Common use of SEGMENT INTERIM VALUE Clause in Contracts

SEGMENT INTERIM VALUE. The Segment Interim Value is the Annuity Account Value in a Segment prior to the Segment Maturity Date. It is the value used in computing the Cash Value and for all events including withdrawals, death, transfers, surrender, and annuitization prior to the Segment Maturity Date. We determine the Segment Interim Value of your investment in a Segment on each Business Day that falls between the Segment Start Date and Segment Maturity Date, based on the estimated value of financial instruments consistent with current market prices and representing our obligation to provide your Segment Maturity Value on the Segment Maturity Date. The Segment Interim Value is equal to the sum of the Fair Value of Hypothetical Fixed Instruments, the Fair Value of Hypothetical Derivatives, and the Cap Calculation Factor. Fair Value of Hypothetical Fixed Instrument, which is based on the investment rate associated with the Segment’s remaining time to maturity, matures with a maturity value of Segment Investment on the Segment Maturity Date. Investment rates are interest rates associated with investment grade fixed income instruments which can be used to back the Segment. The Fair Value of Hypothetical Derivatives is the estimated market value of hypothetical derivatives, including put and call options or similar instruments, of the risk of loss and the possibility of gain on the Segment Maturity Date. It also reflects the estimated transaction cost incurred in the event that the Segment ends prior to the Segment Maturity Date. The Cap Calculation Factor refunds the portion of the estimated annual expenses that we used in calculating the Performance Cap Rate at the Segment Start Date but has not been fully incurred due to the partial period.

SEGMENT INTERIM VALUE. The Segment Interim Value is the Annuity Account Value in a Segment prior to the Segment Maturity Date. It is the value used in computing the Cash Value and for all events including withdrawals, death, transfers, surrender, and annuitization prior to the Segment Maturity Date. We determine the Segment Interim Value of your investment in a Segment on each Business Day that falls between the Segment Start Date and Segment Maturity Date, based on the estimated value of financial instruments consistent with current market prices and representing our obligation to provide your Segment Maturity Value on the Segment Maturity Date. The Segment Interim Value is equal to the sum of the Fair Value of Hypothetical Fixed Instruments, the Fair Value of Hypothetical Derivatives, and the Cap Calculation Factor. The “Fair Value of Hypothetical Fixed Instrument”, which is based on the investment rate associated with the Segment’s remaining time to maturity, matures with a maturity value of Segment Investment on the Segment Maturity Date. Investment rates are interest rates associated with investment grade fixed income instruments which can be used to back the Segment. The “Fair Value of Hypothetical Derivatives Derivatives” is the estimated market value of hypothetical derivatives, including put and call options or similar instruments, of the risk of loss and the possibility of gain on the Segment Maturity Date. It also reflects the estimated transaction cost incurred in the event that the Segment ends prior to the Segment Maturity Date. The “Cap Calculation Factor Factor” refunds the portion of the estimated annual expenses that we used in calculating the Performance Cap Rate at the Segment Start Date but has not been fully incurred due to the partial period.