Net Asset Yield definition
Net Asset Yield means the sum of (a) .5%, plus (b) the “weighted average” expected gross yield on new money less provision for expected investment expenses and expected defaults calculated by the Reinsurer in determining the Supportable Rate (as defined in 9.03) for a new Premium Generation. The “weighted average” expected gross yield shall be calculate by weighting the Reinsurer’s expected gross yield by the Quota Share and the Company’s expected gross yield by the Portion Retained. The Net Asset Yield is an annual rate. In applying the Net Asset Yield in 8.01 and 10.03, daily simple interest shall be used to calculate fractional periods shorter than one whole year. If the Company does not provide Fixed Subaccounts under the Policies and, therefore, does not set Declared Rates, the corresponding Net Asset Yield for the Coinsurance Agreement reinsuring equity indexed annuities effective January 1, 2007 between the Company and the Reinsurer shall be used.
Examples of Net Asset Yield in a sentence
The Net Asset Yield for balances due under 10.01 and 10.03 shall be based on the rate of interest associated with the Supportable Rate most recently calculated by the Reinsurer.
The rate of interest for each amount due shall be the expected Net Asset Yield associated with the party owed the balance due as calculated by the Reinsurer in determining the Supportable Rate.