Document ID: chunk:federal_register_of_legislation:F2023L00208:front:0:p11
Version: federal_register_of_legislation:F2023L00208
Segment Type: other
Provision Reference: 
Character Range: 29956–32773

(ii)         NP is the net premium;
           (iii)       A is the present value as at the attained age of $1 of sum  insured according to the contingencies upon which it is payable;
           (iv)        a is the present value at the attained age of $1 p.a. of future net premiums according to the contingencies upon which they are payable;
           (v)          Sprague Adjustment is 1 year;
           (vi)        Factor is 90% where the paid-up policy will not participate in future profits and 80% otherwise; and
           (vii)     attained age means the age next birthday of the life insured at the date of issue of the policy plus the duration of the policy in completed years and months;
       (c)          for a policy which is not a policy for the whole term of life with premiums payable throughout life, but which is a long term risk policy:

 where:

           (i)            SA is the sum insured under the policy;
           (ii)         NP is the net premium;
           (iii)       A is the present value as at the attained age of $1 of sum insured according to the contingencies upon which it is payable;
           (iv)        a is the present value at the attained age of $1 p.a. of future net premiums according to the contingencies upon which they are payable;
           (v)          Sprague Adjustment is 1 year; and
           (vi)        attained age means the age next birthday of the life insured at the date of issue of the policy plus the duration of the policy in completed years and months.
    3.             The amount of the minimum paid-up value calculated under paragraph 2 of this Attachment shall be increased by the amount of any bonus additions. Bonus additions are all reversionary bonuses declared upon, and still attaching to, the original policy, excluding those reversionary bonuses declared between the date of issue of the policy and the earlier of:
       (a)          the date three years subsequent to the date of issue, and

       (b)          the date of the paid-up policy.

    4.             The net premium for the policy is such premium, exclusive of any addition for bonuses, office expenses and other charges, as is sufficient to provide for the risk incurred by the company in issuing the policy. The age at issue is taken as age next birthday at the date of issue of the policy plus the number of years of Sprague adjustment. The term at issue (other than for a policy for the whole term of life) is the original term less the number of years of Sprague adjustment.
Part II - new business written subsequent to the date of commencement

A.  Minimum termination value

    5.             The minimum termination value is calculated as:
where:

       (a)          SA is the sum insured under the policy;

       (b)          B is the bonus