NAC686A.450. Equivalent level annual dividend.

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The equivalent level annual dividend is calculated by:

     1. Accumulating the annual cash dividend at 5 percent interest compounded annually to the end of the 10th and 20th policy years.

     2. Dividing each accumulation of subsection 1 by an interest factor which converts it into one equivalent level annual amount which, if paid at the beginning of each year, would accrue to the values obtained in subsection 1 over the respective periods 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.

     3. Dividing the results obtained in subsection 2 by the number of thousands of the equivalent level death benefit to arrive at the equivalent level annual dividend.

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

                    
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