American United Life Insurance Company(R)
Indianapolis, IN 46206-0368
CONTRACT NUMBER GA XX,XXX
CONTRACTHOLDER Xxxx Xxx
DATE OF ISSUE January 2, 2001
CONTRACT DATE January 1, 2001
FIRST CONTRACT ANNIVERSARY January 1, 2002
American United Life Insurance Company (AUL) shall provide all the rights and
benefits of this contract.
This contract is issued in consideration of the application and of the payment
of Contributions to AUL.
All provisions and conditions stated on this and subsequent pages are made a
part of this contract.
Signed for AUL at its Home Office in Indianapolis, Indiana.
NOTICE OF TEN DAY RIGHT TO EXAMINE CONTRACT
Please read this contract carefully. The Contractholder may return the contract
for any reason within ten days after receiving it. If returned, the contract
shall be considered void from the beginning and any Contributions shall be
refunded.
AMERICAN UNITED LIFE INSURANCE COMPANY
By: /s/ Xxxxx X. Xxxxxx
Chairman of the Board,
President, & Chief Executive Officer
Attest
By: /s/ Xxxxxxx X. Xxxxx
Secretary
AUL American Series Contract
IRA Multiple Fund Individual Variable Annuity
ACCUMULATION UNITS IN ANY INVESTMENT ACCOUNT FOR WHICH THIS CONTRACT MAKES
PROVISION MAY INCREASE OR DECREASE IN DOLLAR VALUE ACCORDING TO THE INVESTMENT
PERFORMANCE OF THE UNDERLYING ASSETS IN THE CORRESPONDING MUTUAL FUND, MUTUAL
FUND PORTFOLIO, OR OTHER ENTITY IN WHICH THE INVESTMENT ACCOUNT INVESTS. THE
VALUE OF SUCH ASSETS AND ACCUMULATION UNITS IS NOT GUARANTEED. ARTICLE 5 OF THIS
CONTRACT EXPLAINS THE VALUATION OF SUCH ASSETS AND ACCUMULATION UNITS.
IndividualORIRA
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TABLE OF CONTENTS
SCHEDULE OF CONTRACT CHARGES
ARTICLE 1 DEFINITIONS
ARTICLE 2 CONTRACT AND AUTHORITY
2.1--------Entire Contract
2.2--------Authority
ARTICLE 3 CONTRIBUTIONS, INVESTMENTS, AND TRANSFERS
3.1--------Amount of Contributions
3.2--------How Contributions Are Handled
3.3--------Addition, Deletion, or Substitution of Investments
3.4--------Transfers
3.5--------Limitations on Transfers
ARTICLE 4 BENEFITS
4.1--------Election of Annuity Options
4.2--------Annuity Options
4.3--------Guaranteed Rate of Interest
4.4--------Alternate Nonparticipating Retirement Annuity
4.5--------Minimum Payments
4.6--------Due Proof of Date of Birth and Survival
4.7--------Death Benefits
4.8--------Withdrawal Benefits
4.9--------Distributions Before Death
ARTICLE 5 VALUATIONS
5.1--------Valuation of Mutual Fund, Mutual Fund Portfolio, or Other Entity Assets
5.2--------Accumulation Units
5.3--------Value of Accumulation Units
5.4--------Determining the Net Investment Factor
5.5--------Determining the Value of the Contractholder's Investment Account Share
ARTICLE 6 OTHER CHARGES
6.1--------Mortality Risk and Expense Risk Charges
6.2--------Mutual Fund, Mutual Fund Portfolio, or Other Entity Expenses
6.3--------Administrative Charge
6.4--------Charge for Non-Electronic Transfers
6.5--------Other Charges
ARTICLE 7 RIGHT OF AUL TO CHANGE CERTAIN PROVISIONS
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ARTICLE 8 MISCELLANEOUS
8.1--------Ownership
8.2--------Tax Status
8.3--------Essential Data
8.4--------Reliance
8.5--------Misstatement of Essential Data
8.6--------Election, Notice, or Direction Requirements
8.7--------Quarterly Statement of Account Value
8.8--------Conformity with State Laws
8.9--------Reference to Federal Laws
8.10-------Sex and Number
8.11-------Facility of Payment
8.12-------Insulation from Liability
8.13-------Voting
8.14-------Nonforfeitability and Nontransferability
8.15-------Termination
8.16-------Notice of Annual Meeting of Members
TABLE OF IMMEDIATE ANNUITIES
TABLE OF INVESTMENT ACCOUNTS
DEMONSTRATION TABLE OF ACCOUNT VALUES AND WITHDRAWAL VALUES
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SCHEDULE OF CONTRACT CHARGES
(1) Mortality Risk and Expense Risk Charges: AUL shall deduct a daily mortality
risk charge and a daily expense risk charge equal to the daily equivalent
of an annual combined charge of 1.25% against the average daily net assets
of each Investment Account. These charges shall be reflected in the Net
Investment Factor as provided in Section 5.4(c).
(2) Mutual Fund, Mutual Fund Portfolio, or Other Entity Expenses: A Mutual
Fund, Mutual Fund Portfolio, or other entity listed in the Table of
Investment Accounts shall pay any investment advisory fee and certain other
expenses, which may include its ordinary operational and organizational
expenses, or any extraordinary expenses, as described in the current report
or prospectus for that Mutual Fund, Mutual Fund Portfolio, or other entity
as it may be amended or supplemented from time to time. These expenses may
vary from year to year. The net asset value of each Mutual Fund, Mutual
Fund Portfolio, or other entity share reflects such investment advisory fee
and other expenses which are deducted from the assets of such Mutual Fund,
Mutual Fund Portfolio, or other entity.
(3) Administrative Charge: AUL deducts 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 the Contractholder Account for as
long as the Contractholder Account is in effect. This charge is prorated
among each subaccount of the Contractholder Account which corresponds to
each Investment Option utilized under this contract by the Contractholder
Account. If the entire balance of the Contractholder 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 any Contract Quarter in which the Account Value on
the last day of that quarter is $25,000 or more.
(4) Charge for Non-Electronic Transfers: We charge a service fee of up to $5
for non-electronic transfers between Investment Options, which will be
prorated among the Investment Options from which the amounts are
transferred in the same proportion that the amount transferred from the
Investment Option bears to the total amount transferred from all Investment
Options.
(5) Other Charges: AUL reserves the right to deduct the appropriate charges for
federal income taxes incurred by AUL that are attributable solely to the
operation of the separate account.
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ARTICLE 1 - DEFINITIONS
1.1 "Account Value" for the Contractholder Account on any given date means:
(a) the balance of the Contractholder's share of the Fixed Interest
Account on that date; plus
(b) the value of the Contractholder's share of each Investment Account on
that date.
1.2 "Accumulation Period" means the period of time commencing on the date on
which the Contractholder's initial Contribution is credited to the
Contractholder Account and terminating on the date when the Contractholder
Account is closed.
1.3 "Accumulation Unit" means a statistical device used to measure amounts of
increases to, decreases from, and accumulations in any Investment Account
during the Accumulation Period.
1.4 "Annuity Commencement Date" means the first day of any month upon which an
annuity begins under this contract. However, for the Contractholder,
amounts allocated to the Contractholder Account will be distributed or
commence to be distributed no later than the date determined under Article
4.
1.5 "Code" means the Internal Revenue Code of 1986, as amended.
1.6 "Contract Anniversary" means the first day of the second Contract Year and
each subsequent Contract Year. Each Contract Anniversary after the First
Contract Anniversary shall be the same day of the same month as the day and
month which is stated on the face page of this contract for the First
Contract Anniversary.
1.7 "Contractholder" means the person who owns this contract, and for whom a
Contractholder Account is established.
1.8 "Contractholder Account" means an account established under this contract
for the Contractholder. Contributions received by AUL shall be credited to
the Contractholder Account as AUL is directed.
1.9 "Contract Quarter" means each of the four successive intervals of three
months, the sum of which corresponds to a 12-month Contract Year.
1.10 "Contract Year" means, for the first such year, the period beginning with
the Contract Date and ending on the day immediately preceding the First
Contract Anniversary, and for each succeeding Contract Year, the period
beginning with a Contract Anniversary and ending on the day immediately
preceding the next succeeding Contract Anniversary.
1.11 "Contributions" means amounts paid in cash to AUL by the Contractholder
which are transferred to this contract from another AUL annuity contract or
which are transferred to this contract pursuant to transfers eligible for
rollover treatment under Code Sections 402(c), 402(e)(6), 403(a)(4),
403(b)(8), 403(b)(10), 408(d)(3), or 457(e)(16) and which are credited to
the Contractholder Account maintained hereunder. The legal title to, and
ownership of, such amounts is vested solely in the Contractholder.
1.12 "Current Rates of Interest" means each of the annual effective rates of
interest as determined and declared by XXX from time-to-time and as
credited to each interest pocket maintained within the
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Fixed Interest Account. The Current Rates of Interest shall always be equal
to or greater than the Guaranteed Rate of Interest.
1.13 "Death Benefit" is the greater of:
(a) the Contractholder'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 Contractholder's
death; increased by
(2) any Contributions made for the Contractholder since the last
Contract Anniversary; and reduced proportionately to reflect
(3) any withdrawals for the Contractholder since the last Contract
Anniversary.
1.14 "Excess Contributions" means those Contributions made by the Contractholder
which exceed the limitations in effect under applicable provisions of the
Code and Regulations issued thereunder.
1.15 "Fixed Interest Account" means that fund of AUL's general asset account in
which all or a portion of the Contractholder's Account Value may be held
for accumulation at the Current Rates of Interest.
(a) Contributions allocated, or amounts transferred, to the Fixed Interest
Account shall be credited to the open interest pocket and shall earn
interest at the Current Rate of Interest in effect for that interest
pocket. Such Contributions or transferred amounts, during the time
that the Current Rate of Interest exceeds the Guaranteed Rate of
Interest, shall earn interest at such credited Current Rate of
Interest for at least 1 year. After such 1-year period, AUL reserves
the right to declare, at any time, a new Current Rate of Interest to
be applied to funds held within that interest pocket. Any such new
Current Rate of Interest must remain in effect for that interest
pocket for at least 1 year.
(b) If AUL changes the Current Rate of Interest for new Contributions or
new amounts transferred to the Fixed Interest Account, the previous
open interest pocket shall close, and any Contributions or amounts
transferred on or after the effective date of such change shall be
credited to a new open interest pocket and shall earn interest at the
new Current Rate of Interest in effect for such new open interest
pocket. Therefore, at any given time, various funds credited to the
Contractholder Account and allocated to the Fixed Interest Account may
be earning interest at different Current Rates of Interest for
different periods of time.
1.16 The "Guaranteed Minimum Death Benefit" or "GMDB" prior to the first
Contract Anniversary is equal to the Contributions made for the
Contractholder minus any of his withdrawals. On each Contract Anniversary
prior to, or concurrent with, the Contractholder's date of death, the GMDB
is reset, based on the age of the Contractholder on his last birthday, as
follows:
(a) For a Contractholder less than 81 years of age, the GMDB is the
greater of:
(1) the Contractholder's Account Value as of the current Contract
Anniversary, or
(2) (i) the GMDB as of the immediately preceding Contract
Anniversary; increased by
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(ii) any Contributions made for the Contractholder since the
immediately preceding Contract Anniversary; and reduced
proportionately to reflect
(iii)any withdrawals for the Contractholder since the
immediately preceding Contract Anniversary.
(b) For a Contractholder 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 Contractholder since the
immediately preceding Contract Anniversary; and reduced
proportionately to reflect
(3) any withdrawals for the Contractholder since the immediately
preceding Contract Anniversary.
As of the Contractholder's date of death, the GMDB ceases to increase or
decrease in value.
1.17 "Guaranteed Rate of Interest" means interest at an annual effective rate of
3.00%.
1.18 "Home Office" means the principal office of AUL. The mailing address is P.
O. Box 368, Indianapolis, Indiana 46206-0368.
1.19 "Investment Account" means each subaccount of the Variable Account which is
maintained by AUL and made available to the Contractholder by AUL and
identified in the Table of Investment Accounts. The Table of Investment
Accounts may be amended by AUL from time to time as described in Section
3.3. Amounts allocated to any Investment Account identified in the Table of
Investment Accounts shall be invested in the shares of the corresponding
Mutual Fund, Mutual Fund Portfolio, or other entity listed in the current
prospectus for the Variable Account.
1.20 "Investment Option" means the Fixed Interest Account or any of the
Investment Accounts of the Variable Account. AUL reserves the right to
provide other Investment Options under this contract at any time.
1.21 "Mutual Fund" means the AUL American Series Fund, Inc., a diversified,
open-end management investment company registered under The Investment
Company Act of l940, and any other such open- end management investment
company made available by AUL, as listed in the Table of Investment
Accounts.
1.22 "Portfolio" or "Mutual Fund Portfolio" means a portfolio established within
a particular Mutual Fund as described in the prospectus for that Mutual
Fund, as such prospectus may be amended or supplemented from time to time.
1.23 "Valuation Date" means any day the New York Stock Exchange is open for
trading and any day AUL is open. Any day AUL is open is any day except
normal weekend days and does not include any holiday that is one of our
pre-scheduled published holidays or any day AUL is closed due to any
disaster described in AUL's disaster recovery plan. An additional day per
calendar year may be used for a holiday if it is announced two days in
advance and is not the result of adverse financial conditions of AUL.
1.24 "Valuation Period" means the period beginning at the close of business on a
Valuation Date and ending at the close of business on the next succeeding
Valuation Date.
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1.25 "Variable Account" means a separate account established by AUL called the
AUL American Unit Trust, which is registered under The Investment Company
Act of l940 as a unit investment trust.
1.26 "Withdrawal Charge" means a charge taken by XXX equal to a percentage of
the Account Value withdrawn pursuant to Section 4.8, where the percentage
varies by the Contract Year in which the withdrawal is made. The Withdrawal
Charge percentage is as follows:
During Withdrawal Charge
Contract Years Percentage
1-5 0%
6-10 0%
Thereafter 0%
1.27 "Withdrawal Value" means the Contractholder's Account Value minus the
applicable Withdrawal Charge.
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ARTICLE 2 - CONTRACT AND AUTHORITY
2.1 Entire Contract: This contract is for the exclusive benefit of the
Contractholder and his beneficiaries. This contract and the application of
the Contractholder is the entire agreement between AUL and the
Contractholder. AUL is 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. AUL is not a fiduciary under this contract or under any
such plan, trust, custodial agreement, or other agreement.
2.2 Authority: This contract cannot be modified or amended, nor can any
provision or condition be waived, except by a written agreement signed by a
corporate officer of AUL. Such authority may not be delegated to any other
person or entity, except by a written agreement signed by a corporate
officer of AUL.
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ARTICLE 3 - CONTRIBUTIONS, INVESTMENTS, AND TRANSFERS
3.1 Amount of Contributions:
(a) Contributions may vary in amount and frequency.
(b) (1) Except for rollover Contributions under Code Sections
402(c), 402(e)(6), 403(a)(4), 403(b)(8), 403(b)(10),
408(d)(3), or 457(e)(16), or a Contribution made in
accordance with a Code Section 408(k) Simplified Employee
Pension (SEP), Contributions during the Contractholder's
taxable year (which is presumed to be a calendar year) may
not exceed the amounts described below (as adjusted by the
Code):
(i) $3,000 for any taxable year beginning in 2002 through
2004;
(ii) $4,000 for any taxable year beginning in 2005 through
2007; and
(iii)$5,000 for any taxable year beginning in 2008 and years
thereafter.
After 2008, the limit will be adjusted by the Secretary of
the Treasury for cost- of-living increases under Code
Section 219(b)(5)(C). Such adjustments will be in multiples
of $500.
(2) In the case of an individual who is age 50 or older, the
annual Contribution limit is increased by $500 for any
taxable year beginning in 2002 through 2005, and $1,000 for
any taxable year beginning in 2006 and years thereafter.
(3) No Contributions will be accepted under a Code Section
408(p) SIMPLE IRA plan established by an employer. No
transfer or rollover of funds attributable to contributions
made by a particular employer under its SIMPLE IRA plan will
be accepted from a SIMPLE IRA (an IRA used in conjunction
with a SIMPLE IRA plan) prior to the expiration of the
2-year period beginning on the date the individual first
participated in that employer's SIMPLE IRA plan.
(c) Excess Contributions (plus gains or minus losses thereon) shall be
withdrawn from the Contractholder Account and returned to the
Contractholder upon receipt by AUL at its Home Office of complete
written instructions from the Contractholder. Such written
instructions must include the amount to be withdrawn and returned, and
certification that such Contributions constitute Excess Contributions
and that such returns are permitted by applicable provisions of the
Code and Regulations issued thereunder. It shall not be the
responsibility of AUL to determine the existence or amount of Excess
Contributions or gains or losses thereon, or that returns of Excess
Contributions are permitted by applicable provisions of the Code and
Regulations. In withdrawing and returning the identified amount, AUL
may rely solely on such written instructions and certification. Such a
withdrawal and return of Excess Contributions shall not be subject to
Section 4.8.
(d) Other refunds of Contributions shall be applied before the close of
the calendar year following the year of such refund toward the payment
of future Contributions or the purchase of additional benefits.
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3.2 How Contributions Are Handled:
(a) A Contribution received by AUL at its Home Office shall be credited to
the Contractholder Account pursuant to instructions submitted in a
form acceptable to AUL.
(b) (1) The initial Contribution for the Contractholder shall be credited
and allocated to the Contractholder Account no later than the
close of business on the second Valuation Date after the later of
(1) the Valuation Date that AUL receives the initial Contribution
at its Home Office, or (2) the Valuation Date that AUL receives,
at its Home Office, the data required to establish the
Contractholder Account and Investment Option elections regarding
the initial Contribution.
(2) If the data required to establish the Contractholder Account is
not received by AUL at its Home Office at the time AUL first
receives that Contribution, AUL shall return that Contribution to
the Contractholder within 5 Valuation Dates.
(3) If the data required to establish the Contractholder Account is
received, but an Investment Option election for the
Contractholder is not received, by AUL at its Home Office as of
the date AUL receives that Contribution, AUL shall allocate that
Contribution to the AUL American Money Market Investment Account.
If AUL subsequently receives the data required to establish the
Contractholder Account and an Investment Option election, AUL
shall then transfer such amounts credited to the AUL American
Money Market Investment Account, plus gains or minus losses
thereon, to the appropriate Investment Option.
(c) Contributions subsequent to the initial Contribution shall be credited
to the Contractholder Account as of the close of business on the later
of (1) the Valuation Period in which AUL receives that Contribution at
its Home Office or (2) the Valuation Period in which AUL receives, at
its Home Office, the data required to establish the Contractholder
Account and Investment Option elections.
(d) Within the Contractholder Account, the amount so credited shall be
allocated to an Investment Option in increments elected by the
Contractholder in a form acceptable to AUL. The Contractholder may
change an Investment Option election with respect to future
allocations to the Contractholder Account by giving new Investment
Option elections to AUL at its Home Office in a form acceptable to
AUL.
3.3 Addition, Deletion, or Substitution of Investments:
(a) AUL reserves the right, subject to compliance with applicable law, to
make additions to, deletions from, substitution for, or combinations
of, the securities that are held by the Variable Account or any
Investment Account or that the Variable Account or any Investment
Account may purchase. AUL reserves the right to eliminate the shares
of any of the eligible Mutual Funds, Mutual Fund Portfolios, or other
entities listed in the Table of Investment Accounts and to substitute
shares of, or interests in, another Portfolio of the AUL American
Series Fund, Inc., another open-end, registered investment company, or
another investment vehicle, for shares already purchased or to be
purchased in the future under the contract, if the shares of any or
all eligible Mutual Funds, Mutual Fund Portfolios, or other entities
are no longer available for investment, or if further investment in
any or all eligible Mutual Funds, Mutual Fund Portfolios, or other
entities becomes inappropriate in view of the purposes of the Variable
Account or the contract. Where required under applicable law, AUL will
not
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substitute any shares in the Variable Account or any Investment
Account without notice, Contractholder approval, or prior approval of
the Securities and Exchange Commission or a state insurance
commissioner, and without following the filing or other procedures
established by applicable state insurance regulators. Nothing
contained herein shall prevent the Variable Account from purchasing
other securities for other series or classes of contracts, or from
effecting a conversion between series or classes of contracts on the
basis of requests made by a majority of other contractholders or as
permitted by federal law.
(b) AUL reserves the right to establish additional Investment Accounts,
each of which would invest in the corresponding Mutual Fund, Mutual
Fund Portfolio, or other entity listed in the current prospectus for
the Variable Account, or in other securities or investment vehicles.
AUL reserves the right to eliminate or combine existing Investment
Accounts if marketing, tax, or investment conditions so warrant. AUL
also reserves the right to provide other Investment Options under this
contract at any time. Subject to any required regulatory approvals,
AUL reserves the right to transfer assets from any Investment Account
to another separate account of AUL or Investment Account.
(c) In the event of any such substitution or change, AUL may, by
appropriate amendment, make such changes in this contract as may be
necessary or appropriate to reflect such substitution or change. If
deemed by AUL to be in the best interests of the Contractholder, the
Variable Account may be operated as a management investment company
under The Investment Company Act of 1940 or any other form permitted
by law, it may be deregistered in the event such registration is no
longer required under The Investment Company Act of 1940, or it may be
combined with other separate accounts of AUL or an affiliate thereof.
AUL may take such action as is necessary to comply with, or to obtain,
exemptions from the Securities and Exchange Commission with regard to
the Variable Account. Subject to compliance with applicable law, AUL
also may combine one or more Investment Accounts and may establish a
committee, board, or other group to manage one or more aspects of the
operation of the Variable Account.
3.4 Transfers:
(a) Subject to the limitations of Section 3.5, the Contractholder may
direct AUL, in a form acceptable to AUL, to transfer the amounts
credited to an Investment Option to any other Investment Option during
the Accumulation Period. Any transfer from an Investment Account shall
be effective as of the close of business on the Valuation Date that
AUL receives the Contractholder's direction.
(b) AUL shall make the transfer as requested by the Contractholder within
7 days from the date a proper request is received by AUL at its Home
Office, except as AUL may be permitted to defer such payment of
amounts withdrawn from the Variable Account in accordance with
appropriate provisions of the federal securities laws. AUL reserves
the right to defer a transfer of amounts from the Fixed Interest
Account for a period of up to 6 months after XXX receives the transfer
request at its Home Office.
(c) All transfers from the Fixed Interest Account to any Investment
Account shall be made on a first-in/first-out accounting basis.
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3.5 Limitations on Transfers:
(a) Amounts transferred from the Fixed Interest Account on behalf of the
Contractholder during any Contract Year shall not exceed 20% of the
Contractholder Account's share of the Fixed Interest Account
determined as of the later of the Contract Date or the Contract
Anniversary immediately preceding the request for transfer.
Notwithstanding the previous sentence, if the Contractholder Account's
share of the Fixed Interest Account is less than $2,500 determined as
of the later of the Contract Date or the Contract Anniversary
immediately preceding the request for transfer, any amount is
transferable from the Fixed Interest Account for that Contract Year.
(b) Amounts under this contract which have been transferred from other
group annuity contracts, whether issued by AUL or otherwise, shall be
allocated pursuant to the provisions of Section 3.2.
(c) AUL reserves the right to limit the number of transfers to a maximum
of 12 transfers per Contract Year.
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ARTICLE 4 - BENEFITS
4.1 Election of Annuity Options: At the written request of the Contractholder,
AUL shall apply all or a portion of the Contractholder's Account Value
(subject to Section 6.5) for the purpose of providing a fixed payment
annuity. Upon receipt of such request, AUL is hereby authorized by the
Contractholder to value and transfer the Contractholder's share of the
Variable Account to the Fixed Interest Account as of the date that AUL
receives such written request at its Home Office. Such transferred amounts
shall be held in the Fixed Interest Account until the Contractholder's
Annuity Commencement Date. The Contractholder request shall include the
election of one of the following annuity options. The amount of the annuity
shall be computed from the Table of Immediate Annuities then included in
this contract, except as provided under Section 4.4.
4.2 Annuity Options:
(a) Life Annuity. The monthly annuity shall be payable to the annuitant
for as long as the annuitant lives, and shall end with the last
monthly payment before the death of the annuitant.
(b) Certain and Life Xxxxxxx. The monthly annuity shall be payable to the
annuitant for as long as the annuitant lives. If the annuitant dies
before receiving payments for the certain period (10 or 20 years, as
specified in the election), any remaining payments for the balance of
the certain period shall be paid to the annuitant's beneficiary.
(c) Installment Refund Life Annuity. The monthly annuity shall be payable
to the annuitant for as long as the annuitant lives, and shall end
with the last monthly payment before the death of the annuitant. If,
at the death of the annuitant, the sum of the monthly payments
previously received is less than the amount applied to provide the
annuity, monthly payments of the same amount shall continue to the
annuitant's beneficiary until the total of the monthly payments
received equals such amount.
(d) Fixed Period. The monthly annuity shall be payable to the annuitant
for a fixed period of time (not less than 5 years nor more than 20
years, as specified in the election). If, at the death of the
annuitant, payments have been made for less than the selected fixed
period, monthly annuity payments to the annuitant's beneficiary shall
be continued during the remainder of such fixed period.
(e) Lump Sum Payment. If the total Account Value is less than $2,000, such
value shall not be annuitized under options (a), (b), (c), (d), or (f)
of this Section, but shall be paid in a lump sum.
(f) Any other options mutually agreed upon between the Contractholder and
AUL shall be made available.
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If the annuity option selected is not included in the attached Table of
Immediate Annuities, the amount of monthly annuity shall be based on rates
determined in the same manner as those found in the Table.
If no annuity option election for the Contractholder has been received by
AUL at its Home Office at least 30 days prior to the Annuity Commencement
Date, his Account Value (subject to Section 6.5) may be applied under (b)
above as a 10 Year Certain and Life Annuity. AUL must receive written
notification of such Annuity Commencement Date, written designation of the
contingent annuitant or beneficiary, and any election forms needed in
connection with any annuity option provided in this Section.
4.3 Guaranteed Rate of Interest: The retirement annuity options provided in
this Article and illustrated in the attached Table of Immediate Annuities
are based on the guaranteed interest rate disclosed at the end of the
Table.
4.4 Alternate Nonparticipating Retirement Annuity: Any annuity elected shall be
provided at whatever current single premium nonparticipating immediate
annuity rates are available under this class of annuity contract if such
rates produce a higher income than that provided under the Table of
Immediate Annuities provided in this contract.
4.5 Minimum Payments: If the monthly annuity is less than AUL's then current
established minimum, AUL reserves the right to make payments on a less
frequent basis or to pay the Account Value in a single sum.
4.6 Due Proof of Date of Birth and Survival: Before commencing payments under
any annuity, AUL may require proof of the date of birth of any annuitant
and may require due proof that any annuitant is living before the payment
of each or any installment under the option.
4.7 Death Benefits:
(a) Upon receipt of written instructions from the Contractholder's
beneficiary (or, if applicable, the secondary beneficiary of the
Contractholder) and of due proof of the Contractholder's (and, if
applicable, the beneficiary's) death during the Accumulation Period at
its Home Office, AUL shall apply the Contractholder's Account Value
(subject to Section 6.5) for the purpose of providing a Death Benefit.
The Death Benefit shall be paid to the beneficiary last properly
designated in writing to AUL at its Home Office by the Contractholder,
or, if there is no designated beneficiary living on the date of the
Contractholder's death, to the Contractholder's estate. The
Contractholder's beneficiary may also designate a beneficiary. If any
beneficiary dies while receiving payments and no beneficiary is
designated to receive any remaining payments, such remaining payments
shall be made to the deceased beneficiary's estate.
(b) The Account Value to be applied pursuant to (a) above shall be
determined as of the close of business on the Valuation Date that AUL
receives a proper withdrawal request (or due proof of death, if
received later), in a form acceptable to AUL, at its Home Office.
If payment is to be made in a cash lump sum, payment shall be made
within 7 days of the date of valuation, as determined in the previous
paragraph, except as AUL may be permitted to defer such payment of
amounts derived from the Variable Account in accordance with the
provisions of federal securities laws. Also, AUL reserves the right to
defer the payment of amounts withdrawn from the Fixed Interest Account
for a period of up to 6 months after AUL receives proper instructions
at its Home Office.
14
(c) (1) If the Contractholder dies before his Annuity Commencement Date,
his entire interest shall be distributed at least as rapidly as
follows:
(i) If the designated beneficiary is not the Contractholder's
surviving spouse, the entire interest shall be distributed,
beginning on or before December 31 of the calendar year
immediately following the calendar year in which the
Contractholder died, over the remaining life expectancy of
such designated beneficiary, with such life expectancy
determined using the age of the beneficiary as of his
birthday in the year following the year of the
Contractholder's death, or if elected, in accordance with
(iii) below.
(ii) If the sole designated beneficiary is the Contractholder's
surviving spouse, the entire interest shall be distributed,
beginning on or before December 31 of the calendar year
immediately following the calendar year in which the
Contractholder died (or by the end of the calendar year in
which the Contractholder would have attained age 70 1/2, if
later), over such spouse's life, or, if elected, in
accordance with (iii) below. If the surviving spouse dies
before required distributions commence to him, the remaining
interest will be distributed, beginning on or before
December 31 of the calendar year immediately following the
calendar year in which the spouse died, over the spouse's
designated beneficiary's remaining life expectancy
determined using such beneficiary's age as of his birthday
in the year following the death of the spouse, or, if
elected, will be distributed in accordance with (iii) below.
If the surviving spouse dies after required distributions
commence to him, any remaining interest will continue to be
distributed under the annuity option chosen.
The surviving spouse may accelerate these payments at any
time by increasing the frequency or amount of these
payments.
(iii)If there is no designated beneficiary, or if applicable by
operation of (i) or (ii) above, the entire interest will be
distributed no later than December 31 of the calendar year
containing the fifth anniversary of the Contractholder's
death (or of the spouse's death in the case of the surviving
spouse's death before distributions are required to begin
under (ii) above.
(iv) Life expectancy is determined using the Single Life Table in
Q&A-1 of Section 1.401(a)(9)-9 of the Income Tax
Regulations. If distributions are being made to a surviving
spouse as the sole designated beneficiary, such spouse's
remaining life expectancy for a year is the number in the
Single Life Table corresponding to such spouse's age in the
year. In all other cases, remaining life expectancy for a
year is the number in the Single Life Table corresponding to
the beneficiary's age in the year specified in (i) or (ii)
and reduced by 1 for each subsequent year.
(2) If the Contractholder dies on or after his Annuity Commencement
Date, any interest remaining under the annuity option selected
shall continue to be distributed under the annuity option
selected.
15
(d) The Contractholder's "interest" includes the amount of any outstanding
rollover, transfer, and recharacterization under Q&As-7 and -8 of
Section 1.408-8 of the Income Tax Regulations and the actuarial value
of any other benefits provided under the contract, such as guaranteed
death benefits.
(e) For purposes of (c) above, required distributions are considered to
commence on the Contractholder's required beginning date or, if
applicable, on the date distributions are required to begin to the
surviving spouse under (c)(1)(ii) above. However, if distributions
start prior to the applicable date in the preceding sentence, on an
irrevocable basis (except for acceleration) under an annuity contract
meeting the requirements of Section 1.401(a)(9)-6T of the Temporary
Income Tax Regulations, then required distributions are considered to
commence on the annuity starting date.
(f) If the sole designated beneficiary is the Contractholder's surviving
spouse, such spouse may treat the Contractholder Account as his or her
own individual retirement arrangement (IRA). This election will be
deemed to have been made if such surviving spouse makes a regular IRA
Contribution under this contract, makes a rollover to this contract,
or fails to take required distributions as a beneficiary.
4.8 Withdrawal Benefits: The Contractholder may direct AUL at its Home Office,
in a form acceptable to AUL, to withdraw all or a portion of his Withdrawal
Value, subject to the following provisions:
(a) Withdrawals from the Contractholder's Account Value may not be made in
an amount less than the smaller of $500 or the Contractholder's entire
Account Value. AUL reserves the right to pay out the Contractholder's
remaining Account Value if a withdrawal reduces the Contractholder's
remaining Account Value to an amount not to exceed $5,000.
(b) A withdrawal request shall be effective, and the Account Value to be
applied pursuant to this Section shall be determined, as of the close
of business on the Valuation Date that AUL receives a proper
withdrawal request, in a form acceptable to AUL, at its Home Office.
If it is necessary to withdraw the entire Account Value of the
Contractholder to make a lump-sum cash payment, the amount paid shall
equal the Withdrawal Value, minus any Section 6.5 charges. If it is
not necessary to withdraw the entire Account Value to make such
payment, AUL shall reduce the Account Value of the Contractholder by
an amount sufficient to make the cash payment requested and to cover
the Withdrawal Charge and any Section 6.5 charges. Notwithstanding the
previous sentence, in the first Contract Year in which the
Contractholder Account is established, the Contractholder may withdraw
up to 10% of the sum of his Account Value (determined as of the later
of the Contract Date or the Contract Anniversary immediately preceding
the request for the withdrawal) plus Contributions made during that
Contract Year, without application of the Withdrawal Charge. In the
next succeeding Contract Year, the Contractholder may also withdraw up
to 10% of the sum of his Account Value (determined as of the Contract
Anniversary immediately preceding the request for the withdrawal) plus
Contributions made during that Contract Year, without application of
the Withdrawal Charge. In any subsequent Contract Year, the
Contractholder may withdraw up to 10% of his Account Value (determined
as of the Contract Anniversary immediately preceding the request for
the withdrawal) without application of the Withdrawal Charge.
(c) AUL shall pay any cash lump sum to the Contractholder within 7 days
from the appropriate Valuation Date as determined in Subsection (b)
above, except as AUL may be permitted to defer such payment of amounts
withdrawn from the Variable Account in
16
accordance with appropriate provisions of the federal securities laws.
AUL reserves the right to defer the payment of amounts withdrawn from
the Fixed Interest Account for a period of up to 6 months after XXX
receives the withdrawal request at its Home Office.
(d) Withdrawals from the Contractholder's share of the Fixed Interest
Account shall be made on a first-in/first-out basis so that all or a
portion of the amounts credited to his share of the Fixed Interest
Account which have been on deposit for the longest period of time, as
well as the interest credited xxxxxxx, shall be withdrawn first.
4.9 Distributions Before Death:
(a) Notwithstanding any provision of the contract to the contrary, the
distribution of the Contractholder's interest in the contract shall be
made in accordance with the requirements of Code Section 408(b)(3) and
the regulations thereunder, the provisions of which are herein
incorporated by reference. If distributions are not made in the form
of an annuity on an irrevocable basis (except for acceleration), then
distribution of the interest in the contract (as determined under
section 4.7(d)) must satisfy the requirements of Code Section
408(a)(6) and the regulations thereunder, rather than paragraphs (b),
(c) and (d) below and section 4.7.
(b) The Contractholder's entire interest shall commence to be distributed
no later than the first day of April following the calendar year in
which the Contractholder attains age 70 1/2 over (1) the life of the
Contractholder or the lives of the Contractholder and his designated
beneficiary or (2) a period certain not extending beyond the life
expectancy of the Contractholder or the joint and last survivor
expectancy of the Contractholder and his designated beneficiary.
Payments shall be made in periodic payments at intervals of no longer
than 1 year and must be either nonincreasing or they may increase only
as provided in Q&As- 1 and -4 of Section 1.401(a)(9)-6T of the
Temporary Income Tax Regulations. In addition, any distribution must
satisfy the incidental benefit requirements specified in Q&A-2 of
Section 1.401(a)(9)-6T.
(c) The distribution periods described in (b) above cannot exceed the
periods specified in Section 1.401(a)(9)-6T of the Temporary Income
Tax Regulations.
(d) The first required payment can be made as late as April 1 of the year
following the year the Contractholder attains age 70 1/2 and must be
the payment that is required for one payment interval. The second
payment need not be made until the end of the next payment interval.
17
ARTICLE 5 - VALUATIONS
5.1 Valuation of Mutual Fund, Mutual Fund Portfolio, or Other Entity Assets:
All assets of each Mutual Fund, Mutual Fund Portfolio, or other entity
listed in the Table of Investment Accounts shall be valued as provided in
the current report or prospectus for the applicable Mutual Fund, Mutual
Fund Portfolio, or other entity as such report or prospectus may be amended
or supplemented from time to time.
5.2 Accumulation Units: Any amounts that are allocated to any Investment
Account on behalf of the Contractholder shall be credited to his
Contractholder Account in the form of Accumulation Units on the basis of
the value of such units in that Investment Account as of the later of (1)
the end of the Valuation Period on which such amounts are received by AUL
at its Home Office or (2) the end of the Valuation Period on which the data
required to establish the Contractholder Account and allocate such amounts
to the Contractholder Account and to Investment Options are received by AUL
at its Home Office. However, if the initial Contribution for the
Contractholder is allocated pursuant to Section 3.2(b)(1) on the next
succeeding Valuation Period, the unit value as of the end of that Valuation
Period shall be used. Such crediting shall be made separately for amounts
allocated to each Investment Account. The number of Accumulation Units in
each Investment Account credited to the Contractholder Account as of any
Valuation Period shall be determined by dividing the amounts allocated to
that Investment Account for the Contractholder Account as of such Valuation
Period by the dollar value of one Accumulation Unit in that Investment
Account as of the close of business on the applicable Valuation Period. The
number of Accumulation Units thus determined shall not be changed by any
subsequent change in the dollar value of the Accumulation Units.
5.3 Value of Accumulation Units: The value of an Accumulation Unit in the AUL
American Equity, Bond, Money Market, and Managed Investment Accounts was
established at $1.00 as of April 12, 1990. The value of an Accumulation
Unit in any other Investment Account available under this contract shall be
established on the inception date of that Investment Account. The value of
an Accumulation Unit in each Investment Account as of any Valuation Period
thereafter is equal to the dollar value of one Accumulation Unit in that
Investment Account as of the immediately preceding Valuation Period
multiplied by the Net Investment Factor, as defined in Section 5.4, for
that Investment Account for the current Valuation Period. The value of an
Accumulation Unit for each Investment Account shall be determined for each
Valuation Period before giving effect to any additions, withdrawals, or
transfers. After such determination, the additions, withdrawals, or
transfers which are effective as of that day shall then be made.
5.4 Determining the Net Investment Factor: The Net Investment Factor for each
Investment Account for any Valuation Period is determined by dividing (a)
by (b), and then subtracting (c) from that result, where:
(a) is equal to:
(1) the net asset value of a Mutual Fund, Mutual Fund Portfolio, or
other entity share held in the Investment Account determined as
of the end of the current Valuation Period, plus
18
(2) the per share amount of any dividend or other distribution, if
any, paid by the Mutual Fund, Mutual Fund Portfolio, or other
entity during the current Valuation Period, plus or minus
(3) any credit or charge for any taxes paid or reserved for by AUL
during the current Valuation Period which are determined by AUL
to be attributable to operation of the Investment Account;
(b) is the net asset value of a Mutual Fund, Mutual Fund Portfolio, or
other entity share held in the Investment Account determined as of the
end of the immediately preceding Valuation Period; and
(c) is a daily charge factor determined by AUL to reflect the charges
assessed against the assets of the Investment Account for mortality
and expense risks, as authorized by Section 6.1.
5.5 Determining the Value of the Contractholder's Investment Account Share: The
value of the Contractholder's share of any Investment Account as of any
Valuation Date shall be determined by multiplying the Contractholder's
aggregate Accumulation Units in that Investment Account as of such
Valuation Date by the dollar value of one Accumulation Unit in that
Investment Account as of such Valuation Date. The value of the
Contractholder's share of any Investment Account as of any date other than
a Valuation Date is equal to the value of its share of that Investment
Account as of the immediately preceding Valuation Date.
19
ARTICLE 6 - OTHER CHARGES
6.1 Mortality Risk and Expense Risk Charges: AUL shall deduct a daily mortality
risk charge and a daily expense risk charge equal to the daily equivalent
of an annual combined charge of 1.25% against the average daily net assets
of each Investment Account. These charges shall be reflected in the Net
Investment Factor as provided in Section 5.4(c).
6.2 Mutual Fund, Mutual Fund Portfolio, or Other Entity Expenses: A Mutual
Fund, Mutual Fund Portfolio, or other entity listed in the Table of
Investment Accounts shall pay any investment advisory fee and certain other
expenses, which may include its ordinary operational and organizational
expenses, or any extraordinary expenses, as described in the current report
or prospectus for that Mutual Fund, Mutual Fund Portfolio, or other entity
as it may be amended or supplemented from time to time. These expenses may
vary from year to year. The net asset value of each Mutual Fund, Mutual
Fund Portfolio, or other entity share reflects such investment advisory fee
and other expenses which are deducted from the assets of such Mutual Fund,
Mutual Fund Portfolio, or other entity.
6.3 Administrative Charge: AUL deducts 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 the Contractholder Account for as
long as the Contractholder Account is in effect. This charge is prorated
among each subaccount of the Contractholder Account which corresponds to
each Investment Option utilized under this contract by the Contractholder
Account. If the entire balance of the Contractholder 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 any Contract Quarter in which the Account Value on
the last day of that quarter is $25,000 or more.
6.4 Charge for Non-Electronic Transfers: We charge a service fee of up to $5
for non-electronic transfers between Investment Options, which will be
prorated among the Investment Options from which the amounts are
transferred in the same proportion that the amount transferred from the
Investment Option bears to the total amount transferred from all Investment
Options.
6.5 Other Charges: AUL reserves the right to deduct the appropriate charges for
federal income taxes incurred by AUL that are attributable solely to the
operation of the separate account.
20
ARTICLE 7 - RIGHT OF AUL TO CHANGE CERTAIN PROVISIONS
Amendment of Contract to Conform with Law: AUL reserves the right to amend this
contract at any time, without the consent of the Contractholder or any other
person or entity, to make any change to any provisions of the contract to comply
with, or give the Contractholder the benefit of, any provisions of federal or
state laws, regulations, or rulings, subject to regulatory approval.
21
ARTICLE 8 - MISCELLANEOUS
8.1 Ownership: The Contractholder is the owner of the contract and may agree
with AUL to any change or amendment of it without the consent of any other
person or entity, except that no such change or amendment shall adversely
affect the benefits to be provided by Contributions made prior to the
effective date of such change or amendment unless the consent of the
Contractholder is obtained.
AUL shall have no obligation to make any payment or distribution except as
specified in this contract.
8.2 Tax Status: AUL does not make any guarantee regarding the federal or state
tax-qualified status of this contract, the Contractholder Account
established hereunder, or any transaction involving this contract.
8.3 Essential Data: The Contractholder shall furnish to AUL whatever
information is necessary to establish the eligibility and amount of annuity
or other benefit in each instance.
8.4 Reliance: AUL shall be fully protected in relying on any information
furnished by the Contractholder. AUL need not inquire as to the accuracy or
completeness thereof.
8.5 Misstatement of Essential Data: If it has been found that any essential
data pertaining to any person has been omitted or misstated, including, but
not limited to, a misstatement as to the age of an annuitant, an equitable
adjustment shall be made as soon as possible so as to provide the annuity
to which that person is entitled.
8.6 Election, Notice, or Direction Requirements: Wherever in this contract
reference is made to the Contractholder making a request or giving notice
or direction, such request, notice, or direction must be in writing, or in
a form otherwise acceptable to AUL, and must be submitted to and received
by AUL at its Home Office before becoming effective.
8.7 Quarterly Statement of Account Value: As soon as reasonably possible after
the end of each Contract Quarter, AUL shall prepare a statement of the
Contractholder's Account Value existing under this contract. AUL shall
furnish an annual calendar year report containing any information
concerning required minimum distributions that is required by the Internal
Revenue Service.
8.8 Conformity with State Laws: Any benefit payable under this contract shall
not be less than the minimum benefit required by any statute of the state
in which the contract is delivered.
8.9 Reference to Federal Laws: Language in this contract referring to federal
tax, securities, or other statutes or rules shall not be deemed to
incorporate within the contract such statutes or rules. This language is
informational and instructional in nature, and is not subject to approval
or disapproval by the state in which the contract is issued.
8.10 Sex and Number: Whenever the context so requires, the plural includes the
singular, the singular the plural, and the masculine the feminine.
8.11 Facility of Payment: If the Contractholder, contingent annuitant, or
beneficiary is legally incapable of giving a valid receipt for any payment
due him, and no guardian has been appointed, AUL may make such payment to
the person or persons who have assumed the care and principal support of
the Contractholder, contingent annuitant, or beneficiary. Also, AUL may
make payment directly to any person or entity when directed to do so in
writing by the Contractholder. Any payment made by AUL will fully discharge
AUL to the extent of such payment.
22
8.12 Insulation from Liability: The assets of the Variable Account are not
chargeable with liabilities arising out of any other business AUL may
conduct.
8.13 Voting:
(a) AUL is the legal owner of the shares of a Mutual Fund, Mutual Fund
Portfolio, or other entity listed in the Table of Investment Accounts
held by the Investment Accounts of the Variable Account. AUL shall
exercise voting rights attributable to the shares of each Mutual Fund,
Mutual Fund Portfolio, or other entity held in the Investment Accounts
at any regular and special meetings of the shareholders of a Mutual
Fund or other entity on matters requiring shareholder voting under The
Investment Company Act of l940 or other applicable laws. AUL shall
exercise these voting rights based on instructions received from
persons having the voting interest in corresponding Investment
Accounts of the Variable Account. However, if The Investment Company
Act of l940 or any regulations thereunder should be amended, or if the
present interpretation thereof should change, and as a result AUL
determines that it is permitted to vote the shares of a Mutual Fund,
Mutual Fund Portfolio, or other entity in its own right, it may elect
to do so. AUL will vote shares of any Investment Account, if any, that
it owns beneficially in its own discretion, except that if a Mutual
Fund, Mutual Fund Portfolio, or other entity offers its shares to any
insurance company separate account that funds variable life insurance
contracts or if otherwise required by applicable law, AUL will vote
its own shares in the same proportion as the voting instructions that
are received in a timely manner for contracts, Contractholder
Accounts, and participant accounts participating in the Investment
Account.
(b) The person having the voting interest under this contract is the
Contractholder. Unless otherwise required by applicable law, the
number of Mutual Fund, Mutual Fund Portfolio, or other entity shares
as to which voting instructions may be given to AUL is determined by
dividing the value of all of the Accumulation Units of the
corresponding Investment Account attributable to this contract on a
particular date by the net asset value per share of that Mutual Fund,
Mutual Fund Portfolio, or other entity as of the same date. Fractional
votes will be counted. The number of votes as to which voting
instructions may be given will be determined as of the date coincident
with the date established by the applicable Mutual Fund, Mutual Fund
Portfolio, or other entity for determining shareholders eligible to
vote at the meeting of that Mutual Fund or other entity. If required
by the Securities and Exchange Commission, AUL reserves the right to
determine in a different fashion the voting rights attributable to the
shares of a Mutual Fund, Mutual Fund Portfolio, or other entity.
(c) Voting rights attributable to this contract for which no timely voting
instructions are received will be voted by AUL in the same proportion
as the voting instructions which are received in a timely manner for
all contracts, Contractholder Accounts, and participant accounts
participating in that Investment Account.
(d) Neither the Variable Account nor AUL is under any duty to inquire as
to the instructions received or the authority of Contractholders or
others to instruct the voting of Mutual Fund, Mutual Fund Portfolio,
or other entity shares.
(e) Every person or entity having such voting rights shall receive such
reports or prospectuses concerning the Variable Account or a Mutual
Fund, Mutual Fund Portfolio, or other entity as may be required by
applicable federal law.
23
8.14 Nonforfeitability and Nontransferability: The entire Withdrawal Value of
the Contractholder Account under this contract shall be nonforfeitable at
all times. No sum payable under this contract with respect to the
Contractholder 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 AUL. 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.
8.15 Termination: This contract shall automatically terminate as of the date
that there is no Contractholder Account maintained hereunder. AUL shall
have the right to refuse to accept Contributions as of the last day of the
second month following the date that written notice to this effect is
delivered to the Contractholder.
8.16 Notice of Annual Meeting of Members: By-law, Art II, Sec. 2: The regular
annual meeting of the members of American United Mutual Insurance Holding
Company shall be held at its principal place of business on the third
Thursday in February each year at ten o'clock A.M. local time or at such
other location, place, or time as may be designated by the Board of
Directors. The election of directors shall be held at the annual meeting.
24
TABLE OF IMMEDIATE ANNUITIES - FEMALE
Monthly Income Per $1,000 of Account Value
Installment
Adjusted Life 10 Years Certain 20 Years Certain Refund
Age Annuity Life Annuity and Life Annuity Life Annuity
55 3.873 3.849 3.759 3.723
56 3.951 3.923 3.821 3.787
57 4.033 4.001 3.885 3.854
58 4.120 4.084 3.951 3.924
59 4.212 4.171 4.019 3.998
60 4.310 4.263 4.088 4.076
61 4.414 4.359 4.159 4.158
62 4.524 4.462 4.232 4.243
63 4.642 4.570 4.305 4.334
64 4.767 4.684 4.379 4.429
65 4.901 4.804 4.453 4.528
66 5.044 4.932 4.527 4.635
67 5.198 5.066 4.599 4.745
68 5.362 5.208 4.670 4.864
69 5.539 5.357 4.738 4.988
70 5.730 5.514 4.804 5.119
71 5.936 5.679 4.866 5.259
72 6.158 5.851 4.923 5.405
73 6.398 6.031 4.976 5.564
74 6.658 6.218 5.024 5.726
Adjusted Age = Actual Age at Settlement (in years and completed months) less the
following number of months: 1.5 times (Birth Year - 1900), rounded to the
nearest integer.
The monthly income factors shown above are based on the Annuity 2000 Mortality
Table and 2.5% interest.
Fixed
Number Period
of Monthly Number Fixed Period
Years Income of Years Monthly Income
5 17.698 15 6.641
6 14.928 16 6.298
7 12.950 17 5.996
8 11.468 18 5.729
9 10.316 19 5.489
10 9.395 20 5.274
11 8.642
12 8.016
13 7.486
14 7.033
TABLE OF IMMEDIATE ANNUITIES - MALE
Monthly Income Per $1,000 of Account Value
Installment
Adjusted Life 10 Years Certain 20 Years Certain Refund
Age Annuity and Life Annuity and Life Annuity Life Annuity
55 4.180 4.132 3.967 3.937
56 4.271 4.217 4.030 4.008
57 4.367 4.307 4.095 4.081
58 4.469 4.401 4.161 4.160
59 4.578 4.500 4.228 4.240
60 4.694 4.605 4.295 4.325
61 4.818 4.716 4.363 4.415
62 4.950 4.831 4.430 4.508
63 5.091 4.953 4.497 4.607
64 5.241 5.081 4.564 4.710
65 5.402 5.214 4.629 4.819
66 5.573 5.353 4.692 4.933
67 5.756 5.498 4.753 5.052
68 5.951 5.648 4.811 5.179
69 6.159 5.804 4.866 5.309
70 6.380 5.964 4.918 5.448
71 6.616 6.129 4.966 5.594
72 6.867 6.298 5.010 5.745
73 7.135 6.471 5.050 5.907
74 7.422 6.646 5.086 6.074
Adjusted Age = Actual Age at Settlement (in years and completed months) less the
following number of months: 1.5 times (Birth Year - 1900), rounded to the
nearest integer.
The monthly income factors shown above are based on the Annuity 2000 Mortality
Table and 2.5% interest.
Fixed
Period
Number Monthly Number Fixed Period
of Years Income of Years Monthly Income
5 17.698 15 6.641
6 14.928 16 6.298
7 12.950 17 5.996
8 11.468 18 5.729
9 10.316 19 5.489
10 9.395 20 5.274
11 8.642
12 8.016
13 7.486
14 7.033
Adjusted Age = Actual Age at Settlement (in years and completed months) less the
following number of months: 1.5 times (Birth Year - 1900), rounded to the
nearest integer.
The monthly income factors shown above are based on the Annuity 2000 Mortality
Table and 2.5% interest.
25
TABLE OF INVESTMENT ACCOUNTS
The following Investment Accounts are made available to the Contractholder by
AUL. Amounts allocated to any Investment Account identified below shall be
invested in the shares of the corresponding Mutual Fund, Portfolio, or other
entity listed below.
Investment Account Mutual Fund, Portfolio, or Other Entity
AUL American Bond AUL American Bond
AUL American Equity AUL American Equity
AUL American Managed AUL American Managed
AUL American Money Market AUL American Money Market
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
Janus Aspen Series Flexible Income Portfolio Janus Aspen Series Flexible Income Portfolio
Janus Aspen Series Worldwide Growth Portfolio Janus Aspen Series Worldwide Growth Portfolio
PBHG Insurance Series Growth II PBHG Insurance Series Growth II
SAFECO Resource Series Trust Growth Portfolio SAFECO Resource Series Trust Growth Portfolio
State Street Equity 000 Xxxxx Xxxx Xxxxx Xxxxxx Equity 500 Index Fund
X. Xxxx Price Equity-Income Portfolio X. Xxxx Price Equity-Income Portfolio
26
Demonstration Table of Account Values and Withdrawal Values
The following table demonstrates the account values and withdrawal values that
will accumulate if you make a $1,000 contribution at the beginning of each year
into the Fixed Interest Account, make no withdrawals, and we credit a current
rate of interest equal to 3%, which is the guaranteed minimum rate of interest.
End of Account Withdrawal Effective Rate
Year Value Value of Return
1 $1,009.70 $1,009.70 0.97%
2 $2,039.66 $2,039.66 1.49%
3 $3,100.51 $3,100.51 2.00%
4 $4,193.19 $4,193.19 2.26%
5 $5,318.65 $5,318.65 2.42%
6 $6,477.88 $6,477.88 2.52%
7 $7,671.88 $7,671.88 2.59%
8 $8,901.70 $8,901.70 2.65%
9 $10,168.42 $10,168.42 2.69%
10 $11,473.13 $11,473.13 2.73%
11 $12,816.99 $12,816.99 2.76%
12 $14,201.17 $14,201.17 2.78%
13 $15,626.86 $15,626.86 2.80%
14 $17,095.34 $17,095.34 2.82%
15 $18,607.86 $18,607.86 2.83%
16 $20,165.76 $20,165.76 2.85%
17 $21,770.40 $21,770.40 2.86%
18 $23,423.17 $23,423.17 2.87%
19 $25,133.03 $25,133.03 2.91%
20 $26,917.03 $26,917.03 3.00%
IndividualORIRA.27
