Oregon Department of Consumer and Business Services, Insurance Regulation
Limitations on Surrender Charge Scales
For contracts where surrender charge scales are measured from the date of each premium payment an insurer must demonstrate compliance with minimum value either by:
Treating each premium payment as a separate single premium contract, in which case the maturity date for each single premium shall be the later of the tenth anniversary of the payment, or the annuitant’s 70th birthday; or
Treating the entire contract as a single contract providing for flexible premiums.
If minimum value compliance is demonstrated as described in section (1)(a) of this rule, the retrospective test minimum values must be the greater of those based on the contract being treated either as:
Each premium considered as a single premium contract, in which case the values for all such “contracts” will be summed; or
A single contract providing for flexible premiums.
An insurer may not impose a surrender charge on or after annuitization or on or after the maturity date.