NET AMOUNT AT RISK. GMDB AND EPB ------------
NET AMOUNT AT RISK. The term “Net Amount-at-Risk” (hereinafter “NAR”) shall be defined as the total proceeds of the Policy(ies) less the cash value of the Policy(ies).
NET AMOUNT AT RISK. A. The reinsured Net Amount At Risk at issue is defined as the policy face amount less the amount retained by the Ceding Company, and for automatic policies, multiplied by the Reinsurer’s share as stated in Schedule A. After issue, any change in the policy Net Amount At Risk due to changes in the policy’s account value will be allocated proportionally between Ceding Company and Reinsurer based on the retention and the reinsured Net Amount At Risk at issue. For universal life plans, the Net Amount At Risk is calculated using the account value in effect at the policy anniversary.
NET AMOUNT AT RISK. The policy risk amount reinsured under this Agreement is the net amount at risk, which is determined as of the issue date and each subsequent policy anniversary and is defined as the death benefit minus the contract fund.
NET AMOUNT AT RISK. A. The IBNAR (Income Benefit Net Amount at Risk) for each variable annuity contract reinsured hereunder shall be equal to the following: IBNAR = Maximum [( IBB * ( MAPR / SAPR ) - Account Value), 0] * REINSURER's Quota Share Percentage where: - The INCOME BENEFIT BASE (IBB) is as defined in Schedule A - The MINIMUM ANNUITY PURCHASE RATE (MAPR) per $1000 is calculated using the following assumptions: Mortality Table: 1983 IAM Valuation Table (see Exhibit I) Age Setback: None Mortality Improvement: Projection Scale G for 35 years (see Exhibit I) Unisex Blend: Montana: 25% male/75% female All other states: Sex distinct only Interest Rate: 2.5% all years Expenses: None Premium Taxes: Applied by state of residence and market Age: Attained age nearest birthday on exercise date Frequency of Payment: Monthly or quarterly or annually Annuity Form: Limited to a Life Annuity with a 10 Year Period Certain or Joint and Survivor Life Annuity with 20 Year Period Certain. For qualified plans: period certain to meet IRS requirement. - The SETTLEMENT ANNUITY PURCHASE RATE (SAPR) per $1000, which is used at time of annuitization for reinsurance claims settlement, is calculated using the following assumptions: Mortality Table: 1983 IAM Basic Table (see Exhibit I) Age Setback: None Mortality Improvement: Projection Scale G until year of annuitization (see Exhibit I) Unisex Blend: Montana: 100% male All other states: Sex distinct only Interest Rate: The yield on the most recently auctioned 7-Year U.S. Treasury Security (i.e., "on-the-run"), as posted in the Wall Street Journal, at the beginning of the month in which annuitization occurs minus 35 Basis Points. That interest rate shall never be less than 1.5%. If there is
NET AMOUNT AT RISK. The Net Amount at Risk on the policies and riders eligible for reinsurance under this Agreement, is defined below: OPTION A BASE POLICY: The Net Amount at Risk is the Death Benefit minus the Policy Value, where the Death Benefit is the greater of the Face Amount or the minimum amount required under Section 7702 of the IRC.
NET AMOUNT AT RISK. A. The MNAR (Mortality Net Amount at Risk) for each variable annuity contract reinsured hereunder shall be equal to the following: MNAR = (VNAR + VSCNAR + FSCNAR + EEMNAR) where: - VNAR (Variable Net Amount at Risk) = Maximum (a, b) * REINSURER's Quota Share Percentage where: a = (GMDB Contractual Death Benefit - Account Value) b = 0 - VSCNAR (Variable Account Surrender Charge Net Amount at Risk) = - One-half (1/2) * (Surrender Charges allocated to Variable Account) * REINSURER's Quota Share Percentage for issue ages 0-79 - 0 for issue ages 80-85 - FSCNAR (Fixed Account Surrender Charge Net Amount at Risk) = - One-half (1/2) * (Surrender Charges allocated to Fixed Account) * REINSURER's Quota Share Percentage for issue ages 0-79 - 0 for issue ages 80-85 The surrender charge will be allocated to the Variable Account and the Fixed Account in proportion to the Variable Account value and the Fixed Account value at the end of the month. - EEMNAR (Earnings Enhancement Mortality Net Amount at Risk) = X% * Max (a, b) * REINSURER's Quota Share Percentage where: X % varies by issue age as described under the EEB Contractual Death Benefit Reinsured section of Schedule A a = (Account Value - Total Purchase Payments Not Withdrawn), but no greater than total purchase payments not withdrawn b = 0
NET AMOUNT AT RISK. A. The MNAR (Mortality Net Amount at Risk) for each variable annuity policy form reinsured hereunder, by issue age, shall be equal to the following: [redacted] where: - VNAR (Variable Net Amount at Risk) = [redacted]: - [redacted] SCNAR (Surrender Charge Net Amount at Risk) = [redacted] EEMNAR (Earnings Enhancement Mortality Net Amount at Risk) = [redacted]
NET AMOUNT AT RISK. A. The mortality net amount at risk for each variable annuity contract reinsured hereunder shall be equal to the following: Mortality Net Amount at Risk (MNAR) = VNAR + SCNAR where: o VNR = Maximum (a, b) multiplied by the quota-share percentage (defined in Schedule A) where a = (Contractual Death Benefit - Account Value) b = 0 o SCNAR = (Surrender Charges) multiplied by the quote-share percentage
NET AMOUNT AT RISK. E. The mortality net amount at risk for each variable annuity contract reinsured hereunder shall be equal to the following: MNAR (Mortality Net Amount at Risk) = VMNAR + FSCNAR where: VMNAR (Variable Mortality Net Amount at Risk) = VNAR + VSCNAR where: - VNAR (Variable Net Amount at Risk) = Maximum (a, b) multiplied by the quota-share percentage (defined in Schedule A) where: a = (Contractual Death Benefit - Total Account Value) b = 0 - VSCNAR (Variable Surrender Charge Net Amount at Risk) = (Surrender Charges, net of free withdrawal amounts, allocated to Variable Account) multiplied by the quota-share percentage FSCNAR (Fixed Surrender Charge Net Amount at Risk) = (Surrender Charges, net of free withdrawal amounts, allocated to Fixed Account) multiplied by the quota-share percentage The surrender charge will be allocated to the Variable Account and the Fixed Account in proportion to the Variable Account value and the Fixed Account Value at the end of the month.
