AUL.
American United Life Insurance Company (R)
Indianapolis, Indiana 46206-0368
CONTRACT NUMBER __________________
CONTRACTHOLDER __________________
DATE OF ISSUE _________________
CONTRACT DATE _________________
FIRST CONTRACT ANNIVERSARY ________________
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, President, and Chief Executive Officer
Attest /s/ Xxxxxxx X. Xxxxx
Secretary
AUL American Series Contract
IRA Multiple-Fund Group Variable Annuity
THE ASSETS HELD IN ANY INVESTMENT ACCOUNT FOR WHICH THIS CONTRACT MAKES
PROVISION MAY INCREASE OR DECREASE IN DOLLAR VALUE ACCORDING TO THE INVESTMENT
PERFORMANCE OF THE CORRESPONDING PORTFOLIO OF THE MUTUAL FUND IN WHICH THE
INVESTMENT ACCOUNT INVESTS. THE VALUE OF SUCH ASSETS IS NOT GUARANTEED. ARTICLE
5 OF THIS CONTRACT EXPLAINS THE VALUATION OF SUCH ASSETS.
P-12867
A Mutual Company G-11019C
American United Life Insurance Company (R)
Indianapolis, Indiana 46206-0368
CONTRACT NUMBER _________________
CONTRACTHOLDER __________________
DATE OF ISSUE __________________
CONTRACT DATE ___________________
FIRST CONTRACT ANNIVERSARY ________________
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, President, and Chief Executive Officer
Attest /s/ Xxxxxxx X. Xxxxx
Secretary
AUL American Series Contract
IRA Multiple-Fund Group Variable Annuity
THE ASSETS HELD IN ANY INVESTMENT ACCOUNT FOR WHICH THIS CONTRACT MAKES
PROVISION MAY INCREASE OR DECREASE IN DOLLAR VALUE ACCORDING TO THE INVESTMENT
PERFORMANCE OF THE CORRESPONDING PORTFOLIO OF THE MUTUAL FUND IN WHICH THE
INVESTMENT ACCOUNT INVESTS. THE VALUE OF SUCH ASSETS IS NOT GUARANTEED. ARTICLE
5 OF THIS CONTRACT EXPLAINS THE VALUATION OF SUCH ASSETS.
If you have questions concerning your AUL contract, or wish to register a
complaint, please call 0-000-000-0000.
P-12867TX
A Mutual Company G-11019C
TABLE OF CONTENTS
ARTICLE I 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
ARTICLE 5 VALUATIONS
5.1------Time of Valuation
5.2------Accumulation Units
5.3------Value of Accumulation Units
5.4------Determining the Net Investment Factor
5.5------Determining the Value of Each Participant Account's Share of any
Investment Account
ARTICLE 6 OTHER CHARGES
6.1------Mortality Risk and Expense Risk Charges
6.2------Investment Management Charge
6.3------Administrative Charge
6.4------Transfer Charge
6.5------Other Charges
6.6------Reduction or Waiver of Certain Charges
ARTICLE 7 RIGHT OF AUL TO CHANGE CERTAIN PROVISIONS
7.1------Right of AUL to Change Interest Rates
7.2------Right of AUL to Change Annuity Table
7.3------Right of AUL to Change Charges
7.4------Amendment of Contract to Conform with Law
P-12867.1
A Mutual Company G-11020B
ARTICLE 8 MISCELLANEOUS
8.1------Ownership
8.2------AUL's Annual Statement
8.3------Tax Status
8.4------Essential Data
8.5------Reliance
8.6------Misstatement of Essential Data
8.7------Annuity Certificates
8.8------Election, Notice, or Direction Requirements
8.9------Quarterly Statement of Account Value
8.10-----Conformity with State Laws
8.11-----Reference to Federal Laws
8.12-----Sex and Number
8.13-----Facility of Payment
8.14-----Insulation from Liability
8.15-----Voting
8.16-----Acceptance of New Participants or Contributions
8.17-----Nonforfeitability and Nontransferability
8.18-----Termination
8.19-----Notice of Annual Meeting of Members
TABLE OF IMMEDIATE ANNUITIES
P-12867.2
A Mutual Company G-11020B
ARTICLE I - DEFINITIONS
1.1 "Account Value" for any Participant Account on any given date means:
(a) the balance of the Participant Account's share of the Fixed Interest
Account on that date; plus
(b) the value of the Participant Account's share of each Investment
Account on that date.
1.2 "Accumulation Period" means the period of time commencing on the date on
which a Participant's initial Contribution is credited to the Participant
Account and terminating on the date when such Participant 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 any Participant, amounts
allocated to the Participant Account will be distributed or commence to be
distributed no later than the first day of April following the calendar
year in which such Participant attains age 70 1/2.
1.5 "Code" means the Internal Revenue Code of 1986, as amended.
1.6 "Contract Anniversary" means the first day of each 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 "Contract Quarter" means each of the four successive intervals of three
months, the sum of which corresponds to a 12-month Contract Year.
1.8 "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.
1.9 "Contributions" means amounts paid in cash to AUL from time to time by, or
on behalf of, Participants, which are credited to Participant Accounts
hereunder. The legal title to, and ownership of, such amounts is vested
solely in the Participant. The contract is established for the exclusive
benefit of the Participant or his beneficiaries.
1.10 "Current Rates of Interest" means each of the annual effective rates of
interest as determined and declared by AUL from time to time and as
credited to each interest pocket maintained within the Fixed Interest
Account. The Current Rates of Interest shall always be equal to or greater
than the Guaranteed Rate of Interest.
1.11 "Excess Contributions" means those Contributions made by, or on behalf of,
a Participant which exceed the limitations in effect under applicable
provisions of the Code and Regulations issued thereunder.
P-12867.3
A Mutual Company G-11020B
1.12 "Fixed Interest Account" means that fund of AUL's general asset account in
which all or a portion of a Participant'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 a
Participant Account and allocated to the Fixed Interest Account may be
earning interest at different Current Rates of Interest for different
periods of time.
1.13 "Guaranteed Rate of Interest" means interest at an annual effective rate of
4.00%.
1.14 "Home Office" means the principal office of AUL. The mailing address is
P.0. Box 6148, Indianapolis, Indiana 46206-6148.
1.15 "Investment Account" means each subaccount of the Variable Account, which
subaccounts currently include the Equity Investment Account, the Bond
Investment Account, the Money Market Investment Account, and the Managed
Investment Account, as the case may be, where:
(a) Amounts allocated to the Equity Investment Account shall be invested
in shares of the AUL American Equity Portfolio of the Mutual Fund.
(b) Amounts allocated to the Bond Investment Account shall be invested in
shares of the AUL American Bond Portfolio of the Mutual Fund.
(c) Amounts allocated to the Money Market Investment Account shall be
invested in shares of the AUL American Money Market Portfolio of the
Mutual Fund.
(d) Amounts allocated to the Managed Investment Account shall be invested
in shares of the AUL American Managed Portfolio of the Mutual Fund.
1.16 "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.
1.17 "Mutual Fund" means the AUL American Series Fund, Inc., a diversified,
open-end management investment company registered under The Investment
Company Act of 1940.
1.18 "Participant" means any person enrolled in this contract who elects to make
Contributions or for whom Contributions are made, and for whom a
Participant Account is established.
P-12867.4
A Mutual Company G-11020B
1.19 "Participant Account" means an account established under this contract for
a Participant. Contributions received by AUL shall be credited to
Participant Accounts as AUL is directed in writing.
1.20 "Portfolio" means a series of the Mutual Fund as described in the
prospectus for the Mutual Fund as such prospectus may be amended or
supplemented from time to time.
1.21 "Valuation Date" means any day when the Home Office of AUL and the New York
Stock Exchange are open and operational.
1.22 "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.
1.23 "Variable Account" means a separate account established by AUL called the
AUL American Unit Trust, which is registered under The Investment Company
Act of 1940 as a unit investment trust.
1.24 "Withdrawal Charge" means a charge taken by AUL equal to a percentage of
the Account Value withdrawn pursuant to Section 4.8, where the percentage
varies by the number of full years measured from the date a Participant
Account is established to the date the Withdrawal Charge is determined.
Such percentage is as follows:
During
Account Years Percentage
1-5 0
6-10 0
Thereafter 0
In no event will the cumulative total of all Withdrawal Charges, including those
previously assessed against any amount withdrawn from a Participant Account,
exceed 9% of total Contributions allocated to that Participant Account.
1.25 "Withdrawal Value" means a Participant's Account Value minus the applicable
Withdrawal Charge.
A Mutual Company G-11020B
ARTICLE 2 - CONTRACT AND AUTHORITY
2.1 Entire Contract: This contract is for the exclusive benefit of the
Participants and their beneficiaries. This contract and the application of
the Contractholder is the entire agreement between AUL and the
Contractholder. Unless there is a specific written agreement signed by a
corporate officer of AUL, 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.
P-12867.6
A Mutual Company G-11020B
ARTICLE 2 - CONTRACT AND AUTHORITY
2.1 Entire Contract. This contract is for the exclusive benefit of the
Participants and their beneficiaries. This contract and the application of
the Contractholder is the entire agreement between AUL and the
Contractholder. Unless there is a specific written agreement signed by a
corporate officer of AUL, AUL is not a party to 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.
P-12867.6 (MO)
A Mutual Company G-11020B
ARTICLE 3 - CONTRIBUTIONS, INVESTMENTS, AND TRANSFERS
3.1 Amount of Contributions:
(a) Contributions may vary in amount and frequency; however, they must be
at least equal to a minimum annual Contribution of $300 per
Participant in any full Contract Year. AUL may change such minimum
annual Contribution acceptable under this contract, but any such
change shall apply only to individuals who become Participants on or
after the date of the change. This contract will not terminate solely
because a Contribution is not made for any Contract Year.
(b) Except for amounts eligible for rollover treatment under Code Sections
402(a)(5), 402(a)(6), 402(a)(7), 403(a)(4), 403(b)(8), or 408(d)(3),
Contributions during a Participant's taxable year (which is presumed
to be a calendar year) must be made in cash and may not exceed the
amounts described below (as adjusted by Code Section 408(a)):
(1) the lesser of $2,000 or 100% of compensation includible in the
Participant's gross income for such taxable year; or
(2) the lesser of $2,250 or 100% of compensation includible in the
Participant's gross income for such taxable year if a
Contribution is made on behalf of the Participant's non-employed
spouse (no more than $2,000 may be allocated to either the
Participant or his spouse); or
(3) the lesser of $30,000 (or, if greater, 25% of the dollar
limitation in effect under Code Section 415(b)(1)(A)) or 15% of
compensation in the case of a simplified employee pension (SEP,
as described in Code Section 408(k)) Contribution.
(c) Excess Contributions (plus gains or minus losses thereon) shall be
withdrawn from a Participant Account and returned to the Participant
upon receipt by AUL at its Home Office of complete written
instructions from the Participant. 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.
3.2 How Contributions Are Handled:
(a) When a Contribution is received at the Home Office, it shall be
credited to Participant Accounts as directed in written allocation
instructions.
(b) The initial Contribution for a Participant shall be credited and
allocated to the Participant Account no later than the close of
business on the second business day of AUL after the later of
(1) the business day that AUL receives the initial Contribution at
its Home Office, or
(2) the business day that AUL receives, at its Home Office, the data
required to establish the Participant Account and allocation
instructions regarding the initial
P-12867.7
A Mutual Company G-11020B
Contribution. If the data required to establish the Participant
Account and allocation instructions regarding the initial Contribution
are not received by AUL at its Home Office within 5 business days
after AUL first receives the initial Contribution, AUL shall return
the initial Contribution to the contributing party unless consent is
given to AUL to retain the initial Contribution until AUL receives the
data and allocation instructions for the Participant. Alternatively,
if the data required to establish the Participant Account and
allocation instructions regarding the initial Contribution are not
received by AUL at its Home Office when AUL first receives the initial
Contribution, to the extent permitted by applicable law, AUL may
allocate the initial Contribution to the Money Market Investment
Account, and shall transfer such amounts credited to the Money Market
Investment Account according to the applicable allocation instructions
upon receipt of the data required to establish the Participant Account
and allocation instructions.
(c) All Contributions subsequent to the initial Contribution shall be
credited and allocated as of the close of business on the Valuation
Period in which AUL receives the Contribution at its Home Office,
provided that the Contribution is received by 4:00 p.m. E.S.T. If the
Contribution is received after 4:00 p.m. E.S.T., such Contribution
shall be deemed to be received, and shall be credited and allocated as
of the close of business, on the next succeeding Valuation Period.
(d) Within any one Participant Account, the amount so credited shall be
allocated to an Investment Option in increments of 10%, 25%, or 33
1/3%, as elected by the Participant in writing. If no allocation
instruction is made with respect to any Participant Account, AUL shall
process such credits in accordance with the allocation instruction
applicable to the immediately preceding Contribution. If there should
be no allocation instruction applicable to a portion of a Contribution
other than the initial Contribution, that amount shall be credited to
the Fixed Interest Account until such time as an appropriate
allocation instruction is received, at which time such amount shall be
withdrawn from the Fixed Interest Account and allocated pursuant to
such instructions. The Participant may change an allocation
instruction with respect to future allocations to his Participant
Account by giving new written allocation instructions to AUL at its
Home Office.
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 Portfolios and to substitute shares of, or
interests in, another Portfolio of the Mutual Fund, of another
open-end, registered investment company, or other investment vehicle,
for shares already purchased or to be purchased in the future under
the contract, if the shares of any or all eligible Portfolios are no
longer available for investment, or if, in AUL's judgment, further
investment in any or all eligible Portfolios becomes inappropriate in
view of the purposes of the Variable Account or the contract. Where
required under applicable law, AUL will not substitute any shares in
the Variable Account or any Investment Account without notice,
Participant 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
P-12867.8
A Mutual Company G-11020B
participants or as permitted by federal law.
(b) AUL reserves the right to establish additional Investment Accounts,
each of which would invest in a new Portfolio of the Mutual Fund, or
in other securities, investment vehicles, or shares of another
diversified open-end management investment company or series thereof.
AUL reserves the right to eliminate or combine existing Investment
Accounts if, in its sole discretion, 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 persons or entities
having voting rights under this contract, 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 Participant may direct
AUL at its Home Office to transfer the amounts credited to an
Investment Option to any other Investment Option during the
Accumulation Period. For any transfer from an Investment Account,
Accumulation Units shall be valued as of the close of business on the
Valuation Date that AUL receives the Participant's direction, provided
that AUL receives such direction by 4:00 p.m. E.S.T. on that Valuation
Date. If such direction is received after 4:00 p.m. E.S.T., such
transfer shall be effective as of the close of business on the next
succeeding Valuation Date.
(b) AUL shall make the transfer as requested by the Participant 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 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.
P-12867.9
A Mutual Company G-11020B
3.5 Limitations on Transfers:
(a) The Participant may not direct a transfer with regard to his
Participant Account's share of any Investment Option in an amount less
than $500 or the Participant Account's entire share, if less than
$500. If such a transfer reduces the Participant Account's remaining
share of an Investment Option to less than $500, the entire remaining
share shall also be transferred.
(b) Amounts transferred from the Fixed Interest Account on behalf of a
Participant during any Contract Year shall not exceed 20 % of the
Participant Account's share of the Fixed Interest Account determined
as of the last Contract Anniversary preceding the request for
transfer, or the Participant Account's entire share of the Fixed
Interest Account if such share would be less than $500 after the
transfer.
(c) 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.
(d) AUL reserves the right to change the limitation on the minimum
transfer, to change the limit on remaining balances, to limit the
number and frequency of transfers, to suspend the transfer privilege
provided in Sections 3.4 and 3.5, and to impose a charge on a
transfer.
P-12867.10
A Mutual Company G-11020B
3.5 Limitations on Transfers:
(a) The Participant may not direct a transfer with regard to his
Participant Account's share of any Investment Option in an amount less
than $500 or the Participant Account's entire share, if less than
$500. If such a transfer reduces the Participant Account's remaining
share of an Investment Option to less than $500, the entire remaining
share shall also be transferred.
(b) Amounts transferred from the Fixed Interest Account on behalf of a
Participant during any Contract Year shall not exceed 20% of the
Participant Account's share of the Fixed Interest Account determined
as of the last Contract Anniversary preceding the request for
transfer, or the Participant Account's entire share of the Fixed
Interest Account if such share would be less than $500 after the
transfer.
(c) 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.
(d) AUL reserves the right to change the limitation on the minimum
transfer, to change the limit on remaining balances, to limit the
number and frequency of transfers, to suspend the transfer privilege
provided in Sections 3.4 and 3.5, and to impose a charge of not more
than $25 on a transfer. AUL reserves the right to change the maximum
limit on such transfer charge upon delivery of written notice to the
Contractholder. Any such change in the maximum limit shall apply only
to transfers by an individual who becomes a Participant on or after
the effective date of such change, and shall apply as long as that
individual remains a Participant.
P- 12867.10 (PA)
A Mutual Company G-11020B
ARTICLE 4 - BENEFITS
4.1 Election of Annuity Options: At the written request of the Participant, AUL
shall apply all or a portion of the Account Value (subject to Section 6.5)
of the Participant Account for the purpose of providing a fixed payment
annuity. Upon receipt of such request, AUL is hereby authorized by such
Participant to value and transfer the Participant Account'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 Participant's Annuity
Commencement Date. The Participant request shall include certification as
to the purpose for the annuity and 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 (5, 10, 15, 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) Survivorship Annuity. The monthly annuity shall be payable to the
annuitant for as long as the annuitant lives. After the death of the
annuitant, a portion (all, 2/3, or 1/2, as specified in the election)
of the annuitant's monthly annuity shall be paid to the contingent
annuitant named in the election for as long as the contingent
annuitant lives. An election of this option is automatically cancelled
if either the Participant or the contingent annuitant dies before the
Annuity Commencement Date.
(d) Unit 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.
(e) 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 30
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.
(f) Any other options made available by AUL at the time a Participant
exercises his option to elect an annuity.
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.
P-12867. 11
A Mutual Company G-11020B
If no annuity option election for a Participant has been received by AUL at
its Home Office at least 30 days prior to the Annuity Commencement Date,
the Account Value (subject to Section 6.5) of his Participant Account shall
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.
Distributions shall be made in accordance with the requirement of Code
Section 401(a)(9) and the Regulations issued thereunder. Under these
requirements, in no event shall any option elected provide annuity benefits
to the Participant or to the Participant and the contingent annuitant which
would extend for a certain period beyond the life expectancy of such
Participant or the joint life expectancy of such Participant and such
contingent annuitant as determined on the Annuity Commencement Date. Life
expectancy for purposes of Code Section 401(a)(9) and the Regulations
issued thereunder shall be computed using the expected return multiples in
Tables V and VI of Section 1.72-9 of the Income Tax Regulations. Any
periodic payments made under Section 401(a)(9) shall be made at intervals
of no longer than one year. In addition, any such periodic payments must be
either nonincreasing or they may increase only as provided in Q&A F-3 of
section 1.401(a)(9)-l of the Proposed Income Tax Regulations.
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 a guaranteed interest rate of 4.00% compounded annually.
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 group 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 total Account Value is less than $2,000, such
value shall be paid in a lump sum to the annuitant rather than annuitized
under the annuity options provided in Section 4.2. Additionally, 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.
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 Participant's
beneficiary (or, if applicable, the secondary beneficiary of the
Participant) and of due proof of the Participant's (and, if
applicable, the beneficiary's) death during the Accumulation Period at
its Home Office, AUL shall apply the Account Value of the Participant
Account 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 Participant, or, if there is
no designated beneficiary living on the date of the Participant's
death, to the Participant's estate. 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.
P-12867.12
A Mutual Company G-11020B
(b) The Account Value to be applied pursuant to (a) above shall be
determined as of the close of business on the later of (1) the
Valuation Date that AUL receives such written instructions at its Home
Office, or (2) the Valuation Date that AUL receives such due proof of
death at its Home Office, provided that such written instructions or
due proof of death received on the later of (1) or (2) above are(is)
received by 4:00 p.m. E.S.T. If the written instructions or due proof
of death received on the later of (1) or (2) above are(is) received
after 4:00 p.m. E.S.T., such valuation shall be made as of the close
of business on the next succeeding Valuation Date.
(c) (1) The benefit shall be payable in accordance with one of the
following provisions as elected by the Participant or the beneficiary
if the Participant did not make an election:
(i) The entire Account Value to be applied shall be paid to the
beneficiary in a single sum or by another elected method on or
before December 31 of the calendar year which contains the fifth
anniversary of the date of the Participant's death; or
(ii) The benefit shall be paid as an annuity in accordance with the
Annuity Options shown in Section 4.2 over a period not to exceed
the life or life expectancy of the beneficiary. If the
beneficiary is not the Participant's surviving spouse, the
annuity must begin on or before December 31 of the calendar year
immediately following the calendar year in which the Participant
died. If the beneficiary is the Participant's surviving spouse,
such spouse may elect to receive equal or substantially equal
payments over the life or life expectancy of such spouse
commencing at any date prior to the later of (1) December 31 of
the calendar year immediately following the calendar year in
which the Participant died, or (2) December 31 of the calendar
year in which the Participant would have attained age 70 1/2.
Such spousal election must be made no later than the earlier of
December 31 of the calendar year containing the fifth anniversary
of the Participant's death or the date distributions are required
to begin pursuant to the preceding sentence. The surviving spouse
may accelerate these payments at any time by increasing the
frequency or amount of such payments. If the beneficiary is the
Participant's surviving spouse, such spouse may treat the
Participant 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 or from this contract, or
fails to elect any of the above three provisions.
(iii)Distributions under this section are considered to have begun if
distributions are made on account of the individual reaching his
or her required beginning date or if prior to the required
beginning date distributions irrevocably commence to an
individual over a period permitted and in an annuity form
acceptable under section 1.401(a)(9) of the Regulations.
P-12867.13
A Mutual Company G-11020B
(2) If a Participant dies on or after his Annuity Commencement Date, any
interest remaining under the Annuity Option selected shall be paid at
least as rapidly as prior to the Participant's death.
(3) 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 above in this
Section, 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 6 months after AUL receives written instructions at
its Home Office.
4.8 Withdrawal Benefits:
(a) Except as stated below, a Participant, upon submitting a proper
written request to AUL at its Home Office, may direct AUL to withdraw
all or a portion of the Account Value (subject to the Withdrawal
Charge) of his Participant Account.
(b) Withdrawals from a Participant Account's share of an Investment Option
may not be made in an amount less than the smaller of $500 or the
Participant Account's entire share of the Investment Option. If a
withdrawal reduces the Participant Account's share of an Investment
Option to less than $500, such remaining share shall also be
withdrawn.
(c) A withdrawal request shall be effective as of the close of business on
the Valuation Date that AUL receives a proper written withdrawal
request at its Home Office, provided that AUL receives such request by
4:00 p.m. E.S.T. on that Valuation Date. If such request is received
after 4:00 p.m. E.S.T., such request shall be effective as of the
close of business on the next succeeding Valuation Date.
(d) The Account Value to be applied pursuant to this Section shall be
determined as of the applicable Valuation Date determined in (c)
above. If the entire Account Value of a Participant Account is
withdrawn, the Participant shall be paid the Withdrawal Value. If the
Participant requests that a specified percentage or dollar amount be
paid to the Participant, AUL shall withdraw from the Participant
Account an amount equal to the dollar amount to be paid divided by the
difference between 1 and the decimal equivalent of the applicable
Withdrawal Charge. Notwithstanding the previous sentence, in any
Contract Year the Participant may withdraw up to 10% of the Account
Value of his Participant Account determined as of the last Contract
Anniversary preceding the request for the withdrawal without
application of any Withdrawal Charge, provided that 12 months have
elapsed from the date that the Participant's first Contribution is
credited to his Participant Account by AUL to the date of such
withdrawal.
(e) AUL shall pay such amount in a cash lump sum to the Participant. Such
cash lump sum will be paid within 7 days from the date that AUL
receives the withdrawal request 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 the payment
of amounts with drawn from the Fixed Interest Account for a period of
up to 6 months after XXX receives the withdrawal request at its Home
Office.
P-12867.14
A Mutual Company G-11020B
(f) Withdrawals from a Participant Account'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 the Participant Account's share of
the Fixed Interest Account which have been on deposit for the longest
period of time, as well as the interest credited thereon, shall be
withdrawn first.
P-12867.15
A Mutual Company G-11020B
ARTICLE 5 - VALUATIONS
5.1 Time of Valuation: All assets of each Portfolio shall be valued as provided
in the prospectus for the Mutual Fund as such 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 a Participant shall be credited to his Participant
Account in the form of Accumulation Units on the basis of the value of such
units in that Investment Account as of the end of the Valuation Period on
which such amounts are received by AUL at its Home Office. Such crediting
shall be made separately for amounts allocated to each Investment Account.
The number of Accumulation Units in each Investment Account credited to
each Participant Account as of any Valuation Period shall be determined by
dividing the amounts allocated to that Investment Account for that
Participant 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 each
Investment Account was established at $1.00 as of April 12, 1990. 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 Portfolio share held in the Investment
Account determined as of the end of the current Valuation Period,
plus
(2) the per share amount of any dividend or other distribution, if
any, paid by the Portfolio 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 Portfolio 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.
P-12867.16
A Mutual Company G-11020B
5.5 Determining the Value of Each Participant Account's Share of any Investment
Account: The value of each Participant Account's share of any Investment
Account as of any Valuation Date shall be determined by multiplying the
Participant Account'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
Participant Account'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.
P-12867.17
A Mutual Company G-11020B
5.5 Determining the Value of Each Participant Account's Share of any Investment
Account: The value of each Participant Account's share of any Investment
Account as of any Valuation Date shall be determined by multiplying the
Participant Account'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
Participant Account'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.
The value of each Participant Account's share of the Fixed Interest Account
as of any Valuation Date shall be equal to the current balance of the
Participant Account's share of the Fixed Interest Account on that date.
P-12867.17(PA)
A Mutual Company G-11020B
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.
6.2 Investment Management Charge: The Mutual Fund shall pay an investment
advisory fee and certain other expenses, which may include its operational
and organizational expenses, as described in the current prospectus 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 Portfolio reflects such
investment advisory fee and other expenses which are deducted from the
assets of such Portfolio.
6.3 Administrative Charge: AUL shall deduct an administrative charge per
Contract Quarter equal to the lesser of $7.50 or 0.5% of the Account Value
on the last day of each Contract Quarter from each Participant Account in
existence on such day for as long as the Participant Account is in effect
during the Accumulation Period. This charge is to be prorated among each
subaccount of the Participant Account which corresponds to each Investment
Option utilized under this contract by that Participant Account. If the
entire balance of a Participant Account is applied or withdrawn before the
last day of the Contract Quarter pursuant to Sections 4.1, 4.7, or 4.8, the
administrative charge attributable to the period of time which has elapsed
since the first day of the Contract Quarter in which such application or
withdrawal of funds is made shall not be deducted from the amount applied
or withdrawn.
6.4 Transfer Charge: AUL reserves the right to deduct a charge for, each
transfer transaction pursuant to Section 3.4. This charge would 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 premium tax
charge at the time annuity payments commence pursuant to Section 4.1 or
such other time that premium taxes are incurred by AUL. AUL also reserves
the right to deduct the appropriate charges for federal, state, or local
income taxes incurred by AUL that are attributable to the Variable Account
and its Investment Accounts.
6.6 Reduction or Waiver of Certain Charges: AUL may reduce or waive the amount
of the Withdrawal Charge or the administrative charge discussed in Section
6.3 where the expenses associated with the sale of this contract or the
administrative costs associated with this contract are reduced, or where
this contract is sold to the directors or employees of AUL or any of its
affiliates, or to directors or any employees of the Mutual Fund.
P-12867.18
A Mutual Company G-11020B
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.
6.2 Investment Management Charge: The Mutual Fund shall pay an investment
advisory fee and certain other expenses, which may include its operational
and organizational expenses, as described in the current prospectus 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 Portfolio reflects such
investment advisory fee and other expenses which are deducted from the
assets of such Portfolio.
6.3 Administrative Charge: AUL shall deduct an administrative charge per
Contract Quarter equal to the lesser of $7.50 or 0.5% of the Account Value
on the last day of each Contract Quarter from each Participant Account in
existence on such day for so long as the Participant Account is in effect
during the Accumulation Period. This charge is to be prorated among each
subaccount of the Participant Account which corresponds to each Investment
Option utilized under this contract by that Participant Account. However,
in no event shall any portion of the annual charge for a Contract Year
attributable to the Fixed Interest Account subaccount of the Participant
Account exceed the amount of the Contributions allocated to such Fixed
Interest Account subaccount for the Participant during such Contract Year
plus interest earned during such Contract Year on amounts held in such
Fixed Interest Account subaccount. If the entire balance of a Participant
Account is applied or withdrawn before the last day of the Contract Quarter
pursuant to Sections 4.1, 4.7, or 4.8, the administrative charge
attributable to the period of time which has elapsed since the first day of
the Contract Quarter in which such application or withdrawal of funds is
made shall not be deducted from the amount applied or withdrawn.
6.4 Transfer Charge: AUL reserves the right to deduct a charge for each
transfer transaction pursuant to Section 3.4. This charge would 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 premium tax
charge at the time annuity payments commence pursuant to Section 4.1 or
such other time that premium taxes are incurred by AUL. AUL also reserves
the right to deduct the appropriate charges for federal, state, or local
income taxes incurred by AUL that are attributable to the Variable Account
and its Investment Accounts.
6.6 Reduction or Waiver of Certain Charges: AUL may reduce or waive the amount
of the Withdrawal Charge or the administrative charge discussed in Section
6.3 where the expenses associated with the sale of this contract or the
administrative costs associated with this contract are reduced, or where
this contract is sold to the directors or employees of AUL or any of its
affiliates, or to directors or any employees of the Mutual Fund.
P-12867.18(WA)
A Mutual Company G-11020B
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.
6.2 Investment Management Charge: The Mutual Fund shall pay an investment
advisory fee and certain other expenses, which may include its operational
and organizational expenses, as described in the current prospectus 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 Portfolio reflects such
investment advisory fee and other expenses which are deducted from the
assets of such Portfolio.
6.3 Administrative Charge: AUL shall deduct an administrative charge per
Contract Quarter equal to the lesser of $7.50 or 0.5% of the Account Value
on the last day of each Contract Quarter from each Participant Account in
existence on such day for as long as the Participant Account is in effect
during the Accumulation Period. This charge is to be prorated among each
subaccount of the Participant Account which corresponds to each Investment
Option utilized under this contract by that Participant Account. If the
entire balance of a Participant Account is applied or withdrawn before the
last day of the Contract Quarter pursuant to Sections 4.1, 4.7, or 4.8, the
administrative charge attributable to the period of time which has elapsed
since the first day of the Contract Quarter in which such application or
withdrawal of funds is made shall not be deducted from the amount applied
or withdrawn.
6.4 Transfer Charge: AUL reserves the right to deduct a charge (not to exceed
$25) for each transfer transaction pursuant to Section 3.4. This charge
would 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 premium tax
charge at the time annuity payments commence pursuant to Section 4.1 or
such other time that premium taxes are incurred by AUL. AUL also reserves
the right to deduct the appropriate charges for federal, state, or local
income taxes incurred by AUL that are attributable to the Variable Account
and its Investment Accounts.
6.6 Reduction or Waiver of Certain Charges: AUL may reduce or waive the amount
of the Withdrawal Charge or the administrative charge discussed in Section
6.3 where the expenses associated with the sale of this contract or the
administrative costs associated with this contract are reduced, or where
this contract is sold to the directors or employees of AUL or any of its
affiliates, or to directors or any employees of the Mutual Fund.
P-12867.18(NJ)
A Mutual Company G-11020B
ARTICLE 7 - RIGHT OF AUL TO CHANGE CERTAIN PROVISIONS
7.1 Right of AUL to Change Interest Rates: AUL has the right at any time, upon
delivery of written notice to the Contractholder, to change the Guaranteed
Rate of Interest. Any such change shall apply only to Participant Accounts
established on or after the effective date of such change, and shall apply
for the duration of such affected Participant Accounts. Any change in the
Guaranteed Rate of Interest shall not result in a rate less than that
prescribed by applicable state law.
7.2 Right of AUL to Change Annuity Table: After the first 5 Contract Years, AUL
has the right at any time, upon delivery of written notice to the
Contractholder, to change any annuity table included in this contract, but
any such change shall apply only to Participant Accounts established on or
after the effective date of such change.
7.3 Right of AUL to Change Charges: AUL has the right at any time, upon
delivery of written notice to the Contractholder, to change the charges set
out in Sections 1.24 and 6.3. Any such change to the Withdrawal Charge set
out in Section 1.24 shall apply only to Participant Accounts established on
or after the effective date of such change, and shall apply for the
duration of such affected Participant Accounts. The administrative charge
set out in Section 6.3 shall be limited to a maximum of $15 per Contract
Quarter until the year 2001. Any increase in the administrative charge made
by AUL for any Contract Quarter beginning after December 31, 2000 shall be
limited to an amount which is designed to reimburse AUL for the expenses
associated with the administration of the contract and the operation of the
Variable Account. Any such increase shall not be anticipated to be a source
of profit for AUL.
7.4 Amendment of Contract to Conform with Law: Notwithstanding the provisions
of Section 8.1, AUL reserves the right to amend this contract at any time,
without the consent of the Contractholder, Participants, or any other
person or entity, to make any change to any provisions of the contract to
comply with, or give the Contractholder or Participants the benefit of,
any provisions of federal or state laws, regulations, or rulings. Any such
amendment shall be stated in a written instrument and delivered to the
Contractholder.
P-12867.19
A Mutual Company G-11020B
ARTICLE 7 - RIGHT OF AUL TO CHANGE CERTAIN PROVISIONS
7.1 Right of AUL to Change Interest Rates: AUL has the right at any time, upon
delivery of written notice to the Contractholder, to change the Guaranteed
Rate of Interest. Any such change shall apply only to Participant Accounts
established on or after the effective date of such change, and shall apply
for the duration of such affected Participant Accounts. Any change in the
Guaranteed Rate of Interest shall not result in a rate less than that
prescribed by applicable state law.
7.2 Right of AUL to Change Annuity Table: AUL does not reserve the right to
change the Table of Immediate Annuities included in this contract.
7.3 Right of AUL to Change Charges: AUL has the right at any time, upon
delivery of written notice to the Contractholder, to change the charges set
out in Sections 1.24 and 6.3. Any such change to the Withdrawal Charge set
out in Section 1.24 shall apply only to Participant Accounts established on
or after the effective date of such change, and shall apply for the
duration of such affected Participant Accounts. The administrative charge
set out in Section 6.3 shall be limited to a maximum of $100 per Contract
Quarter. Any increase in the administrative charge made by AUL for any
Contract Quarter shall be limited to an amount which is designed to
reimburse AUL for the expenses associated with the administration of the
contract and the operation of the Variable Account. Any such increase shall
not be anticipated to be a source of profit for AUL.
7.4 Amendment of Contract to Conform with Law: Notwithstanding the provisions
of Section 8.1, AUL reserves the right to amend this contract at any time,
without the consent of the Contractholder, Participants, or any other
person or entity, to make any change to any provisions of the contract to
comply with, or give the Contractholder or Participants the benefit of, any
provisions of federal or state laws, regulations, or rulings. Any such
amendment shall be stated in a written instrument and delivered to the
Contractholder.
P-12867.19(NJ)
A Mutual Company G-11020B
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 all
Participants is obtained.
AUL shall have no obligation to make any payment or distribution except as
specified in this contract.
8.2 AUL's Annual Statement: No provision or condition of this contract shall be
deemed to control, determine, or modify any annual statement of AUL made to
any insurance department, contractholder, regulatory body, or other person,
nor shall anything in such annual statement be deemed to control,
determine, or modify the valuation provided for in this contract, nor the
values determined, nor the market, book, or other value of any asset in any
Investment Account or Portfolio, nor any of the other provisions and
conditions of this contract.
8.3 Tax Status: AUL does not make any guarantee regarding the federal, state,
or local tax status of this contract, any Participant Account established
hereunder, or any transaction involving this contract.
8.4 Essential Data: The Participant shall furnish to AUL whatever information
is necessary to establish the eligibility and amount of annuity or other
benefit in each instance.
8.5 Reliance: AUL shall be fully protected in relying on any information
furnished by the Contractholder, by any person or persons certified to AUL
by the Contractholder as acting on its behalf, or by a Participant. AUL
need not inquire as to the accuracy or completeness thereof.
8.6 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.
8.7 Annuity Certificates: AUL shall issue to each person for whom an annuity is
purchased from AUL a certificate setting forth the amount and terms of
payment of the annuity.
8.8 Election, Notice, or Direction Requirements: Wherever in this contract
reference is made to the Contractholder or Participant making a request or
giving notice or direction, such request, notice, or direction must be in
writing and must be submitted to, and received by, AUL at its Home Office
before becoming effective, unless the Participant is otherwise directed by
AUL.
8.9 Quarterly Statement of Account Value: As soon as reasonably possible after
the end of each Contract Quarter, AUL shall prepare a statement of the
Account Value of each Participant Account existing under this contract.
8.10 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.
P-12867.20
A Mutual Company G-11020B
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 all
Participants is obtained.
AUL shall have no obligation to make any payment or distribution except as
specified in this contract.
8.2 AUL's Annual Statement: No provision or condition of this contract shall be
deemed to control, determine, or modify any annual statement of AUL made to
any insurance department, contractholder, regulatory body, or other person,
nor shall anything in such annual statement be deemed to control,
determine, or modify the valuation provided for in this contract, nor the
values determined, nor the market, book, or other value of any asset in any
Investment Account or Portfolio, nor any of the other provisions and
conditions of this contract.
8.3 Tax Status: AUL does not make any guarantee regarding the federal, state,
or local tax status of this contract, any Participant Account established
hereunder, or any transaction involving this contract.
8.4 Essential Data: The Participant shall furnish to AUL whatever information
is necessary to establish the eligibility and amount of annuity or other
benefit in each instance.
8.5 Reliance: AUL shall be fully protected in relying on any information
furnished by the Contractholder, by any person or persons certified to AUL
by the Contractholder as acting on its behalf, or by a Participant. AUL
need not inquire as to the accuracy or completeness thereof.
8.6 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. Any discovered underpayment by AUL
resulting from such omission or misstatement of essential data shall be
made up immediately.
8.7 Annuity Certificates: AUL shall issue to each person for whom an annuity is
purchased from AUL a certificate setting forth the amount and terms of
payment of the annuity.
8.8 Election, Notice, or Direction Requirements: Wherever in this contract
reference is made to the Contractholder or Participant making a request or
giving notice or direction, such request, notice, or direction must be in
writing and must be submitted to, and received by, AUL at its Home Office
before becoming effective, unless the Participant is otherwise directed by
AUL.
8.9 Quarterly Statement of Account Value: As soon as reasonably possible after
the end of each Contract Quarter, AUL shall prepare a statement of the
Account Value of each Participant Account existing under this contract.
8.10 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.
P-12867.20(WA)
A Mutual Company G-11020B
8.11 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.
8.12 Sex and Number: Whenever the context so requires, the plural includes the
singular, the singular the plural, and the masculine the feminine.
8.13 Facility of Payment: If any Participant, 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
such Participant, contingent annuitant, or beneficiary. Also, AUL may make
payment directly to any person or entity when directed to do so in writing
by the Participant. Any payment made by AUL will fully discharge AUL to the
extent of such payment.
8.14 Insulation from Liability: The assets of the Variable Account are not
chargeable with liabilities arising out of any other business AUL may
conduct.
8.15 Voting:
(a) AUL is the legal owner of the shares of the Mutual Fund held by the
Investment Accounts of the Variable Account. AUL shall exercise voting
rights attributable to the shares of each Portfolio held in the
Investment Accounts at any regular and special meetings of the
shareholders of the Mutual Fund on matters requiring shareholder
voting under The Investment Company Act of 1940 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 1940 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
the Mutual Fund 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 the Mutual Fund 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 and
Participant Accounts participating in the Investment Account.
(b) The persons having the voting interest under this contract are the
Participants. Unless otherwise required by applicable law, the number
of Mutual Fund shares of a particular Portfolio 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 Portfolio 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 Mutual Fund for
determining shareholders eligible to vote at the meeting of the Mutual
Fund. 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 the Mutual Fund.
P-12867.21
A Mutual Company G-11020B
(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 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, Participants, or others to instruct the voting
of Mutual Fund shares.
(e) Every person or entity having such voting rights shall receive
such reports or prospectuses concerning the Variable Account or
the Mutual Fund as may be required by applicable federal law.
8.16 Acceptance of New Participants or Contributions. AUL reserves the right to
refuse to accept new Participants or new Contributions to this contract at
any time. XXX 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 any contributing Participant or to any
Participant for whom Contributions are being made.
8.17 Nonforfeitability and Nontransferability: The entire Withdrawal Value of a
Participant Account under this contract shall be nonforfeitable at all
times. No sum payable under this contract with respect to a Participant may
be sold, assigned, discounted, or pledged as collateral for a loan or as
security for the performance of an obligation or for any other purpose to
any person or entity other than 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.
8.18 Termination: This contract shall automatically terminate as of the date
that there are no Participant Accounts maintained hereunder.
8.19 Notice of Annual Meeting of Members: The regular annual meeting of the
members of AUL (i.e., contractholders) shall be held at its principal place
of business on the third Thursday in February of each year at the hour of
ten o'clock A.M. Elections for directors shall be held at such annual
meeting.
P-12867.22
A Mutual Company G-11020B
TABLE OF IMMEDIATE ANNUITIES
MONTHLY INCOME PER $1,000 OF ACCOUNT VALUE
ADJUSTED LIFE 10 YEAR CERTAIN
AGE ANNUITY AND LIFE ANNUITY
--- ------- ----------------
45 2.9690 2.9632
46 3.0190 3.0124
47 3.0715 3.0641
48 3.1269 3.1185
49 3.1852 3.1756
50 3.2466 3.2357
51 3.3115 3.2988
52 3.3800 3.3653
53 3.4525 3.4352
54 3.5291 3.5088
55 3.6104 3.5863
56 3.6966 3.6678
57 3.7881 3.7536
58 3.8850 3.8437
59 3.9877 3.9382
60 4.0964 4.0374
61 4.2115 4.1414
62 4.3334 4.2505
63 4.4626 4.3650
64 4.5994 4.4850
65 4.7442 4.6108
66 4.8977 4.7425
67 5.0608 4.8804
68 5.2347 5.0250
69 5.4213 5.1766
70 5.6229 5.3356
71 5.8412 5.5020
72 6.0778 5.6755
73 6.3336 5.8552
74 6.6097 6.0404
75 6.9084 6.2302
94GARF2-4
Adjusted Age = Actual Age at Settlement (in years and completed months) less the
following number of months: [.6 multiplied by (Birth Year - 1915)] rounded to
the nearest integer.
P-12867.23
a Mutual Company G- 11020B
The following are the guaranteed annuity rates for the options offered by AUL.
They are based on the following assumptions:
Retirement value - $1000.00 Interest rate - 4% Load - 4% Participant - Female
Commission - 0% Contingent - Male (same age as participant) Age adjustment - 0
INSTALLMENT
AGE 5 YR C&L 15 YR C&L 20 YR C&L J&S(FULL) J&2/3S J&1/2S REFUND
--- -------- --------- --------- --------- ------ ------ ------
45 4.0004 3.9807 3.9616 3.7883 3.8571 3.8924 3.7984
46 4.0413 4.0192 3.9979 3.8194 3.8914 3.9284 3.8336
47 4.0844 4.0597 4.0358 3.8523 3.9275 3.9662 3.8706
48 4.1299 4.1020 4.0753 3.8869 3.9656 4.0062 3.9094
49 4.1777 4.1465 4.1176 3.9235 4.0058 4.0482 3.9501
50 4.2281 4.1931 4.1595 3.9620 4.0481 4.0926 3.9929
51 4.2813 4.2420 4.2044 4.0028 4.0928 4.1394 4.0377
52 4.3375 4.2933 4.2511 4.0458 4.1401 4.1889 4.0849
53 4.3969 4.3471 4.2997 4.0913 4.1900 4.2412 4.1345
54 4.4596 4.4035 4.3503 4.1395 4.2429 4.2965 4.1867
55 4.5259 4.4627 4.4029 4.1905 4.2988 4.3551 4.2416
56 4.5962 4.5248 4.4574 4.2446 4.3581 4.4172 4.2993
57 4.6707 4.5899 4.5139 4.3020 4.4210 4.4830 4.3602
58 4.7498 4.6582 4.5722 4.3630 4.4878 4.5529 4.4244
59 4.8338 4.7299 4.6323 4.4278 4.5588 4.6273 4.4921
60 4.9231 4.8049 4.6940 4.4968 4.6345 4.7065 4.5633
61 5.0181 4.8834 4.7572 4.5704 4.7150 4.7908 4.6387
62 5.1191 4.9654 4.8215 4.6488 4.8009 4.8808 4.7183
63 5.2267 5.0508 4.8868 4.7325 4.8925 4.9767 4.8020
64 5.3413 5.1395 4.9526 4.8218 4.9903 5.0790 4.8906
65 5.4635 5.2315 5.0186 4.9172 5.0947 5.1883 4.9844
66 5.5940 5.3266 5.0843 5.0193 5.2063 5.3052 5.0830
67 5.7334 5.4244 5.1492 5.1284 5.3258 5.4303 5.1875
68 5.8829 5.5249 5.2127 5.2454 5.4539 5.5646 5.2985
69 6.0434 5.6275 5.2744 5.3708 5.5916 5.7089 5.4156
70 6.2158 5.7317 5.3336 5.5055 5.7396 5.8643 5.5396
71 6.4011 5.8369 5.3897 5.6502 5.8991 6.0319 5.6720
72 6.6002 5.9422 5.4421 5.8058 6.0709 6.2127 5.8244
73 6.8139 6.0467 5.9404 5.9731 6.2561 6.4078 5.9594
74 7.0425 6.1493 5.5342 6.1532 6.4557 6.6183 6.1174
75 7.2868 6.2489 5.5735 6.3471 6.6707 6.8453 6.2830
Table-PA
P-12867.24
AMENDMENT
TO THE
IRA MULTIPLE-FUND GROUP VARIABLE ANNUITY
CONTRACT NUMBER GA 74,222 (THE CONTRACT)
ISSUED BY
AMERICAN UNITED LIFE INSURANCE COMPANY (AUL)
TO
PEOPLES BANK & TRUST COMPANY AS CUSTODIAN ON BEHALF OF ANY PERSON
ELIGIBLE TO PARTICIPATE IN AN IRC 403(b) TAX-DEFERRED ANNUITY WHO BECOMES A
PARTICIPANT UNDER THIS CONTRACT AND SUCH SUCCESSOR CUSTODIAN AS MAY BE
APPOINTED FROM TIME TO TIME (THE CONTRACTHOLDER)
The Effective Date of this Amendment is JANUARY 1, 1999.
AUL and the Contractholder hereby agree, by signing below, that the Contract is
hereby amended by deleting the corresponding Sections and Subsections of the
Contract, if any, and by inserting the following Sections and Subsections in
lieu thereof:
1.15 "Investment Account" means each subaccount of the Variable Account made
available to the Contractholder by AUL and identified in Schedule A of the
contract. Schedule A of the contract may be amended by AUL from time to
time as described in Section 3.3. Amounts allocated to any Investment
Account identified in Schedule A of the contract shall be invested in the
shares of the corresponding Mutual Fund Portfolio listed in the current
prospectus for the Variable Account.
1.17 "Mutual Fund" means the AUL American Series Fund, Inc., a diversified,
open-end management investment company registered under The Investment
Company Act of 1940, and any other such open-end management investment
company made available by AUL.
1.20 "Portfolio" means a series of a particular Mutual Fund as described in that
prospectus for that Mutual Fund, as such prospectus may be amended or
supplemented from time to time.
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 Portfolios and to substitute shares of, or
interests in, another Portfolio of the AUL American Series Fund, Inc.,
of another open-end, registered investment company, or other
investment vehicle, for shares already purchased or to be purchased in
the future under the contract, if the shares of any or all eligible
Portfolios are no longer available for investment, or if, in AUL's
judgment, further investment in any or all eligible Portfolios becomes
inappropriate in view of the purposes of the Variable Account or the
contract. Where required under applicable law, AUL will not substitute
any shares in the Variable Account or any Investment Account without
notice, Participant 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
participants 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 Portfolio
listed in the current prospectus for the
P-12867.AMD. 1
A Mutual Company G-11020B
Variable Account, or in other securities or investment vehicles. AUL
reserves the right to eliminate or combine existing Investment
Accounts if, in its sole discretion, 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 persons or entities
having voting rights under this contract, 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.
4.8 Withdrawal Benefits:
(d) The Account Value to be applied pursuant to this Section shall be
determined as of the applicable Valuation Date determined in (c)
above. If the entire Account Value of a Participant Account is
withdrawn, the Participant shall be paid the Withdrawal Value. If the
Participant requests that a specified percentage or dollar amount be
paid to the Participant, AUL shall withdraw from the Participant
Account an amount equal to the dollar amount to be paid divided by the
difference between I and the decimal equivalent of the applicable
Withdrawal Charge. Notwithstanding the previous sentence, in the first
Contract Year in which a Participant Account is established, and in
the next succeeding Contract Year, the Participant may withdraw from
that Participant Account up to 10% of the sum of the Account Value of
that Participant Account, determined as of the last Contract
Anniversary preceding the request for the withdrawal, plus
Contributions made during the applicable Contract Year, without
application of any Withdrawal Charge. In any subsequent Contract Year,
the Participant may withdraw from that Participant Account up to 10%
of the Account Value of that Participant Account, determined as of the
last Contract Anniversary preceding the request for the withdrawal,
without application of any Withdrawal Charge.
5.1 Time of Valuation: All assets of each Portfolio shall be valued as provided
in the prospectus for the applicable Mutual Fund as such prospectus may be
amended or supplemented from time to time.
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 at $1.00 as of the date of the first deposit to such 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
P-12R67-AMD.2
A Mutual Company G-11020B
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 Portfolio share held in the Investment
Account determined as of the end of the current Valuation Period,
plus
(2) the per share amount of any dividend or other distribution, if
any, paid by the Portfolio 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 Portfolio 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.
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 Investment Management Charge: A Mutual Fund shall pay any investment
advisory fee and certain other expenses, which may include its operational
and organizational expenses, as described in the current prospectus for
that Mutual Fund 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
Portfolio reflects such investment advisory fee and other expenses which
are deducted from the assets of such Portfolio.
6.3 Administrative Charge: AUL shall deduct an administrative charge in the
amount of $3.00 per Contract Quarter on the last day of each Contract
Quarter from each Participant Account in existence on such day for as long
as the Participant Account is in effect during the Accumulation Period.
However, this $3.00 administrative charge per Contract Quarter will be
waived if the Account Value on the last day of the Contract Quarter is
$10,000.00 or greater. When applicable, this $3.00 charge is to be prorated
among each subaccount of the Participant Account which corresponds to each
Investment Option utilized under this contract by that Participant Account.
If the entire balance of a Participant Account is applied or withdrawn
before the last day of the Contract Quarter pursuant to Sections 4.1, 4.7,
or 4.8, the administrative charge attributable to the period of time which
has elapsed since the first day of the Contract Quarter in which such
application or withdrawal of funds is made shall not be deducted from the
amount applied or withdrawn.
6.4 Transfer Charge: AUL reserves the right to deduct a charge (not to exceed
$25) for each transfer transaction pursuant to Section 3.4. This charge
would 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.
P-12867.AMD.3 (New Jersey)
A Mutual Company G-11020B
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 Portfolio share held in the Investment
Account determined as of the end of the current Valuation Period,
plus
(2) the per share amount of any dividend or other distribution, if
any, paid by the Portfolio 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 Portfolio 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.
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 Investment Management Charge: A Mutual Fund shall pay any investment
advisory fee and certain other expenses, which may include its operational
and organizational expenses, as described in the current prospectus for
that Mutual Fund 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
Portfolio reflects such investment advisory fee and other expenses which
are deducted from the assets of such Portfolio.
6.3 Administrative Charge: AUL shall deduct an administrative charge in the
amount of $3.00 per Contract Quarter on the last day of each Contract
Quarter from each Participant Account in existence on such day for as long
as the Participant Account is in effect during the Accumulation Period.
However, this $3.00 administrative charge per Contract Quarter will be
waived if the Account Value on the last day of the Contract Quarter is
$10,000.00 or greater. When applicable, this $3.00 charge is to be prorated
among each subaccount of the Participant Account which corresponds to each
Investment Option utilized under this contract by that Participant Account.
If the entire balance of a Participant Account is applied or withdrawn
before the last day of the Contract Quarter pursuant to Sections 4.1, 4.7,
or 4.8, the administrative charge attributable to the period of time which
has elapsed since the first day of the Contract Quarter in which such
application or withdrawal of funds is made shall not be deducted from the
amount applied or withdrawn.
6.4 Transfer Charge: AUL reserves the right to deduct a charge for each
transfer transaction pursuant to Section 3.4. This charge would 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.
P-12867.AMD.3
A Mutual Company G-11020 B
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 Portfolio share held in the Investment
Account determined as of the end of the current Valuation Period,
plus
(2) the per share amount of any dividend or other distribution, if
any, paid by the Portfolio 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 Portfolio 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.
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 Investment Management Charge: A Mutual Fund shall pay any investment
advisory fee and certain other expenses, which may include its operational
and organizational expenses, as described in the current prospectus for
that Mutual Fund 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
Portfolio reflects such investment advisory fee and other expenses which
are deducted from the assets of such Portfolio.
6.3 Administrative Charge: AUL shall deduct an administrative charge in the
amount of $3.00 per Contract Quarter on the last day of each Contract
Quarter from each Participant Account in existence on such day for as long
as the Participant Account is in effect during the Accumulation Period.
However, this $3.00 administrative charge per Contract Quarter will be
waived if the Account Value on the last day of the Contract Quarter is
$10,000.00 or greater. When applicable, this $3.00 charge is to be prorated
among each subaccount of the Participant Account which corresponds to each
Investment Option utilized under this contract by that Participant Account.
However, in no event shall any portion of the annual charge for a Contract
Year attributable to the Fixed Interest Account subaccount of the
Participant Account exceed the amount of the Contributions allocated to
such Fixed Interest Account subaccount for the Participant during such
Contract Year plus interest earned during such Contract Year on amounts
held in such Fixed Interest Account subaccount. If the entire balance of a
Participant Account is applied or withdrawn before the last day of the
Contract Quarter pursuant to Sections 4.1, 4.7, or 4.8, the administrative
charge attributable to the period of time which has elapsed since the first
day of the Contract Quarter in which such application or withdrawal of
funds is made shall not be deducted from the amount applied or withdrawn.
6.4 Transfer Charge: AUL reserves the right to deduct a charge for each
transfer transaction pursuant to Section 3.4. This charge would 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.
P-12867.AMD.3 (Washington State)
A Mutual Company G-11020B
6.6 Reduction or Waiver of Certain Charges: AUL may reduce or waive the amount
of the withdrawal Charge or the administrative charge discussed in Section
6.3 where the expenses associated with the sale of this contract or the
administrative costs associated with this contract are reduced, or where
this contract is sold to the directors or employees of AUL or any of its
affiliates, or to directors or any employees of the AUL American Series
Fund, Inc. or any other Mutual Fund made available by AUL.
8.15 Voting:
(a) AUL is the legal owner of the shares of a Mutual Fund held by the
Investment Accounts of the Variable Account. AUL shall exercise voting
rights attributable to the shares of each Portfolio held in the
Investment Accounts at any regular and special meetings of the
shareholders of a Mutual Fund on matters requiring shareholder voting
under The Investment Company Act of 1940 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 1940 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 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 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 and Participant Accounts
participating in the Investment Account.
(b) The persons having the voting interest under this contract are the
Participants. Unless otherwise required by applicable law, the number
of Mutual Fund shares of a particular Portfolio 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 Portfolio 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 for
determining shareholders eligible to vote at the meeting of that
Mutual Fund. 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.
(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 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,
Participants, or others to instruct the voting of Mutual Fund shares.
P-12867.AMD.4
A Mutual Company G-11020B
(e) Every person or entity having such voting rights shall receive such
reports or prospectuses concerning the Variable Account or a Mutual
Fund as may be required by applicable federal law.
CONTRACTHOLDER AMERICAN UNITED LIFE INSURANCE
COMPANY
_______________________________ By: /s/ Xxxxx X. Xxxxxx
By
_______________________________ Chairman of the Board,
Title President, & Chief Executive Officer
Attest
Date___________________________ /s/ Xxxxxxx X. Xxxxx
Secretary
P-12867.AMD.5
A Mutual Company G-11020B
SCHEDULE A
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 or Mutual Fund Portfolio
listed below.
Investment Account Mutual Fund or Mutual Fund Portfolio
------------------ ------------------------------------
AUL American Aggressive Investor Portfolio AUL American Aggressive Investor Portfolio
AUL American Bond AUL American Bond
AUL American Conservative Investor Portfolio AUL American Conservative Investor Portfolio
AUL American Equity AUL American Equity
AUL American Managed AUL American Managed
AUL American Moderate Investor Portfolio AUL American Moderate Investor Portfolio
AUL American Money Market AUL American Money Market
AUL American Tactical Asset Allocation Portfolio AUL American Tactical Asset Allocation Portfolio
Xxxxx American Growth Xxxxx American Growth
American Century VP Capital Appreciation American Century VP Capital Appreciation
Xxxxxxx Social Mid-Cap Growth Xxxxxxx Social Mid-Cap Growth
Fidelity VIP Equity-Income Fidelity VIP Equity-Income
Fidelity VIP Growth Fidelity VIP Growth
Fidelity VIP High Income Fidelity VIP High Income
Fidelity VIP Overseas Fidelity VIP Overseas
Fidelity VIP II Asset Manager Fidelity VIP II Asset Manager
Fidelity VIP II Contrafund Fidelity VIP II Contrafund
Fidelity VIP II Index 500 Fidelity VIP II Index 500
Janus Aspen Series Flexible Income 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
PBHG Insurance Series Technology PBHG Insurance Series Technology
and Communication and Communication
SAFECO Resource Series Trust Equity Portfolio SAFECO Resource Series Trust Equity Portfolio
SAFECO Resource Series Trust Growth Portfolio SAFECO Resource Series Trust Growth Portfolio
X. Xxxx Price Equity-Income Portfolio X. Xxxx Price Equity-Income Portfolio
P-12867.AMD.6
A Mutual Company G-11020B
