Classifications

• • G—PHYSICS
  • G06—COMPUTING; CALCULATING OR COUNTING
  • G06Q—INFORMATION AND COMMUNICATION TECHNOLOGY [ICT] SPECIALLY ADAPTED FOR ADMINISTRATIVE, COMMERCIAL, FINANCIAL, MANAGERIAL OR SUPERVISORY PURPOSES; SYSTEMS OR METHODS SPECIALLY ADAPTED FOR ADMINISTRATIVE, COMMERCIAL, FINANCIAL, MANAGERIAL OR SUPERVISORY PURPOSES, NOT OTHERWISE PROVIDED FOR
  • G06Q40/00—Finance; Insurance; Tax strategies; Processing of corporate or income taxes
  • G06Q40/08—Insurance
• • G—PHYSICS
  • G06—COMPUTING; CALCULATING OR COUNTING
  • G06Q—INFORMATION AND COMMUNICATION TECHNOLOGY [ICT] SPECIALLY ADAPTED FOR ADMINISTRATIVE, COMMERCIAL, FINANCIAL, MANAGERIAL OR SUPERVISORY PURPOSES; SYSTEMS OR METHODS SPECIALLY ADAPTED FOR ADMINISTRATIVE, COMMERCIAL, FINANCIAL, MANAGERIAL OR SUPERVISORY PURPOSES, NOT OTHERWISE PROVIDED FOR
  • G06Q20/00—Payment architectures, schemes or protocols
  • G06Q20/08—Payment architectures
  • G06Q20/10—Payment architectures specially adapted for electronic funds transfer [EFT] systems; specially adapted for home banking systems
  • G06Q20/102—Bill distribution or payments
• • G—PHYSICS
  • G06—COMPUTING; CALCULATING OR COUNTING
  • G06Q—INFORMATION AND COMMUNICATION TECHNOLOGY [ICT] SPECIALLY ADAPTED FOR ADMINISTRATIVE, COMMERCIAL, FINANCIAL, MANAGERIAL OR SUPERVISORY PURPOSES; SYSTEMS OR METHODS SPECIALLY ADAPTED FOR ADMINISTRATIVE, COMMERCIAL, FINANCIAL, MANAGERIAL OR SUPERVISORY PURPOSES, NOT OTHERWISE PROVIDED FOR
  • G06Q40/00—Finance; Insurance; Tax strategies; Processing of corporate or income taxes
• • G—PHYSICS
  • G06—COMPUTING; CALCULATING OR COUNTING
  • G06Q—INFORMATION AND COMMUNICATION TECHNOLOGY [ICT] SPECIALLY ADAPTED FOR ADMINISTRATIVE, COMMERCIAL, FINANCIAL, MANAGERIAL OR SUPERVISORY PURPOSES; SYSTEMS OR METHODS SPECIALLY ADAPTED FOR ADMINISTRATIVE, COMMERCIAL, FINANCIAL, MANAGERIAL OR SUPERVISORY PURPOSES, NOT OTHERWISE PROVIDED FOR
  • G06Q40/00—Finance; Insurance; Tax strategies; Processing of corporate or income taxes
  • G06Q40/02—Banking, e.g. interest calculation or account maintenance

Definitions

• the present invention relates to the field of life insurance. More particularly, the present invention relates to a system and method for generating life insurance products under a single approved form.
• ajife insurance contract provides economic protection against the risk of income cessation or liabilities associated with death.
• a life insurance contract, or insurance product typically provides for one party (the customer) to pay a premium or premiums and for another party (the insurer) to pay a defined amount upon the death of the insured, a death benefit.
• the customer typically provides for one party (the customer) to pay a premium or premiums and for another party (the insurer) to pay a defined amount upon the death of the insured, a death benefit.
• the insurer the insurer
• life insurance products typically provides for one party (the customer) to pay a premium or premiums and for another party (the insurer) to pay a defined amount upon the death of the insured, a death benefit.
• life insurance products typically provides for one party (the customer) to pay a premium or premiums and for another party (the insurer) to pay a defined amount upon the death of the insured, a death benefit.
• many individuals use life insurance products as a means to provide for the income needs of surviving dependent family members, pay federal or state
• Life insurance policy premiums typically pay for the cost of death benefit protection within a current period (the cost of insurance), for pre- funding the cost of future protection, and to cover other policy charges.
• Premiums associated with pre-funding the future cost of insurance protection are invested by the insurance company and held in a reserve.
• different types of contracts give customers various rights as to when and at what level premiums are paid, access to the policy reserves (known as "account value” or “cash value”), and some limited options as to which types of investments to invest the reserves.
• variable universal life insurance contracts are often purchased by individuals and businesses who desire maximum control over the premiums paid into their investment account - when premiums are paid, how much is paid at a given time, and how to invest the reserves.
• These policies permit a customer to pay premiums at the time and in the amount of the customer's choosing, within certain legal and regulatory limits, and to direct the investment of the funds associated with their policies among a menu of different investment accounts, which are roughly similar to choices found in mutual fund-type investments.
• a portion of the premium or premiums paid by a customer to the insurer may be used to pay for certain charges incurred by the insurer, for example, distribution expenses, periodic charges, investment advisory expenses, and government taxes.
• An insurance contract typically has a given set of charges from which an insurance company expects to recover the expenses that it incurs.
• the art of insurance product pricing is to develop a package of policy charges that will recover the expenses that are incurred by the insurance company over time, accounting for certain risks and the time value of money, while at the same time delivering an attractive product to the customer. Variations among products in the marketplace are most often driven by attempts by the product developers to satisfy differing customer preferences while taking into account the risks presented by those preferences.
• the amount of policy charges and the timing of when they are set in the insurance contract affect the amount of the customer's investment account associated with the policy. If charges are designed to recover costs quickly, the customer's investment account in the early years would be lower than if the policy charges were designed to recover costs over a longer period of time. However, the quicker the carrier recovers its costs generally results in a better long-term value for the customer, so a customer's preference for long-term results versus short-term results often drives different charge configurations in the marketplace. Thus, for example, a policy which is designed to recoup the insurer's costs as quickly as possible and provide the customer with a maximized death benefit twenty years in the future may be highly desirable to some customers but not to others. This balancing of the customer's and the insurer's goals and desires increases the complexity in designing and selecting the best-suited life insurance product.
• life insurance products are relatively inflexible with regard to customized features to meet the objectives of specific customers.
• Life insurers, products and agents are subject to a combination of state and federal government regulations designed to protect the insured, policy owners, and beneficiaries against unfair and deceptive provisions and practices, and to prevent the use of insurance for purposes other that what was intended.
• states often require that a policy contract form may not be used until a specimen policy contract form is filed with, and approved by, the state's insurance department.
• NAIC National Association of Insurance Commissioners
• the Internal Revenue Code provides a definition of life insurance for federal income tax purposes, which determines whether or not an insurance contract will be accorded the tax benefits associated with life insurance, e.g., tax deferred growth of the earnings of an associated investment account and receipt of death benefits free of income tax.
• life insurance contained in the Internal Revenue Code is designed to prevent the unnecessary build up of cash in a policy's investment account relative to the amount of death benefit protection being provided by the insurer. This limits the customer's ability use life insurance as an investment vehicle and also limits the customer's ability to control the investment of premiums with regard to particular investments.
• certain insurance products are classified as securities and therefore are regulated by the U.S. Securities and Exchange Commission (SEC), the National Association of Securities Dealers (NASD), the Municipal Securities Rulemaking Board (MSRB), and various state agencies.
• an insurance company In order to create a new insurance product structure, an insurance company typically invests several months of time in order to create a proper charge structure to offer a competitive product, based on the customer profile it intends to attract and the associated financial and health risks, that complies with the regulatory review process for all applicable statutory and regulatory requirements while meeting the insurance company's requirements for risk and earnings.
• This "manufacturing" process often results in delays for creating new regulatory- approved life insurance products tailored to meet certain customer needs or in the decision by the insurer to simply forego the creation of a product for a particular type of customer because it does not have the flexibility to offer such a product responsive to the customer's needs on a timely basis.
• traditional life insurance products typically do not give insurance representatives broad flexibility to allocate insurance policy charges in ways that meet customer objectives and at the same time manage risks for the insurer that underwrites the product.
• traditional life insurance products typically do not provide customer flexibility to choose different charge amortization configurations to generate a product that can meet differing customer preferences by permitting the amortization of different charges associated with the product over differing periods of time.
• life insurance product offerings have included limited options to allow insurance representatives to alter the commission structure to affect policy charges.
• insurance companies are often only able to offer customers a limited number of policies which, in turn, are intended to meet the objectives of certain types of customers. Representatives are frequently not able to illustrate different insurance products in a real-time fashion that immediately shows the consequences of various customer choices in benefits or premiums. Representatives also have limited flexibility to change or defer commission schedules in order to generate a policy that meets a customer's objectives and thereby make a sale.
• the present invention is directed to systems and methods for generating life insurance products under a single approved form.
• the invention advantageously provides a flexible process for generating insurance products tailored to meet customer needs without having to submit new forms for regulatory approval.
• a single regulatory-approved form according to the present invention is sufficient to facilitate generating a plurality of life insurance policies.
• the insurance regulatory forms shown in Appendix A, Sample Product Regulatory submission, which is part of this specification, are for illustrative purposes and are examples of forms sufficient to obtain regulatory approval of life insurance products embodying the present invention. In view of this specification, including Appendices A- F, it would be apparent to a person of ordinary skill in the art how to create insurance regulatory forms for various life insurance policy offerings using or embodying the present invention.
• the MAGNASTAR Private Placement Variable Life product described in the appendices is a product of M Financial Group.
• the invention provides an insurance representative the capability to flexibly distribute charges associated with an insurance product to various balancing items of the insurance product such as the premium stream or the cash value.
• the invention also provides the capability to distribute charges across a plurality of premium bands and a plurality of time periods. Premium bands are designed such that premiums up to one amount have a certain expense load while premiums over that amount may have a different expense load.
• the invention advantageously provides a system and method for illustrating life insurance products tailored to customer needs in practically real-time.
• the system receives inputs for variables such as the death benefits desired by the customer, the cash values desired for various time periods, and premium levels and in response generates an illustrative life insurance product.
• the interactive application permits practically realtime adjustments of insurance products to meet customer needs.
• the present invention facilitates a large universe of investment choices for individual life insurance products.
• the invention provides qualified customers with the ability to invest in investments exempt from registration under Regulation D of the 1933 Securities Act, as well as in registered investment funds.
• a method for determining a premium schedule for a life insurance product under a single regulatory-approved form by selecting a death benefit; targeting a projected balance of an account associated with the product; designating at least one premium band; generating, in response to a deferral determination for at least one premium-based charge for at least one premium band, factors for allocating charges associated with the product; and calculating the premium schedule.
• a deferral determination is an option that allows an insurance representative or a customer to presently incur a premium-based charge or to defer the charge to a future charge schedule.
• the calculated premium schedule is consistent with regulatory requirements, which may include meeting the qualifications for a life insurance policy.
• a premium schedule is calculated for each of a plurality of time periods.
• a method for determining a death benefit for a life insurance product under a single regulatory-approved form by selecting a premium; targeting a projected balance of an account associated with the product; designating at least one premium band; generating, in response to a deferral determination for at least one premium-based charge for at least one premium band, factors for allocating charges associated with the product; and calculating the death benefit.
• the calculated death benefit is consistent with regulatory requirements, considering the selected premium amount.
• a death benefit is calculated for each of a plurality of time periods.
• a method for determining a projected balance of an account associated with a life insurance product under a single regulatory-approved form by choosing a death benefit; selecting a premium; designating at least one premium band; generating, in response to a deferral determination for at least one premium-based charge for at least one premium band, factors for allocating charges associated with the product; and calculating the projected balance.
• the projected balance or projected cash value may be calculated by estimating a financial earnings rate for the balance after subtracting the cost of insurance and policy charges from the premium.
• the calculated projected balance is consistent with regulatory requirements.
• a projected balance is calculated for each of a plurality of time periods.
• the methods of generating life insurance products under a single regulatory-approved form include the process of determining a projected earnings rate on the projected balance.
• the life insurance products of the invention include single life policies, joint life policies, joint last-survivor life policies, or portfolios of policies.
• the life insurance products may be from a class of insurance policies meeting government regulatory definitions for life insurance and consisting of, but not limited to, term life, endowment, annuity, whole life, universal life, variable life, variable universal life, private placement variable life, and combinations thereof.
• methods for generating life insurance products under a single approved form may include selecting a maximum or minimum death benefit or a maximum or minimum premium level.
• the methods for generating life insurance products under a single approved form may also include targeting a maximum or minimum projected balance of an account associated with the product.
• methods for generating life insurance products under a single approved form may include generating factors for allocating charges responsive to a first defe ⁇ al determination to defer a first amount of charges and generating revised factors for allocating charges responsive to a revised deferral determination to defer a revised amount of charges.
• the factors are mathematical variables that can be used to allocate policy charges to the policy's premium schedule and assets.
• the algorithms for calculating the factors are described in Appendix B, Product Definition, which is part of this specification.
• the methods for generating life insurance products may also include selecting a revised death benefit and calculating a revised premium schedule or a revised projected balance.
• the methods for generating life insurance products may also include targeting a revised projected balance and calculating a revised premium schedule or a revised death benefit responsive to the revised projected balance.
• methods of illustrating or offering a life insurance product under a single approved form are provided.
• charges associated with insurance products may include costs of insurance charges, periodic charges, asset-based charges, or combinations of such charges.
• life insurance products generated by the processes of the invention are provided.
• a computer program product comprising a computer usable medium having computer program logic recorded on it for enabling a processor in a computer system to facilitate creating a life insurance product under a single regulatory-approved form.
• the computer program logic may comprise a storage means for enabling the computer system to accept information including a death benefit, a projected balance of an account associated with the product, a projected earnings rate on the projected balance, at least one premium band, and factors for allocating charges associated with the life insurance product.
• the computer program logic may also comprise a calculating means for calculating, consistent with regulatory requirements, a premium schedule, responsive to the stored death benefit, the projected balance, the projected earnings rate, the premium band, and the factors.
• a life insurance system comprising a data processing apparatus for storing life insurance base product tables and regulatory requirements, and input means for inputting instructions to the apparatus to calculate a premium schedule associated with a life insurance product responsive to a selected death benefit, a projected balance of an account associated with the life insurance product, at least one designated premium band, and factors for allocating charges associated with the life insurance product, the factors being responsive to a defe ⁇ al determination for at least one premium-based charge for each premium band.
• the premium schedule is also responsive to a projected earnings rate on the projected balance.
• a life insurance system comprising a data processing apparatus for storing life insurance base product tables and regulatory requirements, and input means for inputting instructions to the apparatus to calculate a death benefit responsive to a selected premium schedule, a projected balance of an account associated with the life insurance product, at least one designated premium band, and factors for allocating charges associated with the life insurance product, the factors being responsive to a defe ⁇ al determination for at least one premium-based charge for each premium band.
• the death benefit is also responsive to a projected earnings rate on the projected balance.
• a life insurance system comprising a data processing apparatus for storing life insurance base product tables and regulatory requirements, and input means for inputting instructions to the apparatus to calculate a projected balance of an account associated with the life insurance product responsive to a selected death benefit, a selected premium schedule, at least one designated premium band, and factors for allocating charges associated with the life insurance product, the factors being responsive to a deferral determination for at least one premium-based charge for each premium band.
• the projected balance is also responsive to a projected earnings rate on the projected balance.
• FIG. 1 illustrates a flowchart depicting an embodiment of a process of the invention
• FIG. 2 illustrates an application of an embodiment of the invention for entering product' information
• FIG. 3 illustrates a pull-down menu in an application of an embodiment of the invention
• FIG. 4 illustrates an application of an embodiment of the invention for entering customer information
• FIG. 5 illustrates an application of an embodiment of the invention for entering product characteristics
• FIG. 6 illustrates a data entry application of an embodiment of the invention for entering death benefit levels
• FIG. 7 illustrates a data entry application of an embodiment of the invention for entering premium levels
• FIG. 8 illustrates an application of an embodiment of the invention for entering product characteristics
• FIG. 9 illustrates an application of an embodiment of the invention for entering fund options
• FIG. 10 illustrates a data entry application of an embodiment of the invention for entering rates of return
• FIG. 11 illustrates an application of an embodiment of the invention for entering premium band options
• FIG. 12 illustrates an application of an embodiment of the invention for allocating commissions
• FIG. 13 illustrates a data entry application of an embodiment of the invention for entering commission levels
• FIG. 14 illustrates a data entry application of an embodiment of the invention for entering commission levels
• FIG. 15 illustrates an application of an embodiment of the invention for entering distribution characteristics
• FIG. 16 illustrates a pull-down menu in an application of an embodiment of the invention
• FIG. 17 illustrates an application of an embodiment of the invention for entering rider options
• FIG. 18 illustrates a sample illustration of an embodiment of the invention
• FIG. 19 illustrates an embodiment of a system of the invention.
• the present invention provides a system and method for generating life insurance products under a single approved form.
• the invention receives information inputs, such as a death benefit level and a projected cash value balance, needed to generate a life insurance product.
• the inputs are processed with predetermined insurance tables containing information concerning insurance company costs, such as a company's periodic charges, cost of providing mortality protection, government taxes, or contribution to profits. Examples of insurance data tables used in practicing the invention are shown in Appendix C, Exemplary Inputs For Product, for illustrative purposes and are part of this specification.
• the first two pages of Appendix C are an index of the sample insurance data tables, and the second column of the index references the co ⁇ esponding sections of the Product Definition in Appendix B.
• Appendices A - F it would be apparent to a person of ordinary skill in the art how to populate and create additional insurance tables that meet the various requirements and goals of different insurance companies for their life insurance products embodying the present invention.
• User inputs and the data tables are processed in order to calculate the complete schedules of a' life insurance product, as more fully explained below.
• the algorithms for processing the input information and generating a product are described in Appendix B, Product Definition.
• a user inputs parameters for a life insurance product such as death benefit levels, projected balances for the cash value of the product, a projected earnings rate for cash value balances, and premium levels.
• parameters for a life insurance product such as death benefit levels, projected balances for the cash value of the product, a projected earnings rate for cash value balances, and premium levels.
• these variables are tied together by a single equation or calculation or a series of equations and calculations.
• inputs for death benefit levels, projected balances for the cash value of the product, and a projected earnings rate for cash value balances can be used to calculate a schedule of premium levels.
• inputs for projected balances for the cash value of the product, a projected earnings rate for cash value balances, and premium levels can be used to calculate death benefit levels.
• Inputs for death benefit levels, a projected earnings rate for cash value balances, and premium levels can be used to calculate projected balances for the cash value of the product.
• a cash value can be calculated by subtracting the death benefit level and policy charges from the premium.
• an input for each such variable may be relevant for the entire duration of a life insurance product.
• the parameters of a life insurance product may change over time, and each such variable may have different values at different times.
• the invention facilitates the entry of multiple values for each such variable co ⁇ esponding to different time periods.
• the invention allows insurance representatives to change the pricing parameters or loads of a life insurance product in order to meet the objectives of a customer.
• the representative has the flexibility to determine how various loads associated with the product are charged to the assets of the product. For example, the representative may use the invention to customize the commission schedule so that part of the representative's compensation is defe ⁇ ed into future years.
• the customer may also want to defer the payment of government taxes into future years in order to provide greater funds in early policy years to the product's investment option.
• the insurance company essentially fronts the costs of the defe ⁇ ed charges in anticipation of recovering these costs over time.
• the insurance company assumes some persistency risk, risk that the policy or product line is terminated before costs can be recovered.
• the invention allows the insurance company to manage this additional risk, for example, by adjusting the pricing parameters of the insurance product.
• Life insurance product charges such as the cost of insurance, government taxes, distribution commissions, licensing fees, periodic charges, product development expenses, marketing expenses, investment advisory fees, and insurance company profits can be funded from the various assets of the product. For example the charges may be deducted from the payment of premiums, investment earnings, or even through the reduction in benefits paid out.
• the invention distributes the charges to the various product assets in a manner consistent with customer objectives and regulatory requirements.
• charges may also be distributed based on the asset balances of a life insurance product.
• Asset levels may, for example, be divided into different levels or bands so that each band is responsible for covering a portion of the charges.
• this asset-based method of allocating charges gives preferential treatment to customers that contribute greater funds to policies.
• multiple life insurance products can be banded together in a portfolio.
• the various charges and assets of all the products can be pooled and analyzed in order to coordinate risk and coverage.
• FIGS. 1 through 19 in particular, embodiments of the present invention are described.
• FIG. 1 illustrates a flow diagram of a process of an embodiment of the present invention.
• this process represents a scenario for illustrating or generating a life insurance product in which an insurance representative may respond to specific customer needs in practically real-time.
• the process begins at step 110 where the representative discusses the objectives and goals of the customer. Objectives may include, for example, maximizing the death benefit for the customer during specific time periods or throughout the duration of a life insurance policy. On the other hand, the customer may want to maximize the su ⁇ ender cash value of a policy at various time periods, for example, at the beginning of the policy.
• the customer may also have constraints such as the amount of money available to invest in a life insurance product or limitations in the ability to make future premium payments.
• the customer's objectives may also include or be based on tax considerations.
• the representative begins the process of illustrating or generating a life insurance product that achieves a customer's objectives.
• the customer or the representative inputs into a computer system, programmed according to the invention, parameters for the proposed life insurance product.
• these parameters include a death benefit amount, a target cash balance, and a desired premium level.
• These three variables may be the customer's main concern because they define the benefits and costs of the product to the customer.
• the three variables are also interrelated because each can be calculated using the values of the other two.
• the death benefit amount may remain constant for the duration of the policy or may change over time in accordance with the customer's objectives.
• the death benefit is not fixed by the customer, but is calculated according to the invention after the other variables have been determined.
• the target cash balance may be constant for the duration of the policy or may change over time in accordance with the customer's objectives. For example, the customer may want to maximize the cash balance at the beginning of a policy term to minimize the accounting impact of the purchase. The customer may also want to maximize the cash balance in order to maximize the potential investment return. In other embodiments, the cash balance is not fixed by the customer, but is calculated according to the invention after other variables have been determined.
• the premium level may be constant for the duration of the policy or may change over time in accordance with the customer's objectives. In other embodiments, the premium level is not fixed by the customer, but is calculated according to the invention after other variables have been determined.
• the customer or representative inputs an anticipated earnings rate for any cash balance.
• the anticipated earnings rate or investment rate of return is used to calculate the anticipated growth of the cash balance over time, which may affect the values of other variables, such as the death benefit, in future years.
• a realistic rate in order to generate a life insurance product that will most likely perform as predicted. For example, the customer may decide to input the historical performance of the investment vehicle chosen for the policy.
• step 600 of the embodiment depicted in FIG. 1 the insurance representative or the customer determines if it is desirable to divide premium payments into multiple "bands" to provide flexibility in charging loads and expenses to insurance product's assets.
• insurance product may be defined so that 10% of the first $10,000 in a premium payment (i.e., $1,000) is used for product charges, such as cost of insurance, while 5% of the next $10,000 is used for such charges.
• step 700 of the embodiment depicted in FIG. 1 the customer or representative determines if it is desirable to defer charging certain expenses to the proposed policy or amortize a portion of the charges associated with the policy.
• the representative may propose to defer the assessment of commission charges for a period of time or to defer the assessment of other charges, such as the cost of insurance.
• This defe ⁇ al decision may be made for each premium band of a policy.
• the defe ⁇ al decision may also be made for specific periods of time during the life of the generated policy.
• a life insurance product in accordance with the inputs from the preceding steps illustrated.
• the policy may include a premium schedule calculated by the invention or anticipated cash balances calculated by the invention or a schedule of death benefits calculated by the invention. The customer or representative then review the illustrated policy.
• FIGS. 2 through 4 illustrate embodiments that allow a user to input customer background information into a computer application that illustrates and generates life insurance products according to the invention.
• FIG. 2 depicts an embodiment of a computer application screen.
• Tab 210 is labeled "General" and is the starting point for entering background information for a proposed life insurance product.
• Choosing button 230 allows a user to select a plan from a pull-down menu.
• FIG. 3 depicts an embodiment of the pulldown menu.
• Tab 220 labeled "Inputs”
• a user may change the application screen to the embodiment illustrated in FIG. 4.
• the computer application screen depicted in FIG. 4 contains spaces for inputting customer background information.
• FIG. 5 illustrates another application screen of an embodiment which may be viewed by selecting tab 510, labeled "Coverage.”
• This application screen contains entries for inputting a desired death benefit and a desired premium level.
• the desired death benefit amount may be entered by choosing button 520.
• choosing button 520 will take the user to the application screen depicted in FIG. 6.
• the user may enter the desired death benefit amount for the various time periods of the policy.
• the desired death benefit may be fixed for the duration of the policy or may vary over time.
• the death benefit itself may be a payout of the face amount or the face amount plus an account value.
• the death benefit may also include additional amounts provided for by riders incorporated into the policy.
• the policy may fix a minimum death benefit in order to meet IRS requirements for life insurance.
• the invention determines the death benefit amount based on the values chosen for the other variables.
• a premium level may be selected by choosing button 530.
• choosing button 530 will take the user to the application screen depicted in FIG. 7.
• the user may enter the desired premium level for the various time periods of the policy.
• the premium level may be fixed for the duration of the policy or may vary over time.
• the invention determines the premium level based on the values chosen for the other variables.
• a user may also choose button 540 to reveal a pull-down menu in order to select a Definition of Life Insurance.
• the Definition of Life Insurance may be based on a "cash value accumulation” test or a "guideline premium” test.
• the user may also decide whether the policy will be a "Seven Pay” as defined by Section 7702A of the Internal Revenue Code. The decision may alter the policy premium or face amount in order to comply with tax requirements.
• the user may also decide whether the policy will involve a "1035 Exchange,” which includes accepting assets from an existing life insurance product in order to facilitate a tax deferred exchange of life insurance products. If the user selects "1035 Exchange” by checking box 560, additional entries appear, as illustrated by FIG. 8, requesting information about the existing policy in order to assure compliance with government tax requirements.
• FIG. 9 illustrates another computer application screen of an embodiment which may be viewed by selecting tab 910, labeled "Funds.”
• This application screen contains entries for inputting an estimated rate of return for the invested assets of an illustrated proposed life insurance product.
• the invention uses the estimated rate of return to project the future balances of an insurance product's assets in order to determine if the assets are sufficient to pay projected product loads while maintaining the customer's desired benefits coverage.
• choosing button 920 will take the user to the application screen depicted in FIG. 10, where the user may enter the selected earnings rate, which may be fixed for the duration of the policy or may vary over time.
• FIG. 11 illustrates another computer application screen of an embodiment which may be viewed by selecting tab 1110, labeled "Tax and Target.”
• the application screen contains entries for allocating premiums and amortizing government taxes associated with the life insurance product to a plurality of premium bands associated with the product.
• the premium bands divide premium payments into different categories or bands based on dollar amounts. For example, the first premium band may be associated with the first amount of a premium payment, and a second premium band is associated with a next amount of the premium payment, and so on.
• the application screen illustrated in FIG. 11 allows a customer to define the premium bands and assign government taxes to be paid from a specific premium band.
• Defe ⁇ ed Acquisition Cost (DAC) taxes that are deducted from the premium can also be deferred and amortized.
• Taxes can also be defe ⁇ ed on each, all, or any combination of premium bands for the same or different periods of time.
• the period of deferral of taxes on premiums in a first band can be selected between, for example, one and ten years.
• defe ⁇ al of taxes on premiums in a second band is available only for premiums applied in the first policy year.
• taxes on premiums in a third band may not be defe ⁇ ed at all.
• FIG. 12 illustrates another computer application screen of an embodiment which maybe viewed by selecting tab 1210, labeled "Customization.”
• an insurance representative can choose how sales commissions are charged to the policy. For example, if Module 1, entitled “Premium Commissions With Loads,” is selected, commission rates are specified and matched to the corresponding annual premium loads.
• choosing button 1240 will take the user to the application screen depicted in FIG. 13, where the user may enter the desired percentage of Band 1 premiums attributable to commissions for the various time periods of the policy. The percentage may be for the duration of the policy or may vary over time.
• Band 1 premiums For example, five percent of Band 1 premiums may be set aside for commission in the first five years of the policy, and in subsequent years, only three percent of Band 1 premiums will be set aside for commissions. Determining commission levels for Band 2 premiums may be accomplished by selecting button 1250, depicted in FIG. 12, and performing the same process.
• Module 1 gives a representative or customer the ability to select a specific commission rate for each target premium band for each time period.
• early su ⁇ ender values can be enhanced through use of an enhanced su ⁇ ender value option.
• this option is available only in conjunction with Module 1, as depicted in FIG. 12. If the policy is su ⁇ endered during the first nine policy years, for example, a portion of the sales load will be added to the cash value upon surrender.
• a maximum commission rate may be fixed according to statutory requirements.
• embodiments of the invention provide a surrender charge option.
• su ⁇ ender charges may apply only during the first nine years of the policy thus encouraging a customer to maintain the policy for at least that period of time.
• the level of surrender charges is responsive to the level of the target premium for the first premium band and to overall commission levels.
• Module 3 as depicted in FIG. 12, is entitled "Trail Commissions" and provides a representative or a customer with the ability to specify asset-based trail commissions. In life insurance products, the mortality and expense risk charge will generally vary in relation to the commission rate selected.
• Embodiments of the invention provide an option to set an asset band level above which a different trail commission will apply.
• This asset band can be based on the combined assets of multiple policies.
• choosing button 1260 will take the user to the application screen depicted in FIG. 14, where the user may enter the desired commission amounts.
• the commission may be fixed for the duration of the policy or may vary over time.
• commissions can be payable as a flat fee per $1,000 of the face amount.
• the commission can be specified annually and results in a charge to the policy taken over the duration of the policy.
• an option is provided for having the commission charged, for example, over the first ten policy years.
• each of the four modules depicted in FIG. 12 can be used in various combinations by checking boxes 1220 and inputting module factors 1230.
• Module factors 1230 act as multipliers. For example, if the Module 1 factor is 200, the percent of Band 1 and Band 2 premiums previous chosen to be attributable to commissions would be doubled. Appendix D, Product Design and Flexibility, which is part of this specification, provides additional explanation of the interaction of the four modules.
• FIG. 15 illustrates another computer application screen of an embodiment which may be viewed by selecting tab 1510, labeled "Distributions.” Using this application screen, the user may select a desired income stream to be paid from the policy over time. In embodiments, choosing button 1520 will reveal the pull-down menu depicted in FIG. 16. From the pull-down menu, the user can select the type of distribution desired.
• FIG. 17 illustrates another computer application screen of an embodiment which may be viewed by selecting tab 1710, labeled "Riders.” Using this application screen, the user may, for example, add an enhanced death benefit rider to the life insurance product. By choosing this option, excess cash value accumulated in the policy account will be used as an additional death benefit. The user may also select a rider that increases the death benefit by the amount of premiums paid, i.e., a return of premium rider.
• embodiments of the invention then illustrate and/or generate schedules of premiums and account values associated with the policy for the user.
• the process of illustrating and or generating policy schedules may involve processing the inputted values and selections according to the
• FIG. 18 illustrates an embodiment of another computer application screen which depicts an example of the data for an illustration of a life insurance product generated by inputs selected by a user. The screen shows the premium payment schedule as well as the projected account values of the policy and the projected death benefits of the policy.
• An example of a life insurance product illustration is shown in Appendix E, Product Illustration, for illustrative purposes and is part of this specification.
• an Offering Memorandum an example of which is illustrated in Appendix F, Illustrative Private Offering Memorandum, which is part of this specification, the life insurance product illustration defines the life insurance product offered to the customer.
• the process of illustrating or generating life insurance products for a specific customer may be conducted using a laptop, a desktop, or other self-contained computer system that includes all of the data, tables, and programs for generating or illustrating a life insurance product according to the present invention.
• the process of illustrating or generating life insurance products for a specific customer may be conducted using the Internet or other computer networking system.
• the system or program for illustrating or generating life insurance products that resides on computer system 1910 may require access to data and tables stored in computer system 1930. Access to computer system may 1930 be through the Internet 1920, a local area network, a direct access dial-up, or other computer or communications network.
• system or programs for illustrating or generating life insurance products as well as the necessary data and tables may be accessed remotely using the Internet or a computer or commumcations network.
• system or programs for illustrating or generating life insurance products and the necessary data and tables may be stored in separate remote computer systems. More generally, as is apparent in view of this specification, including Appendices A
• the present invention may be implemented using suitable computer and communications hardware or software or combinations thereof.
• the Face Amount is adjustable
• This certificate is a summary of the Group Contract We certify that the Insured named in the Schedule is covered under the Group Contract described in the Schedule This certificate becomes effective on the Certificate Date, subject to the conditions in Section 3 We agree to oa / the benefits of this certificate according to its provisions The certificate is issued in consideration of the application for it and Payment of the Minimum Initial Premium
• the Certificate Owner may surrender this certificate by delivering or mailing it to the Magnastar Service Center or to the agent within 10 days after receipt by the Certificate Owner of the certificate. Immediately on such delivery or mailing, the certificate shall be deemed void from the beginning. Any Premium received will then be refunded. 1 CERTIFICATE SPECIFICATIONS
• Certificate Owner at ssue [John Doe] Certificate Number [U1 00 000 000] Certificate Date [September 1 , 2000] Group Contract Number [9-000001 ]
• Age means the Age of the Insured at his or her birthday nearest that date That Age will apply until the next anniversary
• Valuation Date [The first business day of each calendar month] Investment Date [The first business day of each calendar month] Investment Notice Period [10 days] Full Liquidity Date [The last business day of each calendar quarter] Full Liquidity Notice Date [60 calendar days before a Full Liquidity Date] Full Liquidity Deferral Period [60 calendar days] Liquidity Reserve Factor [10%] Partial Liquidity Date [Last business day of each calendar year after the first certificate year]
• Partial Liquidity Factor [20% or 520,000 if greater] Partial Liquidity Notice Date [75 calendar days before a Partial Liquidity Date] Partial Liquidity Deferral [75 calendar days] Period
• Account Value is the sum of all the value in all the Subaccounts and the Loan Account and is furtre ⁇ - defined in Section 7
• Band 3 Premiums are all Premiums received in a certificate year in excess of the sum of the Band 1 Premium and Band 2 Premium amounts
• the "Certificate Date” is shown in Section 1 and is the date from which We measure certificate anniversaries and Coverage Segment years and determine Processing Dates
• “Certificate Debt” means the unpaid balance of all outstanding certificate loans plus accrued interest charges on that loan, as further described in Section 9
• Coverage Segment means a schedule of face amounts, which may vary by certificate year The face amounts scheduled at the time the certificate is issued comprise Coverage Segment 1 , and are shown in Section 1 4 Additional Coverage Segments may be added after issue as described in Section 4 4
• the “Death Benefit” is an amount determined by the Scheduled Face Amount, the Death Benefit Option chosen, and the Required Total Death Benefit Factors
• the Death Benefit is the amount applicable in the determination of Death Benefit Proceeds. The calculation of the Death Benefit is described in Section 4
• Exempt Fund means an investment account that is exempt from registration under exclusion 3(c)(1 ) or 3(c)(7) under the Investment Company Act of 1940
• Exempt Subaccount means a Subaccount that invests in an Exempt Fund The following definitions apDiy to the Underlying Portfolios of certain Exempt Subaccounts
• Liquidity Reserve Factor A factor determined by the Exempt Fund to indicate the portion of the value held in reserve at time of surrender until the final audited result of the Fund is available
• Liquidity Reserve Value The value of the Exempt Fund times the Liquidity Reserve Factor
• Partial Liquidity Factor A factor applied to the value of the Exempt Fund to indicate the portion of tne
• Partial Liquidity Deferral Period The number of days after a Partial Liquidity Date the withdrawal or transfer may be deferred
• “Loan Account” means the portion of the total Account Value that secures the Certificate Debt as further described in Section 9
• Modal Processing Date means the first Processing Date of each Premium billing interval
• Non-Exempt Subaccount means a Subaccount that invests in a 'Registered Fund
• Payment means, unless otherwise stated, Payment at Our Service Center
• the "Planned Premium” is the amount of Premium You tell Us You plan to pay The amount initially identified in Your application is shown in Section 1 2
• Premium means an amount paid to Us in consideration for the benefits of the certificate 'Premiums' do not include amounts repaid on certificate loans or designated to pay interest charges on outstanding loans
• Processing Date means the first day of a certificate month in which periodic charges are deducted from the Account Value The number of months between Processing Dates is shown in Section 1 6
• the first Processing Date occurs that number of months after the Certificate Date
• a certificate month shall begin on the day in each calendar month, which corresponds to the day of the calendar month on which the Certificate Date occurred If the Certificate Date is the 29th, 30th, or 31st day of a calendar month, then for any calendar month which has fewer days, the first day of the certificate month will be the last day of such calendar month
• the Certificate Date is not a Processing Date If the Processing Date is not a Valuation Date, it will occur on the next Valuation Date
• Registered Fund means a series type mutual fund registered under the Investment Company Act of 1940 as an open-end diversified management investment company
• ⁇ 'Service Center is where We provide service to You
• the name of Our Service Center is the Magnastar Service Center and its mailing address and telephone number are shown on the first page of this certificate
• Subaccount Investment Options means the list of currently available Subaccounts for the certificate
• Valuation Date means, for any Registered Fund, any date on which Our Service Center is open for business, the New York Stock Exchange is open for trading, and on which the Fund values its Portfolio The Valuation Date for an Exempt Fund will be specified in Section 1 11
• Valuation Period means the period of time from the beginning of the day following a Valuation Date to the end of the next following Valuation Date
• Writing Request means, unless otherwise stated, a request in writing, signed by You and received by Us at Our Service Center
• the Death Benefit Proceeds are the amount payable if the Insured dies while this certificate is In Full Force
• the Death Benefit Proceeds equal the Death Benefit of the certificate as of the date of death less any Certificate Debt on the date of death and any unpaid charges under Section 8 After the Insured reaches Age 100 the Death Benefit Proceeds will equal the Account Value less any Certificate Debt
• the Death Benefit of the certificate depends in part on which of the following Options is in effect The Death Benefit Option and Scheduled Face Amounts appear in Section 1
• the Death Benefit is the greater of the sum of the Scheduled Face Amounts for all Coverage Segments plus the Account Value on the date of death of the Insured, or the amount described below
• the Death Benefit of the certificate will be increased if necessary to ensure that the certificate will continue to qualify as life insurance under federal tax law
• the Death Benefit will never be less than (i) the Account Value multiplied by (n) the applicable Required Total Death Benefit Factor shown in Section 1 10
• a charge for any required increase in Death Benefit in effect on any Processing Date will be deducted from the Account Value on such date Such charge will be determined as described in the Cost of Insurance Charge subsection of Section 8.
• the Planned Premium is the amount You identified in the application, or later changed by Written Request, which You plan to pay Payment of the Planned Premium does not guarantee that the certificate will remain In Full Force A Premium reminder notice for Planned Premiums will be sent to You at the beginning of each payment interval
• the certificate has more than one Coverage Segment the certificate Total Band 1 Premium anc certificate Total Band 2 Premium are defined as the sum of the Band 1 Premiums and Band 2 Premiums respectively for all Coverage Segments Premiums received up to the certificate Total Bard 1 Premium will be allocated for the purpose of determining the applicable Band 1 Premium loads ,n the following order
• the Account Value is the sum of (a) and (b) below where
• (a) is the sum of the value of all Subaccounts The value of each Subaccount is equal to the number of shares in such Subaccount at the end of the Valuation Period multiplied by the unit value of such Subaccount at the end of the Valuation Period
• the unit value will vary from Valuation Date to Valuation Date to reflect the investment performance of the underlying Portfolio in which the Subaccount invests
• the unit value in any Subaccount is 510 00 (ten dollars on the first Valuation Date for the Subaccount.
• the unit value at the end of any subsequent Valuation Pence is equal to the unit value at the end of the immediately preceding Valuation Period multiplied by the Net Investment Factor, defined below, for that Subaccount for that Valuation Period
• the Net Investment Factor is determined for each Subaccount for each Valuation Period
• the Net Investment Factor is calculated as 1 plus the quantity A divided by B, where
• A is the amount of investment income and capital gains and losses (realized and unrealized) of the Portfolio, minus any amount charged for taxes paid,
• N is the number of months in a Processing Period, as shown in Section 1 6, and
• (c) is the Cost of Insurance Charge as described below, including the charge for any ratings and
• the Mortality and Expense Risk Charge (M&E Risk Charge) is to compensate Us for the risk We assume that mortality, expenses and other costs of providing Your certificate will be greater than estimated Beginning or the Certificate Date and on every Processing Date thereafter, the M&E Risk Charge will be calculated as a percentage of the unloaned Account Value The monthly percentage factor used is shown for each Coverage Segment year in Section 1 6 2 If there is more than one Coverage Segment In Full Force, the M&E Risk Charge percentage will be the weighted average of the rate for the current duration of each Coverage Segment The average will be weighted by the initial Face Amounts of each Coverage Segment 3 2 COST OF INSURANCE CHARGE
• a Cost of Insurance Charge is deducted on the Certificate Date and each Processing Date for eacn Ccve-age Segment
• the monthly Cost of Insurance Charge for each segment equals ( 1 ) times (2), where
• the Cost of Insurance Rates are based on a number of factors, including the Insured's Age, Premium Class, sex, and the Coverage Segment duration The current Cost of Insurance Rates will be determined by us These rates will not exceed the Guaranteed Maximum Monthly Cost of Insurance Rates shown in Section 1 7
• the total Net Amount at Risk is the amount determined by subtracting (a) from (b) where
• (a) is the Account Value at the end of the immediately preceding Processing Period, or the Certificate Date if being determined on that Date, less the certificate fee, per 51000 charges, and M&E Risk Charges due on the Certificate Date or Processing Date,
• (b) is the total Death Benefit as of the Certificate Date or Processing Date divided by the equivalent of an annual effective interest rate of 4% for the number of months in the Processing Period
• (b) is 12/N times the sum of all charges, described in Section 8 deducted from the Account Value f or the processing period in which the loan is obtained where N is the number of months in a Processing Period
• the amount of current loan available will be the Loanable Value on the date of the loan less the amount of ar/ existing Certificate Debt
• the amount of the loan will be removed from the Subaccounts specified in Your request If no Subacccurt 5 specified, the amount of the loan will be deducted in proportion to the value of Your certificate mvestrre n t " each Non-Exempt Subaccount on the date such loan is made If there is not enough value in the No ⁇ -Exe ⁇ c* Subaccounts, You must specify the Exempt Subaccount from which the balance of the loan will be removed Any amounts removed from an Exempt Subaccount will be subject to the deferral provisions in Section " 8
• the effective annual rate of loan interest charged on Certificate Debt for any year is as shown in Section 1 8 If there is more than one Coverage Segment in effect, the rate of loan interest charged will be the weighted average of the rate for the current duration of each Coverage Segment The average will be weighted by the initial Face Amounts of each Coverage Segment The loan interest charge will accrue daily and will be payable on each certificate anniversary and on the date the loan is settled
• the "net loan charge” is the excess of the current Certificate Debt over the current Loan Account on the certificate anniversary If loan interest is not paid in cash when due, the net loan charge will be deducted from Subaccounts and transferred to the Loan Account according to the following priorities
• a loan may be repaid in full or in part at any time before the Insured's death, and while the certificate is In Fuil Force. All Payments We receive will be treated as new Premiums unless designated as a loan repayment
• Certificate Loan Factors are the Annual Interest Crediting Rate for Loan Account, and the Annual Interest Rate Charged on Certificate Debt Balances
• the current Certificate Loan Factors will be determined by Us from time to time
• the Annual Interest Crediting Rate for Loan Account will never be less than the rate stated for the current certificate year in Section 1 8
• the Annual Interest Rate Charged on Certificate Debt Balances w, ⁇ l never be greater than the rate stated for the current certificate year in Section 1 8 which will never be more than 8%
• We will notify You at the time a cash loan is made of the initial Annual Interest Rate Charged on Certificate Debt Balances If You have any existing Certificate Debt, We will send You reasonable advance notice of any increase in the Annual Interest Rate Charged on Certificate Debt Balances No certificate will end in a certificate year as the sole result of a change in the interest rate during that certificate year 10 SURRENDERS AND WITHDRAWALS
• the Net Cash Surrender Value' is the Cash Surrender Value less any Certificate Debt
• the 'Cash Surrender Value is the Account Value less any Surrender Charge
• a Surrender Charge will be deducted from the Account Value upon surrender of the certificate
• Each Coverage Segment will have a corresponding Surrender Charge If there are multiple Coverage Segments and if there is a decrease in the Face Amount such decrease will be applied to Coverage Segments as described in Section 4 4 2 If there is a decrease in the Face Amount of a Coverage Segment the Surrender Charge will not be applied as long as the Face Amount of the Coverage Segment immediately after the decrease is as least as great as the initial Face Amount for that Coverage Segment If a decrease n Face Amount, including a decrease due to withdrawals, reduces the Face Amount of a Coverage Segment below the initial Face Amount for that Coverage Segment, a pro-rata Surrender Charge will be deducted from the Account Value The pro-rata charge will equal the product of A times B, where
• A is the Surrender Charge Factor for the current Coverage Segment duration shown in 1 9, and
• the maximum withdrawal as of a Partial Liquidity Date is equal to the certificate's value in that Subaccount as of that date multiplied by the Partial Liquidity Factor for that Subaccount
• the payment of the withdrawn amount may be deferred in accordance with the Deferral of Payments provisions of Section 18
• Minimum surrender values reserves and net single premiums referred to in the certificate if any are computed on the basis of the Commissioners 980 Standard Ordinary Mortality Tables with percentage ratings if applicable, and based on the Premium Class of the Insured on the Certificate Date The computations are made using interest at the rate of 4% a year and using continuous functions
• the Separate Account is divided into several divisions called Subaccounts Each Subaccount invests in shares of an Underlying Portfolio of a Fund
• the investment performance of a certificate depends on the performance of the Underlying Portfolios for the Subaccounts chosen
• the income, gains or losses, realized or unrealized, are credited to or charged against the assets held in the Separate Account without regard to the Company's other income, gains, or losses
• the assets of the Subaccounts will be invested in shares of corresponding Portfolios
• the Portfolios will be valued at the end of each Valuation Period at a fair value in accordance with applicable law We will deduct liabilities attributable to a Subaccount when determining the value of a Subaccount
• the Portfolios available en the Certificate Date are shown in the application ⁇ ⁇ 3 1 INITIAL PREMIUM ALLOCA TIQN
• the date of reinstatement is the date on which We determine that all 3 requirements below have been satisfied:
• Receipt of a Payment which, after deduction of all applicable Premium Loads listed in Section 1 5 is at least equal to the sum of (i) all charges described in Section 8 that were unpaid on the date of lapse plus (II) the total of all Section 8 charges for the Processing Period (but not less than three certificate months) next following the date of reinstatement.
• the Account Value on the date of reinstatement will be the Account Value on the date of lapse plus the Net Premium received in connection with the reinstatement less the sum of all Section 8 charges that were unpaid on the date of lapse
• the Surrender Charges on the date of reinstatement will be equal to any Surrender Charges applicable as of the current duration of the reinstated certificate and Coverage Segments
• Certificate Owner is as shown in the Certificate Specifications or in a later Written Request If there are two or more Certificate Owners, they will own this contract as joint tenants with right of survivorship You shall have the sole and absolute power to exercise all rights and privileges without the consent of any other person unless You provide otherwise by Wntten Request. All rights of the Certificate Owner are subject to the rights of any recorded assignee and any irrevocable beneficiary, as further desc ⁇ bed below
• the beneficiary is named by You in the application to receive the Death Benefit Proceeds
• the interest z' a- • beneficiary will be subject to any assignment If You have named a contingent beneficiary that person becomes the beneficiary if the beneficiary dies before the Insured
• the new policy will have the same Policy Date, risk class and issue age as this certificate On the Exchange Date, the new policy will have the same face amount as this certificate as of the Exchange Date Any existing debt on this certificate will be transferred to the new policy
• the new policy will contain the same additional benefits provided by rider attached to this certificate if such benefits are available with the new policy
• the account value of the new policy on the Exchange Date will be equal to 1 the Account Value of this certificate on the Valuation Date before the Exchange Date olus
• the new policy s provisions including any additional benefits provided by rider and any charges applicace -o the new policy beginning with the Exchange Date, will be such as would have applied if that policy has been issued originally The new policy will be subject to any existing assignment of this certificate
• Additional deferrals may apply to payment of Account Values allocated to Exempt Subaccounts, because of restricted marketability of assets in the Underlying Portfolios
• a reinstatement and any certificate change requiring evidence of insurability shall be incontestable after it ras been In Full Force during the lifetime of the Insured for two years from the effective date of such reinstatement or certificate change, except for certificate termination under Section 9 or certificate lapse under Section 6
• Any new Coverage Segment as defined in Section 4 4 shall be incontestable after it has been In Full Force during the lifetime of the Insured for two years from the effective date of such Coverage Segment except for certificate termination under Section 9 or certificate lapse under Section 6
• Option 1 Interest income at the declared rate but not less than 3 5% a year on proceeds held on deposit The proceeds may be paid or withdrawn in whole or in part at any time as elected
• Option 2A -Income of a Specified Amount, with payments each year totaling at least 1/12th of the proceeds until the proceeds plus interest is paid in full We will credit interest on unpaid balances at the declared rate but not less than 3 5% a year
• Option 2B Income for a Fixed Period with each payment as declared but not less than that shown in the Table for Option 2B
• Option 3 Life Income with Payments for a Guaranteed Period, with each payment as declared but not less than that shown in the Table for Option 3 If the Payee dies within that period, We will pay the present value of the remaining payments In determining present value, We will use the same interest rate used to determine the payments for this option
• Option 4 Life Income without Refund at the death of the Payee of any part of the proceeds applied The amount of each payment shall be as declared but not less than that shown in the Table for Option 4
• Option 5 Life Income with Cash Refund at the death of the Payee of the amount if any, equal to the proceeds applied less the sum of all income payments made
• the amount of each payment shall be as declared but not less than that shown in the Table for Option 5
• the Payee under an option shall be the Certificate Owner if living, and otherwise the Beneficiary
• a Payee may, by written notice, name and change a Contingent Payee to receive any final amount that wo_._ otherwise be payable to the Payee s estate
• the Face Amount is adjustable
• This Rider is made part of the Certificate to which it is attached. It provides an additional death benefit on the life of the insured.
• the Rider effective date is the Certificate Date or, if added later, the Processing Date on or next following the date Your application for this Rider is approved by Us.
• the Certificate Owner is the Owner of this Rider.
• the Rider Cost of Insurance Rates are based on a number of factors including the Insured's Age Premium Class and the Rider duration
• the current Rider Cost of Insurance Rates will be determined by Us Tnese rates will not exceed the Guaranteed Maximum Monthly Cost of Insurance Rates shown in Section 1 6 Any change in current monthly rates will be made on a uniform basis for insureds of the same sex, Issue Age ana Premium Class, including smoker status, and whose certificates have been in force for the same length cf
• This Rider is made part of the Certificate to which it is attached. It provides an additional Death Benefit in certain years.
• the effective date of this Rider is the Certificate Date or, if added later, the Processing Date on or next following the date Your application for this Rider is approved by Us.
• the Certificate Owner is the Owner of this Rider.
• the Death Benefit of the Certificate will be increased if necessary to ensure that the Certificate will continue *o qualify as life insurance under federal tax law
• the Death Benefit will never be less than the Account Value multiplied by the greater of A and B
• A is the applicable Required Total Death Benefit Factor shown in Section 1 10,
• This Rider is made part of the Certificate to which it is attached. It provides an enhancement to the cash value upon surrender of the Certificate in the first nine years of a Coverage Segment.
• the Rider effective date is the Certificate Date.
• the Certificate Owner is the Owner of this Rider.
• Enhancement Amount that is used in the determination of Net Surrender Value Loanable Value, Net Amount at Risk, and lapse calculations for the Certificate, as further described below
• the Enhancement Amount for the Certificate is equal to the sum of the current Enhancement Amount for each Coverage Segment.
• the Enhancement Amount for each Coverage Segment equals A times B below where:
• the Net Amount at Risk defined in Section 8.2 is decreased by the current Enhancement Amount.
• the Enhancement Amount has no effect on the Death Benefit as described in Section 4, the determination of grace period and lapse as described in Section 6, the Loanable Value as defined in Section 9, the amount which may be withdrawn from the Certificate as defined in Section 10 2. or any other benefits of the Certificate not specifically described in this Rider
• This Rider is made part of the Certificate to which it is attached. It provides an additional death benefit when the premiums paid for the Certificate exceed the total of any withdrawals made from the Certificate.
• the Rider effective date is the Certificate Date or, if added later, the Processing Date on or next following the date Your application for this Rider is approved by Us.
• the Certificate Owner is the Owner of this Rider.
• the M Financial Private Placement Project will provide M Financial Member Firms' a Private Placement Variable Universal Life product chassis that allows a high degree of flexibility to customize load structure, compensation structure and fund selections. M Financial intends to use this product chassis with multiple insurance carriers using a "Private Labeling" approach.
• the basic product chassis will allow for both individual and joint last survivorship product applications.
• the administration system should allow both individual ownership and corporate (COLI) ownership cases, ie list bill and other group or multi-life processing.
• the Product Chassis will be able to support alternative investment products, which may have non-daily valuations and limitations of timing of deposit, surrender, and withdrawal availability. Administrative procedures and systems will need to be established to handle these types of funds. The administration system will also need to support the ability to add new fund options quickly and offer product variations based on selecting specific funds or fund managers unique for a specific case.
• the Policy Administration System will be required to generate and maintain a "data warehouse" of historic and current policy information along with links to allow multiple users access to selected data using the latest technology and communications techniques.
• Users for data access include M Finanical, Life Insurance Carriers, M Financial Member Firms, Policyholders and Policyholders Advisors. Appropriate controls and security will be required for the data access system.
• the administration system will be required to provide various links to links to the life carriers home office and M Financial financial reporting, valuation, reinsurance, commission and policy servicing systems, plus field/producer access to policy values and history with links to inforce illustration and client administration systems. In general, the administration system is expected to deliver client/producer service that ranks among the "best practices" in the financial services industry.
• Front End Loads and/or Back-End Loads and Surrender Charges will be applied.
• COI Charges will be formula driven and can vary based on policy design
• Administrative System needs to feed and maintain a data warehouse that will allow all end users, Member Firms, Policyholders, Carriers, M Financial, to access and create various reports
• the product chassis uses basic Variable Universal Life product mechanics. This generally implies that premiums net of loads are added to the policyholder's account value. Periodically, charges are computed and subtracted from the policyholder's account value. And finally, upon withdrawal or surrender of funds from a policyholder's account value a charge may be assessed. b) Periodic charges- will be based on the total death benefit expected over the upcoming period plus other fixed or asset based policy charges. The processing period, for policy charges is expected to be monthly (e.g. on policy monthiversaries). However, the ability to use alternate processing periods, such as quarterly, or to fix the processing to a specific date, such as first of the month, would be a key plus in the design of the system.
• the system can handle processing periods as short daily, and then use rules to suppress processing to achieve longer processing frequencies.
• Commissions The system will need to generate feeds to carrier based commission systems and/or pay commissions directly. The system should have the flexibility to code and track different types of commissions and commission splits. The system should also be able to handle commission charge back rules. (For example 50% of all commissions paid over the last three years.) Separate premium and asset-based overrides are also paid to MFH.
• the illustration system is going to be defined so that a number of underwritten and guaranteed issue classes can be defined. For each class that is defined, a set of tables will be mapped to that class, These tables include both current and guaranteed mortality tables as well as many product factors that are used in the module and load calculation sections.
• the table will be Lifetime Select, that is all issue ages have there own select rates for until the maturity age. The table may go out to age 110.
• Ma q Fem ie ⁇ Carrier Utility Defined Maximum Mortality Rate for Females up to maxqage. maxqage — Maximum age to apply maximum mortality cap. Above this age the guaranteed table rate is the cap.
• Life Male could be table A
• Life Female could be table D
• the Carrier Utility will allow for Tables to be named and associate a rating factor to the table name.
• the user will have the option to override the Table Rating an insert a multiple to be applied. For example,
• Guaranteed Mortality for substandard table ratings will be the greater of the standard guaranteed mortality rate or the actual current COI charge to the policyholder. However, in no circumstances will the guaranteed rate be allowed to exceed 80Cso q x TableRating .
• TaxGuar q *+t -, minimum( 80CSO q x+t _ 1 x TableRating, max imum( 80CSO q x+t _ 1 , Cu ⁇ r q x+t _ 1 )) !
• the COI reference here is the COI calculated by applying the multiplicative and additive factors that result for the module calculations but before being capped by the guaranteed rate.
• Some Carriers may define permanent flat extras to only apply for a fixed period of time so the carrier utility needs to define how long to apply the permanent flat extra.
• TermporaryFlatExtraYr Number of Years to Apply Temporary Flat Extra
• the underlying mortality rates would be the rate looked up in the appropriate single life table.
• the Frasierization formula creates a single status mortality rate by combining two individual life mortality rates using a weighted average of survival in each status approach.
• q x+t q for single life (x) at duration t (current with table rating, guaranteed standard, guaranteed with table rating, as applicable) from the mortality table with the appropriate table ratings applied.
• q y+t q for single life (y) at duration t (current with table rating, guaranteed standard, guaranteed with table rating, as applicable) from the mortality table with the appropriate table ratings applied.
• AC t additional charge at duration t ( Typically used for Contagion Charges.) This needs to be input in the Carrier Utility as a durational table that is identical for all underwriting classes .
• currQ we are using the single life curr q 's which have been rounded to 6 decimals going into the Fraiser Formula, the resulting fraiserized curr q is rounded nearest to 8 decimals per $1 of insurance.
• V t-l Px +t-lPy -(t-l Px Xt-l Py ) note: AC, Defined in Carrier Utility Table as a durational table.
• the resulting q's are the frasierized q's which are annual rates per $1. (no rounding should take place here)
• This product will have the ability to specify a menu of funds options that will be available to the policyholder.
• the administration system should provide for Dollar Cost Averaging for transfers between funds. This would be a monthly transfer of some amount wither units or specified dollar amount between one fund and another.
• the administration system should allow the policyholder to specify a frequency for automatic rebalancing of the fund assets to meet a pre-determined fund allocation. May not be allowed on funds with liquidity restrictions.
• the illustration user will need to input the gross investment return to be used each year for illustration purposes.
• ross i t User input of gross investment returns to be used each year for projection purposes.
• model scenario runs will need to be run assuming guaranteed charges using the User input investment returns. Additionally, a 0% gross investment return illustration will need to be generated at current and guaranteed mortality and expense charges, as well.
• the illustration system needs to have a carrier utility defined input:
• the User will have the option to specify the fund allocation or choose to use an arithmetic average of all funds that are available for this specific policy configuration.
• the annual net investment rate, Net i t , to be used in the calculation of investment income in section 6.4.5 is determined each year as follows:
• the illustration system will calculate policy loads using a modular structure.
• Each module will have a specific method of reflecting the compensation choices made by the user in the product load structure. These choices will have an effect on the policy performance.
• Modules will allow the user to define a desired compensation pattern. Then, combinations of these modules may be defined by the sum of scalar multiples of these modules (e.g. 2xA + .5xB + .3*C).
• the commission schedule specified in each module combined with how the modules are allocated would define the product load structure, this load structure would then be "fixed" at issue.
• elements that need to be determined by the module structure include premium loads, periodic policy loads, COI loading factors, asset based charges at the product and at the separate account level, percent of premium compensation, percent of account value trail compensation, etc.
• the administration system would need to store final load values plus enough plan design information to feed back to an inforce illustration system.
• the state premium tax is set in the carrier utility of the illustration system. State Premium tax will be specified on a state specific basis. The State Premium tax is a percent of premium charge. The user will have an option to recoup this cost on a matched basis as a percent of premium load or apply this to the unmatched charge calculation, which would recoup the State Premium tax through non-percent of premium loads developed by using module 2. See restrictions on amortization of State Premium Tax below.
• PremtaxYr must be less than or equal to 11
• PremTaxBandlFlagt 1 if apply premium tax matched
• the DAC tax is recovered as a percent of premium charge.
• the percent cost will be specified in the carrier set up utility.
• the user will have an option to apply this charge on a matched basis as a percent of premium charge or apply this to the unmatched charge calculation (ie amortize the DAC tax charge), which would recoup the DAC tax charge through non-precent of premium loads developed using module 2. See restrictions on amortization of DAC below.
• the following section describes load factor calculations from the specified user module selection. Each module will have user specified inputs and table data from the Carrier setup utility. The following sections will describe in detail how to calculate the contribution to each load component from each module. Then the calculations will be given to combine each module specific contribution into loads and expenses to be charged for the specified configuration.
• Each module will allow the user to specify a level or pattern of compensation to be paid each year.
• the user will also be able to adjust the specified pattern by applying a scalar, i.e. 100% of module gets that pattern specified, 50% of the module produces a scale at half of the compensation specified.
• Modules may also have additional user selected options available specific to that module.
• This Module will define the percent of premium load factors for specified percent of premium based commissions.
• the user will have the option to enhance the early cash surrender values through the use of a giveback option that will refund a part of the loads upon full surrender during the early durations.
• Module 1 will have the following user defined inputs:
• Ml% Percentage of Module 1 to be applied. Default should be 100%.
• Module 1 will have the following Carrier Utility defined inputs:
• the Carrier Setup Utility will specify the following factors and tables to be used in the module calculations.
• COIMlMult x t - Carrier Utility defined table of COI Multiplicative factors for each age, sex, underwriting class and duration.
• COIMlAdd x t -> Carrier Utility defined table of COI Additive factors for each age, sex, underwriting class and duration.
• Mult min — Carrier Utility defined minimum multiplicative COI amount, a global factor.
• COIGivebackFactor-* Carrier Utility defined factor to adjust give back ratio for COI.
• MlExcessExcess% t -, c- 1 - x (2 - MIT arg etAdj ) Note removed min l,l - Pr icingFactor) the Ml % multiplier from this formula.
• Ml ⁇ PN2 Max > ; -r—. ,Ml ⁇ PNConstant
• Mladd, [(COIMlAdd, - Addmin) + COIGivebackFactor x GivebackAdjJx MlAgefactoi x MlTargetAdj + Addmin
• Mlmult ((COIMlMult x , -Mult min) + COIGivebackFactor x GivebackAdj) x Ml AgeFactor.
• Mime, (Mlmegivetable, x GivebackAdj)
• Mlsurr, (Mlgivetable, x GivebackAdj)
• This Module will define the load factors to recoup percent of premium based commissions that are to be applied primarily to cost of insurance, M&E, Monthly periodic charges. The user will have the option to improve long term performance by adding in a surrender charge to provide for cost recovery due upon early surrender.
• CommTarget%M2 t Annual Commission to be paid up to target premium for duration t
• CommExcess%M2 t Annual Commission to be paid in excess of target for duration t
• M2PVRate2 Second Interest Rate to Take PV of Commission Stream M2SurrFactor ⁇ Factor to be applied when surrender charge option chosen
• M2 AgeFactor x - Carrier Utility defined attained age table of age adjustments for each underwriting class.
• M2ExpKFactor x - Carrier Utility defined attained age table of Expense per $1000 of Face for each issue age and each underwriting class.
• M2DurFactor t Durational Adjustment Factor For COI Loadings for Module 2
• M2ExpKDur t Durational Adjustment Factor For Per 1000 Face loadings for Module 2.
• COBM2Mult x t Carrier Utility defined table of COI Multiplicative factors for each age, underwriting class and duration.
• M2metable t - Carrier Utility Table to Define M&E Add-on for Module 2 M2SurrMETable t ⁇ Carrier Utility defined table of surrender charges M&E add-on NPVlAdjFactor ⁇ Carrier Utility Adjustment Factor for NPV1 NPV 1 Adj FactorExcess - Carrier Utility Adjustment Factor for NPV1 Excess NPV2AdjFactor ⁇ Carrier Utility Adjustment Factor for NPV2 NPV2 Adj FactorExcess - Carrier Utility Adjustment Factor for NPV2 Excess TaxAdj — • Carrier Utility Adjustment for Amortized Premium and DAC tax Then using the above factors the following Components are calculated:
• M2TaxTarget t max( PremTax*(l-PremTaxBandlFlag t )+DACTax*(l-DACTaxBandlFlag t )-TaxAdj,0)
• NPN2target > ⁇ - rr, 2 — L x M2 ⁇ oSurrfactor tt (l + M2PVRate2)
• NPN2excess > ; rr, L xM2 ⁇ oSurrfactor tt (l + M2PNRate2) t_1
• ⁇ PNltarget > — -. r.- ⁇ — - x M2Surrfactor tt (l + M2PNRatel) t
• ⁇ PNlexcess > -. ⁇ L x M2Surrfactor tt (l + M2PVRatel) t
• ⁇ PN2excess Y -. r, x M2Surrfactor tt (l + M2PNRate2) t_1 then, use the factors calculated above to generate the component loads;
• PNlexcess ⁇ PNlexcess x 1 + ⁇ PNIAdjFactorExcess
• PN2excess ⁇ PN2excess ⁇ 1 + ⁇ PN2AdjFactorExcess
• M2mult [ f(C0IM2Mult_ , - Mult min)x ( ( PVlt ar S et ) + (PVlexcessf x 2AgeFactor_ 1+ Mult min lx M2Dur ' L l x,t ' PV2t arget PV2excess ' 6 ⁇ J J
• M2add [ [(cOIM2Add x l - Add in)x ( ( pvltar g et ) + (PVlexcessf ) x M2AgeFactor ]+ Addmin ]x M2Dur ' l ⁇ " • ' ' PV2target PV2excess ' 6 * J J
• M2ExcessAdj M2ExcessFactor x x Band2UserSpecified% + (l - Band2UserSpecified%)x M2Band2Factor
• M2me, (M2metable, )x [ ( PVlt ar g et ) x 2AgeFactor. + ( PVlexcess ) x M2ExcessAdj ]+M2SurrMETable t
• M2Surr x M2SurrTable t x PV1Tar g et x M 2%
• This Module allows the user to specify the trail compensation to be paid each duration. Recovery for this option is matched to the M&E charge.
• Module 3 will have the following user defined inputs:
• CommTrail%M3Bandl t Annual Commission to be paid on asset value at the end of the policy year.
• CommTrail%M3Band2 t Annual Commission to be paid on asset value at the end of the policy year.
• BandAmount Amount where Band Break Occurs, this could be on a policy or case basis.
• Case Multiplier For mimicking multiple lives for illustration purposes on a case basis.
• M3% Percentage of Module 3 to be applied. Default should be
• Trail%M3Bandl CommTrail%M3Bandl, x M3%
• Trail%M3Band2 CommTrail%M3Band2, x M3%
• This module allows the user to specify a per 1000 commission to be paid in a policy year based on the amount of insurance issued in the coverage segment.
• the purpose of this module is to allow the producer a means to generate a service commission for post coverage increases. Two options will be available, pay service fee to the producer in all years recovered fully each year through a per $1000 charge or pay service fee in first year of a coverage segment with cost recovered with a per $1000 charge over the next 10 durations.
• ServiceCommM4 t Per $ 1000 based commission to be paid on the amount of insurance issued in a coverage segment.
• M4% Percentage of Module 4 to be applied. Default should be 100%
• TaxLoadBand2% PremTax x Pr emTaxBand2Flag, + DACTax x DACTaxBand2Flag,
• FlatLoad% Carrier Utility Defined Global Premium Load b
• GlobalME t Carrier Utility Defined Global M&E Load for band
• Policy Mode Monthiversary mode for processing calcs
• UptoTarget% t MlUptoT arg et% t + TaxLoadT arg et%, +FlatLoad%
• Band2Target% MlExcessTarget%, + TaxLoadBand2%, + FlatLoad%
• ExpperK, (MlExpK, + M2ExpK, + M4ExpK,) Rounding Rule: Round Exp per K to 6 decimal places
• MEBandl Mlme, + M2me, + M3mebandl, + b GlobalME t
• MEBand2 Mime, + M2me, + M3meband2,+ b GlobalME t Rounding Rule: Round M&Es Nearest to 6 decimal places
• Percent of premium charges will be applied to target premiums by applying the percent of premium charge applicable to the most recent coverage segment, i.e. coverage segment with the lowest duration, first. Once the target premium for that coverage segment has been exceeded the percent of premium applicable to the next lowest duration coverage segment is used until that target premium is exceeded, and so forth.
• the load for Band 2 Premium - excess% and Band 3 Premium - excessexcess% will be the blended weighted average of the loads for the coverage segments. See Example; assume only Band 2 excess is used.
• Target Premium is $10 per $1000, so each segmi ⁇ nt has a target premium of $10,000.
• the expense charge will be based on a per $1000 of face component and a flat fixed rate component.
• the value of these components may vary by policy year.
• the per $1000 components will be calculated as a result of user module selections, the flat policy fee will be set in the carrier utility.
• the per $1000 charge is calculated for each coverage segment duration as was used in the first coverage segment.
• a Coverage segment duration is defined as the current policy duration less the difference between the issue age of the coverage segment and the original issue age, i.e. t-(y r -x). This implies that coverage segment durations will change on the original policy anniversary, regardless of when the coverage was actually implemented during the policy year.
• the M&E charge will be equal to the weighted average of the coverage segments M&E charge for the appropriate duration.
• a weighted average COI is calculated using the appropriate COI for each coverage segment duration.
• Surrender Charges will be calculated based on the Target Premium for the Segment.
• the cumulative surrender charge will equal the sum of the surrender charge for each segment.
• Givebacks will be calculated based on the minimum of the target premium or the actual premium received during the first duration of a coverage segment.
• the cumulative giveback will equal the sum of the givebacks for each segment.
• the Cash Surrender Value would then be the account value adjusted by the surrender charge and the giveback amount. See Section 6.5
• Policy Mode The frequency of the periodic policy processing. This will be defined in the Carrier Set up utility, the default frequency will be Monthly.
• a schedule that may either be fixed or formula driven may be pre-approved for future modifications to the death benefit schedule at issue. These modifications could include, fixed increases, percentage increases, increases associated with the premiums actually paid, salary schedule, or other formula.
• the administration system will need to flag policies where increases may be formula driven.
• x DB ⁇ l x ,'m m _ l T DBQ ' x . , t t - _11 + Change in DB due to expected schedule. All future increases due to these expected increases will always be applied to the first coverage segment, even if other coverage segments are added. Other coverage segments will not be allowed to add additional expected increases.
• the new coverage segment will have a specified amount equal to the increase in coverage and can not have any additional expected increases associated with it.
• adding an additional coverage would generate, DB y ° - Death Benefit for coverage 2, at issue age x, coverage issue age y 2 , duration 0. Duration 0 will signify the coverage before any effect of riders or options. Thus y 2 , would be the age when the increased coverage was issued.
• Any reduction in death benefit amount would first be used to reduce the amount of Death Benefit in most recent (coverage segment with the highest r) first. Once a coverage segment is reduced to 0, the next most recent segment is reduced.
• x DB x m x DB l x ' t_I -Change in DB due to decrease, once this equal 0 go tq segment r-1.
• TDB, ,m maximumiCumDB, m ,(AV, ,m . 1 + NP, ⁇ ⁇ CORR x+ ,_ 1 ]
• TDB, ,ra maximum[CumDB, ⁇ m + AV ⁇ . , + NP, ⁇ m , (AN, ⁇ + NP n )x CORR x+t _ 1 ]
• Gross Premiums will be specified by the user input or set as a result of the illustration solves. For illustration purposes premiums specified will be the total premium expected to be received for the year. Premiums will then be divided by the premium mode selected and assumed to be paid at the beginning of each premium modal period.
• GP The gross premium actually received on a given date.
• Gross Premiums will be used in the calculation of Net Premiums and Guideline Premium and 7-Pay Compliance testing. -
• the Band Target Premium Levels will be defined at policy issue. In each policy year, subject to prior year sales load carry over rules described in section 6.3.3, premiums received will be allocated to Band 1, until the cumulative amount received in the year equals the Band 1 Target Premium. Subsequent premiums received during the year would be allocated to Band 2 until additional premiums received equals the Band 2 Target premium and any subsequent premiums would be allocated to Band 3. Premiums allocated to each band would be charged the Sales Load and generate a commission based on the module inputs for each Band.
• Band 1 and Band 2 Targets The amount of the Band 1 and Band 2 Targets will be based on user inputs.
• Band 1 Target Premium cannot exceed the 7-Pay non-MEC Premium for the Death Benefit Coverage to be issued.
• the user can either specify the actual amount of the Band 1 Target Premium or enter the percentage of the 7- Pay non-MEC premium to be used.
• Band 2 Target Premium can not exceed the Maximum Single Premium payable in Year 1 determined based on the definition of life insurance test chosen minus the Band 1 Target Premium.
• Band 2 Target Premium is discussed in Section 6.3.2
• Band 1 Target Premium is referred to in the specifications as 'TargetPrem
• BandlUserSpecificed% and 'TargetPrem are based on user input to the question "Specify the amount of Band 1 Target?".
• the User will either enter a number less than or equal to 100 to signify a percentage of the Band 1
• the Band 2 Target Premium will be defined by the user and can be set anywhere between the Band 1 Target and the Maximum Premium that can be paid at issue based on the initial face amount.
• Rounding Rule Round to the to the lower dollar, ie 0 decimals.
• the User will be allowed to specify the premium eligible for the Band 2 .
• the user should be able to define the Band 2 Target Premium Level by either specifying the amount of the band 2 target layer that is in excess of the band 1 target or specifying the a percentage of the excess between the Band 1 Target and the maximum single premium, ie between 0% and 100%, that is the be eligible for Band 2 target. Calculate the Band 2 from a percentage as follows:
• Band2Target (MaximumPremium - 'TargetPremium) x Band2UserSpecf ⁇ cied% else
• Band2Target Min (User Input $Amount or, MaximumPremium - Target Premium)
• Band 2 Target can be specified as $200,000, so the first $100,000 gets the Band 1 Target Loads and Commissions, the next $200,000 gets the Band 2 target loads and commissions and anything in excess of $300,000 gets the excess loads and commissions.
• the user could get here by specifying:

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• 2002
  • 2002-03-13 WO PCT/US2002/007534 patent/WO2002073360A2/en not_active Application Discontinuation
  • 2002-03-13 AU AU2002252308A patent/AU2002252308A1/en not_active Abandoned
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