PURCHASE PAYMENT, CURRENT VALUE, AND SURRENDER PROVISIONS Sample Clauses
The "Purchase Payment, Current Value, and Surrender Provisions" clause defines the rules governing how payments are made to acquire a policy or contract, how the value of that policy is calculated over time, and the terms under which the policyholder can surrender the policy for its current value. Typically, this clause outlines the minimum and maximum payment amounts, the method for determining the policy's current value (such as through investment performance or guaranteed interest), and the process and consequences of surrendering the policy, including any applicable fees or penalties. Its core function is to provide transparency and predictability for both parties regarding financial transactions and the rights of the policyholder to access or withdraw funds, thereby reducing misunderstandings and disputes.
PURCHASE PAYMENT, CURRENT VALUE, AND SURRENDER PROVISIONS. 3.01 Net Purchase Payment: This amount is the Purchase Payment less any applicable premium tax. Aetna reserves the right to deduct any premium tax at any time from the Purchase Payment or from the Certificate Holder's Account. The Certificate Holder shall designate, on the enrollment form, the allocation percentage of the Net Purchase Payment to be applied to each of the available Guaranteed Periods during the current Deposit Period(s) . The minimum amount that may be allocated to any Guaranteed Period is shown on Contract Schedule I.
PURCHASE PAYMENT, CURRENT VALUE, AND SURRENDER PROVISIONS. 3.01. Net Purchase Payment(s): The actual Purchase Payment less any premium tax. As a rule, Aetna will deduct the premium tax when Annuity benefits are purchased (see Part IV). If Aetna determines that it must pay a premium tax when Purchase Payments are received or at any other time, it will deduct the tax at that time. The Net Purchase Payment(s) will be credited to:
(a) the Fixed Account;
(b) the Fund(s) in which the Separate Account invests. Aetna must be told the percentage of the Net Purchase Payment(s) to be applied to each investment above. During any calendar year, Aetna may be told to change the investment mix four times. If additional changes are allowed, each may be subject to a fee of up to $10.
PURCHASE PAYMENT, CURRENT VALUE, AND SURRENDER PROVISIONS. 3.01 Net Purchase Payment(s):
(a) The Fixed Plus Account II A; and
(b) The GA Account; and
(c) The Fund(s) in which the Separate Account invests. The Company must be told the allocation percentage to be applied to the Fixed Plus Account II A, the current Deposit Period for each of the available Terms in the GA Account and/or each Fund. You may change the allocation of future Net Purchase Payment(s) at any time, without charge. GC403-IB(XC/SM)-22 [11]
PURCHASE PAYMENT, CURRENT VALUE, AND SURRENDER PROVISIONS. 3.01 Net Purchase Payment: This amount is the actual Purchase Payment less any premium tax. Aetna reserves the right to pay premium taxes when due and deduct the amount from the Current Value when we pay the tax or at a later date.
(a) The current Deposit Period(s) for Guaranteed Terms under the AG Account; and
(b) The Fund(s) in which the Separate Account invests. For each Net Purchase Payment, the Certificate Holder shall tell Aetna the allocation percentage to be applied to the current Deposit Period for each of the available Guaranteed Terms in the AG Account and/or each Fund. If allocation instructions are not received along with any subsequent Net Purchase Payment, the allocation will be the same as that indicated when the Contract was purchased. If the same Guaranteed Term is no longer available, the Net Purchase Payment will be allocated to the next shortest Guaranteed Term available in the current Deposit Period. If no shorter Guaranteed Term is available, the next longer Guaranteed Term will be used.
3.02 Certificate Holder's Account: Aetna will maintain an Account for each Certificate Holder. Aetna will declare from time to time the acceptability and the minimum amount for additional Purchase Payments. Each Account will be subject to the Terms and Conditions of the Contract in effect at the time the first Purchase Payment for such Account is applied to the Contract except for changes made to comply with federal or state law.
3.03 Fund(s) Record Units -- Separate Account: The portion of the Net Purchase Payment(s) applied to each Fund under the Separate Account will determine the number of Fund record units for that Fund. This number is equal to the portion of the Net Purchase Payment(s) applied to each Fund divided by the Fund record unit value (see 3.05) for the Valuation Period in which the Purchase Payment is received in good order at Aetna's home office. <PAGE>
3.04 Net Return Factor(s) -- Separate Account: The net return factor(s) are used to compute all Separate Account record units for any Fund. The net return factor(s) for each Fund is equal to 1.0000000 plus the net return rate. The net return rate is equal to:
(a) The value of the shares of the Fund held by the Separate Account at the end of the Valuation Period; minus
(b) The value of the shares of the Fund held by the Separate Account at the start of the Valuation Period; plus or minus
(c) Taxes (or reserves for taxes) on the Separate Account (if any); divided by
(d) The total value ...