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EXHIBIT (4)(a)
ML LIFE INSURANCE COMPANY OF NEW YORK
Home Office: 000 Xxxxxx Xxxxxx, 00xx Xxxxx, Xxx Xxxx, XX 00000-0000
Service Center: P. X. Xxx 00000
Xxxxxxxxxxxx, Xxxxxxx 00000-0000
ML LIFE INSURANCE COMPANY OF NEW YORK will make periodic annuity payments for
the life of the Annuitant or as otherwise provided in this Contract. Payments
will be made to the Owner starting on the Annuity Date.
This is a legal Contract between you and us. PLEASE READ THE CONTRACT CAREFULLY.
EXCEPT FOR FIXED ANNUITY PAYMENTS, THE VALUES OF THE SUBACCOUNTS ARE BASED ON
THE VALUE OF THE SEPARATE ACCOUNT ASSETS WHICH ARE NOT GUARANTEED AS TO
FIXED-DOLLAR AMOUNT AND WILL INCREASE OR DECREASE IN VALUE BASED UPON INVESTMENT
RESULTS.
TEN DAY RIGHT TO REVIEW CONTRACT: You may cancel this Contract within ten days
after you receive it. Simply return or mail it to us or your Financial Advisor.
We will refund the greater of the Contract Value or all of your Premiums.
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TABLE OF CONTENTS
SECTION PAGE
Definitions................................................. 2
Contract Schedule........................................... 2
1. General Provisions...................................... 3
2. Premiums................................................ 4
3. The Separate Account.................................... 5
4. Charges and Deductions.................................. 6
5. Transfers............................................... 6
6. Withdrawals............................................. 7
7. Payment at Death........................................ 8
8. Annuity Provisions...................................... 9
9. Annuity Options......................................... 10
10. Annuity Option Tables................................... 11
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ML Life Insurance Company of New York is a stock life insurance company.
[Xxxxx X. Xxxxxxxx] [Xxxx X. Xxxxx]
President Secretary
Flexible Premium Deferred
Variable Annuity Contract
Nonparticipating
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DEFINITIONS
1. ACCUMULATION UNIT: A unit of measure used to compute the value of your
interest in a subaccount of the Separate Account prior to the Annuity Date.
2. ANNUITANT: Annuity payments may depend upon the continuation of a person's
life. That person is called the Annuitant.
3. ANNUITY DATE: The date on which annuity payments are scheduled to begin.
4. ATTAINED AGE: The age of a person on the Contract Date plus the number of
full contract years since the Contract Date.
5. BENEFICIARY: The person(s) designated by you to receive payment upon the
death of an Owner prior to the Annuity Date.
6. COMPANY: ML Life Insurance Company of New York. Also referred to as "we" or
"us."
7. CONTRACT ANNIVERSARY: The yearly anniversary of the Contract Date.
8. CONTRACT DATE: The effective date of the Contract as shown on the Contract
Schedule. This is usually the business day we receive your initial premium
at our Service Center.
9. CONTRACT VALUE: The value of your interest in the Separate Account.
10. CONTRACT YEAR: The period from the Contract Date to the first Contract
Anniversary, and thereafter, the period from one Contract Anniversary to the
next Contract Anniversary.
11. DUE PROOF OF DEATH: A certified copy of the death certificate, Beneficiary
Statement and any additional paperwork necessary to process a death claim.
12. FUND: An investment portfolio of an open-end management investment company
or unit investment trust in which a subaccount invests.
13. NONQUALIFIED CONTRACT: A retirement arrangement plan other than a qualified
plan described under Section 401, 403, 408, 457 or any similar provisions of
the Internal Revenue Code.
14. OWNER: The person or persons entitled to exercise all rights under the
Contract. In this Contract, "you" means Owner.
15. PREMIUMS: The money you pay into this Contract.
16. SEPARATE ACCOUNT: This Contract is funded by a separate account of the
Company. The separate account has multiple subaccounts which invest in
shares or units of an underlying Fund. The separate account and the
subaccounts currently available with this Contract are identified in the
Contract Schedule.
17. SURRENDER VALUE: The amount payable upon surrender of the Contract. It is
equal to the Contract Value less any Contingent Deferred Sales Charge and
any other charges which are collected upon a full withdrawal.
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1. GENERAL PROVISIONS
1.1 BENEFICIARY: The beneficiary is shown in the Contract Schedule. You may
change the beneficiary while you are alive.
You may name a beneficiary irrevocably. If you do so, you can later change
the beneficiary only with the beneficiary's written consent.
If a beneficiary does not survive you, the estate or heirs of such
beneficiary have no rights under this Contract. However, if a beneficiary
survives you but dies before the Contract Value is distributed, the estate
or heirs of such beneficiary are entitled to the death benefit that would
otherwise have been paid to such beneficiary. If no beneficiary survives
you, payment of the death benefit will be made to your estate.
1.2 OWNERSHIP OF CONTRACT: Unless another Owner is named by the purchaser, the
purchaser is the Owner. Upon notice to us you may assign the Contract to a
new Owner. The assignment terminates all prior beneficiary designations.
When the Contract is issued or the Owner is changed, the age of the Owner
(or older co-owner or Annuitant, if applicable) must be less than the
Maximum Owner Age shown in the Contract Schedule.
The beneficiary of co-owner spouses must be the surviving spouse. Ownership
rights must be exercised by the co-owners jointly. Co-owners are deemed to
be joint tenants with right of survivorship unless they indicate otherwise.
1.3 ANNUITANT: When an annuity option is elected, the amount payable as of the
Annuity Date is based on the age and sex of the Annuitant, the annuity
option selected, and the Contract Value.
The Annuitant may be changed at any time prior to the Annuity Date. A
change of Annuitant by a non-natural owner will be treated as the death of
an Owner (see Section 7.1). When the Contract is issued or a new Annuitant
is named, the age of the Annuitant (or the older joint annuitant, if
applicable) must be less than the Maximum Annuitant Age shown in the
Contract Schedule.
1.4 NOTICES, CHANGES AND CHOICES: To be effective, all notices, changes and
choices you may make under this Contract must be in writing, signed and
received by us at our Service Center. If acceptable to us, notices,
changes, and choices relating to beneficiaries, ownership, Annuitants, and
Annuity Date will take effect as of the date signed unless we have already
acted in reliance on the prior status. We are not responsible for their
validity.
1.5 MISSTATEMENT OF AGE OR SEX: If the age of the Owner (or co-owner, if
applicable) is misstated, any death benefit payable under this Contract
will be adjusted to reflect the correct age.
If the age or sex of the Annuitant (or joint annuitant, if applicable) is
misstated, annuity payments will be adjusted to reflect the correct age(s)
and sex(es). Any amount we have overpaid as the result of such misstatement
will be deducted from the next payments made by us under this Contract.
Interest on the overpayment will be charged at the rate of 6% per year. Any
amount we have underpaid will be paid in full with the next payment made by
us under this Contract. We will pay interest on the underpayment at the
rate of 6% per year.
1.6 PROOF OF AGE, SEX, OR SURVIVAL: We may require satisfactory proof of age,
sex, or survival of any person on whose continued life any payment under
this Contract depends.
1.7 INCONTESTABILITY: We will not contest this Contract.
1.8 THE CONTRACT: This Contract, any applications, and any endorsements or
riders are the entire Contract. It is issued in consideration of the
payment of the Initial Premium.
Only our President, a Vice President, Secretary, or Assistant Secretary may
change the Contract. Any change must be in writing.
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At any time we may make such changes in this Contract as required to make
it conform with any law, regulation, or ruling issued by a government
agency.
1.9 NONPARTICIPATING: This Contract is nonparticipating. It does not share in
our surplus.
1.10 DATES: Contract years and anniversaries are measured from the Contract
Date.
1.11 CONTRACT PAYMENTS: All sums payable to or by us are payable at our
Service Center. We may require return of this Contract prior to making
payment. Paid-up annuity benefits, Contract withdrawal values and death
benefits will not be less than the minimum required by the laws of the
state in which the Contract is delivered.
1.12 PROTECTION OF PROCEEDS: Payments under this Contract may not be assigned
by the payee prior to their due dates. To the extent allowed by law,
payments are not subject to legal process for debts of a payee.
1.13 PERIODIC REPORTS: At least once a year prior to the Annuity Date we will
furnish you with a report for your Contract. It will show the current
number of Accumulation Units, the value per Accumulation Unit and the
Contract Value.
1.14 PAYMENTS UNDER THE CONTRACT: Payment generally will be made within seven
days of our receipt of a completed request, but we may defer payment if:
(a) The New York Stock Exchange is closed;
(b) Trading on the New York Stock Exchange is restricted;
(c) An emergency exists such that it is not reasonably practical to
dispose of securities in the Separate Account or to determine the
value of its assets;
(d) The Securities and Exchange Commission by order so permits for the
protection of security holders; or
(e) Payment is derived from a check used to pay a Premium which has not
cleared through the banking system.
Conditions (b), (c) and (d) will be decided by or in accordance with rules
of the Securities and Exchange Commission. Transfers also may be deferred
upon the occurrence of any of the events described above. We reserve the
right, at our option, to defer any payments in accordance with the
deferment provisions of the Investment Company Act of 1940, as amended.
1.15 TAX QUALIFICATION: This Contract is intended to qualify as an annuity
contract for federal income tax purposes. To that end, the provisions of
this Contract are to be interpreted to ensure or maintain such tax
qualification, notwithstanding any other provision to the contrary.
Distributions under this Contract shall be made in a time and manner
necessary to maintain such qualification under the applicable provisions
of the Internal Revenue Code including, in the case of an owner who is a
non-natural person, the requirement to distribute the entire interest in
the Contract upon any change of the Annuitant. For this purpose, the
entire interest in the Contract is the Contract Value less any applicable
charges. We reserve the right to amend this Contract to reflect any
clarifications that may be needed or are appropriate to maintain such
qualification or to conform this Contract to any applicable changes in the
tax qualification requirements.
2. PREMIUMS
2.1 ADDITIONAL PREMIUMS: The Minimum Additional Premium is shown on the
Contract Schedule. Premiums may be paid at any time prior to the Annuity
Date without prior notice to us. We will restrict your right to make
additional premium payments as required by law.
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You may choose to have additional premiums paid systematically from your
Xxxxxxx Xxxxx brokerage account. You may change the premium amount,
premium allocation, or cancel this feature upon written notice to us.
2.2 PREMIUM ALLOCATION: Your Premiums will be allocated to the subaccounts of
the Separate Account, as shown in the Contract Schedule. If you do not give
us allocation instructions with subsequent Premiums, we will allocate those
Premiums according to the allocation instructions last received from you.
3. THE SEPARATE ACCOUNT
3.1 THE SEPARATE ACCOUNT: The Separate Account is identified in the Contract
Schedule. It is a separate investment account of ML Life Insurance Company
of New York. With respect to the Separate Account, income, gains, and
losses, whether or not realized, from assets allocated to the Separate
Account are credited to or charged against the Separate Account without
regard to other income, gains, or losses of the Company. Assets allocated
to the Separate Account remain our property but are separate from our
general account and any other separate accounts we may have. Separate
Account assets, to the extent equal to the Separate Account's reserves and
other liabilities, may not be charged with liabilities from any other
business we conduct. We reserve the right to transfer any excess to our
general account.
3.2 SUBACCOUNTS: Current subaccounts are shown in the Contract Schedule. We
reserve the right to limit the number of subaccounts in which you may
invest to the number shown in the Contract Schedule.
3.3 CHANGES TO THE SEPARATE ACCOUNT: We may make additional subaccounts
available. We reserve the right, subject to obtaining any necessary
regulatory approvals, to close or eliminate subaccounts; to substitute a
new portfolio for the portfolio in which a subaccount invests; to
deregister the Separate Account under the Investment Company Act of 1940
(the "1940 Act"); to make any changes required by the 1940 Act; to operate
the Separate Account as a managed investment company under the 1940 Act or
any other form permitted by law; to transfer all or a portion of the assets
of a subaccount or Separate Account to another subaccount or Separate
Account pursuant to a combination or otherwise; and to create a new
Separate Account.
3.4 NUMBER OF ACCUMULATION UNITS: For each subaccount the number of your
Accumulation Units is the sum of:
Each Premium or transfer allocated to the subaccount
Divided by
The value of an Accumulation Unit for that subaccount for the
valuation period in which we received the Premium or transfer.
The number of Accumulation Units will be adjusted for transfers from each
subaccount, withdrawals and charges. Adjustments will be made as of the
valuation period in which the transaction is effective.
3.5 VALUE OF EACH ACCUMULATION UNIT: For each subaccount, the value of an
Accumulation Unit was arbitrarily set at $10 when the subaccount was
established. The value may increase or decrease from one valuation period
to the next. For any valuation period the value is:
The value of an Accumulation Unit for the last prior valuation
period
Multiplied by
The Net Investment Factor for that subaccount for the current
valuation period.
3.6 NET INVESTMENT FACTOR: This is an index used to measure the investment
performance of a subaccount from one valuation period to the next. For any
subaccount, we determine the Net
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Investment Factor by dividing the value of the assets of the subaccount for
that valuation period by the value of the assets of the subaccount for the
preceding valuation period. We subtract from that result the daily
equivalent of the asset-based insurance charge for the valuation period. We
also take reinvestment of dividends and capital gains into account when we
determine the Net Investment Factor.
We may adjust the Net Investment Factor to make provision for any change
in tax law that requires us to pay tax on earnings in the Separate Account
and any charge that may be assessed against the Separate Account for
assessments or federal premium taxes or federal, state or local excise,
profits or income taxes measured by or attributable to the receipt of
Premiums.
3.7 VALUATION PERIOD: This is the interval from one determination of the net
asset value of a subaccount to the next. Net asset values are determined as
of the close of trading on each day the New York Stock Exchange is open.
4. CHARGES AND DEDUCTIONS
4.1 CONTRACT FEE: A Contract Fee may be deducted from the Contract Value on
each Contract Anniversary that occurs on or prior to the Annuity Date. It
may also be deducted upon a full withdrawal of the Contract Value if it is
not withdrawn on a Contract Anniversary. The amount of the Contract Fee and
circumstances under which it will be imposed are shown in the Contract
Schedule. This charge will never increase.
4.2 ASSET-BASED INSURANCE CHARGE: This charge is made to compensate us for our
expenses for administration of the Separate Account, for issue and
administration of the Contract, for providing a guaranteed minimum death
benefit, and our risks. The maximum charge equals, on an annual basis, the
percentage shown in the Contract Schedule. The asset-based insurance charge
is deducted daily from the net asset value of the subaccounts.
4.3 CONTINGENT DEFERRED SALES CHARGE: A charge may be made on withdrawals
prior to the Annuity Date. The amount of any Contingent Deferred Sales
Charge and how it is calculated are shown in the Contract Schedule.
4.4 TAXES, FEES AND ASSESSMENTS: Any charges made by us attributable to
premium taxes imposed by a state or other government will be deducted at
the Annuity Date, except in those jurisdictions that do not allow us to
reduce our current taxable premium income by the amount of any withdrawal
or death benefit. In those jurisdictions, we will also deduct a charge for
those taxes on any withdrawal or death benefit paid under the Contract. We
may also deduct a charge for assessments or federal premium taxes or
federal, state, or local excise, profits, or income taxes measured by or
attributable to the receipt of Premiums. We also reserve the right to
deduct from the Separate Account any taxes imposed on the Separate Account.
4.5 PAYMENT OF DEDUCTIONS: The asset-based insurance charge will be computed
and deducted from each subaccount for each day the Contract is in force.
The transfer charge described in Section 5.1 will be deducted pro rata from
the subaccounts from which Contract Value is being transferred. Other
applicable charges will be deducted from each subaccount of the Separate
Account in the ratio of your interest in each subaccount to your Contract
Value. However, if you request a partial withdrawal from specific
subaccounts, any Contingent Deferred Sales Charge attributable to such
withdrawal will also be deducted from those subaccounts in the same
proportion as the withdrawal.
5. TRANSFERS
5.1 TRANSFERS AMONG SUBACCOUNTS: You may transfer all or part of your Contract
Value among the subaccounts. Your request will be processed as of the end
of the valuation period during which your request is received in good
order. The number of transfers allowed each contract year without charge is
shown in the Contract Schedule. We reserve the right to charge for each
additional
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transfer as shown in the Contract Schedule. The minimum amount which may be
transferred from any subaccount in any transaction is shown in the Contract
Schedule.
An excessive number of transfers, including short-term "market timing"
transfers, may adversely affect the performance of the underlying
portfolio in which a subaccount invests. If, in our sole opinion, a
pattern of an excessive number of transfers develops for a Contract, we
reserve the right not to process a transfer request. We also reserve the
right not to process a transfer request when the sale or purchase of
shares or units of an underlying portfolio is not reasonably practicable
due to actions taken or limitations imposed by the underlying fund.
5.2 DOLLAR COST AVERAGING PROGRAM: You may transfer all or part of your
Contract Value in a designated subaccount to one or more other subaccounts
pursuant to the Dollar Cost Averaging Program (DCA Program). We will
transfer a specified amount each month from the subaccount that you
designate and allocate it in accordance with your instructions to the
subaccount(s) that you select. To elect the DCA Program you need to have a
minimum amount in the designated subaccount equal to the amount to be
transferred each month multiplied by the number of monthly transfers.
5.3 ASSET ALLOCATION PROGRAM: You may choose to have your premiums and
Contract Value allocated among the subaccounts in accordance with an Asset
Allocation Model you select based on your investment goals and risk
tolerance. Each model identifies specific subaccounts and the percentage of
premium or Contract Value which should be allocated to each of these
subaccounts. At the end of each calendar quarter we will automatically
reallocate your Contract Value to maintain the subaccounts and percentages
then in effect for your selected model.
5.4 REBALANCING PROGRAM: You may choose the Rebalancing Program where you
select the percentage of premium and Contract Value to be allocated to
subaccounts you select based on your investment goals and risk tolerance.
We will allocate your premiums or Contract Value to these subaccounts in
accordance with the percentages you select. At the end of each calendar
quarter we will automatically reallocate your Contract Value to maintain
the particular percentage allocation among the subaccounts you have
selected.
6. WITHDRAWALS
6.1 WITHDRAWALS: You may withdraw all or part of your Contract Value. Your
request will be processed as of the end of the valuation period during
which your request is received in good order. Notice must be received by us
prior to the Annuity Date. The minimum amount of each withdrawal, and the
Contract Value that must remain after a withdrawal, are shown in the
Contract Schedule. For a full withdrawal, upon surrender of this Contract
to our Service Center we will pay you the Surrender Value.
6.2 SYSTEMATIC WITHDRAWAL PROGRAM: You may have automatic withdrawals of a
specified dollar amount made periodically. The total amount of these
withdrawals in any contract year cannot exceed 10% of total premiums paid
less any prior withdrawals during that contract year. We will make these
withdrawals from the subaccounts in the same proportion as the value of
each subaccount bears to the Contract Value. The minimum amount of each
withdrawal and the remaining Contract Value after a withdrawal is shown in
the Contract Schedule. The Systematic Withdrawal Program cannot extend
beyond the Annuity Date.
6.3 PAYMENT OF WITHDRAWALS: Unless you notify us otherwise, partial
withdrawals will be deducted from each subaccount in the ratio of your
Contract Value in each subaccount to the Contract Value. If you take a full
withdrawal, you may receive the Contract Value in a lump sum or apply it
under an annuity option described in Section 9. Withdrawals will be based
on values for the valuation period in which the notice (and Contract if
required) is received at our Service Center.
6.4 EFFECT OF WITHDRAWALS ON DEATH BENEFIT: Withdrawals will reduce on a
proportional basis the amount payable to a beneficiary if an Owner dies
prior to the Annuity Date. See Section 7.1.1.
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7. PAYMENT AT DEATH
7.1 DEATH OF OWNER
(including an Annuitant who is also an Owner)
7.1.1 DEATH PRIOR TO ANNUITY DATE: If an Owner dies prior to the Annuity Date
(or if there are co-owners, upon the death of the first co-owner), we will
pay the beneficiary the death benefit specified below in a lump sum or, if
requested, under an Annuity Option under Section 7.1.4. If the Owner is a
non-natural person, then the Annuitant, rather than the Owner will be used
to determine the death benefit. The death benefit is determined as of the
date we receive Due Proof of Death of the Owner at our Service Center.
(a) If the Owner is under age 80 on the Contract Date, the death benefit
is the greatest of:
(i) the premiums paid into the Contract less "adjusted" withdrawals
from the Contract;
(ii) the Contract Value; or
(iii) the Maximum Anniversary Value.
Each "adjusted" withdrawal equals the amount withdrawn multiplied by
the greater of (i) and (iii) divided by (ii) (all of which are
determined immediately prior to the withdrawal).
(b) If the Owner is age 80 or over on the Contract Date, the death
benefit is the greater of:
(i) the premiums paid into the Contract less "adjusted" withdrawals
from the Contract; or
(ii) the Contract Value.
Each "adjusted" withdrawal equals the amount withdrawn multiplied by
(i) divided by (ii) (both determined immediately prior to the
withdrawal).
If we have not received the beneficiary's instructions for making payment
within 60 days following our receipt of the Owner's certified death
certificate, Due Proof of Death will be deemed to have been received by us
on the 60th day, and payment will be made in a lump sum.
The following is an explanation and example of the effect of a withdrawal
on the death benefit. For purposes of this example (b)(i) of this section
and the greater of (a)(i) and (a)(iii) of this section are referred to as
the Guaranteed Minimum Death Benefit (GMDB).
The adjustment to a withdrawal causes the GMDB to be reduced in the same
proportion that the withdrawal reduces the Contract Value. For example:
Assume that the GMDB and Contract Value immediately prior to a withdrawal
are $100,000 and $50,000, respectively. If a $10,000 withdrawal is taken
from the Contract, the "adjusted" withdrawal would equal the amount
withdrawn, multiplied by the GMDB divided by the Contract Value ($10,000 x
$100,000 / $50,000 = $20,000). Since a $10,000 withdrawal reduces the
Contract Value by 20% ($10,000 / $50,000), the GMDB is also reduced by 20%
or $20,000 (20% x $100,000).
7.1.2 MAXIMUM ANNIVERSARY VALUE: The Maximum Anniversary Value is equal to the
greatest anniversary value for the Contract. An anniversary value is equal
to the Contract Value on a Contract Anniversary increased by premium
payments and decreased by "adjusted" withdrawals, as defined in Section
7.1.1(a), since that anniversary.
To determine the Maximum Anniversary Value, we will calculate an
anniversary value for each Contract Anniversary through the earlier of
your attained age 80 or the anniversary on or prior to your date of death.
If the Contract has co-owners, we will calculate the anniversary value
through the earlier of the older Owner's attained age 80 or the
anniversary on or prior to any Owner's date of death if a death benefit is
payable.
We will calculate the Maximum Anniversary Value based on your age (or the
age of the older Owner, if the Contract has co-owners) on the Contract
Date. Subsequent changes in Owner will not increase the
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period of time used to determine the Maximum Anniversary Value. If a new
Owner has not reached attained age 80 and is older than the Owner whose
age is being used to determine the Maximum Anniversary Value at the time
of the ownership change, the period of time used in the calculation of the
Maximum Anniversary Value will be based on the age of the new Owner at the
time of the ownership change. If at the time of an ownership change the
new Owner is attained age 80 or over, we will use the Maximum Anniversary
Value as of the anniversary on or prior to the ownership change, increased
by premium payments and decreased by "adjusted" withdrawals, as defined in
Section 7.1.1(a), since that anniversary.
7.1.3 CONTRACT CONTINUATION OPTION: If an Owner dies prior to the Annuity Date
and the beneficiary is the surviving spouse of the deceased Owner, such
spouse may choose to continue this Contract. The spouse shall become the
"new" owner and the beneficiary until a new beneficiary is named. If the
death benefit which would have been paid to the surviving spouse is
greater than the Contract Value as of the date we determine the death
benefit, we will increase the Contract Value of the continued Contract to
equal the death benefit we would have paid to the surviving spouse. Your
interest in each subaccount will be increased by the ratio of your
Contract Value in each subaccount to your Contract Value. If the surviving
co-owner is not the surviving spouse of the deceased Owner, the Contract
may not be continued under this provision.
7.1.4 ANNUITY OPTION: If an Owner dies prior to the Annuity Date and the
surviving spouse of the deceased Owner is the beneficiary, he or she may
choose to receive payments under any of the Annuity Options of this
Contract. For any other beneficiary, only those options are available that
provide for full payment of such Owner's interest in the Contract:
(a) Within five years of the date of such Owner's death;
(b) Over the lifetime of such beneficiary of this Contract; or
(c) Over a period that does not exceed the life expectancy, as defined by
Internal Revenue Service regulations, of such beneficiary of this
Contract.
Subparagraphs (b) and (c) apply only to individuals, and such payments
must start within one year of the date of such Owner's death.
7.1.5 DEATH AFTER ANNUITY DATE: See Section 9.8.
7.2 DEATH OF ANNUITANT WHO IS NOT AN OWNER
7.2.1 If the Annuitant dies prior to the Annuity Date and the Annuitant is not
an Owner, the Owner, provided the Owner is a natural person, may designate
a new Annuitant. If one is not designated, the Owner will become the
Annuitant. If the Owner is a non-natural person, the death of the
Annuitant shall be treated as the death of an Owner.
8. ANNUITY PROVISIONS
8.1 ANNUITY DATE: The Annuity Date may not be later than the date the
Annuitant would reach the Maximum Annuitization Age shown in the Contract
Schedule. If you have not chosen an Annuity Date, it will be the date the
Annuitant would reach the Maximum Annuitization Age shown in the Contract
Schedule. You may change the Annuity Date prior to the Annuity Date.
8.2 AMOUNT OF ANNUITY PAYMENTS: The Contract Value will be transferred to our
general account and applied to the Annuity Option you select, at our then
current annuity purchase rates, which will be furnished on request. The
annuity purchase rates will assume interest of not less than 3%. They will
not be less favorable than those shown in the annuity tables in this
Contract. The tables show the minimum guaranteed amount of each monthly
payment for each $1,000 so applied, according to the sex (when permissible)
and age at the Annuity Date of the Annuitant. The tables are based on the
1983 Table "a" for Individual Annuity Valuation, projected forward to 2000
with interest at 3%. The amount
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of your annuity payments will not be less than those that would be provided
by application of the Contract Value to purchase a single premium immediate
annuity contract then offered by us for the same annuity plan.
8.3 ANNUITY OPTIONS: If you have not chosen an Annuity Option described in
Section 9, Option 4 will apply with a 10-year guarantee period. You may
change options prior to the Annuity Date. An option not set forth in the
Contract may be chosen if acceptable to us.
8.4 MINIMUM ANNUITY PAYMENT: If the Contract Value to be applied at the
Annuity Date is less than $2,000, we may pay such amount in a lump sum. If
any payment would be less than $20 per month, we may change the frequency
so payments are at least $20 each.
9. ANNUITY OPTIONS
9.1 OPTION 1 - PAYMENTS OF A FIXED AMOUNT: Equal payments in the amount chosen
will be made until the amount of your Contract Value transferred to our
general account adjusted for interest credited of at least 3% is exhausted.
The term over which such payments are made must be at least five years.
9.2 OPTION 2 - PAYMENTS FOR A FIXED PERIOD: Payments will be made for the
period chosen. The period must be at least 5 years.
9.3 OPTION 3 - LIFE ANNUITY: Payments will be made for the life of the
Annuitant. Payments will cease with the last payment due prior to the
Annuitant's death.
9.4 OPTION 4 - LIFE ANNUITY WITH PAYMENTS GUARANTEED FOR 5, 10, 15 OR 20 YEARS:
Payments will be made for the guaranteed period chosen (5, 10, 15 or 20
years) and as long thereafter as the Annuitant lives.
9.5 OPTION 5 - LIFE ANNUITY WITH GUARANTEED RETURN OF CONTRACT VALUE: Payments
will be made until the sum of the annuity payments equals the amount of
your Contract Value transferred to our general account at the Annuity Date,
and as long thereafter as the Annuitant lives.
9.6 OPTION 6 - JOINT AND SURVIVOR LIFE ANNUITY: Payments will be made during
the lifetimes of the Annuitant and a designated second person. The amount
of such payments will not change by reason of the first death of a joint
Annuitant.
9.7 OPTION 7 - JOINT AND SURVIVOR LIFE ANNUITY WITH PAYMENTS GUARANTEED FOR 5,
10, 15 OR 20 YEARS: Payments will be made for the guaranteed period chosen
(5, 10, 15 or 20 years) and as long thereafter as either of the joint
Annuitants lives.
9.8 DEATH OF ANNUITANT: On the death of an Annuitant who is not an Owner while
guaranteed amounts remain unpaid under options 1, 2, 4, 5 or 7, the Owner
may choose either:
(a) To have payments continue for the amount or period guaranteed; or
(b) To receive the present value of the remaining guaranteed payments in a
lump sum.
If an Owner who is also the Annuitant dies while guaranteed amounts remain
unpaid, the remaining guaranteed payments shall continue to be paid to the
beneficiary or the present value of such payments may be paid in a lump
sum to the beneficiary, if the beneficiary so elects.
Present values will be computed at the interest rate that was used to
compute the amount of the initial annuity payment.
9.9 PAYMENT: Monthly payments will be made beginning on the Annuity Date, but
prior to the Annuity Date you may choose a less frequent payment interval.
The amount of each payment on an annual, semiannual, or quarterly basis
will not be less than the monthly payment computed from the annuity tables
in this Contract multiplied by the appropriate factor.
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10. ANNUITY OPTION TABLES
MINIMUM GUARANTEED MONTHLY ANNUITY PAYMENT FOR EACH $1,000 APPLIED UNDER OPTION
OPTION 2 (PAYMENTS FOR A FIXED PERIOD)
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YEARS EACH YEARS EACH YEARS EACH YEARS EACH
PAYABLE PAYMENT PAYABLE PAYMENT PAYABLE PAYMENT PAYABLE PAYMENT
----------------------------------------------------------------------------------------------------------------------------
5 17.91 9 10.53 13 7.71 17 6.23
6 15.14 10 9.61 14 7.26 18 5.96
7 13.16 11 8.86 15 6.87 19 5.73
8 11.68 12 8.24 16 6.53 20 5.51
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OPTION 3 (LIFE ANNUITY), OPTION 4 (LIFE ANNUITY WITH 10 OR 20 YEARS GUARANTEED)
AND OPTION 5 (RETURN OF CONTRACT VALUE GUARANTEED)
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*ADJUSTED LIFE 10 YEARS 20 YEARS RETURN OF *ADJUSTED LIFE 10 YEARS 20 YEARS RETURN OF
MALE AGE ANNUITY GUARANTEED GUARANTEED CONTRACT VALUE FEMALE AGE ANNUITY GUARANTEED GUARANTEED CONTRACT VALUE
------------------------------------------------------------------------------------------------------------------------------------
56 4.42 4.37 4.20 4.21 56 4.12 4.10 4.01 4.00
57 4.51 4.45 4.27 4.28 57 4.20 4.17 4.07 4.06
58 4.60 4.54 4.33 4.35 58 4.28 4.25 4.13 4.13
59 4.70 4.63 4.39 4.43 59 4.36 4.33 4.19 4.20
60 4.80 4.73 4.46 4.51 60 4.45 4.41 4.26 4.27
61 4.92 4.83 4.52 4.60 61 4.55 4.50 4.33 4.35
62 5.04 4.93 4.59 4.68 62 4.65 4.59 4.40 4.43
63 5.17 5.05 4.65 4.78 63 4.76 4.69 4.47 4.52
64 5.30 5.16 4.72 4.88 64 4.87 4.80 4.54 4.61
65 5.45 5.29 4.78 4.98 65 5.00 4.91 4.61 4.70
66 5.61 5.42 4.85 5.09 66 5.13 5.03 4.68 4.80
67 5.77 5.55 4.91 5.20 67 5.27 5.15 4.76 4.91
68 5.95 5.69 4.97 5.32 68 5.42 5.29 4.83 5.02
69 6.14 5.84 5.03 5.45 69 5.58 5.42 4.90 5.14
70 6.34 5.99 5.08 5.58 70 5.75 5.57 4.97 5.27
71 6.55 6.14 5.13 5.72 71 5.94 5.73 5.03 5.40
72 6.78 6.30 5.18 5.86 72 6.14 5.89 5.09 5.54
73 7.02 6.46 5.23 6.02 73 6.36 6.06 5.15 5.69
74 7.28 6.63 5.27 6.18 74 6.60 6.23 5.21 5.85
75 7.55 6.80 5.31 6.34 75 6.86 6.42 5.25 6.02
76 7.84 6.97 5.34 6.52 76 7.13 6.61 5.30 6.20
77 8.16 7.15 5.37 6.71 77 7.43 6.80 5.34 6.39
78 8.49 7.32 5.40 6.90 78 7.75 7.00 5.37 6.59
79 8.85 7.50 5.42 7.11 79 8.10 7.20 5.40 6.80
80 9.24 7.67 5.44 7.32 80 8.47 7.40 5.43 7.02
81 9.65 7.84 5.46 7.55 81 8.87 7.60 5.45 7.26
82 10.09 8.01 5.47 7.79 82 9.31 7.79 5.47 7.51
83 10.55 8.17 5.49 8.04 83 9.79 7.99 5.48 7.77
84 11.05 8.32 5.49 8.31 84 10.31 8.17 5.49 8.05
85 11.58 8.47 5.50 8.59 85 10.87 8.35 5.50 8.36
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OPTION 6 (JOINT AND SURVIVOR LIFE ANNUITY)
--------------------------------------------------------------------------------
*ADJUSTED *ADJUSTED MALE AGE *ADJUSTED
FEMALE -------------------------------------------------- FEMALE
AGE 50 55 60 65 70 75 80 85 AGE
--------------------------------------------------------------------------------
50 3.46 3.54 3.60 3.65 3.69 3.71 3.72 3.73 50
55 3.58 3.70 3.80 3.88 3.94 3.98 4.01 4.03 55
60 3.68 3.85 4.00 4.13 4.24 4.32 4.37 4.40 60
65 3.77 3.98 4.20 4.40 4.59 4.73 4.83 4.90 65
70 3.84 4.09 4.38 4.67 4.96 5.21 5.41 5.55 70
75 3.89 4.18 4.52 4.92 5.34 5.74 6.10 6.38 75
80 3.92 4.24 4.63 5.11 5.67 6.26 6.85 7.37 80
85 3.95 4.28 4.71 5.25 5.93 6.72 7.58 8.45 85
--------------------------------------------------------------------------------
Information for ages or Annuity Options not shown will be furnished on request.
*"Adjusted Age" is the actual age on the Annuity Date reduced by one year for
each 10 full years between January 1, 2000 and the Annuity Date. For example:
--------------------------------------------------------------------
ANNUITY DATE ADJUSTED AGE
--------------------------------------------------------------------
Before 2010 Actual Age
--------------------------------------------------------------------
2010 to 2019 Subtract 1 year from actual age
--------------------------------------------------------------------
2020 to 2029 Subtract 2 years from actual age
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2030 to 2039 Subtract 3 years from actual age
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2040 to 2049 Subtract 4 years from actual age
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