NAC686A.440. Equivalent level death benefit.

The equivalent level death benefit of a policy or term life insurance rider is an amount calculated as follows:

     1. Accumulate the guaranteed amount payable upon death, regardless of the cause of death, at the beginning of each policy year for 10 and 20 years at 5 percent interest compounded annually to the end of the 10th and 20th policy years respectively.

     2. Divide each accumulation obtained in subsection 1 by an interest factor that converts it into one equivalent level annual amount which, if paid at the beginning of each year, would accrue to the value obtained in subsection 1 over the respective periods stipulated in subsection 1. If the period is 10 years, the factor is 13.207. If the period is 20 years, the factor is 34.719.

     [Comm’r of Insurance, LH-6 § VII, eff. 11-22-78]