Bail-Out Provision

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Bail-Out Provision

In a variable annuity, a clause stating that the annuitant can make early withdrawals without penalty if the return on the annuity falls below a certain stated amount.
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The Court recognized that the VRA's purpose was to subject continuous violators of voting rights to federal scrutiny and shift the burden of proof of proper behavior to the state legislature, otherwise known as the "perpetrators of the evil." (51) The Court found the bailout provision significant (52) because it limited the extent of the Department of Justice's control over the affairs of the states that had successfully complied with the preclearance requirement.
This rewriting is similar to what happened with the Voting Rights Act and its bailout provision. Nobody believed that the Act's bailout provision meant what the Court said it did, but that is the interpretation that the Court ultimately upheld.
A bailout provision included in the product allows for the annuity owner to withdraw the whole contract value of the annuity without incurring a penalty as long as the declared annual cap strategy falls below the contract's bailout cap.
(49) This uncertainty was not because the Court had been particularly unclear, but because each case was proceeding individually as a fact-based unitary status decision, much like the bailout provision functions in the context of section 5.
"To their credit, the Senate has rejected efforts to include an ill-conceived 230-word bailout provision inserted by UPS lobbyists into the House bill that would change how FedEx Express has been regulated since its founding 38-years ago."
Fixed annuity contracts containing a bailout provision allow the contract holder to withdraw funds without a surrender charge if the credited interest rate falls below a specific bailout rate (e.g., from 1% to 3% below the initial credited rate).
Accumulation Sales; Overfunding; Bailout Provision; Overloan Protection
Some of these policies provide a bailout provision that reduces or eliminates the surrender charge for early termination if the current rate credited to cash values falls below specified levels.
The Pfizer bailout provision Hatch proposed adding to the medical device bill fell outside the scope of Dingell's committee, so that Dingell could not have attached it to the medical device bill whether he wanted to or not.
coverage formula and bailout provision. Under section 4(b), a state or
(Any surrender charge is waived by the insurer.) The bailout provision may have a limited duration, such as the first two to seven years, depending on the length of the original interest rate guarantee.
The new disposition rules appear to permit hindsight to be used to define the separate components of an activity (an activity within an activity), providing that hindsight has "reasonable certainty."(34) This represents somewhat of a bailout provision for taxpayers who have not accounted for components of activities separately.