Common use of Renewal of Guaranteed Rates Clause in Contracts

Renewal of Guaranteed Rates. Those quarterly Interest Pockets which mature at the same time will be combined into an annual renewal Interest Pocket. Funds associated with that annual renewal Interest Pocket will earn interest for a full year at the Guaranteed Rate declared for that pocket. A new Guaranteed Rate for each annual renewal Interest Pocket will be declared at least 30 days prior to every January 1 for the 5 years following the establishment of that pocket. An annual renewal Interest Pocket will mature on January 1 of the sixth year following its establishment, when it will be combined into one annual portfolio Interest Pocket. Funds associated with that annual portfolio Interest Pocket will earn interest for a full year at the Guaranteed Rate for that pocket, which will be declared at least 30 days prior to every January 1. The Contractholder may accept the declared Guaranteed Rate for an annual renewal or portfolio Interest Pocket either by continuing to allocate Contributions to the FIA or by otherwise notifying us of its acceptance. The Contractholder may reject the declared rate for that pocket by notifying us. This acceptance or rejection must occur after the declaration of the rate for that pocket and before the next January 1, when the rate becomes effective. If the Contractholder neither specifically accepts nor rejects the declared Guaranteed Rate for the new pocket by the deadline, it will be deemed to have accepted the rate. If the Contractholder rejects the declared Guaranteed Rate for the new annual renewal or portfolio pocket, the aggregate Withdrawal Value of that pocket will be paid out as described in Section 3.5.

Renewal of Guaranteed Rates. Those quarterly Interest Pockets which mature at the same time will be combined into an annual renewal Interest Pocket. Funds associated with that annual renewal Interest Pocket will earn interest for a full year at the Guaranteed Rate declared for that pocket. A new Guaranteed Rate for each annual renewal Interest Pocket will be declared at least 30 days prior to every January 1 for the 5 years following the establishment of that pocket. An annual renewal Interest Pocket will mature on January 1 of the sixth year following its establishment, when it will be combined into one annual portfolio Interest Pocket. Funds associated with that annual portfolio Interest Pocket will earn interest for a full year at the Guaranteed Rate for that pocket, which will be declared at least 30 days prior to every January 1. The Contractholder You may accept the declared Guaranteed Rate for an annual renewal or portfolio Interest Pocket either by continuing to allocate Contributions to the FIA or by otherwise notifying us of its your acceptance. The Contractholder You may reject the declared rate for that pocket by notifying us. This acceptance or rejection must occur after the declaration of the rate for that pocket and before the next January 1, when the rate becomes effective. If the Contractholder you neither specifically accepts accept nor rejects reject the declared Guaranteed Rate for the new pocket by the deadline, it you will be deemed to have accepted the rate. If the Contractholder rejects you reject the declared Guaranteed Rate for the new annual renewal or portfolio pocket, the aggregate Withdrawal Value of that pocket will be paid out as described in Section 3.5.