Common use of Upon annuitization of the Contract Clause in Contracts

Upon annuitization of the Contract. If a non-natural person is the Owner of the Contract, the Annuitant or Joint Annuitant will be considered the Owner of the Contract for purposes of this provision. The amount of the Interest Adjustment is calculated by multiplying the dollar amount transferred, withdrawn or surrendered by the following amount: n n (1+A) divided by (1 + B) , the result reduced by 1.0, where: A = the yield rate determined at the beginning of the Guaranteed Period, for a U.S. Treasury security with time to maturity equal to the applicable Guaranteed Period; B = the yield rate, determined at the time of the transfer, withdrawal or surrender, for a U.S. Treasury security with time to maturity equal to the time remaining in the applicable Guaranteed Period, if greater than one year. For periods remaining of one year or less, the yield rate for one-year U.S. Treasury security is used; n = the number of fractional years remaining in the applicable Guaranteed Period (e.g. 1 year and 73 days = 1 + (73 divided by 365) = 1.2 years. Straight-line interpolation is used to determine the yield rate for a U.S. Treasury security with time to maturity for the applicable Guaranteed Period if such yield rate is not quoted. A positive Interest Adjustment increases the amount transferred, withdrawn or surrendered while a negative Interest Adjustment decreases it. A negative Interest Adjustment, however, will not reduce the amount transferred, withdrawn, or surrendered (before application of any CDSC) below the value it would have had if the Minimum Guaranteed Interest Rate had been credited to the Fixed Subaccount instead of the actual Guaranteed Interest Rate. If such yields are no longer published, LNY will substitute an appropriate index of publicly traded obligations. A detailed description of this Interest Adjustment formula is on file with the New York Superintendent of Insurance.