I = .03 + W (R1- .03) + W/2 (R2- .09) | |
Where | |
R1 is the lesser of R and .09, | |
R2 is the greater of R and .09, | |
R is the reference interest rate defined in this section, | |
W is the weighting factor defined in this section. |
I = .03 + W (R - .03) | |
Where | |
R is the reference interest rate defined in this section, | |
W is the weighting factor defined in this section. |
Guarantee Duration (Years) | Weighting Factors |
10 or less ........................ | .50 |
More than 10, but not more than 20 ........................ | .45 |
More than 20 ........................ | .35 |
For life insurance, the guarantee duration is the maximum number of years the life insurance can remain in force on a basis guaranteed in the policy or under options to convert to plans of life insurance with premium rates or nonforfeiture values or both that are guaranteed in the original policy.
Guarantee Duration (Years) | Weighting Factor for Plan Type | ||
A | B | C | |
5 or less: | .80 | .60 | .50 |
More than 5, but not more than 10: | .75 | .60 | .50 |
More than 10, but not more than 20: | .65 | .50 | .45 |
More than 20: | .45 | .35 | .35 |
Plan Type | ||
A | B | C |
.15 | .25 | .05 |
Plan Type | ||
A | B | C |
.05 | .05 | .05 |
Ca. Ins. Code § 10489.4