Individual Fixed Premium Deferred Variable Annuity Contract ...

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Date: 9/28/07As adopted by the IIPRCAppendix AGUIDELINES FOR APPENDIXES A-1 AND A-2 FOR ANNUITYNONFORFEITURE MINIMUM VALUE COMPLIANCEFor Use WithINDIVIDUAL FIXED PREMIUM DEFERRED NON-VARIABLE ANNUITY CONTRACTSANDGENERAL ACCOUNTS OF INDIVIDUAL FIXED PREMIUM DEFERRED VARIABLE ANNUITYCONTRACTS1. For surrender charges measured from premium payment dates, the surrender charge percentagesshown in Appendixes A-1 and A-2 for a contract year represent years from the date of apremium payment.2. The company must submit retrospective and prospective data, in the format prescribed inAppendixes A-1 and A-2, for whatever ages and durations that affect minimum valuecompliance.3. Pursuant to Actuarial Guideline III, the maturity value for purposes of demonstrating compliancewith the prospective (smoothness) test shall be the contract cash surrender value on the maturitydate used for prospective test compliance.4. Free withdrawal “window” periods shall be ignored for purposes of determining retrospectivetest compliance.6. For purposes of demonstrating compliance with the prospective test and the maturity date usedfor that test, the “10 th contract anniversary” or “the contract anniversary following theannuitant’s 70 th birthday” should be considered as the first day of the next contract year (notincluding any premium payments for that year) and the discounting process should bedetermined on a curtate (full integral year) basis.7. CD annuity products, defined as those with surrender charges that periodically renew andcredited interest rate guarantee periods that periodically renew, are compliant with the individualdeferred annuity SNL tests provided:i. The maturity date for prospective test nonforfeiture compliance is the later of the 10 thanniversary of the issue date or the contract anniversary following the annuitant’s 70 thbirthday.ii. The contract provides for a time period of at least 30 days at each renewal, during whichthe contract may be surrendered without surrender charges or other penalties.iii. For prospective test compliance, testing should be performed only once at issue and thesurrender charge should be set equal to zero (0) at every duration beyond the expirationof the initial interest guarantee period.iv. In demonstrating prospective test compliance, for any period after the expiration of thefirst interest guarantee period, the guaranteed credited rate assumed should be theminimum rate guaranteed in the contract.© IIPRC 20
Date: 9/28/07As adopted by the IIPRCv. For a given interest guarantee period, the surrender charge percentage applicable at anyrenewal duration of that guarantee period should not exceed that for the comparableinitial guarantee period duration.© IIPRC 21
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Individual Fixed Premium Deferred Variable Annuity Contract ...

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