Common use of Application of Contract Value Clause in Contracts

Application of Contract Value. Prior to the Annuity Date, you may elect to convert all or part of the Net Contract Value, less any charge for premium taxes and/or other taxes, to any currently offered Annuity Option. The aggregate net amount you convert must be no less than the Minimum Annuitization Amount as shown in the Contract Specifications; otherwise, we reserve the right to terminate this Contract and pay a single amount equal to the withdrawal proceeds as determined under the Full Withdrawal provision. You may elect to have annuity payments made monthly, quarterly, semiannually, or annually. Regardless of the frequency of payments, the Minimum Annuity Payment that you may elect to receive is shown in the Contract Specifications. We reserve the right to reduce the frequency of payments or the period certain if the initial annuity payment is less than the Minimum Annuity Payment shown in the Contract Specifications. We reserve the right to pay the amount in a lump sum withdrawal if no annuity benefit equals or exceeds the Minimum Annuity Payment as shown in the Contract Specifications. Subject to the Withdrawal Provisions, you may also elect a full withdrawal in lieu of annuity payments under an Annuity Option. If you convert only a portion of the Net Contract Value on the Annuity Date, you may, at that time, elect not to have the remainder of the Net Contract Value distributed, but instead to continue the Contract with that remaining Contract Value. This option may or may not be available, or may be available only for certain types of Contracts. If this option is available and you elect it, you would choose a second Annuity Date for such Contract Value. All references in this Contract to the Annuity Start Date (or Annuity Date) would, with regard to such Contract Value, be deemed to refer to that second Annuity Date. The second Annuity Date may not be after the Annuity Date shown in the Contract Specifications. You should consult with your tax adviser for more information if you desire this option. Your Selections — Prior to the Annuity Date, you may make three selections about the annuity payments. First, you may choose whether you want those payments to be a fixed-dollar amount or a variable-dollar amount, or both. Second, you may choose the form of annuity payments (Annuity Option). Third, you may choose to have annuity payments made monthly, quarterly, semiannually, or annually. The first annuity payment will be sent on the day following the Annuity Date and must be no less than the Minimum Annuity Payment shown in the Contract Specifications. We may reduce the payment frequency if the first annuity payment is less than the Minimum Annuity Payment shown in the Contract Specifications. If you elect annuity payments for a Period Certain Only, we also reserve the right to reduce the Period Certain to meet the first payment Minimum Annuity Payment as shown in the Contract Specifications. Once annuity payments begin, no changes can be made to either the Annuity Option or the basis on which such payments are made, (a fixed annuity basis or variable annuity basis), no additional purchase payments will be accepted and no withdrawals will be allowed.

Application of Contract Value. Prior Unless directed otherwise, We will apply the fixed account value to provide a fixed annuity, and the Variable Account value to provide a variable annuity. You must tell Us In Writing at least 30 days prior to the Annuity annuity commencement date if You want Us to apply fixed and Variable Account values in different proportions. ANNUITY COMMENCEMENT DATE The annuity commencement date is selected by You and stated in the Application. You may change the annuity commencement date at any time if We receive Written notice at least 30 days before both the current annuity commencement date and the new annuity commencement date. If the annuity commencement date does not occur on a Valuation Date that is at least two years after the Issue Date, you may elect to convert all or part of the Net Contract Value, less any charge for premium taxes and/or other taxes, to any currently offered Annuity Option. The aggregate net amount you convert must be no less than the Minimum Annuitization Amount as shown in the Contract Specifications; otherwise, we We reserve the right to terminate this Contract and pay a single amount equal change the annuity commencement date to the withdrawal proceeds as determined under first Valuation Date that is at least two years after the Full Withdrawal provisionIssue Date. You may elect FREQUENCY AND AMOUNT OF PAYMENTS Annuity payments will be made monthly unless We agree to have annuity payments made monthly, quarterly, semiannually, or annually. Regardless of the frequency of payments, the Minimum Annuity Payment that you may elect to receive is shown in the Contract Specificationsa different payment schedule. We reserve the right to reduce change the frequency of payments or the period certain if the initial either a fixed annuity payment is less than the Minimum Annuity Payment shown in the Contract Specifications. We reserve the right to pay the amount in a lump sum withdrawal if no annuity benefit equals or exceeds the Minimum Annuity Payment as shown in the Contract Specifications. Subject to the Withdrawal Provisions, you may also elect a full withdrawal in lieu of annuity payments under an Annuity Option. If you convert only a portion of the Net Contract Value on the Annuity Date, you may, at that time, elect not to have the remainder of the Net Contract Value distributed, but instead to continue the Contract with that remaining Contract Value. This option may or may not be available, or may be available only for certain types of Contracts. If this option is available and you elect it, you would choose a second Annuity Date for such Contract Value. All references in this Contract to the Annuity Start Date (or Annuity Date) would, with regard to such Contract Value, be deemed to refer to that second Annuity Date. The second Annuity Date may not be after the Annuity Date shown in the Contract Specifications. You should consult with your tax adviser for more information if you desire this option. Your Selections — Prior to the Annuity Date, you may make three selections about the annuity payments. First, you may choose whether you want those payments to be a fixed-dollar amount or a variable-dollar amount, or both. Second, you may choose the form of variable annuity payments (Annuity Option). Third, you may choose to have annuity payments made monthly, quarterly, semiannually, or annually. The first annuity payment so that each payment will be sent at least $50 ($20 in Texas). FIXED ANNUITY PAYMENTS Fixed annuity payments start on the day following end of the Annuity Date and must Valuation Period that contains the annuity commencement date. The amount of a first monthly payment for the annuity form selected will be no less than at least as favorable as that produced by the Minimum Annuity Payment shown in annuity tables of this contract for each $1,000 of Contract Value applied as of the Contract Specificationsend of such Valuation Period. We may reduce the payment frequency if the first annuity payment is less than the Minimum Annuity Payment shown in the Contract Specifications. If you elect annuity The dollar amount of any payments for a Period Certain Only, we also reserve the right to reduce the Period Certain to meet after the first payment Minimum are specified during the entire period of annuity payments, according to the provisions of the annuity form selected. VARIABLE ANNUITY PAYMENTS ANNUITY UNITS We convert the Subaccount Accumulation Units into Subaccount Annuity Payment Units at the values determined at the end of the Valuation Period which contains the annuity commencement date. The number of Subaccount Accumulation Units remains constant as shown long as an annuity remains in force and allocation among the Subaccounts has not changed. Each Subaccount Annuity Unit value was arbitrarily set when the Subaccount first converted Subaccount Accumulation Units into Annuity Units. Subsequent values on any Valuation Date are equal to the previous Subaccount Annuity Unit value times the Net investment factor for that Subaccount for the Valuation Period ending on that Valuation Date, with an offset for the 3% assumed interest rate used in the Contract Specificationsannuity tables of this contract. Once Variable annuity payments beginstart on the end of the Valuation Period that contains the annuity commencement date. The amount of a first monthly payment for the illlustrated annuity forms is shown on the annuity tables of this contract for each $1,000 of Contract Value applied as of the end of such Valuation Period. Payments after the first payment will vary in amount and are determined on the first Valuation Date of each subsequent payment period. If the payment under the annuity form selected is based on the variable annuity unit value of a single Subaccount, the payment is found by multiplying the Subaccount Annuity Unit value on the payment date by the number of Subaccount Annuity Units. If the payment under the annuity form selected is based upon variable Annuity Unit values of more than one Subaccount, the above procedure is repeated for each applicable Subaccount. The sum of these payments is the variable annuity payment. We guarantee that the amount of each payment after the first payment will not be affected by variations in expense or mortality experience. <PAGE> OPTIONAL ANNUITY FORMS You may select an annuity form or change a previous selection. The selection or change must be In Writing and received by Us at least 30 days before the annuity commencement date. If no changes can be made to either annuity form selection is in effect on the Annuity annuity commencement date, We automatically apply Option or B, with payments guaranteed for 10 years. The following options are available for the basis on which such payments are made, (a fixed annuity basis or payments and the variable annuity basis), no additional purchase payments will be accepted and no withdrawals will be allowed.payments:

Application of Contract Value. Prior Unless directed otherwise, We will apply the Fixed Account value adjusted by the Market Value Adjustment, to provide a Fixed Annuity, and the Variable Account value to provide a Variable Annuity. You must tell Us In Writing at least 30 days prior to the annuity commencement date if You want Us to apply Fixed and Variable Account values in different proportions. ANNUITY COMMENCEMENT DATE The annuity commencement date is selected by You and stated in the Application. The date must be before the Annuitant's 75th birthday unless We agree to it. You may change the annuity commencement date at any time if We receive Written notice at least 30 days before both the current annuity commencement date and the new annuity commencement date. The Annuity Commencement Date cannot be later than the Annuitant's 90th birthday. If the annuity commencement date does not occur on a Valuation Date that is at least 2 years after the Issue Date, you may elect to convert all or part of the Net Contract Value, less any charge for premium taxes and/or other taxes, to any currently offered Annuity Option. The aggregate net amount you convert must be no less than the Minimum Annuitization Amount as shown in the Contract Specifications; otherwise, we We reserve the right to terminate this Contract and pay a single amount equal change the annuity commencement date to the withdrawal proceeds as determined under first Valuation Date that is at least 2 years after the Full Withdrawal provisionIssue Date. You may elect FREQUENCY AND AMOUNT OF PAYMENTS Annuity payments will be made monthly unless We agree to have annuity payments made monthly, quarterly, semiannually, or annually. Regardless of the frequency of payments, the Minimum Annuity Payment that you may elect to receive is shown in the Contract Specificationsa different payment schedule. We reserve the right to reduce change the frequency of either a Fixed Annuity payment or a Variable Annuity payment so that each payment will be at least $50. FIXED ANNUITY PAYMENTS Fixed Annuity payments or start on the period certain if end of the initial Valuation Period that contains the annuity commencement date. The amount of the first monthly payment is less than for the Minimum Annuity Payment shown in annuity form selected will be at least as favorable as that produced by the annuity tables of this Contract Specificationsfor each $1,000 of Contract Value adjusted by the Market Value Adjustment, applied as of the end of such Valuation Period. We reserve may, as of the right to pay the amount in a lump sum withdrawal if no annuity benefit equals or exceeds the Minimum Annuity Payment as shown in the Contract Specifications. Subject to the Withdrawal Provisionscommencement date, you may also elect a full withdrawal in lieu of offer for sale single premium immediate annuity payments under an Annuity Optioncontracts. If you convert only a portion of so, the Net Contract Value on annuity benefits available under this contract will be at least as favorable as the Annuity Date, you may, at that time, elect not to have benefit available by using the remainder of the Net Contract Value distributed, but instead to continue the Contract with that remaining Contract Value. This option may or may not be available, or may be available only for certain types of Contracts. If this option is available and you elect it, you would choose a second Annuity Date for such Contract Value. All references in this Contract to the Annuity Start Date (or Annuity Date) would, with regard to such Contract Value, be deemed adjusted by the Market Value Adjustment, to refer to that second Annuity Datepurchase one of our single premium immediate annuities. The second Annuity Date may not be after the Annuity Date shown in the Contract Specifications. You should consult with your tax adviser for more information if you desire this option. Your Selections — Prior to the Annuity Date, you may make three selections about the annuity payments. First, you may choose whether you want those payments to be a fixed-dollar amount or a variable-dollar amount, or both. Second, you may choose the form of annuity any payments (Annuity Option). Third, you may choose to have annuity payments made monthly, quarterly, semiannually, or annually. The first annuity payment will be sent on the day following the Annuity Date and must be no less than the Minimum Annuity Payment shown in the Contract Specifications. We may reduce the payment frequency if the first annuity payment is less than the Minimum Annuity Payment shown in the Contract Specifications. If you elect annuity payments for a Period Certain Only, we also reserve the right to reduce the Period Certain to meet after the first payment Minimum are specified during the entire period of annuity payments, according to the provisions of the annuity form selected. VARIABLE ANNUITY PAYMENTS We convert the Subaccount Accumulation Units into Subaccount Annuity Payment Units at the values determined at the end of the Valuation Period which contains the annuity commencement date. The number of Subaccount Accumulation Units remains constant as shown long as an annuity remains in force and allocation among the Subaccounts has not changed. Each Subaccount Annuity Unit Value was arbitrarily set when the Subaccount first converted Subaccount Accumulation Units into Annuity Units. Subsequent values on any Valuation Date are equal to the previous Subaccount Annuity Unit Value times the Net Investment Factor for that Subaccount for the Valuation Period ending on that Valuation Date, with an offset for the 3% assumed interest rate used in the annuity tables of this Contract. <PAGE> Variable Annuity payments start on the end of the Valuation Period that contains the annuity commencement date. The amount of the first monthly payment for the annuity form selected, is shown on the annuity tables of this Contract Specificationsfor each $1,000 of Contract Value applied as of the end of such Valuation Period. Once Payments after the first payment will vary in amount and are determined on the first Valuation Date of each subsequent monthly period. If the monthly payment under the annuity payments begin, no changes can be made to either form selected is based on the Annuity Option or the basis on which such payments are made, (a fixed annuity basis or variable annuity basis)unit value of a single Subaccount, the monthly payment is found by multiplying the Subaccount unit value on the payment date by the number of Subaccount Annuity Units. If the monthly payment under the annuity form selected is based upon Annuity Unit values of more than one Subaccount, the above procedure is repeated for each applicable Subaccount. The sum of these payments is the variable annuity payment. We guarantee that the amount of each payment after the first payment will not be affected by variations in expense or mortality experience. OPTIONAL ANNUITY FORMS You may select an annuity form or change a previous selection. The selection or change must be In Writing and received by Us at least 30 days before the annuity commencement date. If no additional purchase annuity form selection is in effect on the annuity commencement date, We automatically apply Option B, with payments will be accepted guaranteed for 10 years. The following options are available for the Fixed Annuity payments and no withdrawals will be allowed.the Variable Annuity payments: