Common use of FIXED ACCOUNT CONTRACT VALUE Clause in Contracts

FIXED ACCOUNT CONTRACT VALUE. The fixed account contract value at any time will be: (1) the sum of all purchase payments and any purchase payment credit allocated to the fixed account, plus interest credited; plus (2) any amounts transferred to the fixed account from any variable subaccount, plus interest credited; less (3) any amounts transferred from the fixed account to any variable subaccount; less (4) any amounts deducted for charges or withdrawals. Interest to be Credited We will credit interest to the fixed account contract value. Interest will begin to accrue on the date the purchase payments which are received in our home office become available to us for use. We will pay interest on the portion of your initial purchase payment allocated to the fixed account at a guaranteed rate shown under Contract Data. The first-year interest rate includes an additional first-year bonus that is also guaranteed for the first contract year. After the first year, interest will accrue on the fixed account value at rates determined by us and at our discretion. Theses rates will be based on various factors including, but not limited to, the interest rate environment, returns earned on investments backing these annuities, the rates currently in effect for new and existing company annuities, product design, competition, and the company's revenues and expenses. However, we guarantee that the rate will not be less than the Guaranteed Interest Rate shown under Contract Data. We charge a fee for establishing and maintaining our records for this contract. The charge is shown under Contract Data and is deducted from the contract value at the end of each contract year or, if earlier, when the contract is fully withdrawn.