Assumed Interest Rate/Assumed Investment Return (AIR) Definition | Business Dictionaries from AllBusiness.com

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Business Definition for: Assumed Interest Rate/Assumed Investment Return (AIR)

Assumed Interest Rate/Assumed Investment Return (AIR)

percentage return appropriated by the insurer for an immediate variable annuity when the insurer calculates the initial income payment to the annuitant . If the variable annuity's underlying portfolio has a net return greater than or less than the AIR, the income payments will increase or decrease accordingly.

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