Common use of Automatic Rebalancing Clause in Contracts

Automatic Rebalancing. The Owner may select automatic rebalancing on the Application or at a later date. Automatic rebalancing occurs when the Company transfers funds between the Separate Account Divisions so the values in each Division match the percentage allocation then in effect. Automatic rebalancing of the Separate Account Divisions can occur quarterly, semi-annually or annually as selected by the Owner. Automatic rebalancing will continue until we are notified by the Owner that it is to be discontinued. Annuity Income Units for automatic rebalancing will generally be priced as of the date of the transaction. However, if the date of transfer falls on a non-business day, it will be priced as of the preceding business day. The Company reserves the right to discontinue offering Automatic Rebalancing at any time. Certain restrictions may apply based upon the Payout Option selected, the amount of the Net Premium Payment, and the frequency of payments.