Exhibit 4c
LINCOLN LIFE & ANNUITY COMPANY OF NEW YORK
(A Stock Company)
Home Office: 000 Xxxxxxx Xxxxxx, Xxxxx 0000, Xxxxxxxx, Xxx Xxxx 00000
Servicing Office: 0000 Xxxxx Xxxxxxx Xxxxxx, Xxxx Xxxxx, Xxxxxxx 00000-0000
ANNUITY CONTRACT
INDIVIDUAL FLEXIBLE PURCHASE PAYMENT DEFERRED VARIABLE ANNUITY CONTRACT
WITH ANNUITY PAYMENT OPTIONS
NONPARTICIPATING
Lincoln Life & Annuity Company of New York (LNY) agrees to provide the benefits
and other rights described in this Contract in accordance with the terms of this
Contract.
READ THIS CONTRACT CAREFULLY. This is a legal contract between the Owner and
LNY. We want to be sure you understand the features and benefits contained in
this Contract. IT IS THEREFORE IMPORTANT THAT YOU READ YOUR CONTRACT CAREFULLY.
If you have any questions after reading the Contract, we hope you will contact
your representative or the Servicing Office of LNY.
NOTICE OF RIGHT TO EXAMINE CONTRACT. WITHIN 10 DAYS AFTER THIS CONTRACT IS FIRST
RECEIVED, IT MAY BE CANCELLED FOR ANY REASON WITHOUT PENALTY (E.G., NO
CONTINGENT DEFERRED SALES CHARGE WILL BE DEDUCTED) BY DELIVERING OR MAILING IT
TO THE REPRESENTATIVE THROUGH WHOM IT WAS PURCHASED OR TO THE SERVICING OFFICE
OF LNY. WHEN THE CONTRACT IS RECEIVED AT THE SERVICING OFFICE,LNY WILL RETURN
THE CONTRACT VALUE PLUS AN AMOUNT TO REFLECT ANY DEDUCTED DAILY CHARGES (DAILY
CHARGES ARE DESCRIBED IN SECTION 4.04) AS OF THE DATE OF CANCELLATION
WHEREPERMITTEDBY LAW, MINUS ANY BONUS CREDITS PAID INTO THIS CONTRACT. IF THE
CONTRACT VALUE ON THE DATE OF CANCELLATION IS LESS THAN THE SUM OF PURCHASE
PAYMENTS MINUS WITHDRAWALS INCLUDING ANY APPLICABLE CHARGES, LNY WILL ALSO
RETURN THE NET INVESTMENT LOSS ON THIS CONTRACT AND FUND MANAGEMENT FEES EACH IN
AN AMOUNT THAT IS PROPORTIONATELY ATTRIBUTABLE TO THE BONUS CREDITS.
ALL PAYMENTS AND VALUES PROVIDED BY THIS CONTRACT, WHEN BASED ON THE INVESTMENT
EXPERIENCE OF THE VARIABLE ACCOUNT, ARE VARIABLE. THE AMOUNTS MAY INCREASE OR
DECREASE AND ARE NOT GUARANTEED AS TO FIXED DOLLAR AMOUNT (SEE ARTICLE 4 AND
ARTICLE 8). PRIOR TO THE ANNUITY COMMENCEMENT DATE, THE MAXIMUM MORTALITY AND
EXPENSE RISK AND ADMINISTRATIVE CHARGE IS 1.85% AND THEREAFTER IS 1.10%. THE
SMALLEST RATE OF INVESTMENT RETURN REQUIRED TO ENSURE THAT THE DOLLAR AMOUNT OF
VARIABLE ANNUITY PAYMENTS DOES NOT DECREASE IS: 4.15% IF THE ASSUMED INTEREST
RATE (AIR) IS 3.0%, 5.15% IF THE AIR IS 4.0% OR 6.20% IF THE AIR IS 5.0%
Signed for Lincoln Life & Annuity Company of New York at its Home Office in
Syracuse, New York.
/s/ Xxxxxx Xxxxx /s/ C. Xxxxxxx Xxxxxx
------------------------------------- ----------------------------------------
Xxxxxx Xxxxx, President C. Xxxxxxx Xxxxxx, Corporate Secretary
TABLE OF CONTENTS
ARTICLE PAGE
1 Definitions 4
2 Purchase Payments 6
3 Contract VALUE 7
4 Variable ACCOUNT 8
5 DCA Fixed ACCOUNT 10
6 Transfers, Withdrawals and Surrenders 11
7 DEATH Benefits 13
8 ANNUITY PAYMENT OPTIONS 15
9 Beneficiary 19
10 SUSPENSION OR DEFERRAL OF PAYMENTS 00
00 XXXXXXX XXXXXXXXXX 00
00 ANNUITY Purchase Rates Under A VARIABLE Annuity Payment 24
13 ANNUITY Purchase Rates Under A FIXED ANNUITY PAYMENT 27
14 ADDITIONAL Services 28
CONTRACT SPECIFICATIONS
CONTRACT NUMBER: 00-0000000
ANNUITANT: ALDESIGN3NY
AGE AT ISSUE: 51
CONTRACT DATE: MARCH 24, 2008
INITIAL PURCHASE PAYMENT: $50,000.00
MATURITY DATE: JUNE 13, 2034
0WNER(S) SPECIMEN
DEATH BENEFIT ON CONTRACT DATE: GUARANTEE OF PRINCIPAL
PURCHASE PAYMENT AND ALLOCATION REQUIREMENTS:
MINIMUM SUBSEQUENT PURCHASE PAYMENT TRANSMITTED ELECTRONICALLY: $25
MINIMUM SUBSEQUENT PURCHASE PAYMENT TRANSMITTED OTHER THAN ELECTRONICALLY:
$100
MINIMUM ALLOCATION TO ANY ONE VARIABLE SUBACCOUNT: $20
MINIMUM ALLOCATION TO THE DCA FIXED ACCOUNT: $300
ACCOUNT FEE:
The Account Fee is $35 per Contract Year. The Account Fee will be deducted
on the first Valuation Date following the last day of each Contract Year.
If the Contract is surrendered prior to the last day of a Contract Year,
the full Account Fee will be deducted upon the surrender. The Account Fee
will be deducted fromeach Variable Subaccount and the DCA Fixed Account on
a pro-rata basis. The Account Fee will be waived for any Contract Year in
whichthe Contract Value equals or exceeds $100,000.00 as of the Valuation
Date on whichthe Account Fee would otherwise be deducted. The Account Fee
will be waived after 15 Contract Years. The Account Fee will also be waived
on and after the Annuity Commencement Date.
VARIABLE ACCOUNT:
The Variable Account for this Contract is the Lincoln New York Separate
Account H for Variable Annuities.
DCA FIXED ACCOUNT:
MINIMUM GUARANTEED INTEREST RATE: 3.00%
INITIAL GUARANTEED PERIOD / INTEREST RATE: /
VARIABLE ACCOUNT REQUIREMENTS:
MORTALITY AND EXPENSE RISK AND ADMINISTRATIVE CHARGE PRIOR TO THE ANNUITY
COMMENCEMENT DATE:
0
We assess a daily charge equal on an annual basis to the percentages shown
of the average daily net asset value of each Variable Subaccount. The daily
charge will not exceed the percentage(s) shown. If on the Contract Date,
one of the below listed Death Benefit Options) has been selected, the
Mortality and Expense Risk and Administrative Charge will be as indicated
for the Death Benefit Option selected.
DEATH BENEFIT OPTION(S): CHARGES:
- Contract Value Death Benefit 1.55%
- Guarantee of Principal Death Benefit: 1.60%
- Enhanced Guaranteed Minimum Death Benefit: 1.85%
MORTALITY AND EXPENSE RISK AND ADMINISTRATIVE CHARGE ON OR AFTER THE
ANNUITY COMMENCEMENT DATE: 1.10%.
The daily charge will not exceed the percentage shown.
BONUS CREDIT:
The Bonus Credit associated with each Purchase Payment to this Contract
will be 3.0%
PERSISTENCY CREDIT:
The amount of the Persistency Credit is calculated by multiplying the
Contract Value, less any Purchase Payments that have not been invested in
this Contract for a minimum of 7 years, by the quarterly Persistency Credit
percentage of 0.1125%.
TRANSFER REQUIREMENTS PRIOR TO THE ANNUITY COMMENCEMENT DATE: Transfers
cannot be made during the first 30 days.
LNY reserves the right to require a 30 day minimum time period between each
transfer.
MAXIMUM NUMBER OF TRANSFERS: 12 per Contract Year, excluding automatic DCA
transfers. There will be no fee imposed for these twelve (12) transfers.
Transfers in excess of 12 per Contract Year must be authorized by LNY.
TRANSFER FEE: LNY reserves the right to impose a fee for any transfer in
excess of 12 per Contract Year. A Transfer Fee not to exceed $50 may be
assessed against each transfer after the first 12 transfers made in each
Contract Year. The Transfer Fee is deducted from the Variable Subaccounts
and DCA Fixed Account from which a transfer is made with each such Variable
Subaccount or DCA Fixed Account bearing a pro ratashare of the Transfer
Fee. A Transfer Fee will not be imposed against transfers made as a part of
an automatic transfer program.
VARIABLE ACCOUNT:
MINIMUM SINGLE TRANSFER AMOUNT FROM A VARIABLE SUBACCOUNT: $300. Transfers
to the DCA Fixed Account are not allowed.
MINIMUM TRANSFER AMOUNT TO A VARIABLE SUBACCOUNT: $300
DCA FIXED ACCOUNT:
MINIMUM SINGLE TRANSFER AMOUNT FROM THE DCA FIXED ACCOUNT: $300
1
WITHDRAWAL AND SURRENDER REQUIREMENTS: MINIMUM PARTIAL WITHDRAWAL AMOUNT: $300
CONTINGENT DEFERRED SALES CHARGE (CDSC): Withdrawals and/or Surrenders will be
subject to the CDSC. The CDSC is calculated separately for each Purchase Payment
to whicha charge applies. However the Owner may withdraw up to the Free
Withdrawal Amount during a Contract Year without incurring a CDSC. The remaining
value will be subject to the CDSC.
CDSC applies as follows:
NUMBER OF CONTRACT ANNIVERSARIES CDSC AS A PERCENTAGE OF THE
SINCE A PURCHASE PAYMENT WAS SURRENDERED OR WITHDRAWN
INVESTED PURCHASE PAYMENT
-------------------------------- ---------------------------
None 8.5%
At Least 1 8.0%
At Least 2 7.0%
At Least 3 6.0%
At Least 4 5.0%
At Least 5 4.0%
At Least 6 3.0%
At Least 7+ 0.0%
WAIVER OF CONTINGENT DEFERRED SALES CHARGE (CDSC): The withdrawal of a portion
of the Contract Value or the surrender of this Contract, prior to the Annuity
Commencement Date may be subject to a CDSC, except that such charges do not
apply to the following:
a. Each withdrawal of the Free Withdrawal Amount.
b. A surrender or withdrawal of any Purchase Payment received more than
12 months prior to the onset of the PERMANENT AND TOTAL DISABILITY of
the Owner. PERMANENT AND TOTAL DISABILITY IS disability that prevents
the Owner from engaging in any occupation for remuneration or profit
and which HAS existed continuously FOR A period OF 12 months and
BEGINS PRIOR to THE 65(1)' birthday OF the disabled Owner, provided
that written proof of total disability is sent to LNY at its Servicing
Office. A waiver of the CDSC will not apply if such surrender or
withdrawal is made in connection with a replacement of the Contract.
c. A surrender or withdrawal of any Purchase Payment received more than
12 months prior to the diagnosis of a terminal illness of the Owner.
Diagnosis of the terminal illness must be subsequent to the Contract
Date and result in a life expectancy of less than 12 months, as
determined by a qualified professional medical practitioner. A waiver
of the CDSC will not apply if such surrender or withdrawal is made in
connection with a replacement of the Contract.
d. A surrender or withdrawal of any Purchase Payment received more than
12 months prior to the admittance of the Owner into an accredited
nursing home or equivalent health care facility. Admittance in such a
facility must be subsequent to the Contract Date and continue for 90
consecutive days prior to the surrender or withdrawal. A waiver of the
CDSC will not apply if such surrender or withdrawal is made in
connection with a replacement of the Contract.
e. A surrender or withdrawal as a result of the death of the Owner or
Annuitant.
f. The annuitization of any Purchase Payment, if the Purchase Payment was
received by us more than 12 months prior to the Annuity Commencement
Date.
If a non-natural person is the Owner of the Contract, the Annuitant or Joint
Annuitant will be considered the Owner of the Contract for purposes of this
provision.
FREE WITHDRAWAL AMOUNT: The Free Withdrawal Amount is the greater of:
a. 10% of the Contract Value, where the percentages are based upon the
Contract Value at the time of the current withdrawal, to the extent
that the sum of the percentages of the Contract Value withdrawn does
not exceed this 10% maximum; or
2
b. 10% of the total Purchase Payments (excluding any corresponding Bonus
Credits), where the percentages are based upon the total Purchase
Payments to the Contract at the time of the current withdrawal, to the
extent that the sum of the percentages of the Purchase Payments
withdrawn does not exceed 10% maximum.
The Free Withdrawal Amount does not apply to a surrender of this Contract.
For purposes of calculating the CDSC on withdrawals, LNY assumes that:
a. The Free Withdrawal Amount will be withdrawn from Purchase Payments on
a "first in-first out" (FIFO) basis.
b. Prior to the seventh anniversary of the Contract Date, any amount
withdrawn above the Free Withdrawal Amount during a Contract Year will
be withdrawn in the following order:
1. from Purchase Payments (FIFO) until exhausted; then
2. from Earnings until exhausted; then
3. from Bonus Credits
c. On or after the seventh anniversary of the Contract Date, any amount
withdrawn above the Free Withdrawal Amount during the Contract Year
will be withdrawn in the following order:
1. from Purchase Payments (FIFO) to which a CDSC no longer applies
until exhausted; then
2. from Earnings and Persistency Credits,if any, until exhausted;
then
3. from Bonus Credits paid into this Contract at the same time as
Purchase Payments to which a CDSC no longer applies until
exhausted; then
4. from Purchase Payments (FIFO) to which a CDSC still applies until
exhausted; then
5. from Bonus Credits paid into this Contract at the same time as
Purchase Payments to which a CDSC still applies.
DEATH BENEFIT REQUIREMENTS PRIOR TO THE ANNUITY COMMENCEMENT DATE:
The Owner may select a Death Benefit Option(s) to be effectiveas of the Contract
Date. If no Death Benefit Option is selected, the Guarantee of Principal will be
the Death Benefit effective as of the Contract Date.
ANNUITY PAYMENT REQUIREMENTS:
DETERMINATION OF THE FIRST ANNUITY PAYMENT DATE:
For 100% Fixed Annuity Payment, the Annuity Payment Date must be
atleast 30 days after the Annuity Commencement Date. If any portion of
the annuity payment will be on a variable basis, the Annuity Payment
Date will be 14 days after the Annuity Commencement value Date. The
Annuity Unit if applicable, and Contract Value used to effect annuity
payments will Annuity be determined as of the Commencement Date.
MINIMUM ANNUITY PAYMENT AMOUNT: $50
MINIMUM GUARANTEED INTEREST RATE FOR THE FIXED ANNUITY PAYMENT: 1.50%
ASSUMED
INVESTMENT RATE FOR THE VARIABLE ANNUITY PAYMENT: Between 3.0% - 5.0%
3
ARTICLE 1
DEFINITIONS
ACCUMULATION UNIT -- A unit of measure used in the calculation of the value of a
Variable Subaccount prior to the Annuity Commencement Date.
ANNUITANT OR JOINT ANNUITANT -- The person or persons upon whose life or lives
the annuity payments made after the Annuity Commencement Date will be based.
ANNUITY COMMENCEMENT DATE -- The Valuation Date on whichthe Contract Value is
withdrawn for payment of annuity benefits under the annuity payment option
selected.
ANNUITY PAYMENT DATE -- The date on which the Owner is entitled to the first
annuity payment. Subsequent annuity payments will be due on the same day of the
month as the first annuity payment, at the applicable frequency. Annuity
payments cannot commence within 12 months of the Contract Date.
ANNUITY UNIT -- A unit of measure used after the Annuity Commencement Date to
calculate the amount of a Variable Annuity Payment.
BENEFICIARY -- The person or persons or entity designated by the Owner to
receivethe Death Benefit, if any.
CODE -- The Internal Revenue Code of 1986, as amended.
CONTINGENT ANNUITANT -- Prior to the Annuity Commencement Date, the individual
who will become the Annuitant upon the death of the Annuitant.
CONTINGENT DEFERRED SALES CHARGE (CDSC) -- Charges assessed on a surrender of
the Contract or a partial withdrawal from the Contract, calculated according to
the Contract provisions.
CONTRACT -- The agreement between LNY and the Owner, in whichLNY provides an
annuity as described on the front of this Contract.
CONTRACT DATE -- The date this Contract became effective. The Contract Date is
shown on the Contract Specifications.
DEATH BENEFIT -- The amount payable upon death of an Owner or an Annuitant.
EARNINGS -- The excess of the Contract Value over the Purchase Payments
whichhave not yet been withdrawn from this Contract.
FIXED ANNUITY PAYMENTS -- Periodic payments made to the Owner or the Owner's
designee by LNY on or after the Annuity Commencement Date whichLNY guarantees as
to the dollar amount. Fixed annuity payments are made out of the General
Account.
FUND -- Any of the underlying investment options available in the Variable
Account.
GENERAL ACCOUNT -- An account consisting of all assets owned by LNY other than
those assets in segregated investment accounts.
HOME OFFICE -- The principal office of LNY located at 000 Xxxxxxx Xxxxxx, Xxxxx
0000, Xxxxxxxx, Xxx Xxxx, 00000, or an institution designated by LNY.
LNY -- Lincoln Life & Annuity Company of New York.
MATURITY DATE -- The date by whichan election to receive payments under an
Annuity Payment Option must be made. The Maturity Date is the later of the
Annuitant's 90'" birthday or 10 years from the Contract Date. The Maturity Date
is shown on the Contract Specifications.
NET ASSET VALUE PER SHARE -- The market value of a Fund share calculated each
day.
4
NOTICE -- Any form of communication providing information as required by LNY,
either in signed writing or another manner, that LNY approves in advance. All
Notices must be received by LNY in the Servicing Office and must include all
required information necessary to process the request. To be effective for any
Valuation Date, a Nofice must be received in good order prior to the end of that
Valuation Date.
OWNER -- The one person, two persons or entity who exercise rights of ownership
under this Contract. If two persons are named as Owner, all references to Owner
means joint Owner.
PURCHASE PAYMENTS -- Amounts paid into this Contract by the Owner.
QUALIFIED CONTRACT -- A contract that is used as a funding vehiclefor a
retirement plan qualified for special tax treatment under the Code, including
Sections 401, 403, 408, 408A and 457. All other contracts are considered
Non-qualified contracts.
SERVICING OFFICE -- The office where servicing of this Contract takes place,
located at 0000 Xxxxx Xxxxxxx Xxxxxx, Xxxx XXXXX, Xxxxxxx 00000-0000, OR AN
institution DESIGNATED by LNY.
VALUATION DATE -- Closeof the market of each day that the New York Stock
Exchange is open for business.
VALUATION PERIOD -- The period commencing at the dose of business on a
particular Valuation Date and ending at the close of business on the next
succeeding Valuation Date.
VARIABLE ACCOUNT -- The segregated investment account into whichLNY sets aside
and invests the assets allocated to the Variable Subaccount(s) made available by
LNY and selected by the Owner. The Variable Account for this variable annuity
Contract is shown on the Contract Data page.
VARIABLE ANNUITY PAYMENTS -- Periodic payments made to the Owner or the Owner's
designee by LNY on or after the Annuity Commencement Date whichvary in amount
with the investment experience of each applicable Variable Subaccount.
VARIABLE SUBACCOUNT -- That portion of the Variable Account which invests in
shares of a particular Fund. There is a separate Variable Subaccount for each
particular Fund.
5
ARTICLE 2
PURCHASE PAYMENTS
2.01 WHERE PAYABLE
All Purchase Payments must be made to LNY at its Servicing Office.
2.02 AMOUNT AND FREQUENCY
LNY reserves the right to limit future Purchase Payments into this Contract. The
minimum subsequent Purchase Payments are shown on the Contract Specifications.
Purchase Payments may be made until the earliest of: the Annuity Commencement
Date, death of the Owner, or surrender of the Contract. In the event that
Purchase Payments are discontinued by the Owner, this Contract will continue and
Purchase Payments may be resumed at any time prior to the earlier of: the
Annuity Commencement Date, death of the Owner, or surrender of this Contract.
6
ARTICLE 3
CONTRACT VALUE
3.01 CONTRACT VALUE
The Contract Value, at any time prior to the Annuity Commencement Date, is equal
to the sum of the values of the Variable Account and the DCA Fixed Account
attributable to this Contract on a given Valuation Date.
3.02 ACCOUNT FEE
LNY will deduct an Account Fee from the Contract Value as shown on the Contract
Specifications.
7
ARTICLE 4
VARIABLE ACCOUNT
4.01 THE VARIABLE ACCOUNT
Purchase Payments under the Contract may be allocated to the Variable Account of
the Contract. The Variable Account, whichis designated on the Contract
Specifications, is for the exclusive benefit of persons entitled to receive
benefits under variable annuity contracts. Income, gains and losses (whether or
not realized) from the assets allocated to the Variable Account shall be
credited to or charged against the Variable Account without regard to other
income, gains or losses of LNY. The Variable Account will not be charged with
the liabilities arising fromany other part of LNY's business.
Subject to any required regulatory approvals, LNY reserves the right to
eliminate the shares of any Fund and substitute the securities of a different
Fund or investment company or mutual fund. Such elimination and substitution may
occur if the shares of a Fund are no longer available for investment, or, if in
the judgment of LNY, further investment in any Fund should become inappropriate
in view of the purposes of the Contract. LNY may close any Variable Subaccount
to new Purchase Payments, transfers of Contract Value or both. LNY may add new
Variable Subaccounts in whichthe assets of the Variable Account may be invested.
LNY will give the Owner written notice of the elimination and substitution of
any Fund as required by law after such substitution occurs.
4.02 ALLOCATION OF PURCHASE PAYMENTS TO A VARIABLE SUBACCOUNT
The Owner may allocate Purchase Payments to any of the available Variable
Subaccounts in accordance with the restrictions on the Contract Specifications.
A Notice must be given to LNY if the Owner elects to allocate any Purchase
Payment to a new Variable Subaccount not previously selected.
Purchase Payments allocated to each Variable Subaccount will be invested at Net
Asset Value Per Share of one of the Funds. Following receipt of a Purchase
Payment, LNY will use each Purchase Payment to buy Accumulation Units in the
Variable Subaccount(s) selected by the Owner.
4.03 VALUATION OF THE VARIABLE ACCOUNT
The value of the Variable Account, at any time prior to the Annuity Commencement
Date, is equal to the sum of the values allocated to the Variable Subaccounts.
The value of a Variable Subaccount, at any time prior to the Annuity
Commencement Date, is equal to the Accumulation Units credited to a Variable
Subaccount multiplied by the value of the Accumulation Unit for the respective
Variable Subaccount.
Accumulation Units are used to value all amounts allocated to or withdrawn from
a Variable Subaccount as a result of Purchase Payments, transfers, withdrawals,
or fees and charges. Accumulation Units for each Variable Subaccount are valued
separately. The value of an Accumulation Unit may increase or decrease from
Valuation Period to Valuation Period. The number of Accumulation Units is
determined by dividing the amount allocated to or withdrawn from a Variable
Subaccount by the dollar value of one Accumulation Unit of the Variable
Subaccount as of the Valuation Date the transaction becomes effective. The
number of Accumulation Units held for an Owner in a Variable Subaccount will not
be changed by any change in the dollar value of Accumulation Units in the
Variable Subaccount.
The value of an Accumulation Unit was arbitrarily established at the inception
of the Variable Subaccount. The Accumulation Unit value for a Variable
Subaccount for any later Valuation Period is determined as follows:
a. the total value of Fund shares held in the Variable Subaccount is
calculated by multiplying the number of Fund shares owned by the
Variable Subaccount at the beginning of the Valuation Period by the
Net Asset Value Per Share of the Fund at the end of the Valuation
Period, and adding any dividend or other distribution of the Fund if
an ex-dividend date occurs during the Valuation Period; minus
8
b. The liabilities of the Variable Subaccount at the end of the Valuation
Period (such liabilities include daily charges imposed on the Variable
Subaccount (see Section 4.04) and may include a charge or credit with
respect to any taxes paid or reserved for by LNY that LNY determines
is a result of the operation of the Variable Account); the result
divided by
c. the outstanding number of Accumulation Units in the Variable
Subaccount at the beginning of the Valuation Period.
The Accumulation Unit value may increase or decrease the dollar value of
benefits under the Contract. Expenses incurred by LNY will not adversely affect
the dollar value of benefits.
4.04 MORTALITY AND EXPENSE RISK AND ADMINISTRATIVE CHARGE
LNY will deduct a Mortality and Expense Risk and Administrative charge (daily
charge) from the Variable Account as shown on the Contract Specifications.
4.05 CHANGE IN OPERATION
LNY reserves the right to transfer assets of the Variable Account to another
account, and to modify the structureor operation of the Variable Account,
subject to obtaining any necessary regulatory approvals. LNY guarantees that
such modification will not affect the Contract Value.
9
ARTICLE 5
DCA FIXED ACCOUNT
5.01 ALLOCATION OF PURCHASE PAYMENTS INTO THE DCA FIXED ACCOUNT
Any Purchase Payment paid into this Contract may be allocated to the DCA Fixed
Account. LNY reserves the right to discontinue accepting new Purchase Payments
to this account at any time. In this event, LNY will provide 30-day advance
written notice to the Owner that Purchase Payments may no longer be allocated to
the DCA Fixed Account.
The Owner may allocate Purchase Payments to the DCA Fixed Account, if available,
subject to the following limitations:
a. If LNY is accepting new Purchase Payments to the DCA Fixed Account.
b. The minimum amount that may be allocated to the DCA Fixed Account is
shown on the Contract Specifications.
c. If the Owner elects to allocate any Purchase Payment to the DCA Fixed
Account and the DCA Fixed Account was not previously selected, the
Owner must first provide LNY with Notice of allocation.
Any Purchase Payment so allocated will be transferred from the DCA Fixed Account
to the designated Variable Subaccount available in the Contract in regular
installments over a period chosen by the Owner. Transfers will occur at the same
interval until the end of the chosen period or, if sooner, until the account
value in the DCA Fixed Account has been exhausted.
5.02 CREDITING OF INTEREST ON DCA FIXED ACCOUNT
Prior to the earlier of:
a. the Annuity Commencement Date;
b. termination of this Contract upon payment of any Death Benefit; or
c. surrender of this Contract;
LNY guarantees that at the end of each Valuation Period an effective annual
interest rate, adjusted for the number of days in the Valuation Period, will be
credited to the portion of Contract Value, if any, in the DCA Fixed Account at
that time. LNY guarantees that it will credit an effective annual Minimum
Guaranteed Interest Rate during all years as shown on the Contract
Specifications. LNY may credit interest at effectiveannual rates in excess of
the Minimum Guaranteed Interest Rate at any time.
10
ARTICLE 6
TRANSFERS, WITHDRAWALS AND SURRENDERS
6.01 TRANSFERS BEFORE THE ANNUITY COMMENCEMENT DATE
Prior to the earlier of: the Annuity Commencement Date, termination of this
Contract upon payment of any Death Benefit, or surrender of this Contract, the
Owner may provide Notice to direct a transfer of a portion of the Contract Value
between any available Variable Subaccount(s) or fromthe DCA Fixed Account
subject to any restrictions described in this Contract.
Transfers will be subject to the following:
a. The Transfer Requirements outlined on the Contract Specifications.
b. LNY reserves, in its sole opinion, the right to limit or modify
transfers that may have an adverse effect on other contract owners.
Restrictions may be applied in any manner reasonably designed to
prevent any use of the transfer right that is considered by LNY to
disadvantage other contract owners.
LNY has the right to waiveor modify any of these restrictions.
Upon receipt of Notice to transfer, LNY will process the transfer within the
time period required by the Securities and Exchange Commission,unless the
Suspension or Deferral of Payments or Transfers from the Variable Account
provision (Article 10) is in effect.
Transfers fro ma Variable Subaccount will be accomplished at Accumulation Unit
values as of the Valuation Date the Notice to transfer is received.
If the DCA program is discontinued by the Owner prior to the end of the selected
DCA period, any remaining portion of the Contract Value held in a designated DCA
holding account within the DCA Fixed Account will be transferred automatically
to the Variable Subaccount(s) the Owner selected under the DCA program.
6.02 WITHDRAWALS
The Owner may, upon Notice to LNY, withdraw a part of the surrender value of
this Contract at any time prior to the earlier of: the Annuity Commencement
Date, termination of this Contract upon payment of any Death Benefit, or
surrender of this Contract.
Withdrawals will be subject to the withdrawal and surrender requirements as
shown on the Contract Specifications.
A withdrawal will be effective on the Valuation Date that LNY receives Notice to
withdraw. The Notice must specify fromwhich Variable Subaccount and/or the DCA
Fixed Account the withdrawal will be made. If no allocation is specified, LNY
will withdraw the amount requested on a pro-rata basis from each Variable
Subaccount and/or the DCA Fixed Account.
Upon receipt of Notice of withdrawal, LNY will pay the amount of any withdrawal
within the time period as required by the Securities and Exchange Commission
unless the Suspension or Deferral of Payments or Transfers provision (Article
10) is in effect.
Withdrawals will be accomplished at Accumulation Unit values as of the Valuation
Date the Notice for withdrawal is received.
A partial withdrawal will result in a proportional reduction in any Death
Benefit payable under the Contract.
6.03 SURRENDERS
The Owner may, upon Notice to LNY, surrender this Contract for its surrender
value at any time prior to the earlier of: the Annuity Commencement Date, or
termination of this Contract upon payment of any Death Benefit.
11
This Contract will terminate upon surrender. The surrender will be effectiveon
the Valuation Date on which LNY receives Notice of surrender.
Surrenders will be subject to the withdrawal and surrender requirements as shown
on the Contract Specifications.
The surrender value on the Valuation Date of surrender will be the sum of a. and
b. minus the CDSC, where:
a. is the Contract Value in the DCA Fixed Account and;
b. is the portion of the Contract Value in the Variable Account.
LNY reserves the right to surrender this Contract if any withdrawal reduces the
total Contract Value to less than $2,000, and Purchase Payments have stopped for
a period of three full years. By payment of the Contract Value, LNY shall be
relieved of any further obligation under this Contract.
Upon receipt of Notice to surrender, LNY will pay the amount of any surrender
within the time period required by the Securities and Exchange Commission,unless
the Suspension or Deferral of Payments or Transfers provision (Article 10) is in
effect.
12
ARTICLE 7
DEATH BENEFITS
7.01 DEATH BEFORE THE ANNUITY COMMENCEMENT DATE
ENTITLEMENT.
If there is a single Owner, then upon the death of the Owner LNY will pay a
Death Benefit to the designated Beneficiary(s). If the designated Beneficiary of
the Death Benefit is the surviving spouse of the deceased Owner, the spouse may
elect to continue the Contract as the new Owner. The Death Benefit in effect at
the time of death of the original Owner will continue, unless subsequently
terminated by the surviving spouse. If there are no designated Beneficiaries,
LNY will pay a Death Benefit to the Owner's estate. Upon the death of the spouse
who continues the Contract as the new Owner, LNY will pay a Death Benefit to the
designated Beneficiary(s).
If there are two Owners, upon the death of the first Owner, LNY will pay a Death
Benefit to the surviving Owner. If the surviving Owner is the spouse of the
deceased Owner, then the spouse may elect to continue the Contract as sole
Owner. The Death Benefit in effect at the time of death of the original Owner
will continue, unless subsequently terminated by the surviving spouse. Upon the
death of the Owner who continues the Contract, LNY will pay a Death Benefit to
the designated Beneficiary(s).
If the Annuitant is also an Owner, then the Death Benefit paid upon the death of
the Annuitant will be subject to the Contract provisions regarding death of an
Owner. If the surviving spouse of the deceased Annuitant assumes the Contract,
the Contingent Annuitant, if any, will become the Annuitant. If there is no
named Contingent Annuitant, the surviving spouse will become the Annuitant.
If an Annuitant who is not an Owner dies, then the Contingent Annuitant, if
named, becomes the Annuitant and no Death Benefit is payable on the death of the
Annuitant.
If an Annuitant who is not an Owner dies and no Contingent Annuitant is named,
the youngest Owner immediately becomes the Annuitant and the Contract continues.
In lieu of continuing the Contract, the Owner may elect to receivea Death
Benefit (in equal shares, if applicable). Writtennotificafionof the election to
receive the Death Benefit must be received by LNY within 75 days of the death of
the Annuitant. This Contract will terminate when any Death Benefit is paid due
to the death of the Annuitant.
If the Owner is a corporation or other non-individual (non-natural person), the
death of the Annuitant will be treated as the death of the Owner.
The Death Benefit will be paid upon approval by LNY and after LNY is in receipt
of:
a. proof, satisfactory to LNY, of the death;
b. written authorization for payment; and
c. all claim forms, fully completed.
Due proof of death may be a certified copy of a death certificate, a certified
copy of a decree of a court of competent jurisdictionas to the findings of
death, or any other proof of death acceptable to LNY.
All Death Benefit payments will be subject to the laws and regulations governing
death benefits.
Notwithstanding any provision of this Contract to the contrary, the payment of
Death Benefits provided under the Contract must be made in compliance with Code
Section 72(s) or 401(a)(9) as applicable, as amended from time to time.
DETERMINATION OF AMOUNTS
The Death Benefit is equal to the greater of:
the Contract Value on the Valuation Date the Death Benefit is approved by the
LNY Servicing Office for payment;
a. or the sum of all Purchase Payments decreased proportionally by all
withdrawals, including any applicable
b. charges and any premium tax incurred.
13
Upon the death of an Owner or Annuitant of this Contract, if a surviving spouse
continues the Contract, the excess, if any, of the Death Benefit over the
current Contract Value as of the date on whichthe death claim is approved by LNY
for payment will be credited into the Contract. This excess will only be
credited one time for each Contract.
If the Owner is a corporation or other non-individual (non-natural person) and
there are Joint Annuitants, upon the death of the first Joint Annuitant to die,
if the Contract is continued, the excess, if any, of the Death Benefit over the
current Contract Value as of the date on whichthe death claim is approved by LNY
for payment will be credited into the Contract. This excess will only be
credited one time for each Contract.
If at any time the Owner or Annuitant named on this Contract is changed, except
on the death of a prior Owner or Annuitant, the Death Benefit for the new Owner
or Annuitant will be the Contract Value as of the Valuation Date the death claim
for the new Owner or Annuitant is approved by the LNY Servicing Office for
payment.
Other Death Benefit requirements may apply as shown on the Contract
Specifications.
PAYMENT OF AMOUNTS
The Death Benefit payable on the death of the Owner, or after the death of the
first Owner, or upon the death of the spouse who continues the Contract, will be
distributed to the designated Beneficiary(s) as follows:
a. the Death Benefit must be completely distributed within five years of
the Owner's date of death; or
b. an election may be made within the one year period after the Owner's
date of death for the designated Beneficiary, to receivethe Death
Benefit in substantially equal installments over the life of such
designated Beneficiary or over a period not extending beyond the life
expectancy of such designated Beneficiary; provided that such
distributions begin not later than one year after the Owner's date of
death.
The Death Benefit payable upon the death of the Annuitant, must be elected by
the Owner within 75 days of the death of the Annuitant, and will be distributed
to the Owner in either form of a lump sum or under an Annuity Payment Option. An
Annuity Payment Option must be selected within 60 days after LNY approves the
death claim.
If a lump sum settlement is elected, the proceeds will be mailed within the time
period required by the Securities and Exchange Commission following LNY's
approval of the death claim, unless the Suspension or Deferral of Payments or
Transfers provision (Article 10) is in effect. If any Death Benefit payable is
deferred, interest will be paid as required by New York Insurance Law using an
interest rate no less than the interest rate currently paid under the interest
settlement option.
The Death Benefit in effect will terminate on the Annuity Commencement Date.
7.02 DEATH ON OR AFTER THE ANNUITY COMMENCEMENT DATE
Upon receipt of due proof of death of the Annuitant, any remaining annuity
benefits payable will continue to be distributed under the Annuity Payment
Option then in effect.
Upon the death of the Owner, any remaining annuity payments will be made at
least as rapidly as the Annuity Payment Option then in effect. Upon the death of
the Owner, the rights of ownership granted by the Contract will pass to the
surviving Owner, if any, otherwise to the Beneficiary. If there is no named
Beneficiary at the time of a sole Owner's death, then the rights of ownership
will pass to the Annuitant, if still living; otherwise to the Joint Annuitant,
if applicable. If no named Beneficiary, Annuitant or Joint Annuitant survives
the Owner, any remaining payments payable will continue to the Owner's estate.
14
ARTICLE 8
ANNUITY PAYMENT OPTIONS
8.01 ANNUITY PAYMENTS
Annuity Payments will commence on the Annuity Payment Date. Payments are made
under the Annuity Payment Option selected (see Section 8.02).
8.02 CHOICE OF ANNUITY PAYMENT OPTION
An election to receive payments under an Annuity Payment Option must be made by
the Maturity Date. However, the Owner may elect to receivepayments under an
Annuity Payment Option any time after the 12 month anniversary of the Contract
Date but prior to the Maturity Date upon written request. The Maturity Date is
set forth on the Contract Specifications. If an Annuity Payment Option is not
chosen prior to the Maturity Date, payments will commence to the Owner on the
Maturity Date under the Annuity Payment Option providing a Life Annuity with
annuity payments guaranteed for 10 years.
Upon written request by the Owner and any Beneficiary who cannot be changed, the
Maturity Date may be deferred.
BY OWNER
Prior to the Annuity Commencement Date, the Owner may choose or change any
Annuity Payment Option. In addition, the Owner may select an Annuity Payment
Option that meets the requirements of Code Section 72(s) or 401(a)(9) as set
forth in Section 7.01, Payment of Amounts, for payment of the Death Benefit to a
Beneficiary. A Notice of such selection of a distribution method must be made
and approved by LNY. Upon Notice, the Owner may change or revoke, in writing to
the LNY Servicing Office, any such selection, unless such selection was made
irrevocable.
BY BENEFICIARY
If an Annuity Payment Option has not been previously selected by the Owner as
the distribution option for the payment of the Death Benefit to a Beneficiary,
then at the time proceeds are payable to a Beneficiary, a Beneficiary may choose
any Annuity Payment Option that meets the requirements of Code Section 72(s) or
401(a)(9) as set forth in Section 7.01, Payment of Amounts. The Beneficiary then
becomes the Annuitant.
A Notice is required to choose an Annuity Payment Option.
8.03 ANNUITY PAYMENT OPTIONS
a. Life Annuity / Life Annuity with CertainPeriod -- Fixed and/or
Variable Annuity Payments will be made for the lifetime of the
Annuitant with no Certain Period, or life and a 10 year Certain
Period, or life and a 20 year Certain Period.
b. Unit Refund Life Annuity -- Variable Annuity Payments will be made for
the lifetime of the Annuitant with the guarantee that upon death, if:
1. the number of Annuity Units initially purchased (determined by
dividing the total dollar amount applied to purchase this option
by the Annuity Unit value on the Annuity Commencement Date) is
greater than;
2. the number of Annuity Units paid as part of each Variable Annuity
Payment multiplied by the number of annuity payments paid prior
to death;
then a refund payment equal to the number of Annuity Units determined
by 1. minus 2. will be made.
The refund payment value will be determined using the Annuity Unit
value on the Valuation Date on whichthe refund payment is approved by
LNY, after LNY is in receipt of:
a) due proof of death acceptable to LNY;
15
b) written authorization for payment; and
c) all claim forms, fully completed.
c. Cash Refund Life Annuity -- Fixed Annuity Payments will be made for
the lifetime of the Annuitant with the guarantee that upon death, if:
1. the total dollar amount applied to purchase this option is
greater than;
2. the Fixed Annuity Payment multiplied by the number of annuity
benefit payments paid prior to death;
then a refund payment equal to the dollar amount of 1. minus 2. will
be made.
The refund payment will be paid upon approval by LNY, after LNY is in
receipt of:
a) due proof of death acceptable to LNY;
b) written authorization for payment; and
c) all claim forms, fully completed.
This option is only available to Annuitants under age 91.
d. Joint Life Annuity / Joint Life Annuity with Certain Period -- Fixed
and/or Variable Annuity Payments will be made during the joint life of
the Annuitant and a Joint Annuitant. Payments will be made for joint
life with no CertainPeriod, or joint life and a 10-year Certain
Period, or joint life and a 20-year CertainPeriod. Upon the death of
either Annuitant, annuity payments continue at the same amount for the
life of the surviving Annuitant.
e. Joint Life and Two-Thirds to Survivor Annuity / Joint Life and
Two-Thirds to Survivor Annuity with CertainPeriod -- Fixed and/or
Variable Annuity Payments will be made during the joint life of the
Annuitant and a Joint Annuitant. Upon the death of either Annuitant,
two thirds of the annuity payment due while both Annuitants were
alivewill continue for the life of the surviving Annuitant. Payments
will be made for joint life with no CertainPeriod, or joint life and a
10-year Certain Period, or joint life and a 20-year Certain Period.
f. Other options may be available as agreed upon in writing by LNY.
At the time an Annuity Payment Option is selected under the provisions of this
Contract, the Owner may elect to have the Contract Value applied to provide a
Variable Annuity Payment, a Fixed Annuity Payment, or a combination Fixed and
Variable Annuity Payment. If no election is made, the Contract Value will be
used to provide a Variable Annuity Payment.
At the time Fixed and/or Variable Annuity Payments commence, they will not be
less than those that would be provided by a specific amount for any single
premium immediate annuity contract offered by LNY at the time to the same class
of annuitants. The specificamount is the greater of the surrender value or 95%
of the accumulation value.
8.04 DETERMINATION OF THE AMOUNT OF THE FIRST ANNUITY PAYMENT
The amount of annuity payment will depend on the age and sex (except in cases
where unisex rates are required) of the Annuitant as of the Annuity Commencement
Date. A choice may be made to receive payments once each month, four times each
year, twice each year, or once each year. If no choice is made, payments will
automatically be made monthly.
Article 12 of this Contract illustrates the minimum payment amounts and the age
adjustments which will be used to determine the first monthly payment for a
Variable Annuity Payment based upon the assumed interest rate selected by the
Owner. The tables show the dollar amount of the first monthly payment which can
be purchased with each $1,000 of Contract Value, after deduction of any
applicable premium taxes. Amounts shown use an Individual Mortality Table on
file with the New York Superintendent of Insurance, with an assumed interest
rateof 3.0%, 4.0% and 5.0% per year. This table is based on a modification of
the 1983 'a' Individual Annuity Mortality Table, projected 21 years to the year
2004 using projection Scale G. The Owner must select one of the assumed interest
rates, as shown on the Contract Specifications, for the Variable Annuity Payment
prior to the Annuity Commencement Date. The assumed interest rate may not be
changed after the Annuity Commencement Date.
16
Article 13 of this Contract illustrates the minimum payment amounts and the age
adjustments that will be used to determine the monthly payments for a Fixed
Annuity Payment. The tables show the dollar amount of the guaranteed monthly
payments w h i c h can be purchased with each $1,000 of Contract Value, after
deduction of any applicable premium taxes. Amounts shown use an Individual
Mortality Table on file with the New York Superintendent of Insurance, with an
interest rate of 1.50% per year. This table is based on a modification of the
1983 'a' Individual Annuity Mortality Table, projected 21 years to the year 2004
using projection Scale G.
Minimum payment amounts for ages not shown in Articles 12 and 13 can be obtained
fromLNY's Servicing Office. The minimum payment amounts shown for Joint and
Survivor Annuities are for joint ages; that is, for a male and a female both of
the same age. Minimum payment amounts for other age and sex combinations on
Joint and Survivor Annuities are not illustrated in Articles 12 and 13, but are
available from LNY's Servicing Office.
Determination of the first Annuity Payment Date is shown on the Contract
Specifications.
The Annuity Unit Value, if applicable, and Contract Value used to effect annuity
benefit payments will be determined as of the Annuity Commencement Date_
8.05 DETERMINATION OF THE AMOUNT OF VARIABLE ANNUITY PAYMENTS AFTER THE FIRST
PAYMENT
The first Variable Annuity Payment is sub-divided into components, each of which
represents the product of:
a. the percentage elected by the Owner of a specific Variable Subaccount,
the performance of whichwill determine future Variable Annuity
Payments, and
b. the entire first Variable Annuity Payment.
Each Variable Annuity Payment after the first payment attributable to a specific
Variable Subaccount will be determined by multiplying the Annuity Unit value for
the Variable Subaccount for the Valuation Date no more than 14 days before each
payment is due by a constant number of Annuity Units. This constant number of
each specificVariable Subaccount is determined by dividing the component of the
first payment attributable to such Variable Subaccount as described above by the
Annuity Unit value for that Variable Subaccount on the Annuity Commencement
Date. The total Variable Annuity Payment will be the sum of the payments
attributable to each Variable Subaccount. In the absence of transfers between
Variable Subaccounts, the number of Annuity Units attributable to each Variable
Subaccount remains constant, although the Annuity Unit values will vary with the
investment performance of the Funds. The Annuity Unit value may increase or
decrease the dollar value of benefits under the Contract.
The Annuity Unit value for any Valuation Period for any Variable Subaccount is
determined by multiplying the Annuity Unit value for the immediately preceding
Valuation Period by the product of (a) the daily factor raised to a power equal
to the number of days in the current Valuation Period and (b) the Accumulation
Unit value of the same Variable Subaccount for this Valuation Period divided by
the Accumulation Unit value of the same Variable Subaccount for the immediately
preceding Valuation Period. The daily factor is equal to 0.999919020 for a 3.0%
assumed interest rate, 0.999892552 for a 4.0% assumed interest rate, and
0.999866337 for a 5.0% assumed interest rate.
The valuation of all assets in the Variable Subaccount will be determined in
accordance with the provisions of applicable laws, rules, and regulations. The
method of determination by LNY of the value of an Accumulation Unit and of any
Annuity Unit will be conclusive upon the Owner, Annuitant and any Beneficiary.
LNY guarantees that the dollar amount of each payment after the first will not
be affected by variations in mortality experience from mortality assumptions on
which the first payment is based.
17
8.06 TRANSFERS AFTER THE ANNUITY COMMENCEMENT DATE
After the Annuity Commencement Date, if any portion of the annuity payment is a
Variable Annuity Payment, the Owner may direct a transfer of assets from one
Variable Subaccount to another Variable Subaccount or to a Fixed Annuity Payment
by providing Notice to transfer. Such transfers will be limited to three (3)
times per Contract Year. Assets may not be transferred from a Fixed Annuity
Payment to a Variable Annuity Payment.
A transfer from one Variable Subaccount to another Variable Subaccount will
result in the purchase of Annuity Units in one Variable Subaccount and the
redemption of Annuity Units in the other Variable Subaccount. Such a transfer
will be accomplished at relative Annuity Unit values as of the Valuation Date
the Notice to transfer is received. The valuation of Annuity Units is described
above. A transfer from a Variable Subaccount to a Fixed Annuity Payment will
result in the redemption of Annuity Units in that Variable Subaccount and the
purchase of a minimum Fixed Annuity Payment based on the tables in Article 13.
8.07 PROOF OF AGE
Payment will be subject to proof of age that LNY will accept, such as a
certified copy of a birth certificate.
8.08 MINIMUM ANNUITY PAYMENT REQUIREMENTS
LNY reserves the right to reduce the frequency of payments to an interval
whichwill result in each payment exceeding the minimum annuity payment amount
shown on the Contract Specifications. LNY will pay the Contract Value in a lump
sum if the frequency interval is annual and the resulting annuity payment is
less than the minimum annuity payment amount shown on the Contract
Specifications.
8.09 EVIDENCE OF SURVIVAL
LNY has the right to ask for proof that the Annuitant(s) on whose life (or
lives)the payment is based is alive when each payment is due.
8.10 CHANGE IN ANNUITY PAYMENT OKION
The Annuity Payment Option may not be changed after the Annuity Commencement
Date.
18
ARTICLE 9
BENEFICIARY
9.01 DESIGNATION OF BENEFICIARY
The Owner may designate a Beneficiary and a contingent Beneficiary.
Prior to the Annuity Commencement Date, if there is a single Owner, the
designated Beneficiary will receive the Death Benefit proceeds upon the death of
the Owner unless the Beneficiary as the surviving spouse elects to continue the
Contract.
Prior to the Annuity Commencement Date, if there are two Owners, upon the death
of the first Owner, the surviving Owner will receive the Death Benefit proceeds.
The surviving Owner will be treated as the primary designated Beneficiary. Any
other Beneficiary designation on record at the time of death will be treated as
a contingent Beneficiary.
Prior to the Annuity Commencement Date, if the surviving spouse of a deceased
Owner continues the Contract as the sole Owner, then the designated
Beneficiaries move up, in the order of their original designation, to replace
the spouse as original Beneficiary, unless the Beneficiary designation is
subsequently changed by the surviving spouse as the new Owner.
Prior to the Annuity Commencement Date, if the Annuitant dies and a Death
Benefit is paid, the Owner will be treated as the primary designated
Beneficiary. Any other primary Beneficiary on record at the time of death will
be treated as a contingent Beneficiary.
Unless otherwise stated in the Beneficiary designation, multiple Beneficiaries
are presumed to share equally.
9.02 CHANGE OF BENEFICIARY
The Owner may change any Beneficiary unless otherwise provided in the previous
designation by providing a Notice to change beneficiary. A change of Beneficiary
will revoke any previous designation. When a change of Beneficiary is received
by LNY, whether or not the Owner is then alive, it will take effect as of the
date the request was sent. For purposes of determining on which date a written
change of Beneficiary is sent, the postmark date will be used. Any payment made
or action taken or allowed before the change of Beneficiary is received will be
without prejudice to LNY.
LNY reserves the right to request the Contract for endorsement of the change.
9.03 DEATH OF BENEFICIARY
Unless otherwise provided in the Beneficiary designation, if any Beneficiary
dies before the Owner, that Beneficiary's interest will go to any other primary
Beneficiaries named, according to their respective interests. If there are no
primary Beneficiaries, the Beneficiaries' interest will pass to a contingent
Beneficiary, if any. Prior to the Annuity Commencement Date, if no Beneficiary
or contingent Beneficiary survives the Owner, the Death Benefits will be paid to
the Owner's estate.
Unless otherwise provided in the Beneficiary designation, once a Beneficiary is
receiving Death Benefits or annuity payments under an Annuity Payment Option,
the Beneficiary may name his or her own Beneficiary to receive any remaining
benefits due under the Contract, should the original Beneficiary die prior to
receipt of all benefits. If no Beneficiary is named or the named Beneficiary
predeceases the original Beneficiary, any remaining benefits will continue to
the original Beneficiary's estate. A Beneficiary designation must be made by
Notice to LNY.
19
ARTICLE 10
SUSPENSION OR DEFERRAL OF PAYMENTS OR TRANSFERS
10.01 SUSPENSION OR DEFERRAL OF PAYMENTS OR TRANSFERS FROM OR WITHIN THE
VARIABLE ACCOUNT
LNY reserves the right to suspend or postpone payments for a transfer,
withdrawal or surrender for any period when:
a. the New York Stock Exchange is closed (other than customary weekend
and holiday closings);
b. trading on the New York Stock Exchange is restricted;
c. an emergency exists as a result of whichdisposal of securities held in
the Variable Account is not reasonably practicable OR IT IS NOT
reasonably practicable to DETERMINE THE value OF THE Variable
Account's net assets; or
d. during any other period when the Securities and Exchange Commission,by
order, so permits for the protection of the Owner.
The applicable rules and regulations of the Securities and Exchange Commission
will govern as to whether the conditions described in (b.)and (c.) exist.
10.02 SUSPENSION OR DEFERRAL OF PAYMENTS OR TRANSFERS FROM THE DCA FIXED ACCOUNT
LNY reserves the right to defer payment for a withdrawal, surrender or transfer
from the DCA Fixed Account for the period permitted by law but for not more than
six (6) months after Notice is received by LNY.
If any payment is deferred by more than 10 working days, interest will be paid
as required by New York Insurance Law using an interest rate no less than the
interest ratecurrently paid under the interest settlement option.
20
ARTICLE 11
GENERAL PROVISIONS
11.01 THE CONTRACT
The Contract and any ride rsattached, together with the application therefore if
a copy of such application is attached to the Contract when issued, constitute
the entire Contract. Only the President, a Vice President, the Secretary or an
Assistant Secretary of LNY has the power, on behalf of LNY, to change, modify,
or waive any provisions of this Contract.
All statements made by or under the authority of the Owner for the issuance of
the Contract are deemed to be representations and not warranties.
LNY reserves the right to unilaterally change the Contract for the purpose of
keeping the Contract in compliance with federal or state law, subject to the
prior approval of the New York Superintendent of Insurance.
Any changes, modifications, or waivers must be in writing. No representative or
person other than the above named officers has authority to change or modify
this Contract or waiveany of its provisions. All terms used in this Contract
will have their usual and customary meaning except when specifically defined.
11.02 OWNERSHIP
All Owners will be treated as having equal, undivided interests in the Contract,
including rights of survivorship. Either Owner, independently of the other, may
exerciseany ownership rights in the Contract. The existence of a Joint Owner
will not operate to continue the Contract upon the death of the first Owner,
unless the Joint Owner is the spouse of the deceased Owner (see Section 7.01,
Entitlement).
The Owner may transfer all rights and privileges of ownership. On the effective
date of transfer, the transferee will become the Owner and will have all the
rights and privileges of the Owner. The Owner may revoke any transfer prior to
its effective date. Unless provided otherwise, a transfer will not affect the
interest of any Beneficiary designated prior to the effective date of the
transfer.
A transfer of ownership, or a revocation of transfer, must be in writing to the
Company at its Servicing Office. When a transfer or revocation has been
received, it will take effect as of the effective date specified by the Owner.
Any payments made or any action taken or allowed by LNY before the transfer or
the revocation is received will be without prejudice to LNY.
11.03 ANNUITANTS
PRIOR TO THE ANNUITY COMMENCEMENT DATE.
The Owner may name only one Annuitant. If the Owner is a tax-exempt entity, the
Owner may name one Annuitant or two Joint Annuitants.
If the Owner is a natural person, the Owner has the right to change the
Annuitant at any time by sending Notice of change to LNY at its Servicing
Office; once received by LNY, the change will be effectiveas of the date the
request was sent. For purposes of determining on whichdate a written change of
Annuitant is sent, the postmark date will be used. If the Owner is a non-natural
person, the Annuitant may not be changed. The new Annuitant must be under the
age of 86 as of the effective date of the change. Change of Annuitant may affect
the Death Benefit (refer to Article 7, Death Benefits).
A Contingent Annuitant may be named, or changed upon receipt of Notice by LNY.
ON OR AFTER THE ANNUITY COMMENCEMENT DATE.
The Annuitant or Joint Annuitants may not be changed. Any Contingent Annuitant
designation is no longer applicable and is terminated.
21
11.04 ASSIGNMENTS
The Contract may be assigned. LNY will not be bound by any assignment unless it
is received in writing at LNY's Servicing Office in a form acceptable to LNY.
The effective date of the assignment will be the date it is received by LNY. LNY
will not be responsible for the validityof any assignment.
If this Contract is used with a Qualified Plan, the Contract will not be
transferable unless allowed under applicable law.
11.05 INCONTESTABILITY
This Contract will not be contested by LNY.
11.06 MISSTATEMENT OF AGE AND/OR SEX
If the age and/or sex of the Annuitant has been misstated, the amount payable
under the Contract will be adjusted to be the amount of income which the actual
premium paid would have purchased for the correct age and/or sex according to
LNY's rates in effect on the Contract Date. Any overpayment by LNY, with
interest at the rateof 6% per year, compounded annually, will be charged against
the payments to be made next succeeding the adjustment. Any underpayment by LNY
will be paid in a lump sum, with interest at the rateof 6% per year, compounded
annually.
11.07 NONPARTICIPATING
The Contract is nonparticipating and will not share in the surplus earnings of
LNY.
11.08 OWNERSHIP OF THE ASSETS
LNY will have exclusive and absolute ownership and control of its assets,
including all assets in the Variable Account.
11.09 REPORTS
Prior to the Annuity Commencement Date, at least once each Calendar Year, LNY
will mail a report to the Owner. The report will be mailed to the last address
known to LNY. The report will include a statement of the number of Accumulation
Units credited to the Variable Account and the dollar value of such units as
well as a statement of the value of any Fixed Account. The report will also
include the total account value, the cash surrender value, and Death Benefit.
Such other information as may be required by law or regulation will also be
included. The information in the report will be as of a date not more than two
months prior to the date of mailing the report. The Owner will have 60 days from
the date the report or confirmation is received to notify LNY of any errors in
the report or confirmation, otherwise the report or confirmation will be deemed
to be final and correct.
11.10 PREMIUM TAX
State and local government premium tax, if applicable, will be deducted from
Purchase Payments or Contract Value when incurred by LNY or at another time of
LNY's choosing.
11.11 MAXIMUM ISSUE AGE
The Owner and the Annuitant (or both Joint Annuitants, if applicable), when
named, must be under the age of 86.
22
11.12 LOANS
Loans are not permitted under this Contract.
11.13 MINIMUM BENEFITS PAYABLE
Any benefits paid under this Contract will not be less than those required by
the New York Insurance Law.
23
ARTICLE 12
ANNUITY PURCHASE RATES UNDER A VARIABLE PAYMENT OPTION
WITH A 3.0% ASSUMED INTEREST RATE
(ON FILE WITH THE NEW YORK SUPERINTENDENT OF INSURANCE}
DOLLAR AMOUNT OF FIRST MONTHLY PAYMENT WHICH IS
PURCHASED WITH EACH $1,000 APPLIED
SINGLE LIFE ANNUITIES
NO PERIOD CERTAIN 120 MONTHS CERTAIN 240 MONTHS CERTAIN UNIT REFUND
AGE MALE FEMALE MALE FEMALE MALE FEMALE MALE FEMALE
-----------------------------------------------------------------------------
60 $4.91 $4.42 $4.83 $4.38 $4.52 $4.24 $4.53 $4.21
61 5.03 4.51 4.93 4.47 4.59 4.31 4.62 4.29
62 5.16 4.61 5.04 4.56 4.66 4.38 4.71 4.36
63 5.30 4.72 5.16 4.66 4.72 4.45 4.80 4.45
64 5.45 4.83 5.29 4.77 4.79 4.52 4.89 4.53
65 5.60 4.95 5.42 4.88 4.85 4.59 5.00 4.62
66 5.77 5.08 5.55 4.99 4.91 4.66 5.10 4.72
67 5.95 5.22 5.69 5.11 4.97 4.74 5.21 4.82
68 6.14 5.37 5.84 5.24 5.03 4.81 5.33 4.92
69 6.34 5.53 5.99 5.38 5.09 4.88 5.45 5.03
70 6.56 5.70 6.15 5.53 5.14 4.95 5.57 5.15
71 6.79 5.88 6.31 5.68 5.19 5.02 5.71 5.27
72 7.03 6.08 6.48 5.84 5.24 5.08 5.85 5.40
73 7.29 6.30 6.64 6.01 5.28 5.14 5.99 5.54
74 7.57 6.53 6.82 6.18 5.31 5.19 6.15 5.68
75 7.86 6.78 6.99 6.37 5.35 5.24 6.31 5.83
JOINT AND SURVIVOR ANNUITIES
JOINT AND FULL TO SURVIVOR JOINT AND TWO-THIRDS TO SURVIVOR
CERTAIN PERIOD CERTAIN PERIOD
JOINT
NONE 120 240 AGE NONE 120 240
----------------------------------------------------
$4.02 $4.01 $3.99 60 $4.42 $4.38 $4.24
4.09 4.09 4.06 61 4.51 4.47 4.31
4.17 4.16 4.12 62 4.61 4.56 4.37
4.25 4.24 4.20 63 4.72 4.66 4.44
4.34 4.33 4.27 64 4.83 4.76 4.52
4.43 4.42 4.35 65 4.95 4.87 4.59
4.53 4.52 4.43 66 5.08 4.99 4.66
4.63 4.62 4.51 67 5.21 5.11 4.73
4.75 4.73 4.59 68 5.36 5.23 4.80
4.87 4.85 4.67 69 5.51 5.37 4.87
5.00 4.98 4.75 70 5.68 5.51 4.94
5.14 5.11 4.83 71 5.86 5.66 5.01
5.28 5.25 4.91 72 6.05 5.81 5.07
5.44 5.40 4.99 73 6.25 5.97 5.13
5.61 5.56 5.06 74 6.47 6.14 5.19
5.80 5.72 5.13 75 6.71 6.32 5.24
Age Adjustment Table
YEAR OF BIRTH ADJUSTMENT TO AGE
------------- -----------------
Before 1920 +2
1920-1929 +1
1930-1939 0
1940-1949 -1
1950-1959 -2
1960-1969 -3
1970-1979 -4
1980-1989 -5
1990-1999 -6
2000-2009 -7
2010-2019 -8
24
A VARIABLE ANNUITY PAYMENT WITH A 4.0% ASSUMED INTEREST RATE
(ON FILE WITH THE NEW YORK SUPERINTENDENT OF INSURANCE
DOLLAR AMOUNT OF FIRST MONTHLY PAYMENT WHICH IS
PURCHASED WITH EACH $1,000 APPLIED
SINGLE LIFE ANNUITIES
NO PERIOD CERTAIN 120 MONTHS CERTAIN 240 MONTHS CERTAIN UNIT REFUND
AGE MALE FEMALE MALE FEMALE MALE FEMALE MALE FEMALE
-----------------------------------------------------------------------------
60 $5.49 $5.00 $5.39 $4.95 $5.07 $4.79 $5.16 $4.82
61 5.61 5.09 5.50 5.03 5.13 4.86 5.25 4.89
62 5.74 5.19 5.61 5.13 5.19 4.92 5.34 4.97
63 5.88 5.29 5.72 5.22 5.25 4.99 5.44 5.05
64 6.02 5.40 5.84 5.32 5.32 5.06 5.54 5.14
65 6.18 5.52 5.97 5.43 5.38 5.13 5.64 5.23
66 6.35 5.65 6.10 5.55 5.44 5.20 5.75 5.33
67 6.53 5.79 6.24 5.67 5.49 5.27 5.87 5.43
68 6.72 5.93 6.39 5.79 5.55 5.33 5.99 5.54
69 6.92 6.09 6.53 5.93 5.60 5.40 6.12 5.66
70 7.14 6.26 6.69 6.07 5.65 5.47 6.25 5.78
71 7.37 6.45 6.85 6.22 5.70 5.53 6.39 5.91
72 7.62 6.65 7.01 6.38 5.74 5.59 6.54 6.04
73 7.88 6.86 7.17 6.54 5.78 5.65 6.69 6.19
74 8.16 7.10 7.34 6.71 5.81 5.70 6.85 6.34
75 8.45 7.35 7.51 6.89 5.85 5.75 7.02 6.50
JOINT AND SURVIVOR ANNUITIES
JOINT AND FULL TO SURVIVOR JOINT AND TWO-THIRDS TO SURVIVOR
CERTAIN PERIOD CERTAIN PERIOD
JOINT
NONE 120 240 AGE NONE 120 240
----- ----- ----- ----- ----- ----- -----
$4.58 $4.58 $4.55 60 $4.99 $4.95 $4.79
4.65 4.65 4.61 61 5.09 5.04 4.86
4.72 4.72 4.68 62 5.18 5.13 4.92
4.80 4.80 4.75 63 5.29 5.22 4.99
4.89 4.88 4.82 64 5.40 5.32 5.06
4.98 4.97 4.89 65 5.52 5.43 5.12
5.07 5.07 4.97 66 5.64 5.54 5.19
5.18 5.17 5.04 67 5.78 5.66 5.26
5.29 5.28 5.12 68 5.92 5.78 5.33
5.41 5.39 5.20 69 6.08 5.91 5.39
5.54 5.51 5.28 70 6.25 6.05 5.46
5.67 5.64 5.35 71 6.42 6.20 5.52
5.82 5.78 5.43 72 6.61 6.35 5.58
5.98 5.93 5.50 73 6.82 6.51 5.64
6.15 6.08 5.57 74 7.04 6.67 5.69
6.33 6.25 5.63 75 7.28 6.84 5.74
Age Adjustment Table
YEAR OF BIRTH ADJUSTMENT TO AGE
------------- -----------------
Before 1920 +2
1920-1929 +1
1930-1939 0
1940-1949 -1
1950-1959 -2
1960-1969 -3
1970-1979 -4
1980-1989 -5
1990-1999 -6
2000-2009 -7
2010-2019 -8
25
A VARIABLE ANNUITY PAYMENT WITH A 5.0% ASSUMED INTEREST RATE
(ON FILE WITH THE NEW YORK SUPERINTENDENT OF INSURANCE)
DOLLAR AMOUNT OF FIRST MONTHLY PAYMENT WHICH IS
PURCHASED WITH EACH $1,000 APPLIED
SINGLE LIFE ANNUITIES
AGE NO PERIOD CERTAIN 120 MONTHS CERTAIN 240 MONTHS CERTAIN UNIT REFUND
MALE FEMALE MALE FEMALE MALE FEMALE MALE FEMALE
-----------------------------------------------------------------------------
60 $6.10 $5.59 $5.98 $5.54 $5.63 $5.37 $5.79 $5.44
61 6.21 5.68 6.08 5.62 5.69 5.43 5.88 5.51
62 6.34 5.78 6.19 5.71 5.75 5.49 5.98 5.59
63 6.48 5.88 6.30 5.80 5.81 5.56 6.07 5.67
64 6.62 5.99 6.42 5.90 5.87 5.62 6.18 5.76
65 6.78 6.11 6.54 6.01 5.92 5.69 6.28 5.85
66 6.94 6.24 6.67 6.12 5.98 5.75 6.40 5.95
67 7.12 6.37 6.80 6.23 6.03 5.82 6.52 6.05
68 7.31 6.52 6.94 . 6.36 6.08 5.88 6.64 6.16
69 7.52 6.67 7.09 6.49 6.13 5.94 6.77 6.28
70 7.74 6.84 7.24 6.63 6.18 6.01 6.91 6.41
71 7.97 7.03 7.39 6.77 6.22 6.07 7.06 6.54
72 8.21 7.23 7.55 6.93 6.26 6.12 7.21 6.68
73 8.47 7.44 7.71 7.09 6.30 6.17 7.37 6.82
74 8.75 7.68 7.87 7.26 6.33 6.22 7.54 6.98
75 9.05 7.93 8.04 7.43 6.36 6.27 7.72 7.15
JOINT AND SURVIVOR ANNUITIES
JOINT AND FULL TO SURVIVOR JOINT AND TWO-THIRDS TO SURVIVOR
CERTAIN PERIOD CERTAIN PERIOD
JOINT
NONE 120 240 AGE NONE 120 240
---------------------------------------------------------
$5.17 $5.17 $5.14 60 $5.59 $5.54 $5.37
5.23 5.23 5.20 61 5.68 5.62 5.43
5.31 5.30 5.26 62 5.78 5.71 5.49
5.38 5.38 5.32 63 5.88 5.80 5.56
5.46 5.46 5.39 64 5.99 5.90 5.62
5.55 5.54 5.46 65 6.11 6.00 5.68
5.65 5.64 5.53 66 6.23 6.11 5.75
5.75 5.73 5.60 67 6.36 6.23 5.81
5.85 5.84 5.67 68 6.51 6.35 5.87
5.97 5.95 5.75 69 6.66 6.48 5.94
6.09 6.07 5.82 70 6.83 6.61 6.00
6.23 6.20 5.90 71 7.00 6.75 6.06
6.37 6.33 5.97 72 7.19 6.90 6.11
6.53 6.47 6.03 73 7.40 7.06 6.17
6.69 6.63 6.10 74 7.62 7.22 6.22
6.87 6.79 6.16 75 7.85 7.38 6.26
Age Adjustment Table
YEAR OF BIRTH ADJUSTMENT TO AGE
------------- -----------------
Before 1920 +2
1920-1929 +1
1930-1939 0
1940-1949 -1
1950-1959 -2
1960-1969 -3
1970-1979 -4
1980-1989 -5
1990-1999 -6
2000-2009 -7
2010-2019 -8
26
ARTICLE 13
ANNUITY PURCHASE RATES UNDER A FIXED ANNUITY PAYMENT
WITH A 1.5% INTEREST RATE
(ON FILE WITH THE NEW YORK SUPERINTENDENT OF INSURANCE)
DOLLAR AMOUNT OF FIRST MONTHLY PAYMENT WHICH IS
PURCHASED WITH EACH $1,000 APPLIED
SINGLE LIFE ANNUITIES
NO PERIOD CERTAIN 120 MONTHS CERTAIN 240 MONTHS CERTAIN CASH REFUND
AGE MALE FEMALE MALE FEMALE MALE FEMALE MALE FEMALE
-----------------------------------------------------------------------------
60 $4.09 $3.61 $4.02 $3.58 $3.76 $3.46 $3.57 $3.31
61 4.21 3.70 4.13 3.67 3.83 3.53 3.64 3.38
62 4.33 3.80 4.24 3.77 3.90 3.61 3.72 3.45
63 4.47 3.91 4.36 3.87 3.97 3.68 3.80 3.52
64 4.61 4.02 4.49 3.97 4.04 3.76 3.89 3.60
65 4.77 4.15 4.62 4.08 4.11 3.83 3.98 3.68
66 4.93 4.27 4.76 4.20 4.17 3.91 4.07 3.77
67 5.11 4.41 4.90 4.33 4.24 3.99 4.17 3.86
68 5.30 4.56 5.05 4.46 4.30 4.47 4.27 3.95
69 5.50 4.72 5.21 4.60 4.36 4.14 4.37 4.05
70 5.71 4.89 5.37 4.75 4.42 4.21 4.48 4.15
71 5.94 5.07 5.53 4.90 4.47 4.29 4.60 4.26
72 6.18 5.27 5.70 5.07 4.52 4.35 4.72 4.38
73 6.43 5.48 5.88 5.24 4.56 4.42 4.85 4.49
74 6.71 5.71 6.06 5.42 4.60 4.48 4.98 4.62
75 7.00 5.96 6.42 5.60 4.64 4.53 5.12 4.75
JOINT AND SURVIVOR ANNUITIES
JOINT AND FULL TO SURVIVOR JOINT AND TWO-THIRDS TO SURVIVOR
CERTAIN PERIOD CERTAIN PERIOD
JOINT
NONE 120 240 AGE NONE 120 240
---------------------------------------------------------
$3.23 $3.23 $3.21 60 $3.61 $3.58 $3.46
3.31 3.30 3.28 61 3.70 3.67 3.53
3.39 3.38 3.35 62 3.80 3.77 3.60
3.47 3.47 3.43 63 3.91 3.86 3.68
3.56 3.56 3.50 64 4.02 3.97 3.75
3.66 3.65 3.59 65 4.14 4.08 3.83
3.76 3.75 3.67 66 4.27 4.20 3.91
3.86 3.86 3.75 67 4.40 4.32 3.98
3.98 3.97 3.84 68 4.55 4.45 4.06
4.10 4.09 3.92 69 4.70 4.59 4.13
4.23 4.22 4.01 70 4.87 4.73 4.21
4.37 4.35 4.09 71 5.05 4.88 4.28
4.52 4.49 4.18 72 5.24 5.04 4.35
4.68 4.64 4.26 73 5.44 5.20 4.41
4.85 4.80 4.33 74 5.66 5.38 4.47
5.03 4.97 4.41 75 5.89 5.56 4.52
Age Adjustment Table
YEAR OF BIRTH ADJUSTMENT TO AGE
------------- -----------------
Before 1920 +2
1920-1929 +1
1930-1939 0
1940-1949 -1
1950-1959 -2
1960-1969 -3
1970-1979 -4
1980-1989 -5
1990-1999 -6
2000-2009 -7
2010-2019 -8
27
ARTICLE 14
ADDITIONAL SERVICES
There are three additional programs available under this Contract: Automatic
Withdrawal Service (AWS); Cross-Reinvestment; and Portfolio Rebalancing. In
order to take advantage of one of these programs, the appropriate election form
must be completed and sent to LNY at the Servicing Office. These programs are
described below. Only one of these programs may be in effect at a time. None of
these programs can be in effect if a DCA (see Section 2.03) is in effect.
AUTOMATIC WITHDRAWAL SERVICE
The Automatic Withdrawal Service (AWS) provides for an automatic periodic
withdrawal of Contract Value. This service may be elected at any time prior to
the Annuity Commencement Date. The AWS program may be cancelled or changed by
the Owner at any time by sending a written request to the Service Office.
CROSS-REINVESTMENT
Cross-Reinvestment allows the Owner to automatically transfer amounts in a
designated Variable Subaccount that exceed a baseline amount to another specific
Variable Subaccount at specificintervals. This program may be elected at any
time prior to the Annuity Commencement Date.
The Owner designates the holding account, the receiving account(s) and the
baseline amount. Cross-Reinvestment will continue until we receive written
authorization to terminate the program.
A transfer under the Cross-Reinvestment program is not considered a transfer for
purposes of limiting the number of transfers that may be made in a Contract
Year.
PORTFOLIO REBALANCING
Portfolio Rebalancing is an option that restores to a predetermined level the
percentage of Contract Value allocated to each Variable Subaccount. The
rebalancing may take place monthly, quarterly, semi-annually, or annually. The
Portfolio Rebalancing program is available prior to the Annuity Commencement
Date.
The predetermined level will be the allocation initially selected when the
Contract was purchased, unless subsequentiy changed. The allocation may be
changed at any time by submitting a written request to LNY at its Servicing
Office. If the Portfolio Rebalancing program is selected, all Purchase Payments
allocated to the Variable Subaccounts must be subject to rebalancing.
Once the Portfolio Rebalancing program is activated, any Variable Subaccount
transfer executed outside of the Portfolio Rebalancing program will terminate
the program. Any subsequent Purchase Payment or withdrawal that modifies the
account balance within each Variable Subaccount may also cause termination of
the Portfolio Rebalancing program. Any such termination will be confirmed to the
Owner. The Owner may terminate the Portfolio Rebalancing program, or re-en
roil,at any time by submitting a written request to LNY at the Servicing Office.
28
BONUS RIDER
("THIS RIDER")
BONUS RIDER FOR VARIABLE ANNUITY
This Rider is part of the Contract to whichit is attached and is effective upon
issue. In the case of a conflict with any provision of the Contract, the
provisions of this Rider will control. This Rider will terminate on the Annuity
Commencement Date. This Rider amends the Contract as follows:
THE FOLLOWING DEFINITION IN ARTICLE 1 WILL BE AMENDED TO READ AS FOLLOWS:
EARNINGS -- The excess of the Contract Value over the sum of Bonus Credits and
Purchase Payments which have not yet been withdrawn from this Contract.
THE FOLLOWING DEFINITIONS WILL BE ADDED TO ARTICLE 1.
BONUS CREDIT -- The additional amount credited to this Contract by LNY for each
Purchase Payment. Bonus Credits are not considered Purchase Payments. The Bonus
Credit is an amount guaranteed above the sum of the Minimum Guaranteed Interest
Rate and any additional amounts that are guaranteed under the Contract.
THE FOLLOWING WILL BE ADDED TO ARTICLE 2.
BONUS CREDIT
A Bonus Credit is paid into this Contract by LNY for the initial and all
subsequent Purchase Payments made to this Contract. In consideration of the
Bonus Credit, this Contract has a higher Mortality and Expense Risk and
Administrative Charge as well as a higher Contingent Deferred Sales Charge that
also has a longer duration than a contract that does not offer this credit.
The amount of the Bonus Credit is calculated as a percentage of the Purchase
Payment. The Bonus Credit percentage is based upon the amount of the Owner's
Investment. The Bonus Credit percentage is set forth on the Contract
Specifications.
If a subsequent Purchase Payment is made on or before the first anniversary of
the Contract Date and that Purchase Payment increases the Owner's Investment to
a level that qualifies the Purchase Payment for a Bonus Credit percentage which
is higher than the Bonus Credit percentage paid on prior Purchase Payments, then
an additional Bonus Credit will be paid into the Contract at the time the
subsequent Purchase Payment is made. The additional Bonus Credit will be
determined by multiplying the sum of the prior Purchase Payments by the
additional Bonus Credit percentage. The additional Bonus Credit percentage will
be the difference between the percentage applicable to the subsequent Purchase
Payment and the percentage applied to the prior Purchase Payments. This
additional Bonus Credit will be paid into the Contract on the same date the
subsequent Purchase Payment is allocated, and will not be applied to the
Contract retroactively to the dates of prior Purchase Payments. This additional
Bonus Credit will not be applicable after the first anniversary of the Contract
Date.
Bonus Creditswill be allocated to any Fixed Account, if any and/or the Variable
Subaccounts of the Contract at the same time and at the same percentages as the
Purchase Payment to whichthey correspond.
Lincoln Life & Annuity Company of New York
/s/ Xxxxxx Xxxxx
------------------------
Xxxxxx Xxxxx, President
PERSISTENCY CREDIT RIDER
("THIS RIDER")
PERSISTENCY CREDIT RIDER FOR VARIABLE ANNUITY
This Rider is part of the Contract to whichit is attached and is effective upon
issue. In the case of a conflict with any provision of the Contract, the
provisions of this Rider will control. This Rider will terminate on the Annuity
Commencement Date. This Rider amends the Contract as follows:
THE FOLLOWING DEFINITION WILL BE ADDED TO ARTICLE 1
PERSISTENCY CREDIT - The additional amount credited to this Contract by LNY
beginning three months after the 7th anniversary of the Contract Date and each
subsequent three-month period thereafter. Persistency Credits are not considered
Purchase Payments.
THE FOLLOWING WILL BE ADDED TO ARTICLE 2.
PERSISTENCY CREDIT
A PersistencyCredit, if one is determined to be payable according to the
calculation shown on the Contract Specifications, is paid into this Contract
beginning three months after the 7th anniversary of the Contract Date and at the
end of each subsequent three-month period thereafter.
No additional charge will be assessed for the Persistency Credit. The
Persistency Credit will be allocated to the Variable Subaccounts and to any
Fixed Account, if any in proportion to the value in each Variable Subaccount and
in any Fixed Account, if any at the time the Persistency Credit is paid into
this Contract. The Persistency Credits will purchase Accumulation Units fromthe
Variable Subaccounts at the Accumulation Unit Values as of the Valuation Date
the Persistency Credits are paid into the Contract.
A Persistency Credit will be credited to any Fixed Account even if the crediting
ratefor Purchase Payments received prior to the end of any Expiration Date is
the Minimum Guaranteed Interest Rate shown on the Contract Specifications. Any
Persistency Credit will not impact the Minimum Guaranteed Interest Rate.
Lincoln Life & Annuity Company of New York
Xxxxxx Xxxxx, President
ANNUITY
CONTRACT
INDIVIDUAL FLEXIBLE PURCHASE PAYMENT
DEFERRED VARIABLE ANNUITY CONTRACT
WITH ANNUITY PAYMENT OPTIONS
NONPARTICIPATING
If you have any questions concerning
this Contract, please
contact your LNY
representative or the Servicing Office of LNY.
LINCOLN LIFE & ANNUITY
COMPANY OF NEW YORK
HOME OFFICE:
000 XXXXXXX XXXXXX, XXXXX 0000
Xxxxxxxx, Xxx XXXX 00000
SERVICING OFFICE:
0000 XXXXX XXXXXXX XXXXXX
XXXX XXXXX, XXXXXXX 00000-0000
