rate . (2) Applicable guideline premium minimum rate Section 7702(c)(3) of such Code is amended by adding at the end the following new subparagraph: (E) Applicable guideline premium minimum rate For purposes of subparagraph (B)(iii), the term applicable guideline premium minimum rate means the applicable accumulation test minimum rate (as defined in subsection (b)(3)) plus 2 percentage points. . (c) Application of modified minimum rates to determination of guideline level premium Section 7702(c)(4) of such Code is amended— (1) by striking 4 percent and inserting the applicable accumulation test minimum rate , and (2) by striking 6 percent and inserting the applicable guideline premium minimum rate . (d) Insurance interest rate Section 7702(f) of such Code is amended by adding at the end the following new paragraph: (11) Insurance interest rate For purposes of this section— (A) In general The term insurance interest rate means, with respect to any contract issued in any calendar year, the lesser of— (i) the section 7702 valuation interest rate for such calendar year (or, if such calendar year is not an adjustment year, the most recent adjustment year), or (ii) the section 7702 applicable Federal interest rate for such calendar year (or, if such calendar year is not an adjustment year, the most recent adjustment year). (B) Section 7702 valuation interest rate The term section 7702 valuation interest rate means, with respect to any adjustment year, the prescribed U.S. valuation interest rate for life insurance with guaranteed durations of more than 20 years (as defined in the National Association of Insurance Commissioners’ Standard Valuation Law) as effective in the calendar year immediately preceding such adjustment year. (C) Section 7702 applicable Federal interest rate The term section 7702 applicable Federal interest rate means, with respect to any adjustment year, the average (rounded to the nearest whole percentage point) of the applicable Federal mid-term rates (as defined in section 1274(d) but based on