subsection 2 are given in the following tables: (a) Weighting Factors for Life Insurance: Guarantee Duration Weighting (Years) Factors 10 or less.............................................................................................................. .50 More than 10 but not more than 20................................................................. .45 More than 20....................................................................................................... .35 For life insurance, the duration of the guarantee 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, which are guaranteed in the original policy; (b) The weighting factor for single-premium immediate annuities and for annuity benefits involving life contingencies arising from other annuities with options for cash settlement and contracts which have guaranteed interest with options for cash settlement is .80; and (c) Weighting factors for other annuities and for contracts which have guaranteed interest except as stated in paragraph (b), are specified in the tables in subparagraphs (1), (2) and (3), according to the rules and definitions in subparagraphs (4), (5) and (6) as follows: (1) For annuities and contracts which have guaranteed interest valued on the basis of the year issued: Guarantee Duration Weighting Factor (Years) 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 2............................................................... .45 .35 .35 (2) For annuities and contracts which have guaranteed interest valued on a change in fund basis, the factors shown in subparagraph (1): Weighting Factor for Plan Type A B C Increased by............................................................. .15 .25 .05 (3) For annuities and contracts which have guaranteed interest valued on the basis of the year issued, (other than those with no options for cash settlement) which do not guarantee interest on considerations received more than 1 year after issue or purchase and for annuities and contracts which have guaranteed interest valued on a change in fund basis which do not guarantee interest rates on considerations received more than 12 months beyond the valuation date, the factors shown in subparagraph (1) or derived in subparagraph (2) increased by .05. (4) For other annuities with options for cash settlement and contracts which have guaranteed interest with options for cash settlement, the guaranteed duration is the number of years for which the contract guarantees interest rates in excess of the interest rate for the valuation of life insurance policies with a guaranteed duration in excess of 20 years. For other annuities with no options for cash settlement and for contracts which have guaranteed interest with no options for cash settlement, the guaranteed duration is the number of years from the date of issue or date of purchase to the date on which the annuity benefits are scheduled to commence. (5) The types of plans listed in this subsection have the following characteristics: Plan Type A Under this plan the policyholder: (I) May withdraw money only with an adjustment to reflect changes in interest rates or the value of assets since the insurer’s receipt of the money, or without such an adjustment but in installments payable over 5 years or more; (II) May withdraw money as an immediate life annuity; or (III) Is not permitted to withdraw money. Plan Type B Under this plan, before expiration of the guaranteed interest rate, the policyholder: (I) May withdraw money only with an adjustment to reflect changes in interest rates or the value of assets since the insurer’s receipt of the money, or without such an adjustment but in installments payable over 5 years or more; or (II) Is not permitted to withdraw money. At the end of the guaranteed interest rate, the policyholder may withdraw money without such an adjustment in a single sum or in installments over a period of less than 5 years. Plan Type C Under this plan the policyholder may withdraw money before expiration of the guaranteed interest rate in a single sum or in installments over a period of less than 5 years: (I) Without any adjustment to reflect changes in interest rates or the value of assets since the insurer’s receipt of the money; or (II) Subject only to a fixed charge for surrender which is stipulated in the contract as a percentage of the fund. (6) An insurer may elect to value contracts which have guaranteed interest with options for cash settlement and annuities with options for cash settlement on the basis of the year issued or a change in fund basis. Contracts which have guaranteed interest but no options for cash settlement and annuities with no options for cash settlement must be valued on the basis of the year issued. As used in this section, “valuation on the basis of the year issued” means a basis of valuation under which the interest rate used to determine the minimum standard of valuation for the entire duration of an annuity or contract with guaranteed interest is the interest rate of valuation for the year of issue or the year of purchase of the annuity or contract, and “change in fund basis of valuation” means a basis of valuation under which the interest rate used to determine the minimum standard of valuation applicable to each change in the fund held under the annuity or contract is the interest rate for valuation for the year of the change in the fund. 4. For purposes of subsection 2, “reference interest rate” means: (a) For all life insurance, the lesser of the average over 36 months and the average over 12 months, ending on June 30 of the calendar year next preceding the year of issue, of Moody’s Corporate Bond Yield Average—Monthly Average Corporates, as published by Moody’s Investors Service, Inc. (b) For single-premium immediate annuities, annuity benefits involving life contingencies arising from other annuities with options for cash settlement and contracts which have guaranteed interest with options for cash settlement, the average over 12 months, ending on June 30 of the calendar year of issue or year of purchase, of Moody’s Corporate Bond Yield Average—Monthly Average Corporates, as published by Moody’s Investors Service, Inc. (c) For other annuities with op

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