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Actuary of the Social Security Administration. These tables may be accessed at http://www.ssa.gov/OACT/STATS/table4c6.html. D. The average number of years of expected life remaining for the annuitant must coincide with the life of the annuity. If the annuitant is not reasonably expected to live as long as or longer than the guarantee period of the annuity, the annuitant will not receive fair market value for the annuity based on the projected return. In that case, the annuity is not actuarially sound and a disqualifying transfer has occurred. The penalty is assessed based on the disqualifying transfer at the time the annuity was purchased or the date the annuity became available as a countable resource, whichever is later. E. Annuities established on or after February 8, 2006. 1. Disqualifying transfer – Purchase of a Medicaid non-compliant annuity on or after February 8, 2006, by an LTSS applicant or beneficiary as the annuitant. An annuity is considered non-compliant if purchased at less than FMV or has no readily ascertainable FMV. The purchase of an annuity is treated as the disposal of an asset for less than fair market value if neither of the conditions in § 1917(c)(1)(F) of the Social Security Act, 42 U.S.C. 1396p(c)(1)(F), are met; 2. Allowed transfer – Purchase of a Medicaid compliant annuity as defined in § 1917(c)(1)(G) of the Social Security Act, § 1396p(c)(1)(G). F. Annuities purchased by a non-LTSS spouse: 1. Disqualifying transfer – Purchase of an annuity on or after February 8, 2006, by the non-LTSS spouse of a Medicaid LTSS applicant or beneficiary in which the spouse is the annuitant. 2. Allowed transfer – The annuity has the State of Rhode Island named as the remainder beneficiary for at least the total amount of Medicaid paid on behalf of the annuitant or the annuitant’s spouse, if either is currently receiving Medicaid LTSS. The State may be named as either: a. The remainder beneficiary in the first (1st) position; or b. The remainder beneficiary in the second (2nd) position, after the community spouse, minor child or disabled child, and in the first (1st) position if the spouse or a representative of the child does not dispose of the remainder for less than fair market value. 6.8 Asset Transfers Involving Loans – Promissory Notes, Mortgages and Commercial and Informal Lending Instruments A. Loans are financial instruments that allow an applicant or beneficiary to lend an asset to another person for a set period in exchange for fixed payments. Part 40-