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FORM N-6, ITEM 26(d)
CONTRACTS
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FPVUL 02-08
American United Life Insurance Company
[One American Square, X.X. Xxx 000, Xxxxxxxxxxxx, Xxxxxxx 00000-0000]
[000-000-0000 xxxxxxxxxx.xxx]
[DOI telephone number where policy is delivered]
American United Life Insurance Company(R) (AUL) will pay the Death Benefit
Proceeds to the beneficiary upon receipt of due proof that the Insured's death
occurred while this policy was in force, subject to the terms of this policy.
RIGHT TO EXAMINE THE POLICY
THIS POLICY MAY BE SENT BACK TO AUL OR ITS REPRESENTATIVE WITHIN 10 DAYS AFTER
IT IS RECEIVED. IN SUCH CASE, THIS POLICY WILL BE VOID FROM THE BEGINNING. WE
WILL REFUND THE PREMIUMS PAID.
IF THIS POLICY REPLACES ANOTHER LIFE INSURANCE POLICY, THE POLICY MAY BE SENT
BACK TO AUL OR ITS REPRESENTATIVE WITHIN 30 DAYS. IN SUCH CASE, THIS POLICY WILL
BE VOID FROM THE BEGINNING. WE WILL REFUND THE CASH SURRENDER VALUE PLUS ANY
FEES AND OTHER CHARGES THAT WERE DEDUCTED FROM THE GROSS PREMIUMS.
READ YOUR POLICY CAREFULLY
FLEXIBLE PREMIUM VARIABLE ADJUSTABLE UNIVERSAL LIFE INSURANCE
PARTICIPATING-DIVIDENDS NOT GUARANTEED
It is anticipated that no dividends will be declared.
PERIOD OF COVERAGE NOT GUARANTEED
This policy is a legal contract between the owner and AUL.
Signed for American United Life Insurance Company by
Xxxxxx X. Xxxxx Xxxxxx X. Xxxxxxxxx
[Secretary] [Chairman of the Board, President,
and Chief Executive Officer]
Table of Contents
Section
Policy Data Page.........................................................1
Definitions..............................................................2
Benefits Available Under the Policy......................................3
General Provisions.......................................................4
Entire Contract
Reliances
Incontestability
Juvenile Insureds
Suicide
Misstatement of Age or Sex
Owner and Beneficiary....................................................5
Ownership
Assignment
Beneficiary
Change of Owner or Beneficiary
Life Insurance Qualification.............................................6
Guideline Premium Test
Cash Value Accumulation Test
Policy Changes Effect on Life Insurance Qualification Tests
Death Benefit............................................................7
Death Benefit
Death Benefit Payment
Death Benefit Options
Policy Changes...........................................................8
Increase the Face Amount of Insurance
Decrease the Face Amount of Insurance
Changing the Death Benefit Option
Supplemental Face Amount at Age 100......................................9
Base Face Amount Coverage at and after Age 121.........................10
Premiums................................................................11
Payment of Premium
Allocation of Net Premium
Policy Charges..........................................................12
Premium Expense Charge
Monthly Deduction
Monthly Administrative Charge
Face Amount Charge
Cost of Insurance
Mortality and Expense Risk Charge
Surrender Charge
Taxes
Changes in Cost Factors
Policy Values...........................................................13
Account Value
Cash Value
Cash Surrender Value
FPVUL Page 2A 02-08
Table of Contents
Section
Variable Account Provisions.............................................14
Separate Account
Investment Accounts
Variable Account Value
Crediting of Accumulation Units
Accumulation Unit Value
Net Investment Factor
Addition, Deletion, or Substitution of Investments
Fixed Account Provisions................................................15
Fixed Account Value
Fixed Account Interest Rate
Transfers...............................................................16
Transfers
Limitation on Transfer from the Fixed Account
Loans ...............................................................17
Loan Account
Interest Charged on Loans
Interest Credited on Loans
Repayment of Loans
Surrender...............................................................18
Partial Surrender
Reduction Free Partial Surrender
Full Surrender
No-Lapse Guarantee......................................................19
No-Lapse Guarantee Test
Termination of the Policy...............................................20
Grace Period
Termination
Reinstatement
Other Policy Provisions.................................................21
Deferral of Payments
Fixed Account
Variable Account
Dividends
Annual Statement
Conformity with Laws
Computations
Settlement Options......................................................22
Selection
Payments
Adjusted Age
Death of Last Payee
Claims of Creditors
Settlement Option Tables
FPVUL Page 2A 02-08
ICC08 FPVUL Page 3 02-08
Section 1. Policy Data Page
Name of Insured(s) Sex Age Premium Class
[Xxxx Xxx] [Male] [35] [Standard, Non-Tobacco]
Policy Owner(s)
[Xxxx Xxx]
Issue Date Policy Date Policy Number
[01/01/2008] [01/01/2009] [123456789]
Policy Specifications
Plan: Flexible Premium Variable Adjustable Universal Life
Initial Premium: [$1,000.00]
[Annual]
[$1,000.00]
[xyz Money Market]
Premium Mode:
Planned Premium:
Initial Net Premium Allocation:
Initial Base Face Amount: [$100,000]
Base Face Amount Coverage expires according to Section 10 of the policy.
Initial Supplemental Face Amount: [$100,000]
Supplemental Face Amount Coverage expires according to Section 9 of the policy.
Initial Total Face Amount: [$200,000]
The percentage of the Base Face Amount as compared to the Total Face Amount
shall never be less than [5%].
No-Lapse Guarantee Period: [4years]
Monthly Required Premium for No-Lapse Guarantee: [116.54]
Death Benefit Option: [Option 1] Refer to the Death Benefit section of
your policy for anexplanation of the Death .
Benefit Option
Death Benefit Discount [3%]
Life Insurance Qualification Test Elected: Cash Value Accumulation Test]
This is a participating policy. Dividends are not guaranteed. It is anticipated
that no dividends will be declared.
FPVUL Page 3 02-08
Policy Charge Specifications
Premium Expense Charge
Policy Years [1-20] [6.0%] of all premiums received in the Policy Year
Policy Years [21+] [6.0%] of all premiums received in the Policy Year
Monthly Administrative Charge
Guaranteed Maximum: [$ 25.00] per month during the first Policy Year
[$ 10.00] per month after the first Policy Year
Face Amount Charge
Guaranteed Maximum:
Initial Face Amount Charge: [$14.00] per month for [10] years from
the Policy Date based on Initial Base
Face Amount
Mortality and Expense Risk Charge -1/12 of the following percentages of the
Variable Account Value is deducted each month
Guaranteed Maximum:
Policy Years [1-10] [0.75%] Variable Account Value up to [$1,000,000]
[0.75%] Variable Account Value in excess of [1,000,000]
Policy Years [11-20] [0.25%] Variable Account Value up to [1,000,000]
[0.25%] Variable Account Value in excess of [1,000,000]
Policy Years [21+] [0.25%] Variable Account Value up to [1,000,000]
[0.25%] Variable Account Value in excess of [1,000,000]
FPVUL Page 3A 02-08
Policy Charge Specifications continued
TABLE OF SURRENDER CHARGES*:
Based on Initial Base Face Amount as of Policy Date.
Policy Year Surrender Charge Policy Year Surrender Charge
1 [$879.30 7 $439.65
2 $879.30 8 $293.10
3 $879.30 9 $146.55
4 $879.30 10 and $0.00]
5 $732.75 thereafter
6 $586.20
* May increase with subsequent Face Amount Increases.
Loan Specifications
Minimum Loan Amount: [$ 500]
Interest Rate Charged on Loans: [5%]
Interest Rate Credited on the Loan Account: Guaranteed Rate: [3%]
Fixed Account Specifications
Guaranteed Interest Rate on Fixed Account: 3%
Maximum Transfer Amount from the Fixed Account per Policy Year:
Greater of:
1. [20%] of the amount in the Fixed Account at the beginning of the
Policy Year; or
2. [$5,000], less any partial cash surrenders made from the Fixed Account
since the beginning of the Policy Year.
Separate Account Specifications
Separate Account: AUL American Individual Variable Life Unit Trust
Minimum Transfer Amount: [Currently no minimum. AUL may set a minimum]
Maximum Number of Transfers: [12] in any Policy Year
Transfer Charge
Guaranteed: [$0] for the first [12] transfers in any Policy Year
[$25] for each subsequent transfer in any Policy Year
FPVUL Page 3B 02-08
Policy Minimum Specifications
Minimum Premium Payment Subsequent to Initial Premium: [$25]
Minimum Base Face Amount: [$50,000]
Minimum Additional Supplemental Face Amount: [$10,000]
Minimum Premium Allocation to Any Investment Account or the Fixed Account: [1%
of the premium payment] (All allocations must be in whole percentages.)
Policy Change Specifications
First date a change in the Death Benefit Option may be requested: [One Year
After Policy Date]
First date a Partial Surrender may be requested: [One Year After Policy Date]
Minimum Partial Surrender Amount: [$ 500]
First date an increase in Face Amount may be requested: [One Year After Policy
Date] Minimum increase in Face Amount: [$25,000], or if less, the amount
determined under any rider provision]
First date a decrease in Face Amount may be requested: [One Year After Policy
Date] Minimum decrease in Face Amount: [$25,000]
Date subsequent increases, decreases and option changes may be requested: [One
year following the effective date of a previous change]
Maximum Attained Age for Total Face Amount increase: [85]
Maximum Attained Age for Death Benefit Option Change: [85]
Assumed date of the delivery of this policy for determining the end of the Right
to Examine period solely for the purpose of transferring the Net Premiums into
the Fixed or Variable Accounts: [5] days after the Issue Date
Home Office: Our Home Office is a location designated by the Board of Directors.
It is located at [One Xxxxxxxx Xxxxxx, X.X. Xxx 000, Xxxxxxxxxxxx, Xxxxxxx
00000-0000]
Rider Specifications
[Details of riders are given on separate Rider Specification Pages that follow.]
FPVUL Page 3C 02-08
ICC08 FPVUL Page 3D 02-08
BASE FACE AMOUNT
TABLE OF MONTHLY GUARANTEED MAXIMUM COST OF INSURANCE RATES PER $1000 OF NET
AMOUNT AT RISK, and MINIMUM INSURANCE PERCENTAGES
USING THE [CASH VALUE ACCUMULATION TEST]
If Supplemental Face Amount is chosen, the rates displayed below are only
applicable to the Base Face Amount after Age 100, as the Supplemental Face
Amount expires according to the terms of Section 9 of the policy.
--------------------------------------------------------------------------------------------------------------
Attained Monthly Guaranteed Minimum Insurance Attained Monthly Guaranteed Minimum Insurance
Age Cost of Insurance Rate Percentage Age Cost of Insurance Rate Percentage
--------------------------------------------------------------------------------------------------------------
35 0.09 498 79 5.07 137
36 0.10 481 80 5.66 134
37 0.10 465 81 6.32 132
38 0.11 449 82 7.01 130
39 0.11 433 83 7.76 128
40 0.12 418 84 8.58 126
41 0.13 404 85 9.51 124
42 0.14 390 86 10.53 123
43 0.16 377 87 11.65 121
44 0.18 364 88 12.84 120
45 0.19 352 89 14.10 118
46 0.21 340 90 15.42 117
47 0.23 329 91 16.66 116
48 0.24 319 92 17.95 115
49 0.26 308 93 19.32 114
50 0.28 298 94 20.75 114
51 0.30 288 95 22.27 113
52 0.33 279 96 23.65 112
53 0.36 270 97 25.12 112
54 0.41 262 98 26.70 111
55 0.46 253 99 28.38 110
56 0.51 246 100 30.18 110
57 0.57 238 101 31.60 109
58 0.62 231 102 33.12 109
59 0.68 224 103 34.74 109
60 0.74 218 104 36.46 108
61 0.83 211 105 38.26 108
62 0.93 205 106 40.18 107
63 1.04 200 107 42.22 107
64 1.16 194 108 44.39 107
65 1.29 189 109 46.69 106
66 1.42 184 110 49.13 106
67 1.55 179 111 51.73 106
68 1.69 175 112 54.48 105
69 1.83 171 113 57.41 105
70 2.01 166 114 60.51 105
71 2.21 162 115 63.81 105
72 2.46 159 116 67.30 104
73 2.74 155 117 71.00 104
75 3.34 148 119 79.10 104
76 3.68 145 120 83.33 104
77 4.07 142 121 83.33 104
78 4.54 139
The Minimum Insurance Percentages are determined to comply with Section 7702 of
the Internal Revenue Code. Mortality Table: 2001 Commissioners Standard Ordinary
Ultimate Mortality Table,[Age at nearest birthday, Sex and Tobacco Distinct.]
FPVUL Page 3D 02-08
BASE FACE AMOUNT
TABLE OF MONTHLY GUARANTEED MAXIMUM COST OF INSURANCE RATES PER $1000 OF
NET AMOUNT AT RISK, and MINIMUM INSURANCE PERCENTAGES USING THE
[GUIDELINE PREMIUM TEST]
If Supplemental Face Amount is chosen, the rates displayed below are only
applicable to the Base Face Amount after Age 100, as the Supplemental Face
Amount expires according to the terms of Section 9 of the policy.
--------------------------------------------------------------------------------------------------------------
Attained Monthly Guaranteed Minimum Insurance Attained Monthly Guaranteed Minimum Insurance
Age Cost of Insurance Rate Percentage Age Cost of Insurance Rate Percentage
--------------------------------------------------------------------------------------------------------------
35 0.09 250 79 5.07 105
36 0.10 250 80 5.66 105
37 0.10 250 81 6.32 105
38 0.11 250 82 7.01 105
39 0.11 250 83 7.76 105
40 0.12 250 84 8.58 105
41 0.13 243 85 9.51 105
42 0.14 236 86 10.53 105
43 0.16 229 87 11.65 105
44 0.18 222 88 12.84 105
45 0.19 215 89 14.10 105
46 0.21 209 90 15.42 105
47 0.23 203 91 16.66 104
48 0.24 197 92 17.95 103
49 0.26 191 93 19.32 102
50 0.28 185 94 20.75 101
51 0.30 178 95 22.27 100
52 0.33 171 96 23.65 100
53 0.36 164 97 25.12 100
54 0.41 157 98 26.70 100
55 0.46 150 99 28.38 100
56 0.51 146 100 30.18 100
57 0.57 142 101 31.60 100
58 0.62 138 102 33.12 100
59 0.68 134 103 34.74 100
60 0.74 130 104 36.46 100
61 0.83 128 105 38.26 100
62 0.93 126 106 40.18 100
63 1.04 124 107 42.22 100
64 1.16 122 108 44.39 100
65 1.29 120 109 46.69 100
66 1.42 119 110 49.13 100
67 1.55 118 111 51.73 100
68 1.69 117 112 54.48 100
69 1.83 116 113 57.41 100
70 2.01 115 114 60.51 100
71 2.21 113 115 63.81 100
72 2.46 111 116 67.30 100
73 2.74 109 117 71.00 100
74 3.02 107 118 74.94 100
75 3.34 105 119 79.10 100
76 3.68 105 120 83.33 100
77 4.07 105 121 83.33 100
78 4.54 105
The Minimum Insurance Percentages are determined to comply with Section 7702 of
the Internal Revenue Code. Mortality Table: 2001 Commissioners Standard Ordinary
Ultimate Mortality Table,[Age at nearest birthday, Sex and Tobacco Distinct.
FPVUL Page 3D 02-08
SUPPLEMENTAL FACE AMOUNT - IF SELECTED
TABLE OF MONTHLY GUARANTEED MAXIMUM COST OF INSURANCE RATES PER $1000 OF
NET AMOUNT AT RISK, and MINIMUM INSURANCE PERCENTAGES
USING THE [CASH VALUE ACCUMULATION TEST]
--------------------------------------------------------------------------------------------------------------
Attained Monthly Guaranteed Minimum Insurance Attained Monthly Guaranteed Minimum Insurance
Age Cost of Insurance Rate Percentage Age Cost of Insurance Rate Percentage
--------------------------------------------------------------------------------------------------------------
35 0.09 498 79 5.17 137
36 0.10 481 80 5.77 134
37 0.10 465 81 6.45 132
38 0.11 449 82 7.15 130
39 0.12 433 83 7.91 128
40 0.12 418 84 8.76 126
41 0.13 404 85 9.70 124
42 0.15 390 86 10.74 123
43 0.16 377 87 11.88 121
44 0.18 364 88 13.10 120
45 0.20 352 89 14.39 118
46 0.22 340 90 15.73 117
47 0.24 329 91 16.99 116
48 0.25 319 92 18.31 115
49 0.26 308 93 19.70 114
50 0.28 298 94 21.17 114
51 0.31 288 95 22.71 113
52 0.34 279 96 24.12 112
53 0.37 270 97 25.63 112
54 0.41 262 98 27.23 111
55 0.47 253 99 28.95 110
56 0.52 246 100 30.78 110
57 0.58 238
58 0.63 231
59 0.69 224
60 0.76 218
61 0.84 211
62 0.95 205
63 1.06 200
64 1.19 194
65 1.31 189
66 1.45 184
67 1.58 179
68 1.72 175
69 1.87 171
70 2.05 166
71 2.25 162
72 2.51 159
73 2.79 155
74 3.08 152
75 3.40 148
76 3.75 145
77 4.16 142
78 4.63 139
The Minimum Insurance Percentages are determined to comply with Section 7702 of
the Internal Revenue Code. Mortality Table: 2001 Commissioners Standard Ordinary
Ultimate Mortality Table,[Age at nearest birthday, Sex and Tobacco Distinct.
FPVUL Page 3D 02-08
SUPPLEMENTAL FACE AMOUNT - IF SELECTED
TABLE OF MONTHLY GUARANTEED MAXIMUM COST OF INSURANCE RATES PER $1000 OF
NET AMOUNT AT RISK, and MINIMUM INSURANCE PERCENTAGES
USING THE [GUIDELINE PREMIUM TEST]
--------------------------------------------------------------------------------------------------------------
Attained Monthly Guaranteed Minimum Insurance Attained Monthly Guaranteed Minimum Insurance
Age Cost of Insurance Rate Percentage Age Cost of Insurance Rate Percentage
--------------------------------------------------------------------------------------------------------------
35 0.09 250 79 5.17 105
36 0.10 250 80 5.77 105
37 0.10 250 81 6.45 105
38 0.11 250 82 7.15 105
39 0.12 250 83 7.91 105
40 0.12 250 84 8.76 105
41 0.13 243 85 9.70 105
42 0.15 236 86 10.74 105
43 0.16 229 87 11.88 105
44 0.18 222 88 13.10 105
45 0.20 215 89 14.39 105
46 0.22 209 90 15.73 105
47 0.24 203 91 16.99 104
48 0.25 197 92 18.31 103
49 0.26 191 93 19.70 102
50 0.28 185 94 21.17 101
51 0.31 178 95 22.71 100
52 0.34 171 96 24.12 100
53 0.37 164 97 25.63 100
54 0.41 157 98 27.23 100
55 0.47 150 99 28.95 100
56 0.52 146 100 30.78 100
57 0.58 142
58 0.63 138
59 0.69 134
60 0.76 130
61 0.84 128
62 0.95 126
63 1.06 124
64 1.19 122
65 1.31 120
66 1.45 119
67 1.58 118
68 1.72 117
69 1.87 116
70 2.05 115
71 2.25 113
72 2.51 111
73 2.79 109
74 3.08 107
75 3.40 105
76 3.75 105
77 4.16 105
78 4.63 105
The Minimum Insurance Percentages are determined to comply with Section 7702 of
the Internal Revenue Code. Mortality Table: 2001 Commissioners Standard Ordinary
Ultimate Mortality Table,[Age at nearest birthday, Sex and Tobacco Distinct.
FPVUL Page 3D 02-08
ICC08 FPVUL Page 3E 02-08
RIDER SPECIFICATIONS
LR-211 ACCELERATED DEATH BENEFIT RIDER
POLICY NUMBER: [123456789]
POLICY DATE: [JAN. 1, 2009]
INSURED: [XXXX X. XXX]
RIDER ISSUE AGE AND SEX: [35] [MALE]
PREMIUM CLASS: [STANDARD, NON-TOBACCO]
RIDER CHARGE: $0.00 per month
EXPIRY DATE: UPON POLICY TERMINATION
FPVUL Page 3E 02-08
RIDER SPECIFICATIONS
LR-206 CHILDREN'S TERM INSURANCE RIDER
POLICY NUMBER: [123456789]
POLICY DATE: [JAN. 1, 2009]
INSURED: [XXXX X. XXX]
INSURED CHILD: [LISTED ON APPLICATION OR AS ADDED
AFTER ISSUE]
AMOUNT OF INSURANCE: [5 UNITS] PER INSURED CHILD
[$5,000] on or after 6 months of age
[$2,500] under 6 months of age
RIDER CHARGE: [$ 2.60 PER MONTH]
EXPIRY DATE: Policy Anniversary following the earliest of:
Insured's Attained Age 65 or Insured Child's
22nd birthday
FPVUL Page 3E continued 02-08
RIDER SPECIFICATIONS
LR-210 GUARANTEED INSURABILITY OPTION RIDER
POLICY NUMBER: [123456789]
POLICY DATE: [JAN. 1, 2009]
INSURED: [XXXX X. XXX]
RIDER ISSUE AGE AND SEX: [35] [MALE]
PREMIUM CLASS: [STANDARD, NON-TOBACCO]
MAXIMUM AMOUNT OF INCREASE
ON ANY OPTION DATE: [$20,000]
TOTAL AMOUNT OF INCREASES: [$100,000]
RIDER CHARGE: [$16.80 PER MONTH]
EXPIRY DATE: [7/1/2016]
FPVUL Page 3E continued 02-08
RIDER SPECIFICATIONS
LR-212 OTHER INSURED TERM INSURANCE RIDER
POLICY NUMBER: [123456789]
POLICY DATE: [JAN. 1, 2009]
INSURED: [COOKIE DOE]
OTHER INSURED ISSUE AGE AND SEX: [35] [FEMALE]
PREMIUM CLASS: [STANDARD, NON-TOBACCO]
AMOUNT OF INSURANCE: [$100,000]
CONVERSION PERIOD: [TO 1/1/2042]
EXPIRY DATE: Earliest of: Age 95 of Other
Insured or upon death of Insured.
OTHER INSURED TERM INSURANCE RIDER
Table of Monthly Guaranteed Cost of Insurance Rates
Per $1000 of Net Amount at Risk
--------------------------------------------------------------------------------------------------------------
Attained Monthly Guaranteed Attained Monthly Guaranteed
Age Cost of Insurance Rate Age Cost of Insurance Rate
--------------------------------------------------------------------------------------------------------------
[35 .07417 66 .99917
36 .07917 67 1.08500
37 .08583 68 1.18083
38 .08917 69 1.28583
39 .09417 70 1.40167
40 .10000 71 1.53500
41 .10583 72 1.68417
42 .11250 73 1.84583
43 .12083 74 2.02333
44 .13083 75 2.22000
45 .14250 76 2.43583
46 .15583 77 2.67333
47 .17250 78 2.93583
48 .19083 79 3.21917
49 .21083 80 3.53583
50 .23417 81 3.96583
51 .26000 82 4.45083
52 .28917 83 4.93417
53 .32083 84 5.46833
54 .35417 85 6.07000
55 .39000 86 6.61583
56 .43167 87 7.43750
57 .47500 88 8.29583
58 .52167 89 9.21083
59 .56833 90 10.05417
60 .61667 91 10.48083
61 .66917 92 11.32000
62 .72667 93 12.56500
63 .78583 94 14.13667
64 .85000 95 16.07667]
65 .92083
FPVUL Page 3E continued 02-08
RIDER SPECIFICATIONS
LR-208 WAIVER OF MONTHLY DEDUCTIONS RIDER
POLICY NUMBER: [123456789]
INSURED: [XXXX X. XXX]
POLICY DATE: [JAN. 1, 2009]
RIDER ISSUE AGE AND SEX: [35] [MALE]
DISABILITY BENEFIT CLASS: [STANDARD, NON-TOBACCO]
COVERAGE PERIOD: POLICY ANNIVERSARY NEAREST ATTAINED AGE 65
WAIVER OF MONTHLY DEDUCTIONS DISABILITY TABLE
Monthly Cost Factors
To be applied to the Monthly Deductions
--------------------------------------------------------------------------------------------------------------
Insured's Monthly Insured's Monthly Insured's Monthly
Attained Age Cost Factor Attained Age Cost Factor Attained Age Cost Factor
--------------------------------------------------------------------------------------------------------------
[0-15 .0623 32 .0687 49 .0927
16 .0624 33 .0693 50 .0984
17 .0626 34 .0699 51 .1065
18 .0629 35 .0704 52 .1165
19 .0632 36 .0709 53 .1280
20 .0635 37 .0715 54 .1401
21 .0639 38 .0722 55 .1523
22 .0643 39 .0731 56 .1640
23 .0648 40 .0743 57 .1752
24 .0652 41 .0759 58 .1856
25 .0656 42 .0779 59 .1948
26 .0661 43 .0801 60 .0953
27 .0665 44 .0823 61 .0851
28 .0669 45 .0843 62 .0710
29 .0673 46 .0858 63 .0505
30 .0677 47 .0872 64 .0218]
31 .0682 48 .0893
FPVUL Page 3E continued 02-08
RIDER SPECIFICATIONS
LR-209 CREDIT OF PREMIUM DISABILITY RIDER
POLICY NUMBER: [123456789]
POLICY DATE: [JAN. 1, 2009]
INSURED: [XXXX X. XXX]
RIDER ISSUE AGE AND SEX: [35] [MALE]
PREMIUM CLASS: [STANDARD NON-TOBACCO]
BENEFIT AMOUNT: [$100.00 PER MONTH]
RIDER CHARGE: [$3.20 PER MONTH]
COVERAGE PERIOD: POLICY ANNIVERSARY NEAREST ATTAINED AGE 65
RIDER SPECIFICATIONS
LR-205 EXTENDED NO-LAPSE GUARANTEE
POLICY NUMBER: [123456789]
POLICY DATE: [JAN. 1, 2009]
INSURED: [XXXX X. XXX]
RIDER ISSUE AGE AND SEX: [35] [MALE]
PREMIUM CLASS: [STANDARD NON-TOBACCO]
EXTENDED NO-LAPSE
GUARANTEE PERIOD: [from policy issue]
RIDER CHARGE: [PER MONTH]
REQUIRED PREMIUM:
EXPIRY DATE: The earliest of the expiration of the
guarantee period or policy termination
FPVUL Page 3E continued 02-08
RIDER SPECIFICATIONS
LR-202 OVERLOAN PROTECTION RIDER
POLICY NUMBER: [123456789]
POLICY DATE: [JAN. 1, 2009]
INSURED: [XXXX X. XXX]
RIDER ISSUE AGE AND SEX: [35] [MALE]
PREMIUM CLASS: [STANDARD NON-TOBACCO]
MINIMUM LOAN
INDEBTEDNESS
PERCENTAGE: [94.0%]
RIDER CHARGE: No charge until rider is exercised.
OVERLOAN PROTECTON
RIDER PERCENTAGE: [4.0%]
EXPIRY DATE: The earlier of Policy Termination or Age 121
FPVUL Page 3E continued 02-08
RIDER SPECIFICATIONS
LR-204 CHANGE OF INSURED
POLICY NUMBER: [123456789]
POLICY DATE: [JAN. 1, 2009]
EFFECTIVE DATE OF CHANGE: On the Monthiversary following our approval
RIDER CHARGE: $0.00 per month
EXPIRY DATE: UPON POLICY TERMINATION
FPVUL Page 3E continued 02-08
RIDER SPECIFICATIONS
LR-201 ACCOUNTING BENEFIT RIDER
POLICY NUMBER: [123456789]
POLICY DATE: [JAN. 1, 2009]
INSURED: [XXXX X. XXX]
RIDER ISSUE AGE AND SEX: [35] [MALE]
PREMIUM CLASS: [STANDARD NON-TOBACCO]
EXPIRY DATE: Earlier of the end of surrender charge period or
termination of the policy
ACCOUNTING BENEFIT SURRENDER CHARGE WAIVER PERCENTAGES:
Policy Year Surrender Charge Waiver Percentage
1 90%
2 80%
3 60%
4 40%
5 20%
6 and thereafter 0%
FPVUL Page 3E continued 02-08
RIDER SPECIFICATIONS
LR-213 AVIATION EXCLUSION RIDER
POLICY NUMBER: [123456789]
POLICY DATE: [JAN. 1, 2009]
INSURED: [XXXX X. XXX]
RIDER ISSUE AGE AND SEX: [35] [MALE]
PREMIUM CLASS: [STANDARD NON-TOBACCO]
RIDER CHARGE: $0.00
EXPIRY DATE: UPON TERMINATION OF THE POLICY
FPVUL Page 3E continued 02-08
RIDER SPECIFICATIONS
LR-214 PREMIUM DEPOSIT ACCOUNT RIDER
POLICY NUMBER: [123456789]
POLICY DATE: [JAN. 1, 2009]
INSURED: [XXXX X. XXX]
RIDER ISSUE AGE AND SEX: [35] [MALE]
RIDER CHARGE: $0.00
EXPIRY DATE: UPON TERMINATION OF THE POLICY
FPVUL Page 3E continued 02-08
Section 2. Definitions
Account Value - The retrospective accumulation of Net Premiums, reduced by the
Monthly Deductions and Partial Surrenders. It is the sum of your values in the
Fixed Account, the Variable Account, and the Loan Account. Details are in the
Policy Values section.
Age - The Insured's nearest Age as of the Policy Date, as shown on the Policy
Data Page
Attained Age - The Insured's Age increased by one (1) for each complete Policy
Year.
Base Face Amount - The Base Face Amount of insurance shown on the Policy Data
Page, or as subsequently changed.
Cash Value - The Account Value less any Surrender Charges.
Cash Surrender Value - The Cash Value reduced by any indebtedness.
Death Benefit Discount Factor - The factor used in determination of the Net
Amount At Risk as described in the Policy Charges provisions. Death Benefit
Discount Factor = (1 + Death Benefit Discount)(1/12). The Death Benefit Discount
is shown on the Policy Data Page.
Fixed Account - Is an account which is part of our General Account, and is not
part of or dependent on the investment performance of the Variable Account.
Home Office - AUL's Home Office as shown on the Policy Data Page or any other
office as may be designated by the Board of Directors.
Insured - The person you name whose life is covered by this policy. If the
insured dies while this policy is in force, then the Death Benefit proceeds
become payable.
Investment Accounts - One or more of the subdivisions of the Separate Account.
Each Investment Account is invested in a different fund Portfolio.
Issue Date - As shown on the Policy Data Page.
Minimum Insurance Percentage - The minimum percentage of Account Value required
to qualify as a life insurance policy under the Internal Revenue Code. A table
of these percentages is on the Policy Data Page.
Modified Endowment Contract - A classification of policies determined under the
Internal Revenue Code which affects the tax status of distributions from the
policy.
Monthiversary - The same date of each month as the Policy Date. If the Policy
Date is the 29th, 30th or 31st of a calendar month, then for any calendar month
that has fewer days, the Monthiversary will be the last day of such calendar
month. If a Monthiversary falls on a day which is not a Valuation Date, the
processing of the Monthiversary will be the next Valuation Date.
Net Accumulated Premiums - The amount of premiums less Partial Surrenders, which
is utilized in calculating the Death Benefit under Option 3.
FPVUL Page 4 02-08
Net Amount At Risk - The amount used to determine Cost of Insurance charge.
Refer to the Policy Charges section of your policy.
Net Premium - The total premium paid reduced by the Premium Expense Charges
shown on the Policy Data Page.
No-Lapse Guarantee Period - The period shown on the Policy Data Page during
which the No-Lapse Guarantee is in effect as detailed in the No-Lapse Guarantee
provision.
Owner(s) - The Owner(s) named in the application, unless changed in accordance
with the policy provisions.
Partial Surrender - A withdrawal of a portion of the Account Value.
Planned Premium - The amount we will xxxx you or, in the case of our automatic
premium plan, the amount we will deduct from the account selected by you.
Policy Anniversary - The same date each year as the Policy Date.
Policy Data Page - The Policy Data Page or the Supplemental Policy Data Page
most recently sent to you by us.
Policy Date - The date from which Monthiversaries, Policy Years, and Policy
Anniversaries are measured, as shown on the Policy Data Page. Suicide and
Incontestability periods are measured from the Policy Date.
Policy Year - One year from the Policy Date and from each Policy Anniversary
thereafter.
Premium Mode - The frequency of the Planned Premium as shown on the Policy Data
Page or as subsequently changed by you.
Portfolio - The separate investment fund in which the Separate Account invests.
Proper Notice - Notice that is received at our Home Office in a form acceptable
to us.
Reduction Free Partial Surrender Amount - The amount which may be withdrawn
without a reduction in Total Face Amount. Refer to the Surrender section of your
policy.
Required Premium for the No-Lapse Guarantee - The current monthly premium that
must be paid on a cumulative basis to keep this policy in force during the
No-Lapse Guarantee.
Separate Account - The Separate Account of AUL identified on the Policy Data
Page. The Separate Account is segregated into several Investment Accounts.
Supplemental Face Amount - The Supplemental Face Amount of insurance shown on
the Policy Data Page, or as subsequently changed. Any Supplemental Face Amount
will expire on the Policy Anniversary the Insured attains the Age 100, according
to Section 9 of the policy.
Total Face Amount - The sum of the Base Face Amount and the Supplemental Face
Amount.
Valuation Date - The dates on which the Investment Accounts are valued. A
Valuation Date is any date on which
FPVUL Page 5 02-08
the New York Stock Exchange, or its successor is open for trading and we are
open for business.
Valuation Period - A Valuation Period begins at the close of one Valuation Date
and ends at the close of the next succeeding Valuation Date.
Variable Account -The Account Value of this policy which is invested in one or
more Investment Accounts.
We - "We", "us" or "our" means AUL.
You - "You" or "your" means the Owner of this policy.
Section 3. Benefits Available Under the Policy
This policy has a Death Benefit, a surrender benefit, and a loan provision. The
terms of these benefits are described in the policy.
Section 4. General Provisions
Entire Contract - The entire contract consists of:
1. The basic policy;
2. Riders and endorsements, if any;
3. The attached copy of your application.
We will require supplemental applications as applicable for adjustments to this
policy subsequent to the Policy Date. These applications will be endorsed upon
the policy, and will be considered part of the entire contract.
This policy is issued in consideration of the application and payment of the
initial premium.
Any change in this policy must be approved by AUL's President, Vice President or
Secretary. No Representative is authorized to change or waive any policy
provision.
Reliances - All statements made in the application for the issuance or
reinstatement of this policy, in the absence of fraud, are deemed
representations and not warranties. No statement will void this policy or be
used in defense of a claim unless contained in the application. We are not
liable for a request made in accordance with your instructions.
Incontestability - In the absence of fraud, we will not contest this policy
after it has been in force during the lifetime of the Insured for two (2) years
from the Policy Date. For increases in the either the Base Face Amount and/or
Supplemental Face Amount, we will not contest the increase for two (2) years
from the effective date of the increase. If you did not request the Base Face
Amount and/or Supplemental Face Amount increase or if evidence of insurability
was not required, we will not contest the increase. After two (2) years we may
contest this policy for non-payment of premium or fraudulent misstatements as
allowed by the law of the state in which this policy was delivered or issued for
delivery. If this policy is reinstated, the incontestable period will start over
again beginning on the effective date of the reinstatement, but only for
statements made in the application for
FPVUL Page 6 02-08
reinstatement, unless the original contestable period has not expired.
Juvenile Insureds -tobacco/non-tobacco mortality tables - We will use the
composite mortality table for juvenile insureds. We will reclassify the Insured
to a standard non-tobacco premium class upon the Insured reaching the Attained
Age of 16.
Suicide - If the Insured commits suicide, while sane or insane, within two (2)
years from the Policy Date or the effective date of any reinstatement, we will
not pay a Death Benefit. We will terminate this policy and refund the premiums
paid, less any outstanding loan balance, unpaid loan interest, dividends paid if
applicable, and any Partial Surrenders.
If the Insured commits suicide, while sane or insane, within two (2) years from
the effective date of any increase in either the Base Face Amount and/or
Supplemental Face Amount that was subject to evidence of insurability, we will
not pay a Death Benefit on that increase. We will refund the Monthly Deductions
for that increase. Refer to the Policy Charges section of your policy for an
explanation of Monthly Deductions.
Misstatement of Age or Sex - If the Insured's Age or sex has been misstated, we
will adjust the Death Benefit to the amount that would have been purchased at
the correct Age or sex. In consideration of the most recent Cost of Insurance
rate, the Net Amount At Risk will be adjusted by the ratio of the incorrect Cost
of Insurance rate to the correct Cost of Insurance rate. We will not make any
retrospective recalculations to the Account Value. We may adjust future months'
deductions so as to reflect the corrected Age and sex.
Coverage may not be terminated if the correct Age is outside the issue Ages for
this policy. The Cost of Insurance rate and benefits will be adjusted using the
correct Age.
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Section 5. Owner And Beneficiary
Ownership - You have all rights in this policy while the Insured is living. Your
rights are subject to the interests of any assignee or irrevocable beneficiary.
If you die before the Insured, any contingent Owner named in the application
will be the new Owner. If there is no contingent Owner, then your estate becomes
the new Owner.
Assignment - You may assign this policy with Proper Notice to us. Your rights
and the rights of any beneficiary will be secondary to the rights of the
assignee. An assignment will be subject to any loan on this policy. If there are
any irrevocable beneficiaries, you must obtain their consent before assigning
your policy. We assume no responsibility for the validity of an assignment.
Unless otherwise specified by the Owner, the assignment will take effect on the
date the notice is signed by the Owner, subject to any payments made or other
action taken prior to our receipt of this notice.
Beneficiary - The beneficiary will receive the Death Benefit proceeds of this
policy upon the Insured's death. Beneficiaries are as named in the application
unless later changed by you. You can name more than one beneficiary.
The interests of a beneficiary who dies before the Insured will pass to any
surviving named beneficiaries unless you specify otherwise. If no beneficiary
survives the Insured, you will be the beneficiary, or your estate will be the
beneficiary if you are the Insured.
Change of Owner or Beneficiary - While the Insured is living, you may transfer
ownership or change the beneficiary of this policy by giving Proper Notice to
us. Unless otherwise specified by the Owner, a change will take effect on the
date the notice is signed by the Owner. The change will not apply to any
payments made or actions taken by us before we receive the notice. An
irrevocable beneficiary may be changed only with the written consent of that
beneficiary.
FPVUL Page 8 02-08
Section 6. Life Insurance Qualification
It is intended that this policy be considered as life insurance for federal
income tax purposes, notwithstanding any other provision of the policy to the
contrary, in order to comply with Section 7702 of the Internal Revenue Code of
1986, or any other equivalent section of the Code.
We may make any reasonable adjustments to the conditions or terms of this policy
if necessary to allow it to continue to qualify as life insurance. This
provision is not a guarantee that this policy will receive tax treatment as life
insurance. Additionally it does not guarantee that the tax treatment of life
insurance will never change by the future actions of any tax authority. In order
to ensure that this policy qualifies as life insurance, one of the tests
described below will be applied to the policy. The Policy Data Page lists the
test you selected.
If you did not select the test, the default test is the Guideline Premium Test.
The test selected CANNOT be changed after the Policy Date.
Guideline Premium Test - If at any time the premiums received exceed the amount
allowable for tax qualification, the excess amount may be removed from the
policy as of the date of its payment, together with interest and/or investment
experience thereon from such date, and any appropriate adjustment in the Death
Benefit shall be made as of such date. This excess amount shall be refunded
within 60 days after the end of the applicable Policy Year. If this excess
amount is not refunded within 60 days, the Total Face Amount under the policy
shall be increased retroactively so that at no time is the Death Benefit ever
less than the amount needed to ensure or maintain tax qualification. However, we
will not refuse to accept any premium necessary to continue coverage but only if
such premium would result in a zero Cash Value at the end of the Policy Year.
Additionally, the minimum Death Benefit must be maintained.
Cash Value Accumulation Test - The minimum Death Benefit must be maintained. We
may modify the Minimum Insurance Percentage shown on the Policy Data Page,
retroactively if needed, to ensure or maintain qualification of this policy as a
life insurance contract for federal income tax purposes, not withstanding any
other provision of this policy to the contrary.
Policy Changes Effect on Life Insurance Qualification Tests - Policy changes,
such as a change in Death Benefit Option, Total Face Amount, or certain other
policy changes, will frequently change the policy's limits under the selected
Life Insurance Qualification Test. If any requested change would cause the
policy to fail to qualify as life insurance for tax purposes we may refuse or
limit the request.
FPVUL Page 9 02-08
Section 7. Death Benefit
Death Benefit - The Death Benefit is the amount of basic policy benefit that we
pay to the beneficiary when we receive due proof that the Insured died while
this policy was in force. Proof will consist of a certified copy of the death
certificate, or other lawful evidence providing equivalent information, and
proof of the beneficiary's interest in the Death Benefit proceeds in a form
acceptable to us. Coverage under this policy is effective on the later the
initial premium is paid or the Policy Date.
The Death Benefit Proceeds are:
1. The Death Benefit provided by the Death Benefit Option (Death Benefit
Options are described below) in effect as of the end of the Valuation
Period during which death occurs; plus
2. Any benefits provided by rider payable at the Insured's death; and
3. Any unpaid dividends if applicable; less
4. Any outstanding loan and loan interest as of the date of death.
If the Insured dies during the Grace Period, the Death Benefit paid on death
will be equal to:
1. The Death Benefit provided by the Death Benefit Option in effect
immediately prior to the start of the Grace Period; plus
2. Any benefits provided by rider payable at the Insured's death; less
3. Any outstanding loan and loan interest as of the date of death; less
4. The lesser of the overdue Monthly Deductions or the shortfall in total
required premiums to maintain the No-Lapse Guarantee as of the start of the
Grace Period.
Death Benefit Payment Options- The Death Benefit proceeds may be paid in a lump
sum, under a Settlement Option as set forth in the Settlement Options section,
or in any other way agreeable to you and us. Before the Insured dies, you may
choose how the Death Benefit proceeds are to be paid. If you have not made a
choice before the Insured dies, the beneficiary may choose how the Death Benefit
proceeds are paid. When part or all of the Death Benefit proceeds are paid in a
lump sum, we will include interest from the date of death to the payment date.
Interest will accrue:
1. At the rate or rates applicable to the policy funds left on deposit, as of
the date of death;
2. At the rate listed in Item 1. above, plus additional interest at a rate of
10% annually beginning with the date that is 31 calendar days from the
latest of items a., b., and c. below to the date the claim is paid:
a. The date the due proof of death is received by us;
b. The date we receive sufficient information to determine our liability,
the extent of the liability, and the appropriate payee legally
entitled to the proceeds; and
c. The date legal impediments to payment of proceeds that depend upon the
action of parties other than us are resolved and sufficient evidence
of the same is provided by us. Legal impediments to payment include,
but are not limited to:
FPVUL Page 10 02-08
1. The establishment of guardianships and conservatorships;
2. The appointment and qualification of trustees, executors and
administrators; and
3. The submission of information required to satisfy state and federal
reporting requirements.
Death Benefit Options
Option 1 - The Death Benefit is equal to the greater of:
1. The Total Face Amount; or
2. The Account Value multiplied by the appropriate percentage from the Table
of Minimum Insurance Percentages on the Policy Data Page.
Option 2 - The Death Benefit is equal to the greater of:
1. The Total Face Amount plus the Account Value; or
2. The Account Value multiplied by the appropriate percentage from the Table
of Minimum Insurance Percentages on the Policy Data Page.
Option 3 - The Death Benefit is equal to the greater of:
1. The Total Face Amount plus Net Accumulated Premiums; or
2. The Account Value multiplied by the appropriate percentage from the Table
of Minimum Insurance Percentages on the Policy Data Page.
Net Accumulated Premiums are continuously calculated based on the following
steps:
1. It has an initial value equal to the Initial Premium;
2. It is increased by the amount of each subsequent premium;
3. It is decreased by each Partial Surrender but not to less than zero.
Section 8. Policy Changes
You may make the following changes to this policy, as long as the policy is not
in the Grace Period. We reserve the right, however, to not accept any change
which might disqualify this policy as life insurance under federal tax law. Our
acceptance of any of your changes does not imply there will be no effect on the
qualification of your policy as life insurance as a result of your changes.
The policy will be amended or endorsed to reflect the adjustment and its effect
upon policy benefits, Required Premium for the No-Lapse Guarantee, Face Amount
Charges, Surrender Charges and/or Cost of Insurance rates, if applicable, and
any other applicable charges.
Increase the Face Amount of Insurance - You may request an increase of the Base
Face Amount and/or the Supplemental Face Amount at any time after the date
specified on the Policy Data Page, by providing a proper written application and
evidence of insurability satisfactory to us. The amount of the increase must be
at least equal to the minimum amount shown on the Policy Data Page, and is
subject to our underwriting limits. An increase in the Base Face Amount will
generate its own Face Amount Charge and Surrender Charge schedule. If the policy
is within the No-Lapse Guarantee Period, the Required Premium for No-Lapse
Guarantee will increase.
The effective date of the increase will be the Monthiversary date following our
approval of the increase.
FPVUL Page 11 02-08
Decrease the Face Amount of Insurance - You may request a decrease of the Total
Face Amount by Proper Notice at any time after the date specified on the Policy
Data Page. The minimum amount of any decrease is shown on the Policy Data Page.
You may not make a decrease which reduces the Base Face Amount of the policy
below the minimum amount shown on the Policy Data Page.
A decrease of the Total Face Amount will be effective on the Monthiversary
following our receipt of Proper Notice. If you have made any increases to the
policy, the decrease will first be applied to reduce those increases, starting
with the most recent increase. When Supplemental Face Amount is added at Issue
or as part of an increase it is assumed to have been added after any Base Face
Amount which was effective on that same date. Therefore, decreases will reduce
Supplemental Face Amount before reducing Base Face Amount which was issued on
the same date. The decrease will not cause a decrease in the Required Premium
for No- Lapse Guarantee, the Face Amount Charge or the Surrender Charges.
Changing the Death Benefit Option - You may request the following changes in the
Death Benefit Option by Proper Notice at any time after the date specified on
the Policy Data Page. Changes from Option 1 to Option 3 and from Option 2 to
Option 3 are not allowed.
Option 2 to 1
If you request a change from Option 2 to Option 1, the Total Face Amount will be
increased by the amount of the Account Value on the date of change. The change
will be effective on the Monthiversary following our receipt of Proper Notice.
Option 1 to 2
If you request a change from Option 1 to Option 2, the Total Face Amount will be
decreased by the amount of the Account Value on the date of change. We may
require satisfactory evidence of insurability. The change will be effective on
the Monthiversary following our approval of the change. We will not permit a
change which would decrease the Base Face Amount below the minimum amount shown
on the Policy Data Page.
Option 3 to 1
If you request a change from Option 3 to Option 1, the Total Face Amount will be
increased by the amount of the Net Accumulated Premiums on the date of change.
The change will be effective on the Monthiversary following our receipt of
Proper Notice.
Option 3 to 2
If you request a change from Option 3 to Option 2, the Total Face Amount may be
increased or decreased. If the Account Value is greater than the Net Accumulated
Premiums, the Total Face Amount will be decreased by the difference between the
Account Value and the Net Accumulated Premiums on the date of change. If the
Account Value is less than the Net Accumulated Premiums the Total Face Amount
will be increased by the difference between the Account Value and the Net
Accumulated Premiums on the date of change. We may require satisfactory evidence
of insurability.
The change will be effective on the Monthiversary following our approval of the
change. We will not permit a change which would decrease the Base Face Amount
below the minimum amount shown on the Policy Data Page.
When changing a Death Benefit Option results in an increase in Total Face
Amount, the initial Base Face Amount will be increased by the amount of the
increase to the Total Face Amount. When changing a Death Benefit Option results
in a decrease in Total Face Amount, the decrease will be applied to the Total
Face Amount as if a decrease had been requested.
FPVUL Page 12 02-08
Changing a Death Benefit Option does not change the Face Amount Charges or the
Surrender Charges. We may increase the Required Premium for No-Lapse Guarantee.
We will notify you of this requirement.
Section 9. Supplemental Face Amount at Age 100
On the Policy Anniversary the Insured reaches the Attained Age of 100, the
following changes will occur:
1. Any coverage under the Supplemental Face Amount will expire;
2. You no longer have the right to add to the Supplemental Face Amount of the
policy;
3. We will stop deducting any charges associated with the Supplemental Face
Amount;
4. The Total Face Amount will be equal to the Base Face Amount.
Section 10. Base Face Amount Coverage at and after Age 121
On the Policy Anniversary on which the Insured reaches the Attained Age of 121,
the following will occur:
1. We will stop deducting any Monthly Deductions;
2. We will stop accepting any new premium payments, except for those amounts
required to keep the policy in force under the Grace Period;
3. Partial Surrenders will no longer be available;
4. Policy loans and loan repayments will continue. Interest will continue to
accrue and be added to the outstanding loan balance;
5. We will continue to credit interest to the Account Value;
6. The Death Benefit will equal the Account Value.
NOTE: The policy may not continue to qualify as life insurance under federal tax
law, and you may be subject to adverse tax consequences. You should consult with
a tax advisor before continuing your policy at age 121.
Section 11. Premiums
Payment of Premium - The initial premium is due on or before delivery of the
policy. There will be no coverage under this policy until the later of the date
the initial premium is paid or the Issue Date except when the initial premium is
paid at delivery of the policy then coverage will begin on the Policy Date.
Premium payments after the initial payment must be made to our Home Office. Each
premium payment must be at least equal to the minimum payment shown on the
Policy Data Page. We reserve the right to increase the minimum premium payment
ninety (90) days after we send you Proper Notice of each increase.
The Planned Premium is the amount we will xxxx you or, in the case of our
automatic premium plan, the amount we will deduct from the account selected by
you. The amount and Premium Mode of the Planned Premium on the Issue Date are
shown on the Policy Data Page.
You may request a change in the amount and Premium Mode of the Planned Premium,
by Proper Notice, at a
FPVUL Page 13 02-08
maximum of once per year. We reserve the right to change the Planned Premium to
comply with our rules for billing amounts and frequency. The approval of your
request is subject to the limits described in this section.
If we agree, we will make the change and notify you of the new premium payments
and when they are due. The Premium Mode you choose and the actual amount of the
premium payments will affect the Account Value and the period of time the policy
remains in force. If the Planned Premium is not sufficient to satisfy the
requirements of the No-Lapse Guarantee or the Extended No-Lapse Guarantee if
this rider is included in the policy, then this policy is not guaranteed to
remain in force.
If the payment of any premium would cause an increase in Net Amount At Risk
because of the Minimum Insurance Percentage, we may require satisfactory
evidence of insurability before accepting it. If we accept the premium, we will
allocate the Net Premium to your Account Value on the date of our acceptance. If
we do not accept the premium, we will refund it to you.
If the payment of any premium would cause the contract to become a Modified
Endowment Contract, we may make an effort to notify you; however we are under no
obligation to notify you. If we notify you, consistent with the terms of the
notice, you may determine if you want the premium refunded to you. We reserve
the right to refund any premiums which cause the policy to become a Modified
Endowment Contract.
Allocation of Net Premium
Initial Net Premium
The initial Net Premium and any Net Premium received during the Right to Examine
period are allocated to the account shown on the Policy Data Page on the later
of the Policy Date or the date we receive the premium at our Home Office.
At the end of the Right to Examine period, we transfer your Account Value to the
Fixed Account or the Variable Account based on your current premium allocation
instructions. For purposes of determining the end of the Right to Examine
period, solely as it applies to this transfer, we assume that receipt of this
policy occurs on the date as described on the Policy Data Page.
Subsequent Net Premiums
Subsequent Net Premiums are allocated as of the end of the Valuation Period
during which we receive the premium at our Home Office. You may change the
allocation of subsequent Net Premiums at any time by Proper Notice, or by
telephone if written authorization is on file with us.
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Section 12. Policy Charges
Premium Expense Charges - The Premium Expense Charges are shown on the Policy
Data Page. The Premium Expense Charges are deducted when the premium is received
at our Home Office. The Net Premium is the premium less the Premium Expense
Charges.
Monthly Deduction - The Monthly Deduction is a charge made against the Account
Value.
The Monthly Deduction is the sum of:
1. The Monthly Administrative Charge; plus
2. The Face Amount Charge; plus
3. The Cost of Insurance; plus
4. The Mortality and Expense Risk Charge; plus
5. The cost for any policy riders.
The Monthly Deduction is deducted on the Policy Date and each Monthiversary.
Monthly Deductions due on any Monthiversaries prior to the Issue Date are
deducted on the next Monthiversary. The Monthly Deduction is deducted prorata
from the Investment Accounts and the Fixed Account based on your amounts in each
account.
Monthly Administrative Charge - The Guaranteed Maximum Monthly Administrative
Charge is shown on the Policy Data Page. A current Monthly Administrative Charge
less than the Guaranteed Maximum Monthly Administrative Charge may be used at
our option.
Face Amount Charge - The Guaranteed Maximum Face Amount Charge at issue is shown
on the Policy Data Page. If the Base Face Amount is increased after issue the
Guaranteed Maximum Face Amount Charge will increase. A current Face Amount
Charge less than the Guaranteed Maximum Face Amount Charge may be used at our
option.
Cost of Insurance - The Guaranteed Maximum Cost of Insurance Rates are shown on
the Policy Data Page. A current Cost of Insurance rate less than the Guaranteed
Maximum Cost of Insurance rate may be used at our option. If you increase or
decrease the Total Face Amount after issue, each change may have different
applicable Cost of Insurance rates.
The Cost of Insurance is the current Cost of Insurance rate multiplied by the
Net Amount At Risk determined as of the date of the Monthly Deduction. The Net
Amount At Risk is:
1. The Death Benefit on the Monthiversary divided by the Death Benefit Discount
Factor; less
2. The Account Value.
The Account Value will first be considered part of the initial Total Face
Amount, then part of any additional Total Face Amounts in the order of the
increases. For the initial Total Face Amount and for any increases, Account
Value is allocated to Base Face Amount issued on the same date prior to
Supplemental Face Amount on that date.
FPVUL Page 15 02-08
Mortality and Expense Risk Charge - The Mortality and Expense Risk Charge is
compensation for our assumption of the mortality and expense risks. This charge
will be deducted monthly from the Investment Accounts prorate based on your
amounts in each account. The maximum amount of this charge is shown on the
Policy Data Page. A current Mortality and Expense Risk Charge less than the
guaranteed maximum Mortality and Expense Risk Charge may be used at our option.
Surrender Charge - We will deduct the Surrender Charge from the Account Value on
the date this policy is surrendered for cash. The Surrender Charge is shown on
the Policy Data Page.
Taxes - We reserve the right to deduct any taxes levied by any government entity
which, at our sole discretion, are determined to have resulted from the
establishment or maintenance or operation of the Separate Account, or from the
investment performance of the Separate Account.
Changes in Cost Factors - We bear the mortality, expense and experience risks of
this policy. We may change the Premium Expense Charge, the Face Amount Charge,
the Mortality and Expense Risk Charge, the Cost of Insurance rates and Monthly
Administrative Charges and any other variable charge up to the maximum
guaranteed amounts stated in this policy. Any changes will be based on changes
in expected mortality, expenses, taxes, regulatory environment, investment
earnings, or persistency.
FPVUL Page 16 02-08
Section 13. Policy Values
Account Value - The Account Value is the sum of the values in the Fixed Account,
the Variable Account, and the Loan Account. The Account Value on the Policy Date
is the initial Net Premium received as of the Policy Date, less any Monthly
Deduction charged as of the Policy Date.
The Account Value on each Valuation Date after the Policy Date will be:
1. The Account Value on the prior Valuation Date; plus
2. Interest credited to amounts allocated to the Fixed Account and the Loan
Account; plus
3. The positive or negative investment experience on amounts allocated to the
Variable Account, as reflected by the change in value of the accumulation
units; plus
4. Any Net Premium for the policy allocated since the prior Valuation Date;
less
5. Any Partial Surrender paid since the prior Valuation Date; less
6. Any Monthly Deduction or transfer charges assessed.
Cash Value - The Cash Value of this policy is:
1. The Account Value of this policy; less
2. The Surrender Charge, if any, shown on the Policy Data Page.
Cash Surrender Value - The Cash Surrender Value is the Cash Value less any
outstanding loan and loan interest.
FPVUL Page 17 02-08
Section 14. Variable Account Provisions
Separate Account - The Separate Account is shown on the Policy Data Page. It is
a separate account established and owned by us. The assets of the Separate
Account will be used to provide values and benefits under this contract and
similar contracts, but the assets of the account equal to the reserves and other
contract liabilities may not be charged with liabilities arising from any other
business in which we take part. This account will be credited or charged for
income, gains, and losses, whether or not realized from the assets allocated to
the separate account without regard to other income, gain or losses arising from
any other business in which we take part.
Investment Accounts - The Separate Account is subdivided into Investment
Accounts, each of which invests in a different Portfolio.
Variable Account Value - The Variable Account Value of this policy equals the
sum for all Investment Accounts of:
1. The number of accumulation units credited to an Investment Account;
multiplied by
2. The appropriate accumulation unit value.
Crediting of Accumulation Units - We credit amounts allocated to the Investment
Accounts in the form of accumulation units. The number of accumulation units to
be credited is determined by dividing:
1. The dollar amount allocated to the particular Investment Account; by
2. The accumulation unit value for the particular Investment Account at the
end of the Valuation Period during which the allocation is made.
Accumulation units are credited when Net Premiums are allocated or amounts are
transferred into an Investment Account. Accumulation units are deducted when the
Monthly Deduction is assessed or when amounts are partially surrendered or
transferred out of an Investment Account.
Accumulation Unit Value - We determine the accumulation unit value for each
Investment Account on each Valuation Date. The accumulation unit value for the
Money Market account was initially set at one dollar ($1) and the value of each
of the other Investment Accounts was set at five dollars ($5) when operations
commenced. The value for any later Valuation Period is found by multiplying:
1. The net investment factor for the particular Investment Account, by
2. The accumulation unit value for the same Investment Account for the
preceding Valuation Period.
The accumulation unit value may increase or decrease from one Valuation Period
to the next.
FPVUL Page 18 02-08
Net Investment Factor - The net investment factor is used to measure the
investment performance of an Investment Account from one Valuation Period to the
next. For any Investment Account, the net investment factor for a Valuation
Period is determined by dividing 1. by 2., where:
1. Is equal to:
a. The net asset value per share of the fund held in the Investment
Account determined at the end of the current Valuation Period; plus
b. The per share amount of any dividend or capital gain distribution paid
by the fund during the Valuation Period; plus
c. The per share credit or charge with respect to taxes, if any, paid or
reserved for by us during the Valuation Period that are determined by
us to be attributable to the operation of the Investment Account.
2. Is equal to:
a. The net asset value per share of the fund held in the Investment
Account determined at the end of the preceding Valuation Period; plus
b. The per share credit or charge for any taxes reserved for the
immediately preceding Valuation Period.
Addition, Deletion, or Substitution of Investments - We reserve the right,
subject to applicable law, to make additions to, deletions from, or
substitutions for the Portfolio shares that are held by the Separate Account or
that the Separate Account may purchase. We reserve the right to eliminate the
shares of any of the eligible Portfolios and to substitute shares of another
Portfolio, or of another open-end, registered investment company, if the shares
of an eligible Portfolio are no longer available for investment, or if in our
judgment further investment in any eligible Portfolio should become
inappropriate in view of the purposes of the Separate Account. We will not
substitute any shares attributable to your interest in an Investment Account
without written notice to you and prior approval of the Securities and Exchange
Commission, to the extent required by the Investment Company Act of 1940.
We reserve the right to establish additional Investment Accounts, each of which
would invest in a new Portfolio, or in shares of another open-end registered
investment company. We also reserve the right to eliminate existing Investment
Accounts. If deemed by us to be in the best interest of persons having voting
rights under the policies, the Separate Account may be operated as a management
company under the Investment Company Act of 1940, or it may be deregistered
under such Act in the event such registration is no longer required, or it may
be combined with other AUL Separate Accounts.
The investment policy of the Separate Account will not be changed without the
approval of the Insurance Commissioner of the State of Indiana. If required, the
approval process is on file with the Commissioner of the state in which this
policy is issued.
FPVUL Page 19 02-08
Section 15. Fixed Account Provisions
Fixed Account Value - The Fixed Account Value of this policy at any time equals:
1. The total of all Net Premiums allocated to the Fixed Account; plus
2. The total of all amounts transferred to the Fixed Account from the Variable
Account or the Loan Account; plus
3. Interest credited to the Fixed Account; minus
4. The total of all amounts transferred from the Fixed Account to the Variable
Account or the Loan Account; minus
5. The total of all Monthly Deductions charged against the Fixed Account;
minus
6. The total of all Partial Surrenders from the Fixed Account.
Fixed Account Interest Rate - The guaranteed interest rate credited to amounts
in the Fixed Account is shown on the Policy Data Page. We may credit interest
rates in excess of the guaranteed rate.
Section 16. Transfers
Transfers - You may transfer amounts between the Fixed Account and Investment
Accounts or among Investment Accounts at any time after the Right to Examine
period. The transfer will be made as of the end of the Valuation Period during
which we receive the request.
The minimum transfer amount is shown on the Policy Data Page. The transfer must
be at least for the minimum amount, or, if less, the entire amount in the Fixed
Account or an Investment Account each time that a transfer is made. If after the
transfer the amount remaining in any account is less than $25, we reserve the
right to transfer the entire amount. Any applicable transfer charge shown on the
Policy Data Page will be assessed. The charge will be deducted from the
account(s) from which the transfer is made on a prorata basis; and, if those
remaining account values are not sufficient, from account values determined by
us.
Transfers are made such that the Account Value on the date of transfer will not
be affected by the transfer, except for the deduction of any transfer charge.
We reserve the right to limit the number of transfers as shown on the Policy
Data Page, or to restrict transfers from being made on consecutive Valuation
Dates.
If we determine that the transfers made by or on behalf of the Owner is to the
disadvantage of other Owners, we may restrict the rights of the Owner. Such
restrictions would be applied in any manner reasonably designed to prevent
transfers of the Owner from being disadvantageous to other owners. We also
reserve the right to limit the size of transfers and remaining balances, to
require a minimum time period between transfers, to limit the number and
frequency of transfers, and to discontinue telephone transfers.
Limitation on Transfer from the Fixed Account - Transfers from the Fixed Account
are limited in total for any Policy Year to no more than the amount shown on the
Policy Data Page.
FPVUL Page 20 02-08
Section 17. Loans
You may request a loan at any time after the Right to Examine period while the
policy is not in the Grace Period. This policy is assigned to us as sole
security for the loan.
If the total indebtedness including interest due and accrued exceeds the Cash
Value of the policy, then the policy shall terminate, but not until at least
thirty (30) days advance notice of termination is mailed to you and any assignee
of record. Refer to the Grace Period section of your policy.
The minimum amount of a new loan is shown on the Policy Data Page. The maximum
amount of a new loan is:
1. 90% of the Account Value; less
2. Any loan interest due on the next Policy Anniversary; less
3. Any applicable Surrender Charges; less
4. Three months of Monthly Deductions; less
5. Any existing loans and accrued loan interest.
Loan Account - At the time any loan is issued, we transfer an amount equal to
the loan from the Investment Accounts and the Fixed Account into a Loan Account
as collateral for the loan. On your loan request, you may specify that the
transfer is to be made from specific Investment Accounts. If you make no
specification, this transfer is made from each account in proportion to the
Account Value in the Investment Accounts and the Fixed Account.
Interest Charged on Loans - Interest accrues daily from the date of the loan at
the rate shown on the Policy Data Page. Interest is due on the Policy
Anniversary. Any interest not paid when due will be added to the amount of the
loan. We will make a transfer from the Investment Accounts and the Fixed Account
into the Loan Account as collateral for the interest due. The transfer is made
from each account in proportion to the amount in the account.
Interest Credited on Loans -The interest rate credited to the Loan Account will
be at least the guaranteed rate applied to the Fixed Account, and at least the
rate shown on the Policy Data Page. Loan interest that has been credited to the
Loan Account will be transferred on each Policy Anniversary to the Investment
Accounts and the Fixed Account based on the proportions in your current premium
allocation instructions.
A loan has a permanent effect on the Policy Values even if the loan is repaid,
since the Account Value held in the Loan Account as collateral earns different
rates than it might have experienced if it were invested in the Investment
Accounts or the Fixed Account.
Repayment of Loans - A loan may be paid in full or in part at any time while
this policy is in force and the Insured is alive. When a loan repayment is made,
the amount of the Loan Account equivalent to the amount of loan repayment is
transferred to the Investment Accounts and the Fixed Account based on the
proportions in your current premium allocation instructions.
Unless you request otherwise at the time you make any payments to us, all
amounts received while a loan is outstanding will be considered as premium
payments.
FPVUL Page 21 02-08
Section 18. Surrender
Partial Surrender - You may surrender part of this policy for cash at any time
after the date specified on the Policy Data Page by Proper Notice to us. The
amount of any Partial Surrender must be at least equal to the minimum amount
shown on the Policy Data Page. The amount surrendered is deducted from the
Account Value, and therefore also reduces the Cash Value. The deduction will be
made from the Investment Accounts and the Fixed Account in proportion to your
amounts in each account, unless you request deduction from specific Investment
Accounts. The partial surrender will take effect the date the notice is signed.
The Total Face Amount will be reduced by the amount of the Partial Surrender
except as discussed below in the Reduction Free Partial Surrender. The decrease
will be applied to the Total Face Amount as if a decrease had been requested.
(Refer to the Policy Changes section of your policy.) The remaining Base Face
Amount must be at least equal to the minimum amounts shown on the Policy Data
Page.
Reduction Free Partial Surrender- In some situations you may surrender part of
this policy without the full amount causing a decrease to the Total Face Amount.
If the Partial Surrender is less than or equal to the Reduction Free Partial
Surrender, the Total Face Amount is not decreased. If the Partial Surrender is
greater than the Reduction Free Partial Surrender the Partial Surrender will be
viewed as two withdrawals. The first amount will be taken as the Reduction Free
Partial Surrender; the remaining Partial Surrender amount will decrease the
Total Face Amount as explained above.
Under Death Benefit Option 2:
An amount equal to any Partial Surrender will be deducted from the Account
Value. Partial Surrenders will not affect the Total Face Amount. Your Death
Benefit will continue to be determined in accordance with the Death Benefit
section of your policy.
Under Death Benefit Option 1:
The Reduction Free Partial Surrender Amount is equal to the greater of zero (0)
and the difference between (a) and (b) where:
a. is the Account Value; and
b. is the Total Face Amount divided by the applicable Minimum Insurance
Percentage.
If the Reduction Free Partial Surrender Amount is equal to zero (0), then a
Partial Surrender will result in a reduction in Total Face Amount by the amount
surrendered. Any reduction will be processed in the same manner as a requested
decrease. The remaining Base Face Amount must be at least equal to the minimum
amount shown on the Policy Data Page.
Under Death Benefit Option 3:
The Reduction Free Partial Surrender Amount is equal to the greater of Net
Accumulated Premiums and the difference between (a) and (b) where:
a. is the Account Value; and;
b. is the Total Face Amount divided by the applicable Minimum Insurance
Percentage.
If the Reduction Free Partial Surrender Amount is equal to zero (0), then a
Partial Surrender will result in a reduction in Total Face Amount by the amount
surrendered. Any reduction will be processed in the same manner as a requested
decrease. The remaining Base Face Amount must be at least equal to the minimum
FPVUL Page 22 02-08
amount shown on the Policy Data Page.
Full Surrender - At any time after the Right to Examine period, you may
surrender this policy for the Cash Surrender Value by Proper Notice to us. If
the policy is surrendered within 30 days following a Policy Anniversary, the
Cash Surrender Value paid shall not be less than the value as of the Policy
Anniversary. The Full Surrender will take effect the date the notice is signed.
FPVUL Page 23 02-08
Section 19. No-Lapse Guarantee
Your policy contains a No-Lapse Guarantee. During the No-Lapse Guarantee Period
as shown on the Policy Data Page, if the Cash Surrender Value is insufficient to
pay the Monthly Deduction, then your policy will remain in force and will not
begin the Grace Period if it satisfies the No-Lapse Guarantee Test listed below.
While the policy is being maintained under the No-Lapse Guarantee, charges
unable to be deducted will be waived.
The Required Premium for No-Lapse Guarantee is shown on the Policy Data Page. If
you make changes to the policy during the No-Lapse Guaranteed Period, such as an
increase or decrease in the Base Face Amount and/or Supplemental Face Amount,
Death Benefit Option changes or additions/deletions of any riders, then the
Required Premium for subsequent months may change. We will send you notice of
the new Required Premium. Changes to the policy after the No-Lapse Guaranteed
Period has terminated will not begin a new No-Lapse Guarantee Period.
Your Cash Surrender Values at the end of the No-Lapse Guarantee Period may be
insufficient to keep this policy in force unless an additional payment is made.
We will notify you of the amount of the required additional payment.
No-Lapse Guarantee Test - Your policy will satisfy this test if on any
Monthiversary where the Grace Period would normally begin, the sum of the
premiums paid to date, less any Partial Surrenders and any outstanding loan and
loan interest, equals or exceeds the sum of the accumulated Required Premiums
for No-Lapse Guarantee (without interest) since the Policy Date.
If this test is failed on a Monthiversary when the Cash Surrender Value is
insufficient to pay the Monthly Deduction then the Grace Period will begin. The
Grace Period notice will be sent which requests the lesser of:
1. The Grace Period amount defined in the Termination of the Policy section;
or
2. The sum of:
(A) The accumulated Required Premium for the No-Lapse Guarantee (without
interest) since the Policy Date, less
(B) The sum of the premiums received less any Partial Surrenders and any
outstanding loans and loan interest to the end of the Grace Period,
plus
(C) The Required Premium for the No-Lapse Guarantee for the Grace Period.
FPVUL Page 24 02-08
Section 20. Termination of the Policy
Grace Period - Unless the No-Lapse Guarantee applies or the Extended No-Lapse
Guarantee Rider is included in the Policy, the Grace Period begins on the
Monthiversary when the Cash Surrender Value is less than the Monthly Deduction.
This policy goes into default at the start of the Grace Period. We will send you
written notice of the Grace Period and the amount of the premium due. The amount
of the premium due will be the amount necessary to enable funding of the Monthly
Deductions through the Grace Period, less the remaining Case Surrender Value.
This notice will be sent to the last known address of the owner and any assignee
of record at least thirty-one (31) days before termination. The Grace Period
shall terminate sixty-one (61) days after the Monthiversary. If the premium due
is not paid by the end of the Grace Period, all insurance stops and the policy
terminates without value. For payment sent by U. S. Mail, the premium is
considered paid if it is postmarked within the Grace Period.
Termination - This policy will terminate and all insurance will stop: As of the
end of the Valuation Period during which we receive Proper Notice in good order
from you to surrender the contract; or
1. As of the end of the Valuation Period during which we receive Proper notice
in good order from you to surrender the contract; or
2. When the Insured dies; or
3. At the end of the Grace Period if the premium due is not paid.
Reinstatement - You may reinstate this policy by Proper Notice to us within (5)
years of the date the policy terminated if:
1. The policy had not been surrendered for its Cash Surrender Value; and
2. Satisfactory evidence of insurability is provided to us; and
3. Payment is made of sufficient premiums,
(A) To cover past due Monthly Deductions during the Grace Period;
(B) The premium necessary to keep this policy in force for three (3)
months; and
4. Interest on any loan amount which is reinstated is paid at the annual rate
applicable to policy loans during the period of lapse, from the Grace
Period ended.
The effective date of the reinstatement is the next Monthiversary following our
approval of the reinstatement.
The Account Value on the effective date of reinstatement is equal to the Account
Value at the time of termination, adjusted for past due charges during the Grace
Period, plus the premium paid at the time of reinstatement. The Surrender Charge
will be based on the number of Policy Years from the original Policy Date.
FPVUL Page 25 02-08
Section 21. Other Policy Provisions
Deferral of Payments
Fixed Account - We may defer any payment from the Account Value or a loan
request for up to six (6) months. If we do, interest on the Fixed Account will
continue to be earned at the declared rates. We will not defer any amounts
needed to pay premiums for other policies in force with us.
Variable Account - While payments will generally be made within 7 days of a
request in good order, we may defer the determination and payment of all
benefits for any period under which the New York Stock Exchange is closed for
trading (except normal holiday closings) or when the Securities and Exchange
Commission has determined that a state of emergency exists that may make
determination and payment impractical.
Dividends - As long as this policy is in force, you will receive any dividends
declared by us. It is anticipated that no dividends will be declared. The amount
of any dividend will be applied to increase the Account Value unless you request
it to be paid in cash.
Annual Statement - At least once a year we will send you a statement showing:
1. The beginning and end dates of the current statement period;
2. The Account Value, if any, at the beginning of the current statement period
and at the end of the current statement period;
3. Amounts debited or credited identified by type. For example, premium
payments, Cost of Insurance, expense charges and surrender amounts;
4. Amounts at the end of the current statement period for:
a. Current Death Benefit;
b. Cash Value, if any;
c. Amount of outstanding loans, if applicable.
If the Cash Surrender Value is such that it will not maintain insurance in force
until the end of the next reporting period, a notice of this will be included in
the statement.
You may request other information about this policy, including a hypothetical
illustration of future policy benefits and values, once a year and without
charge. After one illustration per year is provided at no cost, we may charge an
amount not to exceed $50.00 for subsequent requests.
Conformity With Laws - We reserve the right to make any changes without your
consent which are necessary to comply with any federal or state statute, rule,
or regulation.
Computations - Calculations are based on the mortality table referenced on the
Table of Monthly Guaranteed Maximum Cost of Insurance Rates. Interest on amounts
allocated to the Fixed Account is compounded daily.
A statement of the basis of the charges and the method of computation has been
filed with the Interstate Insurance Product Regulation Commission.
Any Cash Values available under this policy are not less than the minimum xxxxx
and benefits required under the NAIC Variable Life Insurance Regulation, model
#270 using Actuarial Guideline XXIV.
Conformity with Interstate Insurance Product Regulation Commission
Standards-This policy was approved under the authority of the Interstate
Insurance Product Regulation Commission and issued under the Commission
standards. Any provision of the policy that on the effective date is in conflict
with the Interstate Insurance Product Regulation Commission Standards for this
product type is hereby amended to conform to the Interstate Insurance Product
Regulation Commission for this product type as of the provision's effective
date.
FPVUL Page 26 02-08
Section 22. Settlement Options
Options- All or any part of the proceeds paid at death or upon full surrender of
this policy may be paid in one sum or according to the following options:
1. Income for a Fixed Period. Proceeds are payable in equal monthly
installments for a specified number of years, not to exceed twenty (20).
2. Life Annuity. Proceeds are paid in equal monthly installments for as long
as the payee lives. A number of payments can be guaranteed number, such as
one hundred and twenty (120), or the number of payments required to refund
the proceeds applied.
3. Survivorship Annuity. Proceeds are paid in monthly installments for as long
as either the first payee or surviving payee lives. A minimum number of
payments equal to the initial payment can be guaranteed, such as one
hundred and twenty (120). A different monthly installment payable to the
surviving payee can be specified.
The annuity benefits at the time of their commencement will not be less than
those that would be provided by the application of the Cash Surrender Value to
purchase a single consideration immediate annuity contract at purchase rates
offered by us at the time to the same class of annuitants.
The proceeds of this policy may be paid in any other method or frequency of
payment acceptable to us.
Policy proceeds payable in one sum will accumulate at interest from the date of
death or surrender to the payment date at the rate of interest then paid by us
or at the rate specified by statute, whichever is greater.
Selection - You may select or change an option by giving us Proper Notice prior
to the settlement date. If no option is in effect on the settlement date, the
payee may select an option. If this policy is assigned or if the payee is a
corporation, association, partnership, trustee or estate, a settlement option
will be available only with our consent.
Payments - We will determine the amount payable under any option. The minimum
interest rate used in computing payments under all options will be 2% per year.
The settlement option tables show the guaranteed monthly payments available
under options 1, 2 and 3. The amounts shown are for exact Adjusted Ages. The
values for other Ages and fractional Ages not shown will be calculated on the
same basis as those shown and will be furnished upon request.
If the monthly payment under a chosen settlement option is less than $100, we
may require that payments be made on a less frequent basis.
Adjusted Age - An adjusted age is calculated as follows:
1. Determine a payee's actual age in years and full months on the date
payments are to begin;
2. Subtract 1.5 months for each year the payee's year of birth exceeds 1900.
Death of Last Payee - If a payee dies and there is no surviving payee, we will
pay a single sum to such payee's estate. The final payment will be the commuted
value of any remaining guaranteed payments.
Claims of Creditors - Settlement option payments will be exempt from the claims
of creditors to the maximum extent permitted by law.
FPVUL Page 27 02-08
SETTLEMENT OPTION TABLES
Guaranteed Monthly Income Per $1,000 of Proceeds
OPTION 1 - Income for Fixed Period
Number Monthly Number Monthly
of Years Income of Years Income
1 $84.47 11 $8.86
2 42.86 12 8.24
3 28.99 13 7.71
4 22.06 14 7.26
5 17.91 15 6.87
6 15.14 16 6.53
7 13.16 17 6.23
8 11.68 18 5.96
9 10.53 19 5.73
10 9.61 20 5.51
Quarterly Income is 2.993 times the monthly income and annual income is 11.839
times the monthly income.
OPTION 2 - Life Annuity
The amount of income is based on the adjusted age of the annuitant on the date
of the first payment.
Adjusted Number of Guaranteed Payments Adjusted Number of Guaranteed Payments
Age None 120 Refund* Age None 120 Refund*
55 $4.34 $4.30 $4.17 63 $5.21 $5.10 $4.86
56 4.42 4.38 4.24 64 5.35 5.22 4.96
57 4.52 4.47 4.31 65 5.51 5.35 5.08
58 4.61 4.56 4.39 66 5.67 5.49 5.20
59 4.72 4.65 4.47 67 5.85 5.64 5.33
60 4.83 4.76 4.56 68 6.04 5.80 5.46
61 4.95 4.86 4.66 69 6.24 5.96 5.61
62 5.08 4.98 4.75 70 6.46 6.13 5.76
*The sum of all guaranteed payments will equal the amount applied under this
option.
OPTION 3 - Survivorship Annuity
The amount of income is based on the adjusted age of each of the annuitants on
the date of the first payment.
50% to Survivor 100% to Survivor
120 Guaranteed Payments 120 Guaranteed Payments
Payee #2 Age Payee #2 Age
Payee #1 Payee #1
Age 50 55 60 65 70 Age 50 55 60 65 70
50 $3.95 $4.12 $4.31 $4.55 $4.80 50 $3.56 $3.67 $3.76 $3.83 $3.88
55 4.12 4.30 4.52 4.77 5.05 55 3.67 3.83 3.97 4.08 4.17
60 4.31 4.52 4.76 5.04 5.36 60 3.76 3.97 4.17 4.36 4.51
65 4.55 4.77 5.04 5.35 5.72 65 3.83 4.08 4.36 4.64 4.90
70 4.80 5.05 5.36 5.72 6.13 70 3.88 4.17 4.51 4.90 5.28
Income for other combinations of ages will be furnished on request.
FPVUL Page 28 02-08
NOTICE OF ANNUAL MEETING
By-law, Art. II, Sec. 2: The regular annual meeting of the members of American
United Mutual Insurance Holding Company shall be held at its principal place of
business on the third Thursday in February each year at ten o'clock A.M. local
time or at such other location, place, or time as may be designated by the Board
of Directors. The election of directors shall be held at the annual meeting.
American United Life Insurance Company
Indianapolis, Indiana
READ YOUR POLICY CAREFULLY
FLEXIBLE PREMIUM VARIABLE ADJUSTABLE UNIVERSAL LIFE INSURANCE
PARTICIPATING-DIVIDENDS ARE NOT GUARANTEED
It is anticipated that no dividends will be declared.
PERIOD OF COVERAGE NOT GUARANTEED
This policy is a legal contract between the owner and AUL.
FPVUL 02-08