§33-14-26. Same -- Termination benefits.
In group annuity contracts there shall be a provision or
provisions, with an appropriate reference thereto in the
certificate, specifying the nature and basis of ascertainment of
the benefits which will be available to an annuitant who
contributes to the cost of the annuity and the conditions of
payment thereof in the event of either the termination of
employment of the annuitant, except by death, or the
discontinuance of stipulated payments under the contract. Such
provision or provisions shall, in either of such events, make
available to an annuitant who contributed to the cost of the
annuity a paid-up annuity payable commencing at a fixed date in
an amount at least equal to that purchased by the contributions
of the annuitant, determinable as of the respective dates of
payment of the several contributions, as shown by a schedule in
the contract for that purpose, based upon the same mortality
table, rate of interest and loading formula used in computing the
stipulated payments under such contract. Such provision or
provisions may, by way of exception to the foregoing, provide
that if the amount of the annuity determined as aforesaid from
such fixed commencement date would be less than one hundred
twenty dollars annually, the insurer may at its option, in lieu
of granting such paid-up annuity, pay a cash surrender value at
least equal to that hereinafter provided.
If a cash surrender value, in lieu of such paid-up annuity,
is allowed to the annuitant by the terms of such contract, it may
be either in a single sum or in equal instalments over a period of not more than twelve months and it shall at least equal either
(a) or (b), whichever is less:
(a) The amount of reserve attributable to the annuitant's
contributions less a surrender charge not exceeding thirty-five
percent of the average annual contribution made by the annuitant;
or
(b) The amount which would be payable as a death benefit at
the date of surrender.
Such contract shall also provide that in case of the death
of an annuitant before the commencement date of the annuity, the
insurer shall pay a death benefit at least equal to the aggregate
amount of the annuitant's contributions without interest. If any
benefits are available to the holder in either of such events,
the contract shall contain a provision or provisions specifying
the nature and basis of ascertainment of such benefits.