S.D. Admin. R. 20:06:10:23

Current through Register Vol. 50, page 159, June 17, 2024

Section 20:06:10:23 - Equivalent level death benefit of a life insurance policy

The equivalent level death benefit for a life insurance policy or term life insurance rider shall be calculated as follows:

(1) Accumulate the guaranteed amount payable upon death, regardless of the cause of death, at the beginning of each policy year for 10 and 20 years at five percent interest compounded annually to the end of the tenth and twentieth policy years respectively; and

(2) Divide each accumulation of subdivision 20:06:14:06(1) by an interest factor that converts it into one equivalent level annual amount that, if paid at the beginning of each year, would accrue to the value in subdivision 20:06:10:23(1) over 10 or 20 years. If the period is 10 years, the factor is 13.207; and if the period is 20 years, the factor is 34.719.

S.D. Admin. R. 20:06:10:23

38 SDR 116, effective 1/10/2012.

General Authority: SDCL 58-33A-7.

Law Implemented: SDCL 58-33-5, 58-33-6.