• The suggested rule keys this additional exemptive relief to a "guideline annual premium."
• This concept is defined as the level annual premium, payable to the highest attained age at which a premium may be paid, that would provide the future benefits under the policy based on (i) the 1958 Commissioners' Standard Ordinary Mortality Table, (ii) an assumed interest rate of four percent, and (iii) the expenses specified in the policy. ⁶

In short, Petitioner <ACLI> states, the guideline annual premium equals the annual premium necessary to keep the policy inforce for the life of the insured.

⁶Petitioner states that the guideline annual premium concept is derived from the 101(f) of the International Revenue Code [I.R.C. 101(f)(1982)[ relating to exclusion from gross income the proceeds of a flexible life policy payable by reason of death.

1983 1130 - Federal Register, Vol.48 No. 231.