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VA Issuers Ask For Credit Recapture Permission

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CUNA Mutual Insurance Society and units of Prudential Financial Inc. are seeking approval for provisions that permit them to retrieve some credits applied to variable annuity purchase payments.

CUNA Mutual, Madison, Wis., and affiliates have filed an application with the U.S. Securities and Exchange Commission asking for permission to recapture credits when CUNA Mutual Variable Annuity Account contract owners return contracts during right-to-examine periods.

CUNA and its affiliates also want to be able to recapture credits within 12 months of annuitants’ deaths, when CUNA Mutual pays death benefits.

Pruco Life Insurance Company and Prudential Annuities Life Assurance Corp., subsidiaries of Prudential Financial, Newark, N.J., are applying for permission to amend existing recapture orders.

Pruco Life and Prudential Annuities say they recapture credits when customers give up contracts during the free-look period, when the credit is applied within 12 months prior to death, and when a credit is applied within 12 months prior to a request for a medically related surrender.

Pruco Life and several affiliates want to increase the purchase bonus credit amount for buyers of the X Series of their Prudential Premier variable annuity contract who are 80 or younger at the time of purchase to 6%, from 5%.

Pruco Life and the affiliates want to change a 2006 recapture order to permit them to recapture the full 6% credit.

Similarly, Prudential Annuities and affiliates want permission to adjust the recapture amount in a 2002 order governing bonus payments for their XTRA Credit SIX variable annuity to 6.5%, from 6%.