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Old 10-28-2016, 01:20 PM
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kazh kazh is offline
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Cool FIA or MVA

Quote:
Originally Posted by MathGeek92 View Post
Is this a real product, or just pointing out the idea of how to get around the SNL?
Quote:
Originally Posted by JMO Fan View Post
If we change the guarantee to doubling the value if the S&P 500 doubles after 10 years, the logic is the same, as it is for every other possible indexing formula. And if the deferred annuity has typical 1%- graded surrender charges, any guaranteed increase that could exceed 0.1% will violate the prospective test.
The first example matches products with 100% participation (rare). The second would apply to every indexed product that guarantees anything other than 0, implying that virtually all FIAs violate Nonforfeiture. Zero guarantees are not consumer friendly => SNFLIDA needs an update.
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Last edited by kazh; 10-28-2016 at 01:24 PM..
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