Common use of ANNUITY UNIT Clause in Contracts

ANNUITY UNIT. VALUE The number of annuity units credited under a variable payment option is equal to: a) the amount of the first payment; DIVIDED BY b) the applicable annuity unit value as of the option's effective date. The number of annuity units remains constant. However, if you exchange annuity units among the subaccounts, the units are exchanged on a dollar equivalent basis. The annuity unit values depend on the assumed interest rate and on the net investment factor. An annuity unit value is determined for each subaccount for each valuation period. The annuity unit value of each subaccount for its first valuation period was set at $1.00. Each annuity unit value for each later valuation period is equal to: a) the annuity unit value for the immediately preceding valuation period; TIMES b) the net investment factor for that valuation period; TIMES c) the daily assumed interest factor for each day in that valuation period.