Massachusetts and California applications received on or after March 31, 2010 for EquiTrust index annuities will be issued with a revised Market Value Adjustment (MVA) calculation.  The revision does not apply to existing contracts or applications received prior to March 31, 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, see the client-use MVA education piece "Understanding The Market Value Adjustment" which will be included with application packets produced on "AppBuilder".

Please use the new Disclosure forms for Massachusetts dated 3-10.  The new Disclosures will be required for applications received on or after 3/31/10.