Page:United States Statutes at Large Volume 96 Part 1.djvu/590

 96 STAT. 548

PUBLIC LAW 97-248—SEPT. 3, 1982 "(ii) any a m o u n t payable by reason of the death of the insured (determined without regard to any qualified additional benefit) is not a t any time less than the applicable percentage of the cash value of such contract at such time, or "(B) by the term s of such contract, the cash value of such contract may not a t any time exceed the n e t single p r e m i u m with respect to the a m o u n t payable by reason of the death of the insured (determined without regard to any qualified additional benefit) a t such time. "(2) G U I D E L I N E PREMIUM LIMITATION.—For purposes of t h i s

subsection— "(A) G U I D E L I N E PREMIUM LIMITATION.—The term

'guide-

line p r e m i u m limitation' means, as of any date, the g r e a t e r of— "(i) the guideline single p r e m i u m, or "(ii) the sum of the guideline level p r e m i u m s to such date. "(B) G U I D E L I N E SINGLE P R E M I U M. — The term

'guideline

single p r e m i u m ' means the p r e m i u m a t issue with respect to future benefits under the contract (without regard to any qualified additional benefit), and with respect to any charges for qualified additional benefits, a t the time of a determination under subparagraph (A) or (E) and which is based on— "(i) the mortality and other charges g u a r a n t e e d under the contract, and "(ii) interest at the g r e a t e r of an annual effective r a t e of 6 percent or the minimum r a t e or rates g u a r a n t e e d upon issue of the contract. "(C) G U I D E L I N E LEVEL P R E M I U M. — The

f

term

'guideline

level p r e m i u m ' means the level annual a m o u n t, payable over the longest period permitted under the contract (but ending not less than 20 years from date of issue or not later than age 95, if earlier), computed on the same basis as the guideline single premium, except that subparagraph (B)(ii) shall be applied by substituting '4 percent' for '6 percent'. "(D) COMPUTATIONAL RULES.—In c o m p u t i n g the guideline

single p r e m i u m or guideline level p r e m i u m under subparagraph (B) or (O— "(i) the excess of the a m o u n t payable by reason of the death of the insured (determined without regard to any qualified additional benefit) over the cash value of the contract shall be deemed to be not g r e a t e r than such excess at the time the contract was issued, "(ii) the m a t u r i t y date shall be the latest m a t u r i t y date permitted under the contract, but not less than 20 years after the date of issue or (if earlier) age 95, and "(iii) the a m o u n t of any endowment benefit (or s u m of endowment benefits) shall be deemed not to exceed the least a m o u n t payable by reason of the death of the insured (determined without regard to any qualified additional benefit) a t any time under the contract. "(E) ADJUSTMENTS.—The guideline single p r e m i u m and guideline level p r e m i u m shall be adjusted in the event of a change in the future benefits or any qualified additional benefit under the contract which was not reflected in any

�