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Subject Matter of Proposed Rule: The Additional Standards for Market Value Adjustment Feature Provided through a Separate Account (the “Proposed Standards") apply to market value adjustment (MVA) features that are built into individual  deferred non-variable annuity contracts and the non-variable portions of individual deferred variable annuities (including index-linked annuities) or added to such contracts by rider, endorsement or amendment; and are also known as Modified Guaranteed Annuity (MGA). The MVA feature of an MGA is a positive or negative adjustment that may apply to the account value/cash value of the annuity upon withdrawal, surrender, or annuitization, based upon the movement of an index or the company’s current guaranteed interest rate being offered on new premium (or new rates for renewal periods for CD annuities), if that withdrawal, surrender, or annuitization occurs at a time other than on a specified guaranteed benefit date.

Citation to Published Notices: Notice of this rule was published on February 26, 2009

Name of persons requesting Public Hearing : Director Mary Jo Hudson, Ohio

Date and Location of Public Hearing, if any: via teleconference, April 27, 2009

Status of Proposed Rule (including upcoming meetings):The Proposed Standards have been issued for notice and comment. Written comments will be accepted on the Proposed Standards until April 27, 2009. Written requests for a public hearing must be received no later than March 18, 2009.

Date Approved by Management Committee: April 27, 2009

Date Adopted by Commission: April 30, 2009

Effective Date of Rule: August 17, 2009

Original Version: Additional Standards for Market Value Adjustment Feature Provided through a Separate Account

Link to Comments submitted by members and the public:
Industry Advisory Committee Comments

This rule has been amended.

Click to Expand Amendments to Uniform Standards
Click to Expand 5-Year Review Amendments Adopted April 2016

Name of Proposed Rule: Additional Standards for Market Value Adjustment Feature Provided Through a Separate Account

Subject Matter of Proposed Rule: In the amended Uniform Standards the separate limitation on surrender charge (7%/7 years) for non-Multi-Year Interest Rate Guarantee Annuities (non-MYGA MVA) has been removed. Even with the elimination of the limitations, nonforfeiture and cash surrender values will still be subject to the retrospective and prospective test minimums, and because the IIPRC standard requires a maturity date equal to the later of age 70 or 10 years for purposes of the prospective test, surrender charges are limited to approximately 10% grading down over 10 years for most issue ages. Additionally, the actuarial opinion included in the original Uniform Standards was deleted, and an actuarial certification similar to the certification required under the IIPRC’s Additional Standards for Bonus Benefits for Individual Deferred Variable Annuity Contracts will be required. Lastly, some actuarial memorandum requirements were clarified to include a demonstration that the values of the contract comply with the nonforfeiture requirements, including Appendix A-1 and A-2 of the Individual Deferred Non-Variable Annuity Contract Standards and that modifications to the demonstrations are found in Appendix B.

Citation to Published Notices: Notice of this rule was published on December 9, 2015

Name of persons requesting Public Hearing:

Date and Location of Public Hearing, if any: Via teleconference, February 24, 2016

Status of Proposed Rule (including upcoming meetings): The Proposed Standards have been issued for notice and comment. Written comments will be accepted on the Proposed Standards until February 8, 2016. Written requests for a public hearing must be received no later than December 29, 2015.

Date Amended Version Approved by the Management Committee: April 2, 2016

Date Amended Version Adopted by Commission: April 2, 2016

Effective Date of Amended Rule: July 18, 2016

Memos from Product Standards Committee:

Link to Comments submitted by members and the public: