The percentage of the subaccount's daily net assets deducted by the insurance company to cover the costs involved in offering and administering the variable annuity, such as the cost of distribution and printing of correspondence. If the subaccounts in the contract have different administration charges, then the administration charge for the contract will appear as Multiple.
For the Pros
The administration charges, distribution charges, and M&E risk charges together make up the total insurance expense for a contract.