Interest Adjustment Factor definition
Interest Adjustment Factor for any Segment Option equals RN/12 - 1, where: N is the number of complete months remaining before the Withdrawal Charge Period expires; and R is equal to (1 + A) / (1 + B), where: A is the Beginning Interest Adjustment Index Value; and B is the Closing Interest Adjustment Index Value. The “Beginning Interest Adjustment Index Value” is equal to the closing price of the Interest Adjustment Index on the Contract Date. The “Closing Interest Adjustment Index Value” is equal to the closing price of the Interest Adjustment Index on the day we calculate the Segment Interim Value. If a closing price of the Interest Adjustment Index is not available on any day for which a closing price is needed, then the closing price as of the first preceding Business Day for which a closing price is available will be used. The “Interest Adjustment Index” is the [7 Year Point on the A Rated US Bloomberg Fair Value Curve]. You may obtain the daily price of the Interest Adjustment Index by contacting us. If the Interest Adjustment Index is discontinued, we are unable for any reason to utilize it, or the calculation of the Interest Adjustment Index is changed substantially, we may substitute another method of determining the values that will be used in the above calculation and will inform you of that change at your last known address on file with us. Any substitute index will be submitted for prior approval to the insurance regulatory authority of the state in which your Contract is issued.
Interest Adjustment Factor for any Index-Linked Segment Option equals (RN/12 – 1) x (1 – C), where: N is the number of complete months remaining before the Withdrawal Charge Period expires; and R is equal to (1 + A) / (1 + B), where: A is the Beginning Interest Adjustment Index Value; and B is the Closing Interest Adjustment Index Value. C is equal to D x (1 – E), where: D is the value of certain derivative instruments on the Segment Start Date for the applicable Index-Linked Segment Option; and E is the number of days elapsed from the Segment Start Date to the day we calculate the Segment Interim Value, divided by the number of days in the Segment Term Period.
Interest Adjustment Factor. If a total or partial withdrawal or transfer is made from Fixed Account II other than at the end of a Guarantee Period, an Interest Adjustment will be made to the Contract Value. The Interest Adjustment Factor with respect to each purchase payment or transfer allocated to Fixed Account II is: (.75 x (A-B) x N/12) where: A = the guaranteed interest rate (expressed as a decimal) in effect for the specific purchase payment or transfer.
Examples of Interest Adjustment Factor in a sentence
On any day, the Interest Adjustment for any Segment Option equals A x B, where: A is the Segment Value on this date, immediately prior to any Withdrawal; and B is the Interest Adjustment Factor.
More Definitions of Interest Adjustment Factor
Interest Adjustment Factor for any Index-Linked Segment Option equals (RN/12 – 1) x (1 – C), where: N is the number of complete months remaining before the Segment Term Period expires; R is equal to (1 + A) / (1 + B), where: A is the Beginning Interest Adjustment Index Value; B is the Closing Interest Adjustment Index Value; and C is equal to D x (1 – E), where: D is the value of certain derivative instruments on the Segment Start Date for the applicable Index-Linked Segment Option; and E is the number of days elapsed from the Segment Start Date to the day we calculate the Segment Interim Value, divided by the number of days in the Segment Term Period. On each Business Day, we calculate the value of the derivative instruments for each Index-Linked Segment Option based on the estimated market value of a set of put and call options as determined by an option pricing formula. Our method of estimating the current value of the derivative instruments is on file with the New York Department of Financial Services.
Interest Adjustment Factor. The Interest Adjustment Factor is equal to: Where i = Current Interest Rate credited to the Owner's Contract Value allocated to a Guarantee Period as of the beginning of the Guarantee Period.
Interest Adjustment Factor for any Segment Option equals RN/12 - 1, where: N is the number of complete months remaining before the Withdrawal Charge Rate Schedule expires; and R is equal to (1 + A) / (1 + B), where: A is the Beginning Interest Adjustment Index Value; and B is the Closing Interest Adjustment Index Value.
Interest Adjustment Factor for any Index-Linked Segment Option equals (RN/12 – 1) x (1 – C), where: N is the number of complete months remaining before the Withdrawal Charge Period expires; R is equal to (1 + A)/(1 + B), where: A is the Beginning Interest Adjustment Index Value, and B is the Closing Interest Adjustment Index Value; and C is equal to D x (1 – E), where: D is the value of certain derivative instruments on the Segment Start Date for the applicable Index-Linked Segment Option; and E is the number of days elapsed from the Segment Start Date to the day we calculate the Interest Adjustment on the Base Segment Value, divided by the number of days in the Segment Term Period. The “Interest Adjustment Factor” for the Fixed Segment Option equals the greater of (RN/12 – 1) and [-(12.5% - C)], where: N is the number of complete months remaining before the Withdrawal Charge Period expires; R is equal to (1 + A)/(1 + B), where: A is the Beginning Interest Adjustment Index Value; and B is the Closing Interest Adjustment Index Value; and C is equal to the applicable Withdrawal Charge Rate for that Contract Year. The “Beginning Interest Adjustment Index Value” is equal to the closing price of the Interest Adjustment Index on the Contract Date. The “Closing Interest Adjustment Index Value” is equal to the closing price of the Interest Adjustment Index on the day we calculate the Interest Adjustment. The Interest Adjustment Index is shown on the Contract Schedule. If a closing price of the Interest Adjustment Index is not available on any day for which a closing price is needed, then the closing price as of the first preceding Business Day for which a closing price is available will be used. You may obtain the daily price of the Interest Adjustment Index by contacting us. If the Interest Adjustment Index is discontinued, becomes unavailable for us to use in this contract, or undergoes a substantial change in its calculation methodology, we may substitute another method of determining the values that will be used in calculating the Interest Adjustment. We will inform you of that change at your last known address on file with us. Any substitute index will be submitted for prior approval to the Interstate Insurance Product Regulation Commission.
Interest Adjustment Factor means the following product:
Interest Adjustment Factor means, on the Issue Date, 100.0 per cent. On each Loss Settlement Date thereafter, the Interest Adjustment Factor shall be adjusted in accordance with Special Condition (D)(5), provided that the Interest Adjustment Factor will, at no time, be less than 0.0 per cent.