guideline level premium

(2) Guideline premium limitation For purposes of this subsection— (A) Guideline premium limitation The term “guideline premium limitation” means, as of any date, the greater of— (i) the guideline single premium, or (ii) the sum of the guideline level premiums to such date. (B) Guideline single premium The term “guideline single premium” means the premium at 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, at the time of a determination under subparagraph (A) or (E) and which is based on— (i) the mortality and other charges guaranteed under the contract, and (ii) interest at the greater of an annual effective rate of 6 percent or the minimum rate or rates guaranteed upon issue of the contract. (C) Guideline level premium The term “guideline level premium” means the level annual amount, 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 computing the guideline single premium or guideline level premium under subparagraph (B) or (C)— (i) the excess of the amount 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 greater than such excess at the time the contract was issued, (ii) the maturity date shall be the latest maturity date permitted under the contract, but not less than 20 years after the date of issue or (if earlier) age 95, and (iii) the amount of any endowment benefit (or sum of endowment benefits) shall be deemed not to exceed the least amount payable by reason of the death of the insured (determined without regard to any qualified additional benefit) at any time under the contract. (E) Adjustments The guideline single premium and guideline level premium 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 guideline single premiums or guideline level premium previously determined.


26 USC § 101(f)(2)

Scoping language

For purposes of this subsection
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