ARSD 20:06:10:22. Equivalent level annual dividend of a life insurance policy

The equivalent level annual dividend of a life insurance policy shall be calculated as follows: (1) Accumulate the annual cash dividends at five percent interest compounded annually to the end of the tenth and twentieth policy years; (2) Divide each accumulation in subdivision 20:06:10:22(1) by an interest factor that converts it into one equivalent level annual amount that, if paid at the beginning of each year, would accrue to the values in subdivision 20:06:10:22(1) over 10 or 20 years. If the period is 10 years, the factor is 13.207; and if the period is 20 years, the factor is 34.719; and (3) Divide the results of subdivision 20:06:10:22(2) by the number of thousands of the equivalent level death benefit to arrive at the equivalent level annual dividend.