Connecticut Certainty & MVA Changes
MVA Changes for New Contracts
Additional Changes for Certainty in Connecticut
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
For index annuities, please use the new Disclosure forms dated 1-10 beginning 1/1/10. The new Disclosures will be required for index applications received on or after 2/1/10.
Revised index Agent Guides are available at the Sales Tools link and printed versions will be available soon.
Connecticut Certainty Changes
Effective 1/1/2010, we will begin transitioning the Certainty product to the Certainty Select product in Connecticut.
The Certainty Select base contract gives your clients an enhanced death benefit. Cumulative interest can be withdrawn at any time without surrender charge or MVA. The Certainty Select optional rider offers your clients 10% free withdrawals of Accumulated Value, free interest withdrawals during the 1st year, and reduced surrender charges.
A 30-day grace period will be allowed to transition between the two products. During January we will accept Disclosures for the Certainty (form ET-CTY-1101CT) and the Certainty Select (form ET-MYG-1101CT) and will issue the product based on which Disclosure is received.
The state specific Agent Guide (ET-MYG-1102CT) and generic Client Brochure (ET-MYG-1100) are available at the Sales Tools link and printed versions will be available soon.