 1 - Part V, of the future payments due to and including the 'last date'.
    32.         For the purposes of paragraph 31, the last date is the date at which the aggregate of the future payments and the payments already made prior to the date of surrender equals the purchase price of the annuity. The payment on the last date may be a partial payment and should be allowed for accordingly.
    33.         For immediate annuities payable for a fixed term and life thereafter, the minimum termination value during the fixed term is determined in accordance with paragraphs 35 and 36. After the fixed term, the provisions of paragraph 28 apply.
    34.         The minimum termination value may be reduced by the fixed dollar amount prescribed in Attachment 1 - Part I.
Immediate term certain annuities and fixed term/rate business

    35.         For immediate term certain annuities and fixed term/rate business, the minimum termination value is determined as the value, at the rate prescribed in Attachment 1 - Part V, of the future guaranteed payments due to the end of the term.
    36.         For fixed term/rate business the term is that for which the fixed rate is applicable (or current fixed rate, if subject to a roll over mechanism).
    37.         The minimum termination value may be reduced by the fixed dollar amount prescribed in Attachment 1 - Part I.

Part C - Minimum surrender values
    38.         The minimum surrender value is the lowest value that must be paid to a policy owner if the policy owner requests the company to surrender the policy. The life company may be obliged to pay a higher surrender value according to the policy documentation and the promotional material for the policy.

Friendly societies
    39.         There is no minimum surrender value for policies issued by friendly societies.

Life companies other than friendly societies
    40.         There is no minimum surrender value for the following types of business:
       (a)          policies for which:
           (i)            the date of issue was prior to 1 July 1995;
           (ii)         no regulated minimum surrender value applied to the policy at the date of issue; and
           (iii)       the policy documentation and promotional material clearly discloses the non-availability of a surrender entitlement.
       (b)          regular premium business in force for less than three years;
       (c)          overseas business;
       (d)          wholesale business; and
       (e)          reinsurance business.
    41.         For policies that are not listed in paragraph 40, the minimum surrender value is the minimum termination