Exhibit 26 (d)(19)
NO LAPSE GUARANTEE AGREEMENT
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This agreement is a part of the policy to which it is attached and is subject
to all its terms and conditions. This agreement is effective as of the
agreement effective date shown on the policy data pages. Terms used in this
agreement have the meaning given to them in the policy to which it is attached
to the extent they are used in the policy. To the extent any of the provisions
contained in this agreement are contrary to, or inconsistent with, those of the
policy, the provisions of this agreement will control.
WHAT DOES THIS AGREEMENT PROVIDE?
This agreement provides that the policy will remain in force even if there is
no accumulation value to cover monthly charges, as long as the No Lapse
Guarantee Agreement (NLGA) value less any outstanding loans and any accrued
loan interest, is sufficient to cover any NLGA charges.
WHAT IS THE NLGA VALUE?
As of the date the initial premium is paid, the NLGA value is the NLGA net
premium paid
On any day thereafter, the NLGA value is equal to:
(1) the NLGA value as of the prior day; plus
(2) interest, using the NLGA interest rate shown on the policy data pages,
earned since the prior day; plus
(3) any NLGA net premium applied since the prior day; minus
(4) any NLGA Partial Surrender Amount; minus
(5) the NLGA Cost of Insurance and NLGA Policy Issue Charges assessed against
the NLGA value since the prior day; minus
(6) the Transaction, Cash Extra, and Additional Agreement charges.
WHAT IS THE NLGA NET PREMIUM?
The NLGA net premium is the premium payment less the NLGA premium charge
assessed against that premium. The maximum NLGA premium charge is shown on your
policy data pages.
IS THERE A LIMITATION ON THE AMOUNT OF PREMIUM THAT MAY BE PAID WHEN THIS
AGREEMENT IS ADDED?
Yes. The amount of annual premium that may be paid into the policy when this
agreement is elected may be limited to the NLGA annual premium limitation shown
on the policy data pages. We reserve the right to increase the NLGA annual
premium limitation.
ARE THERE ANY LIMITATIONS ON NET PREMIUM ALLOCATIONS?
Yes. The percentage of any net premiums allocated to any variable sub-account
will be limited to the maximum variable sub-account percentage. The maximum
variable sub-account percentage is shown on the policy data pages.
ARE THERE RESTRICTIONS ON REQUESTED TRANSFERS OR SYSTEMATIC TRANSFERS OF
ACCUMULATION VALUE INTO THE VARIABLE SUB-ACCOUNTS?
Yes. No requested transfer or systematic transfer may be allocated to a
variable sub-account where the percentage of the total accumulation value in
the sub-account prior to the requested transfer or systematic transfer is in
excess of the maximum variable sub-account percentage. Additionally, for a
requested transfer or systematic transfer the percentage allocated to any one
variable sub-account must not exceed the maximum variable sub-account
percentage of the transfer or systematic transfer amount.
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WHAT IS AUTOMATIC REBALANCING?
Automatic rebalancing restores the percentage of accumulation value in the
guaranteed interest account and variable sub-accounts to the allocation
percentages pre-determined by you. Only accumulation value allocated to the
guaranteed interest account and variable sub-accounts will be subject to
automatic rebalancing.
IS AUTOMATIC REBALANCING REQUIRED?
Yes. Automatic rebalancing is required while this agreement is in force. The
rebalancing allocation is initially selected at the time of application. A
change to the rebalancing allocation may be requested by you at any time in
writing, by telephone, by facsimile (FAX) transmission, or through your agent
as authorized by you.
ARE THERE REQUIREMENTS FOR AUTOMATIC REBALANCING?
Yes. While the agreement is in force, the following automatic rebalancing
requirements must be maintained.
.. The frequency of the automatic rebalancing must be at least quarterly.
.. The percentage allocated to any variable sub-account will be limited to the
maximum variable sub-account percentage.
WHAT HAPPENS WHEN YOU REPAY A FIXED INTEREST RATE POLICY LOAN?
When you repay a fixed interest rate policy loan, the policy loan is reduced by
the amount of the loan repayment.
The fixed interest rate loan repayment will be allocated to all your accounts
other than the fixed loan account on a pro-rata basis based on the value in
each of the accounts.
We reserve the right to restrict the amount of any fixed interest rate loan
repayment allocated to the guaranteed interest account or to the fixed indexed
accounts.
WHAT IS THE NLGA PARTIAL SURRENDER AMOUNT?
The NLGA Partial Surrender Amount is the greater of:
(1) any partial surrender taken from the accumulation value; or
(2) an amount equal to the NLGA value multiplied by the Partial Surrender
Amount, divided by the accumulation value.
WHAT ARE THE NLGA COST OF INSURANCE AND NLGA POLICY ISSUE CHARGES?
The NLGA Cost of Insurance and the NLGA Policy Issue Charges are charges we
take to provide the death benefit guarantee under this agreement. The maximum
charges are shown on the NLGA data page and apply to coverage layers at issue
and following face amount increases.
WHAT ARE THE TRANSACTION, CASH EXTRA, AND ADDITIONAL AGREEMENT CHARGES?
The Transaction, Cash Extra, and Additional Agreement Charges assessed against
the NLGA value are the same as those assessed against the policy's accumulation
value unless otherwise noted on the NLGA data page. The charge for this
agreement is not assessed against the NLGA value.
WHAT EFFECT DOES THE NLGA VALUE HAVE ON THE ACCUMULATION VALUE?
The NLGA value has no effect on the accumulation value. The NLGA value is used
only for the purpose of determining whether the benefit under this agreement is
available. It does not represent any value that you can surrender or take a
loan against.
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WHAT IS THE IMPACT TO THE BASE POLICY CHARGES WHEN THE POLICY IS INFORCE UNDER
THE NO LAPSE GUARANTEE FEATURE?
Monthly deductions will continue while the policy is inforce under the no lapse
guarantee feature, resulting in a negative accumulation value. No negative
interest will be credited and in the case of a negative accumulation value, the
net amount at risk will be calculated as if the accumulation value were zero.
WHAT IF THE PREMIUMS OR CHARGES ARE BEING WAIVED?
For any month in which premiums are paid under a waiver agreement, the NLGA
value will be calculated using the premium paid under that waiver agreement.
For any month in which charges are waived under a waiver agreement, we will
waive the NLGA monthly charges.
WHAT IF THERE IS NO ACCUMULATION VALUE AND THE NLGA VALUE IS INSUFFICIENT TO
COVER CHARGES AGAINST THE NLGA VALUE?
If there is no accumulation value and the NLGA value, less the sum of any
policy loans and any unpaid policy loan interest, is insufficient to cover the
charges against the NLGA value, a 61-day grace period begins. Your policy will
remain in force during the grace period. We will send you and any assignee of
record, at the last known address, at least 31 days prior to the end of the
grace period, a written notice indicating the due date and the payment required
to keep your policy in force. If the required amount is not paid by the end of
the grace period, this agreement and the policy will terminate.
WHAT IS THE PAYMENT REQUIRED TO KEEP THIS AGREEMENT IN FORCE?
The payment required to keep this agreement in force after the grace period has
commenced is equal to three times the sum of all the NLGA monthly charges
described in this agreement and deducted from the NLGA value that were due at
the beginning of the grace period, plus any accrued loan interest through the
end of the grace period if a policy loan exists.
WHAT IS THE CHARGE FOR THIS AGREEMENT?
The monthly NLGA charge is shown on the policy data pages.
WHEN WILL THIS AGREEMENT TERMINATE?
This agreement will terminate on the earliest of:
(1) the date the policy is surrendered or otherwise terminates; or
(2) the date we receive your written request to cancel this agreement; or
(3) the termination date of this agreement as shown on the policy data pages.
CAN YOU REINSTATE THIS AGREEMENT?
Yes. If this agreement was in force at the time the policy terminated, this
agreement may be reinstated subject to the reinstatement provisions of the
policy.
However, if you elected to cancel this agreement at any time, you may not
reinstate this agreement.
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/s/ ▇▇▇▇ ▇. ▇▇▇▇▇▇▇▇▇▇▇ /s/ ▇▇▇▇▇▇▇▇▇▇▇ ▇. ▇▇▇▇▇▇
Secretary President]
ICC18-20151 Minnesota Life Insurance Company 3
