MARKET VALUE ADJUSTMENT A Market Value Adjustment (MVA) will only be applied any time a surrender charge is incurred. The MVA does not apply to the penalty-free withdraws. The purpose of the MVA is, in case of an early withdrawal, to adjust the value of your funds for the change in interest rates. The change is measured by comparing the base interest rate credited in your contract, with the base interest rates being credited by the company on current sales of the same contract form. The MVA does not apply to penalty-free withdrawals, to the payment of a death benefit or at the end of the guarantee period. At time of withdrawal or surrender, the MVA will reduce the surrender amount when the interest rates for new contracts is greater than the current crediting rate of your contract less .25%. Oppositely, the MVA will increase the surrender value when the interest rate for new contracts is less than the current rate credited to your contract less .25%. Please refer to the section of the contract for the MVA provision. This only applies to withdrawals that exceed the penalty-free withdrawal amount during a guarantee period. PENALTY-FREE WITHDRAWALS CL Sundance Annuity 3- and 5-year allows accumulated interest to be withdrawn monthly, quarterly, semiannually and annually. Maximum withdrawal is the prior 12 months of earned interest or the Required Minimum Distribution (RMD), whichever is greater. A penalty-free withdrawal waives any surrender charges or market value adjustment on the withdrawn amount. Amounts withdrawn in excess of the prior 12 months of interest credits penalty- free amount will incur these charges, if applicable. Starting year two of your annuity policty, surrender charges will be waived on Internal Revenue Service (IRS) required minimum distributions (RMD) exceeding the penalty-free withdrawal amount.
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