[lmi-commits] [lmi] master 85dd699 3/5: Improve 7702 specifications

[Greg Chicares]

branch: master
commit 85dd69933eee0a661e07a6ab5d14fa55b9faf5e4
Author: Gregory W. Chicares <gchicares@sbcglobal.net>
Commit: Gregory W. Chicares <gchicares@sbcglobal.net>

    Improve 7702 specifications
    
    The original 4% and 6% rates are no longer universal constants.
---
 7702.html | 7 +++++--
 1 file changed, 5 insertions(+), 2 deletions(-)

diff --git a/7702.html b/7702.html
index 547d552..a30f5cc 100644
--- a/7702.html
+++ b/7702.html
@@ -248,7 +248,8 @@ issue<a href="#fn5" name="fr5" title="">[5]</a>.
 Compared to
 the CVAT, the GPT is generally more conservative at early
 durations due to a stricter initial premium limit based on
-6% interest, but more liberal in later years because of
+a higher statutory interest rate,
+but more liberal in later years because of
 lower corridor factors.
 The CVAT is the simpler and more
 flexible &sect;7702 test, but MEC testing can be much simpler for
@@ -949,7 +950,9 @@ This operation is performed separately for all periods with
 different guaranteed
 rates<a href="#fn34" name="fr34" title="">[34]</a>.
 For example, if the guaranteed
-rate is 4.5% for five years and 3.5% thereafter, then the
+rate is 4.5% for five years and 3.5% thereafter,
+and the original 1984 statutory rates apply,
+then the
 GLP interest rate is 4.5% for five years and 4.0%
 thereafter, while the GSP rate is always 6.0%.
 For products