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(2) multiplying the beneficiary’s life expectancy by the annual amount the annuity is scheduled to pay out and rounding the product down to the nearest dollar; the resulting figure is the amount that the annuity is expected to pay out over the life of the beneficiary; and

(3) comparing the amount determined under (2) of this subsection to the purchase price of the annuity. (Eff. 7/20/2007, Register 183) Statutory Authority: Authority: AS 47.05.010 AS 47.07.020 AS 47.07.040 Editor’s note: The Period Life Table, 2002, adopted by reference in 7 AAC 100.514(b) is available on the Internet at http://www.ssa.gov/OACT/STATS/table4c6. html. 7 AAC 100.516. Transfer-of-asset undue hardship exemption. (a) An applicant or recipient, or a long-term care facility on behalf of an applicant or recipient, may request an undue hardship exemption from a transfer-of-asset penalty period imposed under 7 AAC 100.510(d) or (e). (b) An applicant or recipient who seeks an undue hardship exemption must submit the following to the department no later than 30 days after the date of notice that a transfer-of-asset penalty is being imposed:

(1) a written statement indicating how the applicant, recipient, or community spouse would face undue hardship if the penalty were imposed;

(2) a written statement describing

(A) why the assets transferred for less than fair market value cannot be returned; and

(B) what efforts the applicant or recipient has made to retrieve the assets. (c) The director of the division of the department that handles public assistance, or the director’s designee, shall decide whether to grant or deny an exemption under this section. (d) The department will not grant an undue hardship exemption if the department determines that