# 31 Pa. Code § 83.53 - Calculation of Surrender Comparison Index

(a) Calculation of Surrender Comparison Index After Ten Years shall be performed in the following manner:
(1) Step 1. Accumulate the annual premiums for the basic policy, excluding all built-in benefits and riders, at 5% interest compounded annually for 10 years. For level premium policies:

(2) Step 2. Accumulate the annual dividends, if any, at 5% interest compounded annually for 10 years. Include termination dividend after 10 years.
(3) Step 3. Determine the cash value after 10 years.
(4) Step 4. Step 4 shall be based on the following formula:

 Surrender Comparison Index after ten years= (5.0%) Accumulated Premiums (Step 1) minus Accumulated Dividends (Step 2) minus Cash Value (Step 3) _______________________________________________________________ 13.207 x Face Amount of Policy-1000
(b) Calculation of Surrender Comparison Index After 20 years shall be performed in the following manner:
(1) Step 1. Accumulate the annual premiums for the basic policy, excluding all built-in benefits and riders, at 5% interest compounded annually for 20 years. For level premium policies:

(2) Step 2. Accumulate the annual dividends, if any, at 5% interest compounded annually for 20 years. Include any termination dividend after 20 years.
(3) Step 3. Determine the cash value after 20 years.
(4) Step 4. This step shall be based on the following formula:

 Surrender Comparison Index after 20 years= (5%) Accumulated Premiums (Step 1) minus Accumulated Dividends (Step 2) minus Cash Value (Step 3) _______________________________________________ 34.719 x Face Amount of Policy-1000
(c) Factors to be excluded from computation of the Surrender Comparison Index:

Supplemental built-in benefits-As accurate as possible a calculation of the cost of such built-in benefits as accidental death, premium waiver, guaranteed insurability and disability monthly income, shall be subtracted from the annual premium prior to calculating the index.

## Notes

31 Pa. Code § 83.53
The provisions of this § 83.53 amended through December 28, 1979, effective 3/1/1980, 9 Pa.B. 4251.

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