Plan Type A Contracts. The termination rules in §40.5 of Regulation No. 139 are intended to apply only to Plan Type A contracts and not Plan Types B or C contracts. Such contracts are defined as follows in §4217(c)(4)(D)(iii)(V) of the Insurance Law: Plan Type A: The policyholder may withdraw funds only (i) with an adjustment to reflect changes in interest rates or asset values since the receipt of funds by the insurance company, or (ii) without such adjustment but in installments over five years or more, or (iii) as an immediate annuity. Plan Type B: The policyholder may not withdraw funds before the expiration of the interest rate guarantee or, if withdrawals are permitted before the expiration of such guarantee, may withdraw funds only (i) with an adjustment to reflect changes in interest rates or asset values since the receipt of the funds by the insurance company, or (ii) without such adjustment but in installments over five years or more. At the end of the interest rate guarantee, funds may be withdrawn without such adjustment in a single sum or in installments over less than five years. Plan Type C: The policyholder may withdraw funds before the expiration of the interest rate guarantee in a single sum or installments over less than five years either (i) without adjustment to reflect changes in interest rates or asset values since the receipt of funds by the insurance company, or (ii) subject to only a fixed surrender charge stipulated in the contract as a percentage of the fund. Contract Termination Options Under Regulation No. 139 Section 40.5(c) of Regulation No. 139 provides that the contract shall permit the contractholder, upon the discontinuance or termination of any such contract, to withdraw unallocated amounts credited to the accumulation fund on any basis or bases provided for under the contract, provided that the contract contains in substance: The ten-year book value installment withdrawal option described in §40.5(d) of Regulation No. 139. The five-year installment withdrawal option described in §40.5(e) of Regulation No. 139; A lump sum withdrawal option; or One or more corresponding options which in the opinion of the superintendent are fair and equitable for the terminating contractholder, remaining contractholders and other policyholders of the insurance company. Pursuant to §40.5(c), group annuity contracts must permit a contractholder to terminate or discontinue the contract at least once each contract year upon providing the insurance company with rea...
Plan Type A Contracts. The termination rules in §40.5 of Regulation No. 139 are intended to apply only to Plan Type A contracts and not Plan Types B or C contracts. Such contracts are defined as follows in §4217(c)(4)(D)(iii)(V) of the Insurance Law:
