Examples of Index Performance Rate in a sentence
The Segment Index-Linked Rate of Return is equal to the Segment Index Performance Rate multiplied by the Guaranteed Participation Rate, but not to exceed the Growth Cap Rate, as defined below.
Thus, if the Segment Index Performance Rate is between 0% and the Segment Loss Absorption Threshold Rate, the Segment Index-Linked Rate of Return will be 0% and the Segment Indexed-Linked Return will be zero, resulting in no corresponding reduction in your Policy Account.
If the Segment Index Performance Rate is less than the Segment Loss Absorption Threshold Rate, the Segment Index-Linked Rate of Return will be equal to the Segment Index Performance Rate minus the Segment Loss Absorption Threshold Rate and the Segment Index-Linked Return will be negative, resulting in a corresponding reduction in your Policy Account.
The Company's total capital ratios under the risk-weighted guidelines at December 31, 1997 and 1996 were 17.38% and 17.88%, respectively, which included Tier I capital ratios of 16.12% and 16.62%, respectively.
This means that the return reflected in your Segment Maturity Value for a Choice Segment will be less than the Performance Cap Rate even if the Index Performance Rate is equal to or greater than the Performance Cap Rate.
For all Choice Segments, the Choice cost will reduce the Segment Maturity Value when the Index Performance Rate is positive.
This means that even if the Index Performance Rate multiplied by the Enhanced Upside Rate is greater than the Performance Cap Rate, the Segment Rate of Return will equal the Performance Cap Rate.
If the Index Performance Rate is (i) positive but less than the Choice cost, (ii) zero, or (iii) negative but less than or equal to the Segment Buffer, your Segment Maturity Value will be equal to your initial investment.
In effect, after the Index Performance Rate is determined, it will always be reduced by the Choice cost.
Any percentage decline in the Segment’s Index Performance Rate multiplied by the Participation Rate that is in excess of the Segment Buffer reduces your Segment Maturity Value.