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Market Value Adjustment Mva


Definition of "Market value adjustment (mva)"

Sharon Bostic
  Coldwell Banker RPM Group

Increase or decrease in the surrender charge of the life insurance policy or annuity contract depending on the current financial markets. The cash value is adjusted upward if the policy interest rate is greater than the current interest rate on new money and thus, if interest rates decline after the insurance policy or annuity contract purchase date, the surrender charge becomes less than that exhibited. Conversely, the cash value is adjusted downward if the policy interest rate is less than the current interest rate on new money and thus, if interest rates rise after the insurance policy or annuity contract purchase date, the surrender charge becomes greater than that exhibited.



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