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EXHIBIT 4.15
VOLUNTARY TDA CUSTODIAL CONTRACT, FORM P-K-TDAMFVA-GMDB(BR)
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CONTRACT NUMBER: VXX,XXX
CONTRACTHOLDER: ABC SCHOOL
DATE OF ISSUE: JANUARY 1, 1999
CONTRACT DATE: JANUARY 1, 1999
FIRST CONTRACT ANNIVERSARY: JANUARY 1, 2000
American United Life Insurance Company (AUL) issues this contract in
consideration of the Contractholder's application and its payment of
Contributions to AUL. When used in this contract, "we," "us," or "our" refer to
AUL and "you" or "your" refer to the Contractholder.
All provisions and conditions stated on this and subsequent pages are part of
this contract.
This contract is signed for AUL at its Home Office in Indianapolis, Indiana. Our
mailing address is X.X. Xxx 000, Xxxxxxxxxxxx, Xxxxxxx 00000-0000.
NOTICE OF TEN DAY RIGHT TO EXAMINE CONTRACT
Please read this contract carefully. You may return the contract for any reason
within ten days after receiving it. If returned, the contract will be considered
void from the beginning and any Contributions will be refunded.
AMERICAN UNITED LIFE INSURANCE COMPANY
By /s/ Xxxxx X. Xxxxxx
Chairman of the Board,
President, & Chief Executive Officer
Attest
/s/ Xxxxxxx X. Xxxxx
Secretary
AUL American Series Contract
TDA Multiple-Fund Group Variable Annuity
with Guaranteed Minimum Death Benefit
(BR)
Current Interest Credited
Nonparticipating
ACCUMULATION UNITS IN AN INVESTMENT ACCOUNT UNDER THIS CONTRACT MAY INCREASE OR
DECREASE IN VALUE ACCORDING TO THE INVESTMENT PERFORMANCE OF THE UNDERLYING
INVESTMENTS HELD BY THE INVESTMENT ACCOUNT. THE VALUE OF SUCH ASSETS AND
ACCUMULATION UNITS IS NOT GUARANTEED. SECTION 4 OF THIS CONTRACT EXPLAINS THE
VALUATION OF SUCH ASSETS AND ACCUMULATION UNITS.
If you have questions concerning your contract, or wish to register a complaint,
you may reach us by calling 0-000-000-0000.
P-K-TDAMFVA-GMDB(BR)
TABLE OF CONTENTS
SECTION 1 - DEFINITIONS 3
SECTION 2 - ADMINISTRATION OF PARTICIPANT ACCOUNTS 6
2.1----- How Contributions Are Handled
2.2----- Transfers from Other Retirement Programs
2.3----- Excess Contributions
SECTION 3 - OPERATION OF FIXED INTEREST ACCOUNT (FIA) 7
3.1----- Allocations to Participant Accounts
3.2----- Provision of Guaranteed Rates for Interest Pockets
3.3----- Minimum Rate Guarantee
3.4----- Allocation of Withdrawals
SECTION 4 - VALUATION OF INVESTMENT ACCOUNTS 8
4.1----- Operation of Investment Accounts
4.2----- Valuation of Mutual Funds
4.3----- Accumulation Units
4.4----- Value of Accumulation Units
4.5----- Determining the Net Investment Factor
4.6----- Valuing Participant Accounts
SECTION 5 - BENEFIT PAYMENTS 9
5.1----- General Withdrawal Provisions
5.2----- Benefit Payments
5.3----- Other Cash Benefits
SECTION 6 - TRANSFERS AND LOANS 12
6.1----- Transfers Between Investment Options
6.2----- Minimum Amounts
6.3----- Maximum Amounts
6.4------Loans from the FIA
SECTION 7 - ANNUITIES 14
7.1----- Annuity Purchases
7.2----- Annuity Options
7.3----- Determining Annuity Amount
7.4----- Proof of Age and Survival; Minimum Payments
7.5----- Annuity Certificates
P-K-TDAMFVA-GMDB(BR).1
SECTION 8 - MORTALITY AND EXPENSE RISK CHARGES
AND ADMINISTRATIVE CHARGES 15
8.1----- Investment Account Mortality and Expense Risk Charges
8.2----- Administrative Charge
8.3----- Mutual Fund or Portfolio Expense
8.4----- Taxes
8.5----- Reduction or Waiver of Charges
SECTION 9 - CONTRACT MODIFICATIONS 16
9.1----- Mutual Amendment
9.2----- Rates and Section 8 Charges
9.3----- Conformance with Law
9.4----- Our Right to Initiate Changes
9.5----- Prohibited Amendments
SECTION 10 - GENERAL PROVISIONS 17
10.1----- Ownership
10.2----- Entire Contract
10.3----- Benefit Determinations
10.4----- Termination of Contract
10.5----- Representations and Warranties
10.6----- Contractholder Representative; Misstatement of Data
10.7----- Requirement for Writing
10.8----- Quarterly Statement of Account Value
10.9----- Conformity with Law
10.10---- Sex and Number
10.11---- Facility of Payment
10.12---- Voting
10.13---- Acceptance of New Participants or Contributions
10.14---- AUL's Annual Statement
10.15---- AUL's Annual Meeting
10.16---- Nonforfeitability and Nontransferability
TABLE OF GUARANTEED IMMEDIATE ANNUITIES 19
TABLE OF INVESTMENT ACCOUNTS 20
P-K-TDAMFVA-GMDB(BR).2
SECTION 1 - DEFINITIONS
1.1 "Account Value" for a Participant Account as of a date is:
(a) that account's balance in the Fixed Interest Account (FIA) on that
date; plus
(b) the value of that account's Accumulation Units in each Investment
Account on that date.
1.2 "Accumulation Unit" is a valuation device used to measure increases in and
decreases to the value of any Investment Account.
1.3 "Annuity Commencement Date" is the first day of the month an annuity begins
under this contract. This date may not be later than the date a
Participant's periodic benefits are required to commence under the Code.
1.4 "Business Day" is any day both the New York Stock Exchange and our Home
Office are open for the general conduct of business.
1.5 "Code" means the Internal Revenue Code of 1986, as amended, and any
applicable regulations or rulings thereunder.
1.6 The "First Contract Anniversary" is listed on the contract face page.
Subsequent "Contract Anniversaries" are on the same day of each subsequent
year.
1.7 "Contract Quarter" is each of the four successive three-month periods in a
Contract Year.
1.8 The first "Contract Year" starts on the Contract Date and ends on the day
before the First Contract Anniversary. Each subsequent Contract Year starts
on a Contract Anniversary and ends on the day before the next Contract
Anniversary.
1.9 "Contributions" are amounts paid to us, which we credit to a Participant
Account. Contributions include amounts transferred from another AUL group
annuity contract. Contributions include "Elective Deferrals," which means,
with respect to any taxable year, any Contribution made under a salary
reduction agreement. A Contribution made under a salary reduction agreement
is not treated as an Elective Deferral if, under the salary reduction
agreement, the Contribution is made pursuant to a one-time irrevocable
election made by the Participant at the time of initial eligibility to
participate in the agreement, or is made pursuant to a similar arrangement
involving a one-time irrevocable election specified in Regulations issued
under the Code.
1.10 "Death Benefit" is the greater of:
(a) the Participant's Account Value as of the date the Death Benefit is
calculated, or
(b) (1) the Guaranteed Minimum Death Benefit (GMDB) on the Contract
Anniversary immediately preceding the date of the Participant's
death; increased by
(2) any Contributions made for the Participant since the last
Contract Anniversary; and reduced proportionately to reflect
(3) any withdrawals for the Participant since the last Contract
Anniversary.
P-K-TDAMFVA-GMDB(BR).3
1.11 "Excess Contributions" are Contributions in excess of the applicable Code
limits.
1.12 "Fixed Interest Account" or "FIA" is the portion of our general asset
account as described in Section 3, to which Contributions may be allocated
for accumulation at the Guaranteed Rates.
1.13 The "Guaranteed Minimum Death Benefit" or "GMDB" prior to the first
Contract Anniversary is equal to the Contributions made for a Participant
minus any of his withdrawals or loans. On each Contract Anniversary prior
to, or concurrent with, the Participant's date of death, the GMDB is reset,
based on the age of the Participant on his last birthday, as follows:
(a) For Participants less than 81 years of age, the GMDB is the greater
of:
(1) the Participant's Account Value as of the current Contract
Anniversary, or
(2) (i) the GMDB as of the immediately preceding Contract
Anniversary; increased by
(ii) any Contributions made for the Participant since the
immediately preceding Contract Anniversary; and reduced
proportionately to reflect
(iii)any withdrawals for the Participant since the immediately
preceding Contract Anniversary.
(b) For Participants 81 years of age or older, the GMDB is equal to:
(1) the GMDB as of the immediately preceding Contract Anniversary;
increased by
(2) any Contributions made for the Participant since the immediately
preceding Contract Anniversary; and reduced proportionately to
reflect
(3) any withdrawals for the Participant since the immediately
preceding Contract Anniversary.
As of the Participant's date of death, the GMDB ceases to increase or
decrease in value.
1.14 "Guaranteed Rates" are the guaranteed annual effective rates of interest we
credit to each Interest Pocket. A Guaranteed Rate may be modified only as
described in Section 3.2.
1.15 "Home Office" is our principal office in Indianapolis, Indiana. For
anything to be "received by AUL," it must be received at our Home Office.
1.16 "Interest Pocket" means a tracking method which associates funds deposited
into the FIA over a specific time period with a specific Guaranteed Rate,
as described in Section 3. After the guaranteed period provided in Section
3.2 has elapsed, we may consolidate two or more Interest Pockets in
conjunction with the announcement of new Guaranteed Rates.
1.17 "Investment Account" means each distinct portfolio established within our
Variable Account and identified in the Table of Investment Accounts in this
contract. Amounts allocated to any Investment Account are invested in the
shares of the corresponding Mutual Fund or Portfolio identified in the
Table of Investment Accounts. Our "Variable Account" is a separate account
we maintain under Indiana law which is called the AUL American Unit Trust
and which is registered under the Investment Company Act of 1940 as a unit
investment trust.
P-K-TDAMFVA-GMDB(BR).4
1.18 "Investment Option" is the FIA or any Investment Account. We reserve the
right to provide other Investment Options under this contract at any time.
1.19 "Mutual Fund" means any diversified, open-end, management investment
company made available by us, and listed in the Table of Investment
Accounts.
1.20 "Participant" is any person that has a Participant Account.
1.21 "Participant Account" is an account under this contract for each
Participant. We credit Contributions to Participant Accounts and
Contribution-type subaccounts as you direct.
1.22 "Portfolio" is a portfolio established within a particular Mutual Fund, as
described in the Mutual Fund's current prospectus.
1.23 "Valuation Periods" start at the close of each Business Day and end at the
close of the next Business Day.
1.24 The "Withdrawal Charge" is a percentage of the Account Value withdrawn
under this contract. The Withdrawal Charge will not apply to Account Values
withdrawn to provide a benefit payment or an annuity as described in
Sections 5.2 and 7.1, respectively. The percentage varies by the
Participant Account Year in which the withdrawal is made. The first
Participant Account Year begins on the date when we establish a Participant
Account and credit the initial Contribution for the Participant, and ends
on the day immediately preceding the next anniversary of such date. Each
Participant Account Year thereafter begins on such an anniversary date and
ends on the day immediately preceding the next succeeding anniversary date.
The Withdrawal Charge percentage is as follows:
During Withdrawal Charge
Participant Account Years Percentage
1 7%
2 6%
3 5%
4 4%
5 3%
6 2%
7 1%
Thereafter 0%
In no event will the cumulative total of all Withdrawal Charges, including
those previously assessed against any amount withdrawn from a Participant
Account, exceed 8.5% of total Contributions allocated to that Participant
Account.
1.25 "Withdrawal Value" is a Participant's Account Value, minus any Withdrawal
Charge, outstanding loan balance, and expense charges due on such loans.
P-K-TDAMFVA-GMDB(BR).5
SECTION 2 - ADMINISTRATION OF PARTICIPANT ACCOUNTS
2.1 How Contributions Are Handled: Contributions we receive are credited to the
appropriate Contribution-type subaccounts of each Participant Account, as
you direct in your allocation instructions. A Participant's initial
Contribution is allocated to the Participant Account by the second Business
Day after we (1) receive the initial Contribution or, if later, (2) receive
all data necessary to complete the allocation (including data required to
establish the Participant Account, the amount of the Participant's
Contribution, and Investment Option elections.) Subsequent Contributions
are allocated to the Participant Account on the Business Day we (1) receive
that Contribution or, if later, (2) receive all data necessary to complete
the allocation.
If we do not receive the data required to establish a Participant Account
and the amount of a Contribution for the Participant within 5 Business Days
after we first receive that Contribution, we will return that Contribution
to you unless you consent to us retaining that Contribution until the
earlier of (i) the date we receive such data and amount and, therefore, can
properly allocate that Contribution to the Participant Account or (ii) 25
days from the date we receive that Contribution.
If we receive the data required to establish a Participant Account and the
amount of a Contribution for the Participant, but we do not receive
Investment Option elections for that Participant, the Contribution is
allocated to the AUL American Money Market Investment Account. When we
receive all required data, amounts in the AUL American Money Market
Investment Account, plus gains and minus losses, are transferred to the
appropriate Investment Option for each designated Contribution-type.
Participant Accounts may be allocated to Investment Options in any
increments acceptable to us. Investment Option elections remain in effect
until changed by you. A change in Investment Option elections is made by
giving us new Investment Option elections.
2.2 Transfers from Other Retirement Programs: We may accept amounts transferred
from other Code Section 403(b) funding vehicles. Such transferred amounts,
as identified by you, are credited to a rollover subaccount, under the
appropriate Participant Account.
2.3 Excess Contributions: On receipt of instructions from you or the
Participant, we will withdraw Excess Contributions, plus gains and minus
losses, from a Participant Account and return them to the Participant, or
as you direct. Such instructions must state the amount to be returned and
certify that such Contributions are Excess Contributions and that such
return is permitted by the Code. A return of Excess Contributions is
treated like a benefit payment under Section 5.2.
No Participant is permitted to have Elective Deferral contributions (within
the meaning of Code Section 402(g)(3)) made during a calendar year under
this contract, or under any other plans, contracts, or arrangements
maintained by his employer, in excess of the dollar limitation in effect
under Code Section 402(g)(1) and any Regulations issued thereunder for
taxable years beginning in such calendar year.
P-K-TDAMFVA-GMDB(BR).6
SECTION 3 -- OPERATION OF FIXED INTEREST ACCOUNT (FIA)
3.1 Allocations to Participant Accounts: We allocate each Participant's
Contributions in the FIA based on the information you provide.
3.2 Provision of Guaranteed Rates for Interest Pockets: All Contributions or
transfers hereunder which are allocated to the FIA during a Contract
Quarter will earn interest at the declared Guaranteed Rate for that
quarterly Interest Pocket until that pocket matures on the second January 1
following the quarter in which that pocket was established. Funds
associated with that maturing pocket will earn interest for a full year at
the Guaranteed Rate for that pocket, which will be declared by January 1 of
each year.
3.3 Minimum Rate Guarantee: No Guaranteed Rate may be less than an annual
effective interest rate of 3.00%.
3.4 Allocation of Withdrawals: Withdrawals or transfers from the FIA are on a
first-in/first-out basis.
P-K-TDAMFVA-GMDB(BR).7
SECTION 4 - VALUATION OF INVESTMENT ACCOUNTS
4.1 Operation of Investment Accounts: All income, gains, or losses, realized or
unrealized, from assets held in any Investment Account are credited to or
charged against the applicable Investment Account without regard to our
other income, gains, or losses. Investment Account assets are not
chargeable with liabilities arising out of any other business we may
conduct.
4.2 Valuation of Mutual Funds: The current prospectus for each Mutual Fund
describes how that Mutual Fund's assets are valued.
4.3 Accumulation Units: We credit amounts allocated to an Investment Account in
Accumulation Units. The Accumulation Unit value used is the one for the
Valuation Period when we allocate the amount to the Investment Account.
4.4 Value of Accumulation Units: We generally establish the Accumulation Unit
value for a new Investment Account at $1.00 on the date the first deposit
is made to the Investment Account. The value of an Accumulation Unit for
any later Valuation Period equals the value of an Accumulation Unit for the
immediately preceding Valuation Period times the Net Investment Factor for
the current Valuation Period. We determine the Accumulation Unit value
before giving effect to any additions, withdrawals, or transfers in the
current Valuation Period.
4.5 Determining the Net Investment Factor: We determine the Net Investment
Factor for each Investment Account by dividing (a) by (b), and then
subtracting (c), where:
(a) is:
(1) the net asset value of a Mutual Fund or Portfolio share at the
end of the current Valuation Period, plus
(2) any dividend or other distribution paid on each Mutual Fund or
Portfolio share during such Valuation Period, plus or minus
(3) any credit or charge for taxes paid or reserved by us during the
Valuation Period that we determine are attributable to the
Investment Account;
(b) is the net asset value of each Mutual Fund or Portfolio share held in
the Investment Account at the end of the prior Valuation Period; and
(c) is a daily charge factor we determine, as described in Section 8.1.
4.6 Valuing Participant Accounts: We determine the Account Value in an
Investment Account by multiplying the Accumulation Units in each
Participant Account by the Accumulation Unit value. The Accumulation Unit
value of an Investment Account changes only on a Business Day.
P-K-TDAMFVA-GMDB(BR).8
SECTION 5 - BENEFIT PAYMENTS
5.1 General Withdrawal Provisions: Subject to the following provisions of this
Section, the Participant may direct us to withdraw all or a portion of his
Account Value pursuant to Sections 5.2 and 5.3 to provide a cash payment to
him.
(a) Amounts attributable to amounts held as of December 31, 1988 under
another Code Section 403(b) annuity contract may be withdrawn to
provide such benefits.
(b) Amounts attributable to Contributions made other than pursuant to a
salary reduction agreement (within the meaning of Code Section
402(g)(3)(C)) may be withdrawn to provide such benefits.
(c) Amounts attributable to Contributions made pursuant to a salary
reduction agreement (within the meaning of Code Section 402(g)(3)(C))
may be withdrawn to provide such benefits, provided that any
distribution of such amount shall not occur until the Participant has
either attained age 59 1/2, separated from service, died, become
totally disabled (as defined by the IRS), or experienced a hardship
(as defined by the IRS). However, in the case of a hardship
withdrawal, any gain credited to such Contributions may not be
withdrawn.
(d) Withdrawal of any amount from this contract which is transferred
directly by us pursuant to a Participant's instructions to another
tax-deferred annuity funding vehicle under applicable IRS rules and
regulations is not the provision of a benefit for purposes of Section
5.2. Any such withdrawal is subject to application of the Withdrawal
Charge pursuant to Sectoion 5.3.
(e) If, as provided in Internal Revenue Code Regulation Section
1.403(b)-2T Q&A-2, the distributee of any eligible rollover
distribution elects to have the distribution paid directly to an
eligible retirement plan (as defined in Q&A-1 of that Section) and
specifies the eligible retirement plan to which the distribution is to
be paid, then the distribution shall be paid to that eligible
retirement plan in a direct rollover.
(f) We are not responsible for determining a Participant's compliance with
the requirements above. Any withdrawal request submitted by the
Participant must include certification as to the purpose of the
withdrawal. The Participant assumes full responsibility for
determining whether any withdrawal is permitted under applicable law.
We may rely solely upon his representations made in the withdrawal
request.
(g) Withdrawals from a Participant Account's share of any Investment
Option may not be made in an amount less than the smaller of $500 or
the Participant Account's entire share of the Investment Option. If a
withdrawal reduces the Participant Account's share of an Investment
Option to less than $500, such remaining share shall also be
withdrawn.
(h) A withdrawal request is effective, and the Account Value to be applied
pursuant to Sections 5.2 and 5.3 is determined, on the Business Day
that we receive a proper withdrawal request (or due proof of death, if
received later).
(i) We will pay any cash lump-sum to the Participant within 7 days from
the appropriate Business Day as determined in Subsection (h) above,
except as we may be permitted to defer such payment of amounts
withdrawn from the Variable Account in accordance with
P-K-TDAMFVA-GMDB(BR).9
appropriate provisions of the federal securities laws. We reserve the
right to defer the payment of amounts withdrawn from the FIA for a
period of up to 6 months after we receive the withdrawal request.
(j) Withdrawals from a Participant Account's share of the FIA will be made
on a first-in/first- out basis under Section 3.4.
(k) Where a Participant has outstanding loans under this contract, a
partial withdrawal by a Participant from the FIA is permitted only to
the extent that the Participant's remaining FIA Withdrawal Value
equals twice the total of his outstanding loans under this contract.
5.2 Benefit Payments:
(a) Subject to the limitations provided in Section 5.1, the Participant
may direct us to withdraw all or a portion of his Account Value
(subject to Section 8.4, and minus the Participant's outstanding loan
balance under this contract and any unpaid expense charges due on such
loans) to provide a cash payment to him to pay benefits for
retirement, disability, termination of employment, hardship, or
required minimum distribution benefits pursuant to Code Section
401(a)(9). Such a withdrawal is not subject to a Withdrawal Charge.
Other benefits, and direct transfers under Section 5.1(d), are subject
to a Withdrawal Charge and are paid under Section 5.3.
(b) Subject to the limitations provided in Section 5.1, upon receipt of
instructions and of due proof of the Participant's (and, if
applicable, the beneficiary's) death prior to the date the Participant
Account is closed, we will apply the Account Value (subject to Section
8.4, and minus the Participant's outstanding loan balance under this
contract and any unpaid expense charges due on such loans) of the
Participant Account for the purpose of providing a Death Benefit. Such
a withdrawal is not subject to a Withdrawal Charge. The Death Benefit
will be paid to the Participant's beneficiary according to the method
of payment elected by the beneficiary (unless such method of payment
was previously elected by the Participant). The Participant's
beneficiary may also designate a beneficiary. This Death Benefit will
be payable:
(1) in a single sum or other method not provided in (2) below;
provided, however, that the entire Account Value (subject to
Section 8.4, and minus the Participant's outstanding loan balance
under this contract and any unpaid expense charges due on such
loans) must be paid to the beneficiary on or before December 31
of the calendar year which contains the fifth anniversary of the
Participant's death, or
(2) as an annuity in accordance with the Annuity Options shown in
Section 7.2 over a period not to exceed the life or life
expectancy of the beneficiary. If the beneficiary is not the
Participant's surviving spouse, the annuity must begin on or
before December 31 of the calendar year immediately following the
calendar year in which the Participant died. If the beneficiary
is the Participant's surviving spouse, the annuity need not begin
before December 31 of the calendar year in which the Participant
would have attained age 70 1/2.
P-K-TDAMFVA-GMDB(BR).10
If a Participant dies on or after his Annuity Commencement Date, any
interest remaining under the Annuity Option selected will be paid at
least as rapidly as prior to the Participant's death.
Any withdrawal request under this Section must certify the purpose of
the request.
5.3 Other Cash Benefits: Subject to the limitations provided in Section 5.1,
the Participant may direct us to make a cash payment from his Participant
Account for the purpose of providing benefits not specifically described in
Section 5.2.
If the entire Account Value is withdrawn, the amount paid equals the
Withdrawal Value, subject to any charges described in Section 8, and minus
the Participant's outstanding loan balance under this contract and any
unpaid expense charges due on such loans. In all other instances, the
Account Value is reduced by an amount sufficient to make the payment
requested and to cover the Withdrawal Charge and any charges described in
Section 8.
P-K-TDAMFVA-GMDB(BR).11
SECTION 6 - TRANSFERS AND LOANS
6.1 Transfers between Investment Options: The Participant may direct us to
transfer amounts between Investment Options. Transfers are effective on the
Business Day we receive the transfer direction. Transfer directions for a
Participant Account may be made daily on any Business Day. We will make the
transfer as requested within 7 days from the date we receive the request,
except as we may be permitted to defer the transfer of amounts withdrawn
from the Variable Account in accordance with appropriate provisions of the
federal securities laws. We reserve the right to defer a transfer of
amounts from the FIA for a period of up to 6 months after we receive the
transfer request.
Where a Participant has outstanding loans under this contract, a transfer
from the FIA is permitted only to the extent that the Participant's
remaining FIA Withdrawal Value equals twice the total of his outstanding
loans under this contract.
6.2 Minimum Amounts: The minimum amount a Participant may transfer from an
Investment Option is $500 or, if less, the Participant's entire balance in
that Investment Option. If a transfer reduces the Participant balance in an
Investment Option to less than $500, the entire balance is transferred.
6.3 Maximum Amounts: No more than 20% of a Participant's FIA Account Value on
the later of the Contract Date or the Contract Anniversary immediately
preceding the request for transfer may be transferred from the FIA during
any Contract Year. However, if the Participant's FIA Account Value is less
than $2,500 on the later of the Contract Date or the Contract Anniversary
immediately preceding the request for transfer, the amount transferrable
from the FIA for that Participant for that Contract Year is the minimum
amount specified in Section 6.2.
6.4 Loans from the FIA:
(a) A Participant who has a FIA Account Value may borrow money from us,
using that FIA Account Value as the only security for the loan, by
submitting a proper written request to us. The minimum amount of any
single loan is $2,000. The maximum amount that may be borrowed at any
time is an amount which, when combined with the largest loan balance
during the prior 12 months, does not exceed the lesser of (l) 50% of
the Participant's FIA Withdrawal Value, or (2) $50,000. The
Participant's FIA Withdrawal Value, which must be at least twice the
amount of the outstanding loan balance, serves as security for the
loan, and continues to earn interest. Our payment of the loan amount
may be delayed for up to 6 months.
(b) Interest will be charged for the loan, and will accrue on the loan
balance from the loan effective date. We declare the loan interest
rate at the beginning of each calendar quarter. The interest rate
charged is equal to the Xxxxx'x Corporate Bond Yield Average - Monthly
Average Corporates as of the date of the loan, as published by Xxxxx'x
Investors Service. However, no change from a previously established
rate may be made in an amount less than .50% in any periodic
adjustment. The loan balance is also subject to a loan expense charge
equal to 2% of each loan repayment.
(c) Loans to Participants must be repaid to us within a term of 5 years,
unless the Participant certifies to us that the loan is to be used to
acquire a principal residence for the Participant, in which case the
term may be longer. Loan repayments must be made at least quarterly.
Upon receipt of a repayment, we deduct the 2% expense charge from the
repayment, and
P-K-TDAMFVA-GMDB(BR).12
apply the balance of the repayment first to any accrued interest and
then to the outstanding loan principal.
(d) If a loan either remains unpaid at the end of its term, or if, at any
time, l02% of the total of all the Participant's loan balances equals
the Participant's FIA Withdrawal Value, then we deduct these balances
plus an expense charge equal to 2% of the outstanding loan balances
from the Participant's share of the FIA. If a Participant has
outstanding loans, then withdrawals or transfers to the Variable
Account are permitted only to the extent that the Participant's
remaining FIA Withdrawal Value equals twice the total of any
outstanding loans of the Participant under the contract. All loan
balances plus the 2% expense charge must be paid or satisfied in full
before any amount from the Participant's share of the FIA is paid as a
full withdrawal, as a Death Benefit, upon annuitization, or as another
permitted distribution.
(e) We may modify the loan restrictions or limitations stated above in
this Section, or may add new restrictions and limitations, to the
extent necessary to comply with Code Section 72(p) or other applicable
law, as determined solely by us.
P-K-TDAMFVA-GMDB(BR).13
SECTION 7 - ANNUITIES
7.1 Annuity Purchases: The Participant may withdraw all or a portion of his
Account Value (subject to Section 8.4, and minus his outstanding loan
balance under this contract and any unpaid expense charges due on such
loans) to provide an annuity, reflecting benefits. Such a withdrawal is not
subject to a Withdrawal Charge. On receipt of an annuity purchase request,
we transfer the entire Participant Account to the FIA. Such amounts remain
in the FIA until the Annuity Commencement Date, when the full balance
(including interest) is applied to purchase the annuity.
The Participant's annuity purchase request must specify the purpose for the
annuity, the election of an annuity option, Annuity Commencement Date, any
contingent annuitant or beneficiary, and any additional information we
require. If the Participant or any contingent annuitant dies before the
Annuity Commencement Date, the annuity election is cancelled.
The minimum amount which the Participant may apply to purchase an annuity
is $10,000.
7.2 Annuity Options: The Participant may elect any optional form of annuity we
offer at the time of purchase. Available annuity options always include:
(a) Life Annuity. A monthly annuity is payable as long as the annuitant
lives, and ends with the last payment before the annuitant's death.
(b) Survivorship Annuity. A monthly annuity is payable as long as the
annuitant lives. After the annuitant's death, all or a portion of the
monthly annuity is paid to the contingent annuitant as long as the
contingent annuitant lives.
No annuity may have a certain period extending beyond the life expectancy
of a Participant or the joint life expectancy of a Participant and any
contingent annuitant, as determined on the Annuity Commencement Date.
7.3 Determining Annuity Amount: We compute the annuity amount using the factors
reflected in the Table of Guaranteed Immediate Annuities attached to this
contract. However, if our current single premium, nonparticipating,
immediate annuity rates for this class of group annuity contracts produces
a higher monthly annuity than the Table of Guaranteed Immediate Annuities,
then that more favorable annuity rate is applied.
7.4 Proof of Age and Survival; Minimum Payments: We may require proof of any
annuitant's or contingent annuitant's date of birth before commencing
payments under any annuity. We may also require proof that an annuitant or
contingent annuitant is living before making any annuity payment. If a
monthly annuity is less than our current established minimum payment, we
may make payments on a less-frequent basis or in a single sum.
7.5 Annuity Certificates: We issue to each person for whom an annuity is
purchased a certificate setting forth the annuity's amount and terms.
P-K-TDAMFVA-GMDB(BR).14
SECTION 8 - MORTALITY AND EXPENSE RISK CHARGES
AND ADMINISTRATIVE CHARGES
8.1 Investment Account Mortality and Expense Risk Charges: We deduct from the
average daily net assets of each Investment Account the daily equivalent of
an annual combined mortality risk charge and expense risk charge of 1.25%.
This charge is part of the Net Investment Factor, described in Section 4.5.
8.2 Administrative Charge: We deduct an administrative charge per Contract
Quarter equal to the lesser of $7.50 or 0.5% of the Account Value on the
last day of each Contract Quarter from each Participant Account in
existence on that day for as long as the Participant Account is in effect.
This charge is to be prorated among each subaccount of the Participant
Account which corresponds to each Investment Option utilized under this
contract by that Participant Account. If the entire balance of a
Participant Account is withdrawn pursuant to this contract, the
administrative charge attributable to the period of time which has elapsed
since the first day of the Contract Quarter in which the withdrawal of
funds is made is not deducted from the amount withdrawn.
There is no charge for a Participant for any Contract Quarter in which the
Participant's Account Value on the last day of that quarter is greater than
$25,000.
8.3 Mutual Fund or Portfolio Expense: A Mutual Fund or Portfolio deducts an
investment advisory fee and other expenses from its net asset value, as
described in its current prospectus. Amounts deducted may include
operational, organizational, and extraordinary expenses. Expenses vary from
year-to-year.
8.4 Taxes: We may deduct charges equal to any premium tax we incur from the
balance applied to purchase an annuity or at such other time as premium
taxes are incurred by us. We may also deduct from Investment Accounts
reasonable charges for federal, state, or local income taxes we incur, that
are attributable to such Investment Accounts.
8.5 Reduction or Waiver of Charges: We may reduce or waive the Withdrawal
Charge or the charges discussed above, if the appropriate expenses
associated with the sale or administration of any contract are reduced, or
if a contract is sold covering our employees or directors, those of the AUL
American Series Fund, Inc., or to either's affiliates.
P-K-TDAMFVA-GMDB(BR).15
SECTION 9 - CONTRACT MODIFICATIONS
9.1 Mutual Amendment: You and we may agree to any change or amendment to this
Contract without the consent of any other person or entity. This contract
cannot be modified or amended, nor can any provision or condition be
waived, except by our written agreement, signed by a corporate officer.
Such authority may be delegated only by a written agreement signed by our
corporate officer.
9.2 Rates and Section 8 Charges: We may announce new Guaranteed Rates, as
described in Section 3.2 (including the consolidation of existing Interest
Pockets). However, as provided in Section 3.2, we may not change the
declared Guaranteed Rate applicable to an established Interest Pocket
during the guaranteed period. We may also modify the charge levels in
Section 8, using the procedures of Section 9.4.
9.3 Conformance with Law: We may amend this contract at any time, without your
consent, or that of any other person or entity, if the amendment is
reasonably needed to comply with, or give you or Participants the benefit
of, any provisions of federal or state laws. Any such amendment will be
delivered to you prior to its effective date.
9.4 Our Right to Initiate Changes: In addition to those amendments permitted by
Sections 9.2 and 9.3, we may initiate an additional provision or
modification of any other provision of this contract (including the
addition of a charge for transfers between Investment Options) by giving
you 60 days notice of such modification. Any such modification is effective
without your affirmative assent.
9.5 Prohibited Amendments:
(a) Despite our right to initiate changes under Section 9.4, we may not
initiate changes to the minimum Guaranteed Rate specified in Section
3.4 or change our obligation to set Guaranteed Rates for the period of
time specified in Section 3.2.
(b) No modification to this contract may change the terms of a previously
purchased annuity or reduce any interest guarantee applicable to
Participant Account FIA balances on the modification's effective date.
P-K-TDAMFVA-GMDB(BR).16
SECTION 10 - GENERAL PROVISIONS
10.1 Ownership: You own this contract. No other person or entity has any right,
title, or interest in this contract or to amounts received or credited
under it until such amounts are made available to them by you. All amounts
received or credited under this contract become our property. We are
obligated to make only the payments or distributions specified in this
contract.
10.2 Entire Contract: This contract and your application is the entire agreement
between you and us. We are not a party to, nor bound by, a plan, trust,
custodial agreement, or other agreement, or any amendment or modification
to any of the same. We are not a fiduciary under this contract or under any
such plan, trust, custodial agreement, or other agreement.
10.3 Benefit Determinations: The Participant will furnish us whatever
information is necessary to establish the eligibility for and amount of
annuity or other benefit due. We may rely solely on his instructions and
certifications with respect to his benefits.
10.4 Termination of Contract: This contract terminates automatically if no
amounts remain in either the FIA or any Investment Account. However, upon
written notice to us, you may stop making Contributions at any time. We
have the right to refuse Contributions as of the last day of the second
month following the date that you are notified by us in writing of this
fact.
10.5 Representations and Warranties: You and we mutually represent and warrant,
each to the other, that each is fully authorized to enter into this
contract and that this contract is a valid and binding obligation and that
the execution of this contract does not violate any law, regulation,
judgment, or order by which the representing party is bound.
We do not make any representation or warranty regarding the federal, state,
or local tax status of this contract, any Participant Account, or any
transaction involving this contract.
10.6 Contractholder Representative; Misstatement of Data: You may designate a
representative to act on your behalf under Sections 2 or 3 or to receive
any payment under Section 5. We may rely on any information you, your
designee, or a Participant furnish. We need not inquire as to the accuracy
or completeness of such information. If any essential data pertaining to
any person has been omitted or misstated, including, but not limited to, a
misstatement of an annuitant's or contingent annuitant's age, we will make
an equitable adjustment to provide the annuity or other benefit determined
using correct data.
10.7 Requirement for Writing: When reference is made to you, your designee, or a
Participant making a request or giving notice, instruction, or direction,
such request, notice, instruction, or direction must be in writing, or in a
form otherwise acceptable to us, and is effective when we receive it.
10.8 Quarterly Statement of Account Value: Reasonably promptly after the end of
each Contract Quarter, we will prepare a statement of the Account Value for
each Participant Account.
10.9 Conformity with Law: Any benefit payable under this contract shall not be
less than the minimum benefit required by the insurance laws of the state
in which the contract is delivered. Language in this contract referring to
state or federal tax, securities, or other statutes or rules do not
incorporate within this contract any such statutes or rules.
10.10 Sex and Number: Whenever the context so requires, the plural includes the
singular, the singular the plural, and the masculine the feminine.
10.11 Facility of Payment: If any Participant, contingent annuitant, or
beneficiary is legally incapable of giving a valid receipt for any payment,
and no guardian has been appointed, we may pay the
P-K-TDAMFVA-GMDB(BR).17
person or persons who have assumed the care and principal support of such
Participant, contingent annuitant, or beneficiary. We may also pay you
directly or as you otherwise instruct. Any such payment fully discharges us
to the extent of such payment.
10.12 Voting: We own all Mutual Fund or Portfolio shares held in an Investment
Account. We exercise the voting rights of such shares at all shareholder
meetings on all matters requiring shareholder voting under the Investment
Company Act of 1940 or other applicable laws. Our vote reflects
instructions received from persons having the voting interest in the
shares, as follows:
(a) The Participants have the voting interest under this contract. Unless
otherwise required by applicable law, the number of Mutual Fund or
Portfolio shares for which we may receive voting instructions is
determined by dividing the aggregate Account Values in the affected
Investment Account by the net asset value of the Mutual Fund or
Portfolio shares. Fractional votes are counted. Our determination is
made as of the date used by the Mutual Fund or Portfolio to determine
shareholders eligible to vote.
(b) We vote shares proportionally, to reflect the voting instructions we
receive in a timely manner from Participants and from all
contractholders. If no timely voting instructions are received, we
vote shares proportionally, to reflect the voting instructions we
received in a timely manner for all other contracts.
To the extent permitted by applicable law, we may vote shares in our own
right or may modify the above procedures to reflect changes in the law or
its interpretation.
We will provide prospectuses and other reports as required by applicable
federal law.
10.13 Acceptance of New Participants or Contributions: We may refuse to accept
new Participants or new Contributions at any time.
10.14 AUL's Annual Statement: No provision of this contract controls,
determines, or modifies any AUL annual statement made to any insurance
department, contractholder, regulatory body, or other person. Nor does
anything in such annual statement control, determine, or modify the
provisions of this contract.
10.15 AUL's Annual Meeting: Unless otherwise notified, our regular annual
meeting is held at our Home Office on the third Thursday in February at 10
a.m. Elections for directors are held at such annual meeting.
10.16 Nonforfeitability and Nontransferability: The entire Withdrawal Value of a
Participant Account under this contract is nonforfeitable at all times. No
sum payable under this contract with respect to a Participant may be sold,
assigned, discounted, or pledged as collateral for a loan or as security
for the performance of an obligation or for any other purpose to any person
or entity other than us. In addition, to the extent permitted by law, no
such sum shall in any way be subject to legal process requiring the payment
of any claim against the payee.
P-K-TDAMFVA-GMDB(BR).18
TABLE OF GUARANTEED IMMEDIATE ANNUITIES
MONTHLY INCOME PER $1,000 OF ACCOUNT VALUE
10-YEAR CERTAIN
ADJUSTED AGE LIFE ANNUITY AND LIFE ANNUITY
45 2.9690 2.9632
46 3.0190 3.0124
47 3.0715 3.0641
48 3.1269 3.1185
49 3.1852 3.1756
50 3.2466 3.2357
51 3.3115 3.2988
52 3.3800 3.3653
53 3.4525 3.4352
54 3.5291 3.5088
55 3.6104 3.5863
56 3.6966 3.6678
57 3.7881 3.7536
58 3.8850 3.8437
59 3.9877 3.9382
60 4.0964 4.0374
61 4.2115 4.1414
62 4.3334 4.2505
63 4.4626 4.3650
64 4.5994 4.4850
65 4.7442 4.6108
66 4.8977 4.7425
67 5.0608 4.8804
68 5.2347 5.0250
69 5.4213 5.1766
70 5.6229 5.3356
71 5.8412 5.5020
72 6.0778 5.6755
73 6.3336 5.8552
74 6.6097 6.0404
75 6.9084 6.2302
Adjusted Age = Actual Age at Settlement (in years and completed months) less the
following number of months: [.6 times (Birth Year - 1915)] rounded to the
nearest integer.
Guaranteed purchase rates are 96% of the net single premium for the benefit
provided based on the unprojected 1994 Group Annuity Reserving Table for females
with interest at 2%.
P-K-TDAMFVA-GMDB(BR).19
TABLE OF INVESTMENT ACCOUNTS
The following Investment Accounts are made available to you under this contract.
By completing a form we require, you may restrict the Investment Accounts you
make available to your Participants. Amounts allocated to any Investment Account
identified below are invested in the shares of the corresponding Mutual Fund or
Portfolio listed below.
Investment Account Mutual Fund or Portfolio
---------------------------------------------------------------------------
AUL American Aggressive Investor AUL American Aggressive Investor
AUL American Bond AUL American Bond
AUL American Conservative Investor AUL American Conservative Investor
AUL American Equity AUL American Equity
AUL American Managed AUL American Managed
AUL American Moderate Investor AUL American Moderate Investor
AUL American Money Market AUL American Money Market
AUL American Tactical Asset Allocation AUL American Tactical Asset Allocation
Xxxxx American Growth Xxxxx American Growth
American Century VP Capital Appreciation American Century VP Capital Appreciation
Xxxxxxx Social Mid-Cap Growth Xxxxxxx Social Mid-Cap Growth
Fidelity VIP Equity-Income Fidelity VIP Equity-Income
Fidelity VIP Growth Fidelity VIP Growth
Fidelity VIP High Income Fidelity VIP High Income
Fidelity VIP Overseas Fidelity VIP Overseas
Fidelity VIP II Asset Manager Fidelity VIP II Asset Manager
Fidelity VIP II Contrafund Fidelity VIP II Contrafund
Fidelity VIP II Index 500 Fidelity VIP II Index 500
Janus Aspen Series Flexible Income Janus Aspen Series Flexible Income
Janus Aspen Series Worldwide Growth Janus Aspen Series Worldwide Growth
PBHG Insurance Series Growth II PBHG Insurance Series Growth II
PBHG Insurance Series Technology PBHG Insurance Series Technology
and Communication and Communication
SAFECO Resource Series Trust Equity SAFECO Resource Series Trust Equity
SAFECO Resource Series Trust Growth SAFECO Resource Series Trust Growth
X. Xxxx Price Equity-Income X. Xxxx Price Equity-Income
P-K-TDAMFVA-GMDB(BR).20
CONTRACT NUMBER VXX,XXX
CONTRACTHOLDER ABC SCHOOL
PARTICIPANT'S NAME XXXX XXX
SOCIAL SECURITY NUMBER 000-00-0000
American United Life Insurance Company hereby certifies that the Contractholder
and AUL have entered into a Multiple-Fund Group Variable Annuity Contract (the
Contract) in connection with the Contractholder's tax-deferred annuity
arrangement, and that AUL has created an account in your name to receive
Contributions from the Contractholder for your benefit pursuant to the Contract.
When used in this certificate, "we," "us," or "our" refer to AUL.
The only parties to the Contract are the Contractholder and AUL. All rights and
benefits are determined in accordance with the provisions of the Contract.
Benefits under the Contract will be paid at your direction.
Any amendments to, or changes in, the Contract will be binding and conclusive on
you and your beneficiary.
This certificate is not itself the Contract, but is a certificate of
participation in the Contract.
AMERICAN UNITED LIFE INSURANCE COMPANY
/s/ Xxxxxxx X. Xxxxx
Secretary
CERTIFICATE FOR
TDA MULTIPLE-FUND GROUP VARIABLE ANNUITY,
WITH GUARANTEED MINIMUM DEATH BENEFIT
(BR)
ACCUMULATION UNITS IN ANY INVESTMENT ACCOUNT UNDER THE CONTRACT MAY INCREASE OR
DECREASE IN VALUE ACCORDING TO THE INVESTMENT PERFORMANCE OF THE UNDERLYING
INVESTMENTS HELD BY THE INVESTMENT ACCOUNT. THE VALUE OF SUCH ASSETS AND
ACCUMULATION UNITS IS NOT GUARANTEED. SECTION 4 OF THIS CERTIFICATE EXPLAINS THE
VALUATION OF SUCH ASSETS AND ACCUMULATION UNITS.
If you have questions concerning the Contract, or wish to register a complaint,
you may reach us by calling 0-000-000-0000.
P-C-TDAMFVA-GMDB(BR)
IMPORTANT NOTICE
To obtain information or make a complaint:
You may contact your Texas AUL office at:
0-000-000-0000
You may call AUL's toll-free telephone number for information or to make a
complaint at: 0-000-000-0000
You may also write to AUL at:
X X Xxx 000
Xxxxxxxxxxxx, XX 00000-0000
You may contact the Texas Department of Insurance to obtain information on
companies, coverages, rights, or complaints at:
1-800-252-3439
You may write the Texas Department of Insurance at:
P X Xxx 000000
Xxxxxx, XX 00000-0000
FAX# (000) 000-0000
ATTACH THIS NOTICE TO YOUR POLICY: This notice is for information only and does
not become a part or condition of the attached document.
AVISO IMPORTANTE
Para obtener informacion o para someter una xxxxx:
Puede comunicarse con su Texas AUL al:
0-000-000-0000
Usted puede llamar al numero de telefono gratis xx XXX para informacion o para
someter una xxxxx al: 0-000-000-0000
Usted tambien puede escribir a AUL:
X X Xxx 000
Xxxxxxxxxxxx, XX 00000-0000
Puede comunicarse con el Departamento de Xx xxxxx de Texas para obtener
informacion acercu de companias, coberturas, derechos o quejas al:
1-800-252-3439
Puede escribir al Departamento de Seguros de Texas:
P X Xxx 000000
Xxxxxx, XX 00000-0000
FAX# (000) 000-0000
UNA ESTE AVISO A SU POLIZA: Este aviso es solo para proposito de informacion y
no se conveerte en parte o condicion del documento adjunto.
0-000-000-0000.
P-C-TDAMFVA-GMDB(BR)(TXNOTICE)
TABLE OF CONTENTS Page
SECTION 1 - DEFINITIONS 3
SECTION 2 - ADMINISTRATION OF PARTICIPANT ACCOUNTS 6
2.1----- How Contributions Are Handled
2.2----- Transfers from Other Retirement Programs
2.3----- Excess Contributions
2.4----- Transfers from Other Contracts
SECTION 3 - OPERATION OF FIXED INTEREST ACCOUNT (FIA) 7
3.1----- Allocations to Participant Accounts
3.2----- Provision of Guaranteed Rates for Interest Pockets
3.3----- Minimum Rate Guarantee
3.4----- Allocation of Withdrawals
SECTION 4 - VALUATION OF INVESTMENT ACCOUNTS 8
4.1----- Operation of Investment Accounts
4.2----- Valuation of Mutual Funds
4.3----- Accumulation Units
4.4----- Value of Accumulation Units
4.5----- Determining the Net Investment Factor
4.6----- Valuing Participant Accounts
SECTION 5 - BENEFIT PAYMENTS 9
5.1----- General Withdrawal Provisions
5.2----- Benefit Payments
5.3----- Other Cash Benefits
SECTION 6 - TRANSFERS AND LOANS 12
6.1----- Transfers Between Investment Options
6.2----- Minimum Amounts
6.3----- Maximum Amounts
6.4------Loans from the FIA
SECTION 7 - ANNUITIES 14
7.1----- Annuity Purchases
7.2----- Annuity Options
7.3----- Determining Annuity Amount
7.4----- Proof of Age and Survival; Minimum Payments
7.5----- Annuity Certificates
P-C-TDAMFVA-GMDB(BR).1
SECTION 8 - MORTALITY AND EXPENSE RISK CHARGES
AND ADMINISTRATIVE CHARGES 15
8.1----- Investment Account Mortality and Expense Risk Charges
8.2----- Administrative Charge
8.3----- Mutual Fund or Portfolio Expense
8.4----- Taxes
8.5----- Reduction or Waiver of Charges
SECTION 9 - CONTRACT MODIFICATIONS 16
9.1----- Mutual Amendment
9.2----- Rates and Section 8 Charges
9.3----- Conformance with Law
9.4----- Our Right to Initiate Changes
9.5----- Prohibited Amendments
SECTION 10 - GENERAL PROVISIONS 17
10.1----- Ownership
10.2----- Entire Contract
10.3----- Benefit Determinations
10.4----- Termination of Contract
10.5----- Representations and Warranties
10.6----- Contractholder Representative; Misstatement of Data
10.7----- Requirement for Writing
10.8----- Quarterly Statement of Account Value
10.9----- Conformity with Law
10.10---- Sex and Number
10.11---- Facility of Payment
10.12---- Voting
10.13---- Acceptance of New Contributions
10.14---- AUL's Annual Statement
10.15---- AUL's Annual Meeting
10.16---- Nonforfeitability and Nontransferability
TABLE OF GUARANTEED IMMEDIATE ANNUITIES 19
P-C-TDAMFVA-GMDB(BR).2
SECTION 1 - DEFINITIONS
1.1 "Account Value" for your Participant Account as of a date is:
(a) your account's Fixed Interest Account (FIA) balance on that date; plus
(b) the value of your account's Accumulation Units in each Investment
Account on that date.
1.2 "Accumulation Unit" is a valuation device used to measure increases in and
decreases to the value of any Investment Account.
1.3 "Annuity Commencement Date" is the first day of the month an annuity begins
under this contract. This date may not be later than the date your periodic
benefits are required to commence under the Code.
1.4 "Business Day" is any day both the New York Stock Exchange and our Home
Office are open for the general conduct of business.
1.5 "Code" means the Internal Revenue Code of 1986, as amended, and any
applicable regulations or rulings thereunder.
1.6 The "First Contract Anniversary" is listed on the Contract face page.
Subsequent "Contract Anniversaries" are on the same day of each subsequent
year.
1.7 "Contract Quarter" is each of the four successive three-month periods in a
Contract Year.
1.8 The first "Contract Year" starts on the Contract Date and ends on the day
before the First Contract Anniversary. Each subsequent Contract Year starts
on a Contract Anniversary and ends on the day before the next Contract
Anniversary.
1.9 "Contributions" are amounts paid to us, which we credit to a Participant
Account. Contributions include amounts transferred from another AUL group
annuity contract. Contributions include "Elective Deferrals," which means,
with respect to any taxable year, any Contribution made under a salary
reduction agreement. A Contribution made under a salary reduction agreement
is not treated as an Elective Deferral if, under the salary reduction
agreement, the Contribution is made pursuant to a one-time irrevocable
election made by you at the time of initial eligibility to participate in
the agreement, or is made pursuant to a similar arrangement involving a
one-time irrevocable election specified in Regulations issued under the
Code.
1.10 "Death Benefit" is the greater of:
(a) your Account Value as of the date the Death Benefit is calculated, or
(b) (1) the Guaranteed Minimum Death Benefit (GMDB) on the Contract
Anniversary immediately preceding the date of your death; increased by
(2) any Contributions made for you since the last Contract
Anniversary; and reduced proportionately to reflect
(3) any withdrawals or loans for you since the last Contract
Anniversary.
P-C-TDAMFVA-GMDB(BR).3
1.11 "Excess Contributions" are Contributions in excess of the applicable Code
limits.
1.12 "Fixed Interest Account" or "FIA" is the portion of our general asset
account as described in Section 3, to which Contributions may be allocated
for accumulation at the Guaranteed Rates.
1.13 The "Guaranteed Minimum Death Benefit" or "GMDB" prior to the first
Contract Anniversary is equal to the Contributions made for you minus any
of your withdrawals or loans. On each Contract Anniversary prior to, or
concurrent with, your date of death, the GMDB is reset, based on your age
on your last birthday, as follows:
(a) If you are less than 81 years of age, the GMDB is the greater of:
(1) your Account Value as of the current Contract Anniversary, or
(2) (i) the GMDB as of the immediately preceding Contract
Anniversary; increased by
(ii) any Contributions made for you since the immediately
preceding Contract Anniversary; and reduced proportionately
to reflect
(iii)any withdrawals or loans for you since the immediately
preceding Contract Anniversary.
(b) If you are 81 years of age or older, the GMDB is equal to:
(1) the GMDB as of the immediately preceding Contract Anniversary;
increased by
(2) any Contributions made for you since the immediately preceding
Contract Anniversary; and reduced proportionately to reflect
(3) any withdrawals or loans for you since the immediately preceding
Contract Anniversary.
As of your date of death, the GMDB ceases to increase or decrease in value.
1.14 "Guaranteed Rates" are the guaranteed annual effective rates of interest we
credit to each Interest Pocket. A Guaranteed Rate may be modified only as
described in Section 3.2.
1.15 "Home Office" is our principal office in Indianapolis, Indiana. For
anything to be "received by AUL," it must be received at our Home Office.
1.16 "Interest Pocket" means a tracking method which associates funds deposited
into the FIA over a specific time period with a specific Guaranteed Rate,
as described in Section 3. After the guaranteed period provided in Section
3.2 has elapsed, we may consolidate two or more Interest Pockets in
conjunction with the announcement of new Guaranteed Rates.
1.17 "Investment Account" means each distinct portfolio established within our
Variable Account and identified in the Table of Investment Accounts in the
Contract. Amounts allocated to any Investment Account are invested in the
shares of the corresponding Mutual Fund or Portfolio identified in the
Table of Investment Accounts. Our "Variable Account" is a separate account
we maintain under Indiana law which is called the AUL American Unit Trust
and which is registered under the Investment Company Act of 1940 as a unit
investment trust.
P-C-TDAMFVA-GMDB(BR).4
1.18 "Investment Option" is the FIA or any Investment Account. We reserve the
right to provide other Investment Options under the Contract at any time.
1.19 "Mutual Fund" means any diversified, open-end, management investment
company made available by us, and listed in the Table of Investment
Accounts in the Contract.
1.20 "Participant" is any person that has a Participant Account.
1.21 "Participant Account" is an account under the Contract for each
Participant. We credit Contributions to Participant Accounts and
Contribution-type subaccounts as the Contractholder directs.
1.22 "Portfolio" is a portfolio established within a particular Mutual Fund, as
described in the Mutual Fund's current prospectus.
1.23 "Valuation Periods" start at the close of each Business Day and end at the
close of the next Business Day.
1.24 The "Withdrawal Charge" is a percentage of your Account Value withdrawn
under the Contract. The Withdrawal Charge will not apply to Account Values
withdrawn to provide a benefit payment or an annuity as described in
Sections 5.2 and 7.1, respectively. The percentage varies by the
Participant Account Year in which the withdrawal is made. Your first
Participant Account Year begins on the date when we establish a Participant
Account and credit the initial Contribution for you, and ends on the day
immediately preceding the next anniversary of such date. Each Participant
Account Year thereafter begins on such an anniversary date and ends on the
day immediately preceding the next succeeding anniversary date. The
Withdrawal Charge percentage is as follows:
During Withdrawal Charge
Participant Account Years Percentage
------------------------- -----------------
1 7%
2 6%
3 5%
4 4%
5 3%
6 2%
7 1%
Thereafter 0%
In no event will the cumulative total of all Withdrawal Charges, including
those previously assessed against any amount withdrawn from your
Participant Account, exceed 8.5% of total Contributions allocated to your
Participant Account.
1.25 "Withdrawal Value" is your Account Value, minus any Withdrawal Charge,
outstanding loan balance, and expense charges due on such loans.
P-C-TDAMFVA-GMDB(BR).5
SECTION 2 - ADMINISTRATION OF PARTICIPANT ACCOUNTS
2.1 How Contributions Are Handled: Contributions we receive are credited to the
appropriate Contribution-type subaccounts of each Participant Account as
the Contractholder directs in its allocation instructions. The initial
Contribution for you is allocated to your Participant Account by the second
Business Day after we (1) receive the initial Contribution or, if later,
(2) receive all data necessary to complete the allocation (including data
required to establish your Participant Account, the amount of the
Contribution for you, and Investment Option elections.) Subsequent
Contributions are allocated to your Participant Account on the Business Day
we (1) receive that Contribution or, if later, (2) receive all data
necessary to complete the allocation.
If we do not receive the data required to establish your Participant
Account and the amount of a Contribution for you within 5 Business Days
after we first receive that Contribution, we will return that Contribution
to the Contractholder unless the Contractholder consents to us retaining
that Contribution until the earlier of (i) the date we receive such data
and amount and, therefore, can properly allocate that Contribution to your
Participant Account or (ii) 25 days from the date we receive that
Contribution.
If we receive the data required to establish your Participant Account and
the amount of a Contribution for you, but we do not receive Investment
Option elections for you, the Contribution is allocated to the AUL American
Money Market Investment Account. When we receive all required data, amounts
in the AUL American Money Market Investment Account, plus gains and minus
losses, are transferred to the appropriate Investment Option for each
designated Contribution-type.
Participant Accounts may be allocated to Investment Options in any
increments acceptable to us. Investment Option elections remain in effect
until changed by the Contractholder. A change in Investment Option
elections is made by giving us new Investment Option elections.
2.2 Transfers from Other Retirement Programs: We may accept amounts transferred
from other Code Section 403(b) funding vehicles. Such transferred amounts,
as identified by the Contractholder, are credited to a rollover subaccount,
under the appropriate Participant Account.
2.3 Excess Contributions: On receipt of instructions from you or the
Contractholder, we will withdraw Excess Contributions, plus gains and minus
losses, from your Participant Account and return them to you, or as the
Contractholder directs. Such instructions must state the amount to be
returned and certify that such Contributions are Excess Contributions and
that such return is permitted by the Code. A return of Excess Contributions
is treated like a benefit payment under Section 5.2.
No Participant is permitted to have Elective Deferral contributions (within
the meaning of Code Section 402(g)(3)) made during a calendar year under
the Contract, or under any other plans, contracts, or arrangements
maintained by his employer, in excess of the dollar limitation in effect
under Code Section 402(g)(1) and any Regulations issued thereunder for
taxable years beginning in such calendar year.
2.4 Transfers from Other Contracts: We may require amounts transferred to your
Participant Account from other AUL group annuity contracts to be deposited
in the FIA. We will advise the Contractholder if this limitation applies
before accepting such a transfer.
P-C-TDAMFVA-GMDB(BR).6
SECTION 3 -- OPERATION OF FIXED INTEREST ACCOUNT (FIA)
3.1 Allocations to Participant Accounts: We allocate each Participant's
Contributions in the FIA based on the information the Contractholder
provides.
3.2 Provision of Guaranteed Rates for Interest Pockets: All Contributions or
transfers hereunder which are allocated to the FIA during a Contract
Quarter will earn interest at the declared Guaranteed Rate for that
quarterly Interest Pocket until that pocket matures on the second January 1
following the quarter in which that pocket was established. Funds
associated with that maturing pocket will earn interest for a full year at
the Guaranteed Rate for that pocket, which will be declared by January 1 of
each year.
3.3 Minimum Rate Guarantee: No Guaranteed Rate may be less than an annual
effective interest rate of 3.00%.
3.4 Allocation of Withdrawals: Withdrawals or transfers from the FIA are on a
first-in/first-out basis.
P-C-TDAMFVA-GMDB(BR).7
SECTION 4 - VALUATION OF INVESTMENT ACCOUNTS
4.1 Operation of Investment Accounts: All income, gains, or losses, realized or
unrealized, from assets held in any Investment Account are credited to or
charged against the applicable Investment Account without regard to our
other income, gains, or losses. Investment Account assets are not
chargeable with liabilities arising out of any other business we may
conduct.
4.2 Valuation of Mutual Funds: The current prospectus for each Mutual Fund
describes how that Mutual Fund's assets are valued.
4.3 Accumulation Units: We credit amounts allocated to an Investment Account in
Accumulation Units. The Accumulation Unit value used is the one for the
Valuation Period when we allocate the amount to the Investment Account.
4.4 Value of Accumulation Units: We generally establish the Accumulation Unit
value for a new Investment Account at $1.00 on the date the first deposit
is made to the Investment Account. The value of an Accumulation Unit for
any later Valuation Period equals the value of an Accumulation Unit for the
immediately preceding Valuation Period times the Net Investment Factor for
the current Valuation Period. We determine the Accumulation Unit value
before giving effect to any additions, withdrawals, or transfers in the
current Valuation Period.
4.5 Determining the Net Investment Factor: We determine the Net Investment
Factor for each Investment Account by dividing (a) by (b), and then
subtracting (c), where:
(a) is:
(1) the net asset value of a Mutual Fund or Portfolio share at the
end of the current Valuation Period, plus
(2) any dividend or other distribution paid on each Mutual Fund or
Portfolio share during such Valuation Period, plus or minus
(3) any credit or charge for taxes paid or reserved by us during the
Valuation Period that we determine are attributable to the
Investment Account;
(b) is the net asset value of each Mutual Fund or Portfolio share held in
the Investment Account at the end of the prior Valuation Period; and
(c) is a daily charge factor we determine, as described in Section 8.1.
4.6 Valuing Your Participant Account: We determine your Account Value in an
Investment Account by multiplying the Accumulation Units in your
Participant Account by the Accumulation Unit value. The Accumulation Unit
value of an Investment Account changes only on a Business Day.
P-C-TDAMFVA-GMDB(BR).8
SECTION 5 - BENEFIT PAYMENTS
5.1 General Withdrawal Provisions: Subject to the following provisions of this
Section, you may direct us to withdraw all or a portion of your Account
Value pursuant to Sections 5.2 and 5.3 to provide a cash payment to you.
(a) Amounts attributable to amounts held as of December 31, 1988 under
another Code Section 403(b) annuity contract may be withdrawn to
provide such benefits.
(b) Amounts attributable to Contributions made other than pursuant to a
salary reduction agreement (within the meaning of Code Section
402(g)(3)(C)) may be withdrawn to provide such benefits.
(c) Amounts attributable to Contributions made pursuant to a salary
reduction agreement (within the meaning of Code Section 402(g)(3)(C))
may be withdrawn to provide such benefits, provided that any
distribution of such amount shall not occur until you have either
attained age 59 1/2, separated from service, died, become totally
disabled (as defined by the IRS), or experienced a hardship (as
defined by the IRS). However, in the case of a hardship withdrawal,
any gain credited to such Contributions may not be withdrawn.
(d) Withdrawal of any amount from the Contract which is transferred
directly by us pursuant to your instructions to another tax-deferred
annuity funding vehicle under applicable IRS rules and regulations is
not the provision of a benefit for purposes of Section 5.2. Any such
withdrawal is subject to application of the Withdrawal Charge pursuant
to Section 5.3.
(e) If, as provided in Internal Revenue Code Regulation Section
1.403(b)-2T Q&A-2, the distributee of any eligible rollover
distribution elects to have the distribution paid directly to an
eligible retirement plan (as defined in Q&A-1 of that Section) and
specifies the eligible retirement plan to which the distribution is to
be paid, then the distribution shall be paid to that eligible
retirement plan in a direct rollover.
(f) We are not responsible for determining your compliance with the
requirements above. Any withdrawal request you submit must include
your certification as to the purpose of the withdrawal. You assume
full responsibility for determining whether any withdrawal is
permitted under applicable law. We may rely solely upon your
representations made in the withdrawal request.
(g) Withdrawals from your Participant Account's share of any Investment
Option may not be made in an amount less than the smaller of $500 or
your entire share of the Investment Option. If a withdrawal reduces
your share of an Investment Option to less than $500, the remaining
share will also be withdrawn.
(h) A withdrawal request is effective, and the Account Value to be applied
pursuant to Sections 5.2 and 5.3 is determined, on the Business Day
that we receive a proper withdrawal request (or due proof of death, if
received later).
(i) We will pay any cash lump-sum to you within 7 days from the
appropriate Business Day as determined in Subsection (h) above, except
as we may be permitted to defer such payment of amounts withdrawn from
the Variable Account in accordance with appropriate
P-C-TDAMFVA-GMDB(BR).9
provisions of the federal securities laws. We reserve the right to
defer the payment of provisions of the federal securities laws. We
reserve the right to defer the payment of amounts withdrawn from the
FIA for a period of up to 6 months after we receive the withdrawal
request.
(j) Withdrawals from your share of the FIA will be made on a
first-in/first-out basis under Section 3.4.
(k) Where you have outstanding loans under the Contract, a partial
withdrawal by you from the FIA is permitted only to the extent that
your remaining FIA Withdrawal Value equals twice the total of your
outstanding loans under the Contract.
5.2 Benefit Payments:
(a) Subject to the limitations provided in Section 5.1, you may direct us
to withdraw all or a portion of your Account Value (subject to Section
8.4, and minus your outstanding loan balance under the Contract and
any unpaid expense charges due on such loans) to provide a cash
payment to you to pay benefits for retirement, disability, termination
of employment, hardship, or required minimum distribution benefits
pursuant to Code Section 401(a)(9). Such a withdrawal is not subject
to a Withdrawal Charge.
(b) Subject to the limitations provided in Section 5.1, upon receipt of
instructions and of due proof of your (and, if applicable, the
beneficiary's) death prior to the date your Participant Account is
closed, we will apply the Account Value (subject to Section 8.4, and
minus your outstanding loan balance under this contract and any unpaid
expense charges due on such loans) of your Participant Account for the
purpose of providing a Death Benefit. Such a withdrawal is not subject
to a Withdrawal Charge. The Death Benefit will be paid to your
beneficiary according to the method of payment elected by your
beneficiary (unless such method of payment was previously elected by
you). Your beneficiary may also designate a beneficiary. This Death
Benefit will be payable:
(1) in a single sum or other method not provided in (2) below;
provided, however, that the entire Account Value (subject to
Section 8.4, and minus your outstanding loan balance under the
Contract and any unpaid expense charges due on such loans) must
be paid to your beneficiary on or before December 31 of the
calendar year which contains the fifth anniversary of your death,
or
(2) as an annuity in accordance with the Annuity Options shown in
Section 7.2 over a period not to exceed the life or life
expectancy of your beneficiary. If your beneficiary is not your
surviving spouse, the annuity must begin on or before December 31
of the calendar year immediately following the calendar year in
which you die. If the beneficiary is your surviving spouse, the
annuity need not begin before December 31 of the calendar year in
which you would have attained age 70 1/2.
If you die on or after your Annuity Commencement Date, any interest
remaining under the Annuity Option selected will be paid at least as
rapidly as prior to your death.
Any withdrawal request under this Section must certify the purpose of the
request.
P-C-TDAMFVA-GMDB(BR).10
5.3 Other Cash Benefits: Subject to the limitations provided in Section 5.1,
you may direct us to make a cash payment from your Participant Account for
the purpose of providing benefits not specifically described in Section
5.2.
If the entire Account Value is withdrawn, the amount paid equals the
Withdrawal Value, subject to any charges described in Section 8, and minus
your outstanding loan balance under the Contract and any unpaid expense
charges due on such loans. In all other instances, the Account Value is
reduced by an amount sufficient to make the payment requested and to cover
the Withdrawal Charge and any charges described in Section 8.
P-C-TDAMFVA-GMDB(BR).11
SECTION 6 - TRANSFERS AND LOANS
6.1 Transfers between Investment Options: You may direct us to transfer amounts
between Investment Options. Transfers are effective on the Business Day we
receive your transfer direction. Transfer directions for you may be made
daily on any Business Day. We will make the transfer as requested within 7
days from the date we receive the request, except as we may be permitted to
defer the transfer of amounts withdrawn from the Variable Account in
accordance with appropriate provisions of the federal securities laws. We
reserve the right to defer a transfer of amounts from the FIA for a period
of up to 6 months after we receive your transfer request.
Where you have outstanding loans under the Contract, a transfer from the
FIA is permitted only to the extent that your remaining FIA Withdrawal
Value equals twice the total of your outstanding loans under the Contract.
6.2 Minimum Amounts: The minimum amount you may transfer from an Investment
Option is $500 or, if less, your entire balance in that Investment Option.
If a transfer reduces your balance in an Investment Option to less than
$500, the entire balance is transferred.
6.3 Maximum Amounts: No more than 20% of your FIA Account Value on the later of
the Contract Date or the Contract Anniversary immediately preceding the
request for transfer may be transferred from the FIA during any Contract
Year. However, if your FIA Account Value is less than $2,500 on the later
of the Contract Date or the Contract Anniversary immediately preceding the
request for transfer, the amount transferrable from the FIA for you for
that Contract Year is the minimum amount specified in Section 6.2.
6.4 Loans from the FIA:
(a) If you have a FIA Account Value, you may borrow money from us, using
that FIA Account Value as the only security for the loan, by
submitting a proper written request to us. The minimum amount of any
single loan is $2,000. The maximum amount that may be borrowed at any
time is an amount which, when combined with the largest loan balance
during the prior 12 months, does not exceed the lesser of (l) 50% of
your FIA Withdrawal Value, or (2) $50,000. Your FIA Withdrawal Value,
which must be at least twice the amount of the outstanding loan
balance, serves as security for the loan, and continues to earn
interest. Our payment of the loan amount may be delayed for up to 6
months.
(b) Interest will be charged for the loan, and will accrue on the loan
balance from the loan effective date. We declare the loan interest
rate at the beginning of each calendar quarter. The interest rate
charged is equal to the Xxxxx'x Corporate Bond Yield Average - Monthly
Average Corporates as of the date of the loan, as published by Xxxxx'x
Investors Service. However, no change from a previously established
rate may be made in an amount less than .50% in any periodic
adjustment. The loan balance is also subject to a loan expense charge
equal to 2% of each loan repayment.
(c) Loans must be repaid to us within a term of 5 years, unless you
certify to us that the loan is to be used to acquire your principal
residence, in which case the term may be longer. Loan repayments must
be made at least quarterly. Upon receipt of a repayment, we deduct the
2% expense charge from the repayment, and apply the balance of the
repayment first to any accrued interest and then to the outstanding
loan principal.
P-C-TDAMFVA-GMDB(BR).12
(d) If a loan either remains unpaid at the end of its term, or if, at any
time, l02% of the total of all your loan balances equals your FIA
Withdrawal Value, then we deduct these balances plus an expense charge
equal to 2% of the outstanding loan balances from your share of the
FIA. If you have outstanding loans, then withdrawals or transfers to
the Variable Account are permitted only to the extent that your
remaining FIA Withdrawal Value equals twice the total of your
outstanding loans under the contract. All loan balances plus the 2%
expense charge must be paid or satisfied in full before any amount
from your share of the FIA is paid as a full withdrawal, as a Death
Benefit, upon annuitization, or as another permitted distribution.
(e) We may modify the loan restrictions or limitations stated above in
this Section, or may add new restrictions and limitations, to the
extent necessary to comply with Code Section 72(p) or other applicable
law, as determined solely by us.
P-C-TDAMFVA-GMDB(BR).13
SECTION 7 - ANNUITIES
7.1 Annuity Purchases: You may withdraw all or a portion of your Account Value
(subject to Section 8.4, and minus your outstanding loan balance under the
Contract and any unpaid expense charges due on such loans) to provide an
annuity, reflecting benefits. Such a withdrawal is not subject to a
Withdrawal Charge. On receipt of an annuity purchase request, we transfer
your entire Participant Account to the FIA. Such amounts remain in the FIA
until the Annuity Commencement Date, when the full balance (including
interest) is applied to purchase the annuity.
Your annuity purchase request must specify the purpose for the annuity, the
election of an annuity option, Annuity Commencement Date, any contingent
annuitant or beneficiary, and any additional information we require. If you
or any contingent annuitant dies before the Annuity Commencement Date, the
annuity election is cancelled.
The minimum amount which you may apply to purchase an annuity is $5,000.
7.2 Annuity Options: You may elect any optional form of annuity we offer at the
time of purchase. Available annuity options always include:
(a) Life Annuity. A monthly annuity is payable as long as the annuitant
lives, and ends with the last payment before the annuitant's death.
(b) Survivorship Annuity. A monthly annuity is payable as long as the
annuitant lives. After the annuitant's death, all or a portion of the
monthly annuity is paid to the contingent annuitant as long as the
contingent annuitant lives.
No annuity may have a certain period extending beyond your life expectancy
or the joint life expectancy of you and any contingent annuitant, as
determined on the Annuity Commencement Date.
7.3 Determining Annuity Amount: We compute the annuity amount using the factors
reflected in the Table of Guaranteed Immediate Annuities attached to the
Contract. However, if our current single premium, nonparticipating,
immediate annuity rates for this class of group annuity contracts produces
a higher monthly annuity than the Table of Guaranteed Immediate Annuities,
then that more favorable annuity rate is applied.
7.4 Proof of Age and Survival; Minimum Payments: We may require proof of any
annuitant's or contingent annuitant's date of birth before commencing
payments under any annuity. We may also require proof that an annuitant or
contingent annuitant is living before making any annuity payment. If a
monthly annuity is less than our current established minimum payment, we
may make payments on a less-frequent basis or in a single sum.
7.5 Annuity Certificates: We issue to each person for whom an annuity is
purchased a certificate setting forth the annuity's amount and terms.
P-C-TDAMFVA-GMDB(BR).14
SECTION 8 - MORTALITY AND EXPENSE RISK CHARGES
AND ADMINISTRATIVE CHARGES
8.1 Investment Account Mortality and Expense Risk Charges: We deduct from the
average daily net assets of each Investment Account the daily equivalent of
an annual combined mortality risk charge and expense risk charge of 1.25%.
This charge is part of the Net Investment Factor, described in Section 4.5.
8.2 Administrative Charge: We deduct an administrative charge per Contract
Quarter equal to the lesser of $7.50 or 0.5% of your Account Value on the
last day of each Contract Quarter from your Participant Account if it
exists on that day, for as long as your Participant Account is in effect.
This charge is to be prorated among each subaccount of your Participant
Account which corresponds to each Investment Option utilized under the
Contract by your Participant Account. If the entire balance of your
Participant Account is withdrawn pursuant to the Contract, the
administrative charge attributable to the period of time which has elapsed
since the first day of the Contract Quarter in which the withdrawal of
funds is made is not deducted from the amount withdrawn.
There is no charge for any Contract Quarter in which your Account Value on
the last day of that quarter is greater than $25,000.
8.3 Mutual Fund or Portfolio Expense: A Mutual Fund or Portfolio deducts an
investment advisory fee and other expenses from its net asset value, as
described in its current prospectus. Amounts deducted may include
operational, organizational, and extraordinary expenses. Expenses vary from
year-to-year.
8.4 Taxes: We may deduct charges equal to any premium tax we incur from the
balance applied to purchase an annuity or at such other time as premium
taxes are incurred by us. We may also deduct from Investment Accounts
reasonable charges for federal, state, or local income taxes we incur, that
are attributable to such Investment Accounts.
8.5 Reduction or Waiver of Charges: We may reduce or waive the Withdrawal
Charge or the charges discussed above, if the appropriate expenses
associated with the sale or administration of any contract are reduced, or
if a contract is sold covering our employees or directors, those of the AUL
American Series Fund, Inc., or to either's affiliates.
P-C-TDAMFVA-GMDB(BR).15
SECTION 9 - CONTRACT MODIFICATIONS
9.1 Mutual Amendment: The Contractholder and we may agree to any change or
amendment to the Contract without the consent of any other person or
entity. The Contract cannot be modified or amended, nor can any provision
or condition be waived, except by our written agreement, signed by a
corporate officer. Such authority may be delegated only by a written
agreement signed by our corporate officer.
9.2 Rates and Section 8 Charges: We may announce new Guaranteed Rates, as
described in Section 3.2 (including the consolidation of existing Interest
Pockets). However, as provided in Section 3.2, we may not change the
declared Guaranteed Rate applicable to an established Interest Pocket
during the guaranteed period. We may also modify the charge levels in
Section 8, using the procedures of Section 9.4.
9.3 Conformance with Law: We may amend the Contract at any time, without the
Contractholder's consent, or that of any other person or entity, if the
amendment is reasonably needed to comply with, or give you or the
Contractholder the benefit of, any provisions of federal or state laws. Any
such amendment will be delivered to the Contractholder prior to its
effective date.
9.4 Our Right to Initiate Changes: In addition to those amendments permitted by
Sections 9.2 and 9.3, we may initiate an additional provision or
modification of any other provision of the Contract (including the addition
of a charge for transfers between Investment Options) by giving the
Contractholder 60 days notice of such modification. Any such modification
is effective without the Contractholder's affirmative assent.
9.5 Prohibited Amendments:
(a) Despite our right to initiate changes under Section 9.4, we may not
initiate changes to the minimum Guaranteed Rate specified in Section
3.4 or change our obligation to set Guaranteed Rates for the period of
time specified in Section 3.2.
(b) No modification to the Contract may change the terms of a previously
purchased annuity or reduce any interest guarantee applicable to your
Participant Account FIA balance on the modification's effective date.
P-C-TDAMFVA-GMDB(BR).16
SECTION 10 - GENERAL PROVISIONS
10.1 Ownership: The Contractholder owns the Contract. No other person or entity
has any right, title, or interest in the Contract or to amounts received or
credited under it until such amounts are made available to them by the
Contractholder. All amounts received or credited under the Contract become
our property. We are obligated to make only the payments or distributions
specified in the Contract.
10.2 Entire Contract: The Contract and the Contractholder's application is the
entire agreement between the Contractholder and us. We are not a party to,
nor bound by, a plan, trust, custodial agreement, or other agreement, or
any amendment or modification to any of the same. We are not a fiduciary
under the Contract or under any such plan, trust, custodial agreement, or
other agreement.
10.3 Benefit Determinations: You must furnish us whatever information is
necessary to establish the eligibility for and amount of annuity or other
benefit due. We may rely solely on your instructions and certifications
with respect to your benefits.
10.4 Termination of Contract: The Contract terminates automatically if no
amounts remain in either the FIA or any Investment Account. However, upon
written notice to us, the Contractholder may stop making Contributions at
any time. We have the right to refuse Contributions as of the last day of
the second month following the date we notify the Contractholder in writing
of this fact.
10.5 Representations and Warranties: The Contractholder and we mutually
represent and warrant, each to the other, that each is fully authorized to
enter into the Contract and that the Contract is a valid and binding
obligation and that the execution of the Contract does not violate any law,
regulation, judgment, or order by which the representing party is bound.
We do not make any representation or warranty regarding the federal, state,
or local tax status of the Contract, any Participant Account, or any
transaction involving the Contract.
10.6 Contractholder Representative; Misstatement of Data: The Contractholder may
designate a representative to act on its behalf under Sections 2 or 3 or to
receive any payment under Section 5. We may rely on any information the
Contractholder, its designee, or you furnish. We need not inquire as to the
accuracy or completeness of such information. If any essential data
pertaining to any person has been omitted or misstated, including, but not
limited to, a misstatement of an annuitant's or contingent annuitant's age,
we will make an equitable adjustment to provide the annuity or other
benefit determined using correct data.
10.7 Requirement for Writing: When reference is made to the Contractholder, its
designee, or you making a request or giving notice, instruction, or
direction, such request, notice, instruction, or direction must be in
writing, or in a form otherwise acceptable to us, and is effective when we
receive it.
10.8 Quarterly Statement of Account Value: Reasonably promptly after the end of
each Contract Quarter, we will prepare a statement of the Account Value for
your Participant Account.
10.9 Conformity with Law: Any benefit payable under the Contract shall not be
less than the minimum benefit required by the insurance laws of the state
in which the Contract is delivered. Language in the Contract referring to
state or federal tax, securities, or other statutes or rules do not
incorporate within the Contract any such statutes or rules.
10.10 Sex and Number:
Whenever the context so requires, the plural includes the singular, the
singular the plural, and the masculine the feminine.
P-C-TDAMFVA-GMDB(BR).17
10.11 Facility of Payment:
If you, your contingent annuitant, or your beneficiary is legally incapable
of giving a valid receipt for any payment, and no guardian has been
appointed, we may pay the person or persons who have assumed the care and
principal support of you, your contingent annuitant, or your beneficiary.
We may also pay the Contractholder directly or as it otherwise instructs.
Any such payment fully discharges us to the extent of such payment.
10.12 Voting:
We own all Mutual Fund or Portfolio shares held in an Investment Account.
We exercise the voting rights of such shares at all shareholder meetings on
all matters requiring shareholder voting under the Investment Company Act
of 1940 or other applicable laws. Our vote reflects instructions received
from persons having the voting interest in the shares, as follows:
(a) The Participants have the voting interest under the Contract. Unless
otherwise required by applicable law, the number of Mutual Fund or
Portfolio shares for which we may receive voting instructions is
determined by dividing the aggregate Account Values in the affected
Investment Account by the net asset value of the Mutual Fund or
Portfolio shares. Fractional votes are counted. Our determination is
made as of the date used by the Mutual Fund or Portfolio to determine
shareholders eligible to vote.
(b) We vote shares proportionally, to reflect the voting instructions we
receive in a timely manner from Participants and from all
contractholders. If no timely voting instructions are received, we
vote shares proportionally, to reflect the voting instructions we
received in a timely manner for all other contracts.
To the extent permitted by applicable law, we may vote shares in our own
right or may modify the above procedures to reflect changes in the law or
its interpretation.
We will provide prospectuses and other reports as required by applicable
federal law.
10.13 Acceptance of New Contributions:
We may refuse to accept new Contributions at any time.
10.14 AUL's Annual Statement:
No provision of the Contract controls, determines, or modifies any AUL
annual statement made to any insurance department, contractholder,
regulatory body, or other person. Nor does anything in such annual
statement control, determine, or modify the provisions of the Contract.
10.15 AUL's Annual Meeting:
Unless otherwise notified, our regular annual meeting is held at our Home
Office on the third Thursday in February at 10 a.m. Elections for directors
are held at such annual meeting.
10.16 Nonforfeitability and Nontransferability:
The entire Withdrawal Value of your Participant Account under the Contract
is nonforfeitable at all times. No sum payable under the Contract with
respect to you may be sold, assigned, discounted, or pledged as collateral
for a loan or as security for the performance of an obligation or for any
other purpose to any person or entity other than us. In addition, to the
extent permitted by law, no such sum shall in any way be subject to legal
process requiring the payment of any claim against the payee.
P-C-TDAMFVA-GMDB(BR).18
TABLE OF GUARANTEED IMMEDIATE ANNUITIES
MONTHLY INCOME PER $1,000 OF ACCOUNT VALUE
10-YEAR CERTAIN
ADJUSTED AGE LIFE ANNUITY AND LIFE ANNUITY
45 2.9690 2.9632
46 3.0190 3.0124
47 3.0715 3.0641
48 3.1269 3.1185
49 3.1852 3.1756
50 3.2466 3.2357
51 3.3115 3.2988
52 3.3800 3.3653
53 3.4525 3.4352
54 3.5291 3.5088
55 3.6104 3.5863
56 3.6966 3.6678
57 3.7881 3.7536
58 3.8850 3.8437
59 3.9877 3.9382
60 4.0964 4.0374
61 4.2115 4.1414
62 4.3334 4.2505
63 4.4626 4.3650
64 4.5994 4.4850
65 4.7442 4.6108
66 4.8977 4.7425
67 5.0608 4.8804
68 5.2347 5.0250
69 5.4213 5.1766
70 5.6229 5.3356
71 5.8412 5.5020
72 6.0778 5.6755
73 6.3336 5.8552
74 6.6097 6.0404
75 6.9084 6.2302
Adjusted Age = Actual Age at Settlement (in years and completed months) less the
following number of months: [.6 times (Birth Year - 1915)] rounded to the
nearest integer.
Guaranteed purchase rates are 96% of the net single premium for the benefit
provided based on the unprojected 1994 Group Annuity Reserving Table for females
with interest at 2%.
P-C-TDAMFVA-GMDB(BR).19
