Be it enacted by the People of the State of Maine as follows:

Sec. 1. 24-A MRSA §2544, as enacted by PL 1979, c. 442, §4, is amended to read:

§2544. Minimum values

The minimum values as specified in sections 2545 to 2548 and section 2550 of any paid-up annuity, cash surrender or death benefits available under an annuity contract shall must be based upon minimum nonforfeiture amounts as defined in this section.

1. With respect to contracts providing for flexible considerations, the The minimum nonforfeiture amount at any time at or prior to the commencement of any annuity payments shall must be equal to an accumulation up to that time at a rate of interest of 3% per year of percentages as permitted under subsection 1-A of the net considerations, as hereinafter defined, paid prior to that time, decreased by the sum of:

A. Any prior withdrawals from or partial surrenders of the contract accumulated at a rate of interest of 3% per year as permitted under subsection 1-A; and

B. The amount of any indebtedness to the insurer on the contract, including interest due and accrued and increased by any existing additional amounts credited by the insurer to the contract.;

C.__An annual contract charge of $50, accumulated at a rate of interest as permitted under subsection 1-A; and

D.__Any premium tax paid by the insurer for the contract, accumulated at a rate of interest as permitted under subsection 1-A.

The net considerations for a given contract year used to define the minimum nonforfeiture amount shall must be an amount not less than zero and shall be equal to 87 1/2% of the corresponding gross considerations credited to the contract during that contract year less an annual contract charge of $30 and less a collection charge of $1.25 per consideration credited to the contract during that contract year. The percentages of net considerations shall be 65% of the net consideration for the first contract year and 87 1/2% of the net considerations for the 2nd and later contract years. Notwithstanding the provisions of the preceding sentence, the percentage shall be 65% of the portion of the total net consideration for any renewal contract