Common use of Fixed Annuitization Claims Clause in Contracts

Fixed Annuitization Claims. It is the intention of the parties that Reinsurance Claims, for purposes of the Agreement, will reflect a reduction during any Accounting Period in which a Reinsured Contract is settled, in whole or in part, under a fixed annuity settlement option. A Fixed Annuitization Claim, for any Reinsured Contract, shall reflect the greater of (a) account value applied to a fixed annuity payout option; and (b) account value multiplied by the monthly income determined at terms guaranteed in the Reinsured Contract at time of issue divided by the monthly income determined with the Annuity 2000 mortality table (no age setback and age nearest birthday on annuitization date) with Scale G (1995 TSA) mortality improvements and the yield on the most recently auctioned 7-year Treasury Security, as posted in the Wall Street Journal, at the beginning of the month in which the fixed annuitization occurs, plus 50 basis points. Any such amount shall be considered a reinsurance premium for a single premium immediate annuity ("SPIA") contract pursuant to the terms and conditions of that certain coinsurance treaty effective on the Effective Date between the parties and designated Treaty 11.