Applications received on or after January 1, 2010 for EquiTrust index annuities and Certainty Select (MYGA) will be issued with a revised Market Value Adjustment (MVA) calculation.  The revision does not apply to existing contracts or applications received prior to January 1, 2010. 

The Market Value Adjustment is a positive or negative adjustment that may apply to contract values only if the withdrawal amount exceeds the free withdrawal provision during the surrender charge period. The MVA is determined by a mathematical formula that measures changes in the interest rate environment since the contract was issued. 

The new MVA factor will be limited to the difference between the current rate and the guaranteed rate.  For index annuities, the new calculation will be based on credited rates offered within the contract. Previously, the calculation used the Treasury Constant Maturity Series.

For more information, click below to see client-use MVA education pieces...
     Understanding the MVA - Index Annuities
        Understanding the MVA - Certainty Select

The MVA revision is not approved in all states - click here for a list of approvals.  The appropriate "Understanding The Market Value Adjustment" explanation will be included with application packets produced on AppBuilder.

Please use the new Disclosure forms dated 1-10 beginning 1/1/10.  The new Disclosures will be required for applications received on or after 2/1/10. 

Revised Agent Guides are available at the Sales Tools link and printed supplies will be available soon.