No. of Recommendations: 0
Dave, you are evading the question. I'll rephrase and be more specific, in an attempt to elicit a responsive answer.

* Dec 25, 1997, company announces "The cap for the upcoming year (1998) is 99%."[*] [**]
* On Jan 1, 1998 the S&P index was 1000.
* On Jan 1, 1999 the S&P index was 1050.

* A factoid of no impact: Dec 25, 1999, company announces "The cap will remain at 99%."

Today is Jan 2, 1999.
The company is preparing its books to credit an amount X% to all its IUL accounts. What is X?

Scenario 1: If the S&P had paid 1% dividend in 1998, what amount would be credited to the account? What is X?

Scenario 2: If the S&P had paid 5% dividend in 1998, what amount would be credited to the account? What is X?

Just to be clear: The IUL's index is the S&P500.

[*] The CEO got a new trophy wife, Tibetan yak-milk futures went through the roof, the company is trying to grab business from GEICO, and all is good with the world.

[**] In practice this means no cap -- the highest ever annual point-to-point gain of the S&P was 53%. This was July 1982 to July 1983.
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