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. 16-05

DATE:

July 20, 2016

TO:

All Life Insurance Companies

FROM:

Dean L. Cameron

Director

SUBJECT:

Rate of Interest on Deferred Payment of Cash

Surrendered Benefits, Effective July 1, 2016

Effective July 1, 2016, insurers must pay a minimum of 5.625% on deferred payment of cash

surrender values, pursuant to Idaho Code Sections 41-1927(3) and 41-1927A(3)(b). The 5.625%

interest rate is computed in accordance with Idaho Code § 28-22-104 and is effective from July

1, 2016 through June 30, 2017. 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.