ࡱ> Y]X| :bjbj 8@ikik P 81TL877777779_<t7-747^7734Bjy3z77083<<04<4778< :  Life Actuarial (A) Task Force/ Health Actuarial (B) Task Force Amendment Proposal Form* 1. Identify yourself, your affiliation and a very brief description (title) of the issue. Elaine Lam, California Department of Insurance Ben Slutsker, Minnesota Department of Commerce Clarify calculation mechanics in the VM-22 SPA dynamic lapse formula, specifically in the Market Factor and Rate Factor formulas. 2. Identify the document, including the date if the document is released for comment, and the location in the document where the amendment is proposed: January 1, 2026 Edition of the Valuation Manual VM-22 Section 6.C.5 Full Surrenders 3. Show what changes are needed by providing a red-line version of the original verbiage with deletions and identify the verbiage to be deleted, inserted or changed by providing a red-line (turn on track changes in Word) version of the verbiage. (You may do this through an attachment.) See attached. 4. State the reason for the proposed amendment? (You may do this through an attachment.) In the current VM-22 SPA dynamic lapse formula, in order to get the intended result, the Market Factor accepted percentage inputs (for CR, MR, BF) as whole numbers rather than decimals. For example, 5% was expected to be input as 5, instead of 0.05. This input format caused confusion due to inconsistency with mathematical convention where percentages are typically expressed as decimals (e.g., 5% is 0.05, not 5). This APF updates the formula for Market Factor to accept decimal inputs for percentages rather than whole number inputs, which follows mathematical convention. The formula for Rate Factor also requires updating, to output a decimal percentage rather than a whole number percentage (which again follows mathematical convention), to be correctly input into the Total Lapse formula. In the end, the Total Lapse result will be unchanged. Mechanically, to end up with the same result, the changes being proposed are to: - multiply the decimal percentage inputs of the Market Factor by 100 - divide the Rate Factor by 100 to turn it into a decimal percentage output (Footnote: CR = Crediting Rate; MR = Market Rate; BF = Buffer Factor) * This form is not intended for minor corrections, such as formatting, grammar, crossreferences or spelling. Those types of changes do not require action by the entire group and may be submitted via letter or email to the ̳ staff support person for the ̳ group where the document originated. ̳ Staff Comments: Dates: ReceivedReviewed by StaffDistributedConsidered3/10/25SONotes:  W:\National Meetings\2010\...\TF\LHA\ VM-22 Section 6.C.5  Full Surrenders (proposed changes in red) & 5G5\5a5N5Y Lapse = (555N5`5R 5?5N5]5`5R x GMIR Factor + 5E5N5a5R 595N5P5a5\5_ x MVA Factor) 5<5G5@ 595N5P5a5\r & Rate Factor 5E5N5a5R 595N5P5a5\5_ = 5@5N5_5X5R5a 595N5P5a5\5_ 5@5N5e(0, 1  5 (1-CSV/AV)) 100 & Market Factor 5@5N5_5X5R5a 595N5P5a5\5_ =  1.25 x [100 x (565E  5@5E)]Xif CR e" MR M5N5_5X5R5a 595N5P5a5\5_?@WXYZ]    * 4 6 ·xiZiKKKhGhRB*CJaJphh=(hEB*CJaJphhGhEB*CJaJphhGhSB*CJaJphhGhQ>B*CJaJphhGh.CJaJhGhSCJaJhGhV7JCJaJhhA/hyCJaJh`|h5h`|h"k5h`|hy5h`|h`|5CJaJh.R5CJaJh`|5CJaJhleCJaJ@YZ  3 4  $^`a$gd_ $^a$gdG$0^`0a$gdc $^a$gdR$a$gdc$a$gd`|$a$gdc  3 4 S c f y   / ʿygyy\QFFhGh7CJaJhGhCJaJhGh0HCJaJ#hGhG6B*CJ]aJphhGhGB*CJaJphhGhleCJaJhGh.CJaJhGh/CJaJhGh"kCJaJhGhyCJaJhGhV7JCJaJhGh*CJaJhGhQ>B*CJaJphhGhRB*CJaJphhB*CJaJph     & F G i k ~ źvg[[O@hGh-B*CJaJphh=B*CJaJphhAqB*CJaJphhGhAqB*CJaJphhAqhAqB*CJaJphhGhRB*CJaJphhGhFIB*CJaJphhGB*CJaJphhGhYlCJaJhGh"kCJaJhGhSCJaJhGh.CJaJhGhGB*CJaJphhGh_CJaJhGhyCJaJ  jkMN$$$$Ifa$gd^v`$&dPa$gdc$&dPa$gdV$&dP^`a$gd=$&dP^a$gd$&dP^a$gdR$a$gdc     # ( ) : M N | /VX24ƺƮ՟uiZZhGhJB*CJaJphhGB*CJaJphhGh*B*CJaJphhGhFIB*CJaJphh=B*CJaJphhGhVB*CJaJphhB*CJaJphhJB*CJaJphhGh-B*CJaJphhGh5NB*CJaJphhAqB*CJaJphhGhRB*CJaJph#4ijkw  $(+0MNررررvjh0XhY9.>*CJaJh3h#1`CJaJh3hY9.CJaJh3h"kCJaJhhA/hRCJaJhRhGB*CJaJphhGhFIB*CJaJphhB*CJaJphhAqB*CJaJphh=B*CJaJphhGhB*CJaJphhB*CJaJph'  "0268:<>JLNPRXǼǼǼǼzzrjjbbhJCJaJhGCJaJhECJaJh*CJaJhleCJaJhsCJaJh^v`h_lCJaJh^v`hCJaJh^v`h.5CJaJhCJaJh^v`h.CJaJ h^v`h.CJOJQJ^JaJ#h^v`h.5CJOJQJ^JaJhg=Ih_CJaJh0XhY9.CJaJ"  $$$$Ifa$gd^v` "!kd$$IfTl\x1&(  t(0644 l` ap(yt^v`T"28:<$$$$Ifa$gd^v`<>N! $$Ifa$gd^v`kd$$IfTlC\x1&(  t(0644 l` ap(yt^v`TNPR&({snnbbbbb $^a$gdG$a$$a$gdckd*$$IfTl1&&  t 0644 l` ap yt^v`T $&(,.BVfh|˹{i[C1C1C1C1#h?h?6B*CJ]aJph/h?h?6B*CJOJQJ]^JaJphh}A>*B*CJaJph#hJh}A5B*CJ\aJph hGhG>*B*CJaJphhGhGB*CJaJphhGhGB*CJaJphhD 5B*CJ\aJph#hJhJ5B*CJ\aJphhJ5B*CJ\aJph#hJhG5B*CJ\aJph&hGhG5>*B*CJ\aJph(,.08j99:::: :::::$a$$a$gdG $^a$gdG $^a$gd}A .0@BZ`xzձq\q\q\q\q\Jq#hGhG6B*CJ]aJph)hGhGB*CJOJQJ^JaJphhGhGB*CJaJph hGhG>*B*CJaJphhJ>*B*CJaJph#hJhJ5B*CJ\aJphh?5B*CJ\aJph)h?6B*CJOJQJ]^JaJph#h?h?6B*CJ]aJph/h?h?6B*CJOJQJ]^JaJph6N\^fltvxz88888899999$9,9.909ygeU#hGhG6B*CJ]aJph hGhGB*CJH*aJph)hGhGB*CJOJQJ^JaJph hGhG>*B*CJaJph hGhJ>*B*CJaJph#hJhJ5B*CJ\aJphhG>*B*CJaJphhGhGB*CJaJphhGhGB*CJaJph' = 0 if MR > CR e" (MR " BF) 5@5N5_5X5R5a 595N5P5a5\5_ = 1.25 x [100 x (5@5E  5559  565E)]X if CR < (MR " BF) X = 2.0 during Surrender Charge Period, 2.5 at Shock, and 2.5 thereafter     2010 National Association of Insurance Commissioners  PAGE 1 0929j999::::: : ::::::::&:::::::::::ʿsokhyh*h.R0JCJaJmHnHuhV7Jh*0JCJaJ!jhV7Jh*0JCJUaJhV7Jh*CJaJh*CJaJhkjhkUh-hGCJaJhg=IhGCJaJhRhGB*phhGhGB*CJaJph hGhGB*CJH*aJph::::::$a$gdV7J61h/R :ps/ =!8"8#8$8% $$If!vh#v(#v#v#v:V l  t(065(555` p(yt^v`T$$If!vh#v(#v#v#v:V lC  t(065(555` p(yt^v`T$$If!vh#v&:V l  t 065&` p yt^v`Tx2&6FVfv2(&6FVfv&6FVfv&6FVfv&6FVfv&6FVfv&6FVfv8XV~ 0@ 0@ 0@ 0@ 0@ 0@ 0@ 0@ 0@ 0@ 0@ 0@ 0@ 0@66666_HmH nH sH tH @`@ dFzNormalCJ_HaJmH sH tH JJ le Heading 1$$ & Fxx@&a$DA`D Default Paragraph FontVi@V  Table Normal :V 44 la (k (No List jj wX Table Grid7:V044 XYHeader  !4 4 XYFooter  !.)@!. V7J Page Number@2@ o Comment Text xxCJB' AB +4wComment ReferenceCJaJLj12L +4wComment Subject  5\aJHbH +4w Balloon TextCJOJQJ^JaJF/qF 5@ Header CharCJ_HaJmH sH tH PK![Content_Types].xmlN0EH-J@%ǎǢ|ș$زULTB l,3;rØJB+$G]7O٭Vzt7.??Źڨd/L+[梃 _¯UjyA_/֖j-A %4\/%ި+K|h(Kmgk):b| H$Y 9DZ.6)A2&`RV!*_[`dI+^DL-)>qfoΟ~_'ҨrQrW_ƿw!pƦ7/_zqԵbp@m ?ItDl,(CjLQc׎O9!N@Iw{Xe3b|`:2˭A9Tn$ءy@Q&Q3,;sg8v%= CN4I ~> zHzw0u $J}*;(wL|$C޳q-!1,hEX>ZN yݾKt l&;HPm%6sq !&}] ~@Lw?%q d98@7C̜mia_Y㩓b8F vB{cNQqsu;6~@VƾzXU+f:OllD,E|=mVePاcGxe_+gj=HSԳ;{yи½|mHmA`0D_cU\+w/ 9MOJK:WnǯIUsffn`<"K*2:&w4]3۸cB/br;}̸uF̘G}ҙ3>-=k&ڂE%睸 |Te6pp1GZ&L~AdNPjĢP gFFz٫[ euRTVxC'c*ibQTz:"dC%1!4ZŲR?rՔ)Zf\5GμMO20V4'|:xt&Ԯiv +nD?TWq]_7.u)S 4?⦾@3;S,8;^K=7>̌cC ^$77&%Bn"cy@I K?L'CWc%WSc#^w}ܓ߭ei)$ Z`%v]:Blqwae&De*2JǐYG4OPQRlnຠtSi832IQ QrZ.afٽ\HYʚU6iaT&ly*o]M̹Qh2/woQoPSJŪ[lDY&`Riڊ0z۶ܫ/PK! ѐ'theme/theme/_rels/themeManager.xml.relsM 0wooӺ&݈Э5 6?$Q ,.aic21h:qm@RN;d`o7gK(M&$R(.1r'JЊT8V"AȻHu}|$b{P8g/]QAsم(#L[PK-![Content_Types].xmlPK-!֧6 0_rels/.relsPK-!kytheme/theme/themeManager.xmlPK-!wG theme/theme/theme1.xmlPK-! ѐ'Q theme/theme/_rels/themeManager.xml.relsPK]L C G@ OOOR 409:   "<N(:: CJLR!@ @ 0(  B S  ?H0(    5 ? A D ?CGRL S c j A D 3333333pp:M     5 A D pp:M       A D  Zg,'0Ut>cdh0!#"a:[R7(!VLarD@ ^`o(hH. ^`hH. pLp^p`LhH. @ @ ^@ `hH. ^`hH. L^`LhH. ^`hH. ^`hH. PLP^P`LhH.  ^ `o(.  ^ `o(. xLx^x`LhH. HH^H`hH. ^`hH. L^`LhH. ^`hH. ^`hH. X LX ^X `LhH.^`o(()   ^ `hH.  L ^ `LhH. xx^x`hH. HH^H`hH. L^`LhH. ^`hH. ^`hH. L^`LhH. 88^8`o(hH. ^`hH. L^`LhH. pp^p`hH. @ @ ^@ `hH. L^`LhH. ^`hH. ^`hH. L^`LhH. ^`56o(A2.)^`o()88^8`o()^`o(()(x^(`xo(()pp^p`B*OJQJo(  ^ `B*OJQJo(@ @ ^@ `o(.  ^ `o(. 88^8`o(hH.pp^p`5o(hH. @ L@ ^@ `LhH. ^`hH. ^`hH. L^`LhH. ^`hH. PP^P`hH.  L ^ `LhH.88^8`5o(hH. ^`hH. L^`LhH. pp^p`hH. @ @ ^@ `hH. L^`LhH. ^`hH. ^`hH. L^`LhH.00^0`o(. LLL^L`Lo(hH. L^`LhH. ^`hH. pp^p`hH. @ L@ ^@ `LhH. ^`hH. ^`hH. L^`LhH.^`. @ @ ^@ `hH. L^`LhH. ^`hH. ^`hH. L^`LhH. PP^P`hH.   ^ `hH. L^`LhH. Zg,a:ar[Rh0!#"0Ut!V          R)ZV1d       a^p        PGcR&s72+@.0HIr)yS\2w9EJ~=(=P43*Yk=*7s_l"e+1:Rk,\)G 5N0x%EvI=?}+coMGxG4KnOP=U`|-S^e^:   @( C p@pp8UnknownG.[x Times New Roman5Symbol3& .[x ArialA$BCambria Math5. .[`)TahomaC. Aptos Display3. Aptos"1hG''c* 2Y* 2Y!8820  3q@P ?y!xxͭ( VM-20_090612_004JEngelha O'Neal, Scott0         Oh+'0 ( H T ` lxVM-20_090612_004 JEngelhaNormalO'Neal, Scott14Microsoft Office Word@ @ʵj@MV@y?@ABCDEFGIJKLMNOQRSTUVWZ[\_abcdefghijklmnopqrstuvwxyz{}~Root Entry FPLBj^Data !1Table)=WordDocument 8@SummaryInformation(HDocumentSummaryInformation8PMsoDataStore:BjBj1L4UEEA==2 :BjBjItem  PropertiesOXLNW2NVEA344GA2A==2 :BjBjItem  `WLProperties GCompObj r !DocumentLibraryFormDocumentLibraryFormDocumentLibraryForm This value indicates the number of saves or revisions. The application is responsible for updating this value after each revision. metaAttributes"/>  F Microsoft Word 97-2003 Document MSWordDocWord.Document.89q