Part III. Prevailing State Assumed

Interest Rates — Products Issued in

Years After 1982.*

Schedule A

1997

10 or fewer 5.50** More than 10 5.25** but not more than 20 More than 20 4.50**

Source: Rates calculated from the monthly averages, ending June 30, 1996, of Moody’s Corporate Bond Yield Average - Monthly Average Corporates.

** As the applicable federal interest rate for 1997 of 6.33 percent exceeds this prevailing state assumed interest rate,

Part III, Schedule C14—1996

STATUTORY VALUATION INTEREST

RATES BASED ON THE 1980

AMENDMENTS TO THE NAIC STANDARD VALUATION LAW

A. Life insurance valuation:

the interest rate to be used for this product under § 807 is 6.33 percent.

• The terms used in the schedules in this ruling and in Part III of Rev. Rul. 92–19 are those used in the Standard Valuation Law; the terms are defined in Rev. Rul. 92–19.

Part III, Schedule B

STATUTORY VALUATION INTEREST

RATES BASED ON THE 1980

AMENDMENTS TO THE NAIC STANDARD VALUATION LAW

B. Single premium immediate annuities and annuity benefits involving life contingencies arising from other annuities with cash settlement options and from guaranteed interest contracts with cash settlement options:

Guarantee

Calendar Year

of Issue

Duration

Valuation Interest

Rate

(years)

Calendar Year of

Issue

1996 6.75*

Source: Rates calculated from the monthly averages, ending June 30, 1996, of Moody’s Corporate Bond Yield Average - Monthly Average Corporates. The terms used in this schedule are those used in the Standard Valuation Law as defined in Rev. Rul. 92–19.

*As this prevailing state assumed interest rate exceeds the applicable federal interest rate for 1996 of 6.63 percent, the interest rate to be used for this product under § 807 is 6.75 percent.

STATUTORY VALUATION INTEREST RATES BASED ON NAIC STANDARD VALUATION LAW

FOR 1996 CALENDAR YEAR BUSINESS GOVERNED BY THE 1980 AMENDMENTS

C. Valuation interest rates for other annuities and guaranteed interest contracts that are valued on an issue year basis:

Cash Future Valuation Interest Settlement Interest Guarantee Duration For Plan Type

(years) A B C

Valuation Interest Rate

Options?

Future Interest Guarantee?

Guarantee Duration

Yes Yes 5 or fewer 6.75 5.75* 5.25* More than 5, but not 6.50* 5.75* 5.25* more than 10 More than 10, but not 6.00* 5.25* 5.00* more than 20 More than 20 5.00* 4.50* 4.50* Yes No 5 or fewer 6.75 6.00* 5.50* More than 5, but not 6.75 6.00* 5.50* more than 10 More than 10, but not 6.25* 5.50* 5.25* more than 20

8

Valuation Interest Rate

For Plan Type

More than 20 5.25* 4.75* 4.75* No Yes or No 5 or fewer 6.75 More than 5, but not 6.50* more than 10 NOT APPLICABLE More than 10, but not 6.00* more than 20 More than 20 5.00*

Source: Rates calculated from the monthly averages, ending June 30, 1996 of Moody’s Corporate Bond Yield Average Monthly Average Corporates.

*As the applicable federal interest rate for 1996 of 6.63 percent exceeds this prevailing state assumed interest rate, the interest rate to be used for this product under § 807 is 6.63 percent.

Part III, Schedule D14—1996

STATUTORY VALUATION INTEREST RATES BASED ON NAIC STANDARD VALUATION LAW

FOR 1996 CALENDAR YEAR BUSINESS GOVERNED BY THE 1980 AMENDMENTS

D. Valuation interest rates for other annuities and guaranteed interest contracts that are contracts with cash settlement options and that are valued on a change in fund basis:

Cash Future For Plan Type Settlement Interest Guarantee Duration

Valuation Interest Rate

Options?

Guarantee? (years) A B C

Yes Yes 5 or fewer 7.25 6.75 5.50*

Future Interest Guarantee?

Guarantee Duration

More than 5, but not 7.00 6.75 5.50* more than 10 More than 10, but not 6.75 6.50* 5.25* more than 20 More than 20 5.75* 5.75* 4.75*

Yes No 5 or fewer 7.50 7.00 5.75*

More than 5, but not 7.25 7.00 5.75* more than 10 More than 10, but not 6.75 6.75 5.50* more than 20 More than 20 6.00* 6.00* 5.00*

Source: Rates calculated from the monthly averages, ending June 30, 1996, of Moody’s Corporate Bond Yield Average Monthly Average Corporates.

*As the applicable federal interest rate for 1996 of 6.63 percent exceeds this prevailing state assumed interest rate, the interest rate to be used for this product under § 807 is 6.63 percent.