Rate of Interest on Deferred Payment of Cash Surrendered Benefits

State of Idaho DEPARTMENT OF INSURANCE C.L. “BUTCH” OTTER Governor 700 West State Street, 3rd Floor P.O. Box 83720 Boise, Idaho 83720-0043 Phone (208)334-4250 Fax (208)334-4398 Website: http://www.doi.idaho.gov DEAN L. CAMERON Director Equal Opportunity Employer B U L L E T I N NO. 17-03 DATE: June 30, 2017 TO: All Life Insurance Companies FROM: Dean L. Cameron Director SUBJECT: Rate of Interest on Deferred Payment of Cash Surrendered Benefits, Effective July 1, 2017 Effective July 1, 2017, insurers must pay a minimum of 6.250% on deferred payment of cash surrender values, pursuant to Idaho Code Sections 41-1927(3) and 41-1927A(3)(b). The 6.250% interest rate is computed in accordance with Idaho Code § 28-22-104 and is effective from July 1, 2017 through June 30, 2018. The Idaho State Treasurer will announce a new rate by July 1st of each succeeding year. The rate calculation can be reviewed at the State Treasurer’s website: http://sto.idaho.gov/Reports/LegalRateOfInterest.aspx. An insurer that has not tendered payments in satisfaction of a cash surrender request within thirty days of receipt of the request will be deemed to have elected to defer payment of the cash surrender benefit. The thirty day period for processing cash surrender requests will begin upon the date the request was received by the insurer or its authorized agent or representative. An insurer that elects to defer payment of a cash surrender benefit pursuant to Idaho Code Sections 41-1927 or 41- 1927A, is required to pay interest from the date on which the cash surrender request is received.