Value of cash surrender and death benefits before maturity

1. For contracts which provide cash surrender benefits, such benefits available before maturity shall not be less than the present value as of the date of surrender of that portion of the maturity value of the paid-up annuity benefit which would be provided under the contract at maturity arising from considerations paid before the time of cash surrender, reduced by the amount appropriate to reflect any prior withdrawals from or partial surrenders of the contract, such present value being calculated on the basis of an interest rate of not more than 1 percent higher than the interest rate specified in the contract for accumulating the net considerations to determine such maturity value, decreased by the amount of any indebtedness to the company on the contract, including interest due and accrued, and increased by any existing additional amounts credited by the company to the contract. Any cash surrender benefit shall not be less than the minimum nonforfeiture amount at that time. The death benefit under such contracts shall be at least equal to the cash surrender benefit. 2. For annuity contracts issued on or after January 1, 2012, that provide cash surrender benefits: (a) The cash surrender value on or past the maturity date must be equal to the amount used to determine the annuity benefits; (b) A surrender charge may not be imposed on or past the maturity date of the annuity contract; and (c) For annuity contracts with one or more renewable guaranteed periods, a new surrender charge schedule may be imposed for each new guaranteed period if: (1) The surrender charge is zero at the end of each guaranteed period and remains zero for at least 30 days; (2) The contract provides for continuation of the contract without surrender charges unless the contract holder specifically elects a new guaranteed period with a new surrender charge schedule; and (3) The renewal period does not exceed 10 years and the maturity date complies with NRS 688A.3637. 3. An annuity contract that provides for flexible considerations may have separate surrender charge schedules associated with each consideration.