Under which circumstance is the interest rate guaranteed within a market value adjusted annuity?

In a market value adjusted annuity, the interest rate is guaranteed after the contract has been in force for a specified period. This time period allows the insurer to manage the investment risk associated with fluctuations in interest rates. Essentially, once this duration has been fulfilled, the policyholder can expect a stable interest rate that will not change, providing a degree of predictability in returns.

During the early phase of the contract, the interest rate may vary depending on prevailing market conditions, but once the predetermined time frame has been met, the insurer is obligated to offer the guaranteed rate specified in the contract. This mechanism is designed to offer policyholders some security in their investment returns while also enabling insurers to navigate market fluctuations more effectively.