One-Year Monthly Point-to-Point

The monthly point-to-point index change is determined by subtracting the prior month’s index value from current month’s index value and dividing it by the prior month’s index value. If this results in a positive monthly point-to-point index change and is not more than the declared cap, then it is used as the capped index change for that month. If it is more than the declared cap, then we use the declared cap as the capped index change for that month.

A negative monthly point-to-point index change is not subject to a cap.

A “capped index change” for each month is captured over a 12-month period. The sum of the 12 monthly “capped index changes” will be the index credit rate on the index crediting date. The index credit rate is multiplied by the option’s account value to determine the index credit.

One-Year Annual Point-to-Point

The annual point-to-point index change is determined by subtracting the prior year’s index value from the current year’s index value and dividing it by the prior year’s index value. If this results in a positive annual point-to-point index change and is not more than the declared cap, then it is used as the index change for that year. If it is more than the declared cap, then we use the declared cap as the index change for that year.

A negative annual point-to-point index change is not subject to a cap. The index change will be the index credit rate on the index crediting date. The index credit rate is multiplied by the option’s account value to determine the index credit.