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Exhibit B(4)(a)
The Northwestern Mutual Life Insurance Company agrees to pay the benefits
provided in this contract, subject to its terms and conditions.
Signed at Milwaukee, Wisconsin on the Issue Date.
XXXXX STREET VARIABLE ANNUITY
FLEXIBLE PAYMENT VARIABLE ANNUITY - ACCOUNT B
Net Purchase Payments accumulated in a Separate Account, assets of which are
invested in shares of one or more mutual funds, or Guaranteed Interest Fund.
Contract benefits payable in one sum or as variable or guaranteed monthly
income. Variable Payment Plan benefits described in Section 11.
Participating.
AMOUNTS ALLOCATED TO THE SEPARATE ACCOUNT DIVISIONS AND VARIABLE PAYMENTS
PROVIDED BY THIS CONTRACT ARE NOT GUARANTEED AS TO FIXED DOLLAR AMOUNT BUT ARE
VARIABLE AND MAY INCREASE OR DECREASE TO REFLECT THE INVESTMENT EXPERIENCE OF
THE SEPARATE ACCOUNT.
RIGHT TO RETURN CONTRACT. Please read this contract carefully. The Owner may
return the contract for any reason within ten days after receiving it. Return of
the contract is effective on the date written notice of the return is delivered,
mailed or sent by telegram to either The Northwestern Mutual Life Insurance
Company, 000 Xxxx Xxxxxxxxx Xxxxxx, Xxxxxxxxx, Xxxxxxxxx 00000 or the agent who
sold the contract. If returned, the contract will be cancelled and the Company
will refund the sum of (a) the difference between the Purchase Payments paid and
the amounts, if any, allocated to the Separate Account plus (b) the value of the
Accumulation Units of the Separate Account on the effective date of return.
RR.V.B.MSNST.(032000)
CONTRACT NUMBER 12 345 678
PRIMARY ANNUITANT Xxxx X. Xxx
ISSUE DATE July 31, 2001
RP.V.B.MSNST.(032000) Sex Neutral
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TABLE OF CONTENTS
CONTRACT INFORMATION, INVESTMENT ACCOUNTS
CHARGES AND FEES
MINIMUM PURCHASE PAYMENTS, ACCUMULATION VALUE, PAYMENT PLANS
SECTION 1. GENERAL TERMS AND DEFINITIONS
SECTION 2. SEPARATE ACCOUNT
o Separate Account
o Accumulation Units
o Net Investment Factor
o Substitution and Change
SECTION 3. GUARANTEED INTEREST FUND
o Guaranteed Interest Fund
o Accumulation Value
o Transfer Restrictions
o Maximum Guaranteed Interest Fund Accumulation Value
o Table of Guaranteed Values
SECTION 4. PURCHASE PAYMENTS, TRANSFERS, WITHDRAWALS
o Payment of Purchase Payments
o Application of Purchase Payments
o Selection of Investment Account for Purchase Payments
o Transfer of Accumulation Value
o Withdrawals and Full Surrender
o Effective Date
SECTION 5. BENEFITS
o Maturity Benefit
o Death Benefit if Annuitant is an Owner
o Death Benefit if Annuitant is not an Owner
SECTION 6. BENEFICIARIES AND CONTINGENT ANNUITANTS
o Naming and Changing of Beneficiaries
o Succession in Interest of Beneficiaries
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o Trustee as Beneficiary
o General
o Naming and Changing a Contingent Annuitant
SECTION 7. CHARGES AND FEES
o Premium Taxes
o Contract Fee
SECTION 8. OWNERSHIP
o The Owner
o Transfer of Ownership
o Naming and Changing a Successor Owner
o Collateral Assignment
o Voting Rights and Reports to Owners
SECTION 9. THE CONTRACT
o Guarantees
o Valuation of Separate Account Assets
o Determination of Separate Account Values
o Deferment of Benefit Payments
o Dividends
o Incontestability
o Misstatements
o Entire Contract; Changes
o Termination of Contract
SECTION 10. PAYMENT OF CONTRACT BENEFITS
o Payment of Benefits
o Death Benefit
o Effective Date for Payment Plan
o Payment Plan Elections
SECTION 11. PAYMENT PLANS
o Description of Payment Plans
o Allocation of Benefits
o Annuity Units under Variable Payment Plans
o Payments under Variable Payment Plans
o Transfers Involving Variable Payment Plans
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o Withdrawal under Payment Plans
o Naming and Changing of Beneficiaries under Payment Plans
o Succession in Interest of Beneficiaries under Payment Plans
o Payment Plan Rates
ADDITIONAL BENEFITS (IF ANY)
APPLICATION
ENDORSEMENTS
to be made only by the Company at the Home Office
RR.V.B.MSNST.(032000)
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CONTRACT INFORMATION
CONTRACT NUMBER 12 345 678
PLAN Flexible Payment Variable Annuity
ADDITIONAL BENEFITS Enhanced Death Benefit
TAX REPORTING CATEGORY Personal Annuity
PRIMARY ANNUITANT Xxxx X. Xxx
AGE AND SEX 35 Male
OWNER Xxxx X. Xxx, the Annuitant
ISSUE DATE July 31, 2001
CONTRACT ANNIVERSARY July 31, 2002 and each July 31
thereafter
MATURITY DATE July 31, 2051
DIRECT BENEFICIARY Xxxx X. Xxx, Wife of the Annuitant
INVESTMENT ACCOUNTS
On the Issue Date, Purchase Payments and contract values may be
allocated among the following Investment Accounts. Available Separate
Account Divisions are subject to change. See Section 2.1.
Divisions of Separate Account B:
Select Bond Division
Xxxxxxxxx International Equity Division
Money Market Division
Balanced Division
Index 500 Stock Division
Aggressive Growth Stock Division
High Yield Bond Division
Growth Stock Division
XX Xxxxxx Select Growth and Income Division
Index 400 Stock Division
Small Cap Growth Stock Division
Xxxxxxx Multi-Style Equity Division
Xxxxxxx Aggressive Equity Division
Xxxxxxx Non-US Division
Xxxxxxx Real Estate Securities Division
Xxxxxxx Core Bond Division
Asset Allocation Division
International Growth Stock Division
X. Xxxx Price Small Cap Value Division
Capital Guardian Domestic Equity Division
Guaranteed Accounts:
Guaranteed Interest Fund
RR.V.B.MSNST.(032000) Page 3
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CONTRACT NUMBER 12 345 678
CHARGES AND FEES
DEDUCTION FROM PURCHASE PAYMENTS:
PREMIUM TAX (See Section 7.1):
For the first Contract Year, Premium Taxes are not
deducted from Purchase Payments. After the first
Contract Year, the Company may deduct Premium Taxes
from Purchase Payments received or benefits paid.
ANNUAL MORTALITY AND EXPENSE RISK CHARGE (See Section 2.3):
0.35% at Issue; 0.75% Maximum
ANNUAL CONTRACT FEE (See Section 7.2):
$30 charged on the contract anniversary. The contract fee will
be waived if the Accumulation Value of the contract equals or
exceeds $25,000 on the contract anniversary.
ENHANCED DEATH BENEFIT CHARGE
0.10% of the Enhanced Death Benefit on each contract
anniversary.
TRANSFER FEE (See Sections 4.4 and 11.5):
$25 beginning with the thirteenth transfer in any Contract
Year.
MINIMUM PURCHASE PAYMENTS, ACCUMULATION VALUE, PAYMENT PLANS
MINIMUM PURCHASE PAYMENT (See Section 4.1): $25
MINIMUM ACCUMULATION VALUE (See Sections 5.2 and 9.9): $2,000
MINIMUM PAYMENT UNDER PAYMENT PLAN (See Sections 9.9 and 10.1): $50
Monthly Income.
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CONTRACT NUMBER 12 345 678
GUARANTEED INTEREST FUND - TABLE OF GUARANTEED VALUES
The table shows minimum guaranteed values and assumes a $5,000 Purchase Payment
made at the time of issue followed by subsequent $1,000 Purchase Payments made
annually thereafter on each contract anniversary. The values are based on the
assumption that 100% of all net Purchase Payments are allocated to, and remain
in, the Guaranteed Interest Fund.
End of
Contract Accumulation Cash
Year March 31 Value Value
---- -------- ----- -----
1 2001 $ 51,500 $ 51,500
2 2002 54,075 54,075
3 2003 56,727 56,727
4 2004 59,459 59,459
5 2005 62,272 62,272
6 2006 65,171 65,171
7 2007 68,156 68,156
8 2008 71,230 71,230
9 2009 74,397 74,397
10 2010 77,659 77,659
11 2011 81,019 81,019
12 2012 84,480 84,480
13 2013 88,044 88,044
14 2014 91,715 91,715
15 2015 95,497 95,497
16 2016 99,392 99,392
17 2017 103,403 103,403
18 2018 107,536 107,536
19 2019 111,792 111,792
20 2020 116,175 116,175
Age 60 2025 140,148 140,148
Age 65 2030 167,938 167,938
Age 70 2035 200,155 200,155
This table is based on the guaranteed annual effective interest rate of 3%.
Higher declared rates of interest will increase values. Values shown at the end
of contract years do not reflect any Purchase Payments paid on that contract
anniversary. The actual guaranteed values may differ from those shown above,
depending on the amount and frequency of Purchase Payments.
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SECTION 1. GENERAL TERMS AND DEFINITIONS
ACCUMULATION UNIT. A unit of measure used to determine the value of the interest
of this contract in the Separate Account prior to the date on which amounts are
placed under a payment plan.
ACCUMULATION VALUE. The Accumulation Value of a Separate Account Division is the
total value of all Accumulation Units in that Division. The Accumulation Value
of the Guaranteed Interest Fund is the sum of amounts applied to the fund, plus
credited interest, less amounts withdrawn or transferred from the fund. The
Accumulation Value of the contract is the sum of the Accumulation Values of all
Investment Accounts.
ANNUITANT. The Primary Annuitant and, upon the death of the Primary Annuitant,
the Contingent Annuitant.
ANNUITY UNIT. A unit of measure used to determine the amount of variable
payments under a variable payment plan and the value of the interest of a
variable payment plan in the Separate Account.
BENEFICIARIES. The term "Beneficiaries" as used in this contract includes direct
beneficiaries, contingent beneficiaries and further payees.
COMPANY. The Northwestern Mutual Life Insurance Company.
CONTINGENT ANNUITANT. The person who becomes the Annuitant upon the death of an
Annuitant.
CONTRACT FEE. An annual charge for administration expenses made on each contract
anniversary prior to the Maturity Date.
CONTRACT YEAR. The first Contract Year is the period of time ending on the first
contract anniversary. Subsequent Contract Years are the annual periods between
contract anniversaries.
DIVISION. A component of the Separate Account to which the Owner may allocate
Net Purchase Payments and contract values.
GUARANTEED INTEREST FUND. The portion of the contract that is credited with a
guaranteed interest rate and which is held as part of the general assets of the
Company.
HOME OFFICE. The office of The Northwestern Mutual Life Insurance Company
located at 000 Xxxx Xxxxxxxxx Xxxxxx, Xxxxxxxxx, XX 00000.
INVESTMENT ACCOUNT. The Guaranteed Interest Fund and Separate Account Divisions
available for allocation of Net Purchase Payments and contract values. The
available Investment Accounts are listed on page 3.
ISSUE DATE. The date this contract is issued and becomes effective.
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MATURITY DATE. The date upon which contract benefits will become payable. If the
contract is continued in force under the Optional Maturity Date provision, the
Optional Maturity Date will become the Maturity Date.
NET PURCHASE PAYMENT. A Purchase Payment less applicable Premium Taxes.
OPTIONAL MATURITY DATE. The contract anniversary nearest the Annuitant's 90th
birthday. Upon reaching the Maturity Date shown on page 3, the Owner may elect
to continue the contract in force until this Optional Maturity Date.
OWNER. The person possessing the ownership rights stated in this contract.
PORTFOLIOS. Mutual funds or portfolios of mutual funds in which the assets of
the Separate Account are invested.
PREMIUM TAX. A tax imposed by a governmental entity when Purchase Payments are
received or benefits are paid.
PRIMARY ANNUITANT. The person upon whose life this contract is initially issued.
PURCHASE PAYMENT. A payment made by or on behalf of the Owner with respect to
this contract.
SEPARATE ACCOUNT. NML Variable Annuity Account B. The Separate Account consists
of assets set aside by the Company, the investment performance of which is kept
separate from that of the general assets and all other separate account assets
of the Company.
SUCCESSOR OWNER. The person designated to become the Owner upon the death of the
Owner, provided the Owner was not the Annuitant at the time of the Owner's
death.
TRANSFER FEE. A deduction that is made from the amount transferred between
Investment Accounts.
VALUATION DATE. Any day on which the assets of the Separate Account are valued.
Assets are valued as of the close of trading on the New York Stock Exchange for
each day the Exchange is open.
SECTION 2. SEPARATE ACCOUNT
2.1 SEPARATE ACCOUNT
The Separate Account (NML Variable Annuity Account B) has been established
by the Company and is registered as a unit investment trust under the Investment
Company Act of 1940. The Separate Account consists of assets set aside by the
Company, the investment performance of which is kept separate from that of the
general assets and all other separate account assets of the Company. The assets
of the Separate Account will not be charged with liabilities arising out of any
other business the Company may conduct. Interests in the Separate Account are
represented by Accumulation Units and Annuity Units, described in Sections 2.2
and 11.3, respectively.
The Separate Account is comprised of the Divisions listed on page 3. The
assets allocated to these Divisions are invested in shares of the corresponding
Portfolios. Shares of the Portfolios are purchased for the Separate Account at
their net asset value.
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The Company reserves the right to eliminate or add additional Divisions and
Portfolios.
2.2 ACCUMULATION UNITS
The interest of this contract in the Separate Account, prior to the date on
which amounts become payable under a payment plan, is represented by
Accumulation Units. The dollar value of Accumulation Units for each Division
will increase or decrease to reflect the investment experience of the Division.
The value of an Accumulation Unit on any Valuation Date is the product of:
o the value on the immediately preceding Valuation Date; and
o the Net Investment Factor for the period from the immediately
preceding Valuation Date up to and including the current Valuation
Date (the current period).
2.3 NET INVESTMENT FACTOR
For each Division of the Separate Account the Net Investment Factor for the
current period is one plus the net investment rate for that Division. The net
investment rate for the current period is equal to the gross investment rate for
the Division reduced on each Valuation Date by a Mortality and Expense Risk
Charge. The charge for these risks on the Issue Date is shown on page 4. The
Company may increase or decrease the charge after the Issue Date, but the
Company may not increase the charges to exceed the maximum charges shown on page
4.
The gross investment rate for the current period for each Division is equal
to a. divided by b. where:
a. is:
o the investment income of the Division for the current period;
plus
o capital gains for the period, whether realized or unrealized, on
the assets of the Division; less
o capital losses for the period, whether realized or unrealized, on
the assets of the Division; less
o deduction for any tax liability paid or reserved for by the
Company resulting from the maintenance or operation of the
Division; and less
o any reasonable expenses paid or reserved for by the Company which
result from a substitution of other securities for shares of the
Portfolio(s) as set forth in Section 2.4; and
b. is the value of the assets in the Division on the immediately
preceding Valuation Date.
The gross investment rate may be positive or negative. The deduction for
any tax liability may be charged proportionately against those contracts to
which the liability is attributable by a reduction in the gross investment rate
for those contracts.
2.4 SUBSTITUTION AND CHANGE
Pursuant to a vote of the Owners of variable annuity contracts having an
interest in a Division or as otherwise permitted by applicable insurance and
securities law, a substitution or change may be made as follows:
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o the assets of the Division may be invested in securities other than
shares of the Portfolio(s) as a substitute for those shares already
purchased or as the securities to be purchased in the future;
o the Separate Account, or a Division, may be operated as a management
company under the Investment Company Act of 1940, or in any other form
permitted by law, if deemed by the Company to be in the best interests
of the contract Owners;
o the Separate Account may be deregistered under the Investment Company
Act of 1940 in the event registration is no longer required; or
o the provisions of the contracts may be modified to comply with any
other applicable federal or state laws.
In the event of a substitution or change, the Company may make appropriate
endorsement on this and other contracts having an interest in the Separate
Account and take other actions as may be necessary to effect the substitution or
change. Any such substitution or change will be subject to any required approval
of the Securities and Exchange Commission (SEC) and the Commissioner of
Insurance for the state of Wisconsin, and filing with the state in which this
contract is issued.
SECTION 3. GUARANTEED INTEREST FUND
3.1 GUARANTEED INTEREST FUND
Net Purchase Payments (see Section 4.2) and amounts transferred from other
Investment Accounts under this contract (see Section 4.4) may be applied to the
Guaranteed Interest Fund. Contract benefits placed under a variable payment plan
may not be applied to the Guaranteed Interest Fund. Amounts applied to the
Guaranteed Interest Fund become part of the general assets of the Company.
3.2 ACCUMULATION VALUE
The Accumulation Value of the Guaranteed Interest Fund is the sum of the
amounts applied to it, plus credited interest, less any amounts withdrawn or
transferred from the fund. Interest begins to accrue on the effective date of
the Purchase Payment or transfer (see Section 4.6).
Interest will be credited at an annual effective interest rate of not less
than 3%. A higher rate may be declared by the Company from time to time for a
period set by the Company.
3.3 TRANSFER RESTRICTIONS
Transfers of Accumulation Value from the Guaranteed Interest Fund will not
be allowed for a period of 365 days following the most recent transfer of
Accumulation Value from the Guaranteed Interest Fund.
The maximum amount of the Accumulation Value that may be transferred from
the Guaranteed Interest Fund in one transfer is limited to the greater of:
o 25% of the Accumulation Value of the Guaranteed Interest Fund on the
last contract anniversary preceding the transfer; and
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o the amount of the most recent transfer from the Guaranteed Interest
Fund.
However, in no event will this maximum transfer amount be less than $1,000
or greater than $50,000.
Transfers of Accumulation Value into the Guaranteed Interest Fund will not
be allowed for a period of 90 days following the most recent transfer of
Accumulation Value from the Guaranteed Interest Fund.
3.4 MAXIMUM GUARANTEED INTEREST FUND ACCUMULATION VALUE
The Accumulation Value of the Guaranteed Interest Fund may not exceed
$1,000,000 without prior consent of the Company, except when the maximum is
exceeded because of interest accruing to the Guaranteed Interest Fund.
3.5 TABLE OF GUARANTEED VALUES
Accumulation and cash values are shown on page 4A. The values are based on
the assumptions stated on page 4A and are for the end of the contract years
shown. Values for contract years not shown are calculated on the same basis as
those shown on page 4A. Guaranteed values are at least as great as those
required by the state in which this contract is delivered.
SECTION 4. PURCHASE PAYMENTS, TRANSFERS, WITHDRAWALS
4.1 PAYMENT OF PURCHASE PAYMENTS
All Purchase Payments are payable at the Home Office or to an authorized
agent. A receipt signed by an officer of the Company will be furnished on
request.
Purchase Payments may be made at any time prior to the death of an Owner
and prior to the Maturity Date. Purchase Payments may be made after the death of
an Owner only if the new Owner of the contract is the surviving spouse of the
deceased Owner. The Owner may vary the amount of Purchase Payments, but no
Purchase Payment may be less than the Minimum Purchase Payment shown on page 4.
Total Purchase Payments may not exceed $5,000,000 without the consent of the
Company.
4.2 APPLICATION OF PURCHASE PAYMENTS
Net Purchase Payments will be applied to one or more Investment Accounts.
Net Purchase Payments applied to the Guaranteed Interest Fund will accrue
interest from the effective date of the Purchase Payment. Net Purchase Payments
applied to the Separate Account will provide Accumulation Units in one or more
Divisions. Accumulation Units are credited as of the effective date of the Net
Purchase Payment.
The number of Accumulation Units will be determined by dividing the Net
Purchase Payment by the value of an Accumulation Unit on the effective date.
This number of Accumulation Units will not be changed by any subsequent change
in the dollar value of Accumulation Units.
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4.3 SELECTION OF INVESTMENT ACCOUNT FOR PURCHASE PAYMENTS
The Owner may change the allocation of Net Purchase Payments among the
Investment Accounts by written notice to the Company. Net Purchase Payments
received at the Home Office on or after the date on which notice is received
will be applied to the designated Investment Accounts on the basis of the new
allocation.
4.4 TRANSFER OF ACCUMULATION VALUE
Before the Maturity Date the Owner may, on request satisfactory to the
Company, transfer amounts from one Investment Account to another, subject to the
transfer restrictions described in Section 3.3.
For transfers among the Separate Account Divisions, the number of
Accumulation Units to be applied or deducted will be adjusted to reflect the
respective value of the Accumulation Units in each of the Divisions on the date
the transfer is effective.
For transfers from the Guaranteed Interest Fund, amounts closest to
expiration of an interest rate guarantee will be removed first. In the event
that two amounts are equally close to expiration, the one which was applied to
the Guaranteed Interest Fund earlier will be removed first.
A Transfer Fee may be deducted from the amount transferred. The maximum
amount of the Transfer Fee is shown on page 4. The minimum amount that may be
transferred is the lesser of $100 or the entire Accumulation Value of the
Investment Account from which the transfer is being made.
4.5 WITHDRAWALS AND FULL SURRENDER
Before the Maturity Date the Owner may, on request satisfactory to the
Company, withdraw all or a portion of the Accumulation Value of the contract.
The Company may require that the Minimum Accumulation Value shown on page 4
remain after a partial withdrawal. Withdrawal of the entire value of the
contract constitutes a full surrender, and receipt of the contract at the Home
Office will terminate this contract. Receipt of the contract may be waived by
the Company.
The cash value of the amount withdrawn will be the Accumulation Value
withdrawn determined as of the date the withdrawal is effective.
The term "withdrawal amounts" as used in this contract includes amounts
paid as full surrenders and withdrawals of a portion of the Accumulation Value
of the contract.
For withdrawals from the Guaranteed Interest Fund, amounts closest to
expiration of an interest rate guarantee will be removed first. In the event
that two amounts are equally close to expiration, the one which was applied to
the Guaranteed Interest Fund earlier will be removed first.
4.6 EFFECTIVE DATE
The effective date of a Purchase Payment, transfer, or withdrawal is the
Valuation Date on which the Purchase Payment or the request for transfer or
withdrawal is received at the Home Office. However, the Purchase Payment,
transfer, or withdrawal will be effective on the following Valuation Date if the
Purchase Payment, request for transfer or withdrawal is received at the Home
Office either:
o on a Valuation Date after the close of trading on the New York Stock
Exchange; or
o on a day on which the New York Stock Exchange is closed.
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SECTION 5. BENEFITS
5.1 MATURITY BENEFIT
MATURITY OPTIONS. If the Annuitant is living on the Maturity Date shown on page
3, and that Maturity Date is earlier than the contract anniversary nearest the
Annuitant's 90th birthday, the Owner may elect between the following maturity
options:
o payment of a monthly income under a payment plan chosen by the Owner;
or
o deferral of the maturity benefit and continuation of this contract to
the Optional Maturity Date. The contract will continue under this
option if a written election for this purpose is received by the
Company or if on the Maturity Date shown on page 3, the Owner has not
chosen a payment plan.
If the Annuitant is living on the Maturity Date and that Maturity Date is on or
after the contract anniversary nearest the Annuitant's 90th birthday, the
Company will pay a monthly income under a payment form chosen by the Owner.
PAYMENT OF MATURITY BENEFIT. The amount of the monthly income paid as the
maturity benefit will depend on the payment plan chosen (see Section 11) and the
maturity value. The maturity value of this contract will be the Accumulation
Value of the contract on the effective date of the maturity benefit. The
maturity benefit will be effective on the Maturity Date. However, if the New
York Stock Exchange is closed on the Maturity Date, the effective date will be
the Valuation Date next preceding the Maturity Date.
If no payment form is chosen at the time a monthly income becomes payable,
payments will be made under the variable payment form of Life Income Plan
(Option C), with installments certain for ten years, as described in Section
11.1.
OPTIONAL MATURITY DATE. The Optional Maturity Date is the contract anniversary
nearest the Annuitant's 90th birthday. If the contract is continued to the
Optional Maturity Date, all contract rights of the Owner will continue in effect
to the Optional Maturity Date. The Optional Maturity Date will become the
Maturity Date for all other purposes of this contract.
5.2 DEATH BENEFIT IF ANNUITANT IS AN OWNER
If the Annuitant is an Owner, the beneficiary becomes entitled to the Death
Benefit upon receipt at the Home Office of satisfactory proof of the death of
the Annuitant before the Maturity Date. The Death Benefit will be the
Accumulation Value of the contract determined on the effective date. The
effective date is the date on which proof of death is received at the Home
Office. However, the effective date will be the next following Valuation Date if
the proof of death is received at the Home Office either:
o on a Valuation Date after the close of trading on the New York Stock
Exchange; or
o on a day on which the New York Stock Exchange is closed.
If the beneficiary becomes entitled to the Death Benefit due to the death
of the Primary Annuitant prior to the Primary Annuitant's 75th birthday, the
Death Benefit will not be less than:
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o total Net Purchase Payments paid under the contract; less
o any amounts withdrawn under Section 4.5.
As of the effective date, the Accumulation Value of the contract will be
set at an amount equal to the Death Benefit. Unless a payment plan was elected
by the Owner, the beneficiary automatically becomes the Owner and Annuitant of
the contract. However, if the beneficiary is not a natural person and no payment
plan was elected by the Owner, the beneficiary may select a natural person to be
the Annuitant. If a natural person is not selected to be the Annuitant within 60
days of the date on which proof of death of the Annuitant is received at the
Home Office, the Accumulation Value will be distributed to the beneficiary.
If a beneficiary becomes entitled to the Death Benefit in an amount less
than the Minimum Accumulation Value shown on page 4, the Accumulation Value will
be distributed to the beneficiary.
The cash value of any amount distributed will be the Accumulation Value
withdrawn as of the date of withdrawal as determined in Section 4.6.
5.3 DEATH BENEFIT IF ANNUITANT IS NOT AN OWNER
If the Annuitant is not an Owner, upon the death of the Annuitant the
contract continues with the Contingent Annuitant (Section 6.5) as the new
Annuitant. The Death Benefit will be the Accumulation Value of the contract
determined on the effective date. The effective date is the date on which proof
of death is received at the Home Office. However, the effective date will be the
next following Valuation Date if the proof of death is received at the Home
Office either:
o on a Valuation Date after the close of trading on the New York Stock
Exchange; or
o on a day on which the New York Stock Exchange is closed.
If the Primary Annuitant dies prior to the Primary Annuitant's 75th
birthday, the Death Benefit will not be less than:
o total Net Purchase Payments paid under the contract; less
o any amounts withdrawn under Section 4.5.
As of the effective date, the Accumulation Value of the contract will be
set at an amount equal to the Death Benefit.
SECTION 6. BENEFICIARIES AND CONTINGENT ANNUITANTS
6.1 NAMING AND CHANGING OF BENEFICIARIES
FOR MATURITY BENEFITS OR WITHDRAWALS BY OWNER. The Owner may name and change the
beneficiaries of maturity benefits or withdrawal amounts before the Maturity
Date. If no beneficiary is named by the Owner, the Owner will be the direct
beneficiary.
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FOR DEATH BENEFITS BY OWNER. The Owner may name and change the beneficiaries of
the Death Benefits while the Annuitant is living. If no such beneficiary is
named by the Owner, the Owner or the Owner's estate will be the direct
beneficiary.
FOR MATURITY OR DEATH BENEFITS OR WITHDRAWAL AMOUNTS BY SPOUSE (MARITAL
DEDUCTION PROVISION).
o POWER TO APPOINT. The spouse of the Annuitant will have the power
alone and in all events to appoint all amounts payable to the spouse
under the contract if:
a. just before the Annuitant's death, the Annuitant was the Owner;
and
b. the spouse is a direct beneficiary; and
c. the spouse survives the Annuitant.
o TO WHOM SPOUSE CAN APPOINT. Under this power, the spouse can appoint:
a. to the estate of the spouse; or
b. to any other person.
o EFFECT OF EXERCISE. As to the amounts appointed, the exercise of this
power will:
a. revoke any other designation of beneficiaries;
b. revoke any election of payment plan as it applies to them; and
c. cause any provision to the contrary in Section 6 or 10 of this
contract to be of no effect.
EFFECTIVE DATE. A naming or changing of a beneficiary will be effective on
receipt at the Home Office of a written request that is acceptable to the
Company. The request will then take effect as of the date that it was signed.
The Company is not responsible for any payment or other action that is taken by
it before the receipt of the request. The Company may require that the contract
be sent to it to be endorsed to show the naming or change.
6.2 SUCCESSION IN INTEREST OF BENEFICIARIES
The rights and benefits that a beneficiary becomes entitled to under the
contract are shared equally among all surviving direct beneficiaries, if any,
otherwise equally among all surviving contingent beneficiaries, if any,
otherwise to the Owner or the Owner's Estate.
6.3 TRUSTEE AS BENEFICIARY
If a trustee is named as a beneficiary and no qualified trustee makes claim
to the proceeds, or to the present value of any unpaid payments under a payment
plan, within one year after payment becomes due to the trustee, or if
satisfactory evidence is furnished to the Company within that year showing that
no trustee can qualify to receive payment, payment will be made as though the
trustee had not been named.
The Company will be fully discharged of liability for any action taken by
the trustee and for all amounts paid to, or at the direction of, the trustee and
will have no obligation as to the use of the amounts. In all dealings with the
trustee the Company will be fully protected against the claims of every other
person. The
17
Company will not be charged with notice of a change of trustee unless written
evidence of the change is received at the Home Office.
6.4 GENERAL
TRANSFER OF OWNERSHIP. A transfer of ownership of itself will not change the
interest of a beneficiary.
CLAIMS OF CREDITORS. So far as allowed by law, no amount payable under this
contract will be subject to the claims of creditors of a beneficiary.
6.5 NAMING AND CHANGING A CONTINGENT ANNUITANT
The Owner may name and change a Contingent Annuitant while the Annuitant is
living.
If the Annuitant was not the Owner immediately prior to the Annuitant's
death, the Owner may name and change a Contingent Annuitant during the first 60
days after the date on which proof of death of the Annuitant is received at the
Home Office. A change made during this 60 days cannot be revoked. If no one is
named as Contingent Annuitant by the end of the 60 day time period, the Company
will pay the Accumulation Value to the Owner. The cash value of any amount
distributed will be the Accumulation Value withdrawn as of the date of
withdrawal as determined in Section 4.6.
A naming or changing of a Contingent Annuitant will be effective on receipt
at the Home Office of a written request that is acceptable to the Company.
SECTION 7. CHARGES AND FEES
7.1 PREMIUM TAXES
The Company may deduct Premium Taxes incurred from Purchase Payments
received.
7.2 CONTRACT FEE
On each contract anniversary prior to the Maturity Date, a Contract Fee
will be charged for administrative expenses. The amount of the Contract Fee is
shown on page 4. The Contract Fee will be deducted from the Investment Accounts
in proportion to the Accumulation Value of the Investment Accounts.
The Contract Fee deducted from the Guaranteed Interest Fund will not exceed
the sum of:
o 10% of the gross purchase payments applied to the Guaranteed Interest
Fund during the contract year; and
o interest in excess of an annual effective interest rate of 3% credited
to the Guaranteed Interest Fund during the contract year.
The effective date of the Contract Fee will be the contract anniversary.
However, if the New York Stock Exchange is closed on the contract anniversary,
the effective date will be the next following Valuation Date.
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SECTION 8. OWNERSHIP
8.1 THE OWNER
The Owner is named on page 3. All contract rights may be exercised by the
Owner, the Owner's successor, or the Owner's transferee without the consent of
any beneficiary.
If the contract has more than one Owner, contract rights may be exercised
only by authorization of all Owners. Upon the death of an Owner, ownership
rights of all Owners terminate if the deceased Owner was the Annuitant.
8.2 TRANSFER OF OWNERSHIP
The Owner may transfer the ownership of this contract. Written proof of
transfer satisfactory to the Company must be received at its Home Office. The
transfer will then take effect as of the date it was signed. The Company may
require that the contract be sent to it for endorsement to show the transfer.
The Company will not be responsible to a transferee Owner for any payment or
other action taken by the Company before receipt of the proof of transfer at its
Home Office.
8.3 NAMING AND CHANGING A SUCCESSOR OWNER
An Owner may name and change a Successor Owner. Naming or changing a
Successor Owner will be effective on receipt at the Home Office of a written
request for such change that is acceptable to the Company. A Successor Owner
succeeds to the interests of an Owner only if the Owner was not the Annuitant at
the time of the Owner's death.
8.4 COLLATERAL ASSIGNMENT
The Owner may assign this contract as collateral security. The Company is
not responsible for the validity or effect of a collateral assignment. The
Company will not be responsible to an assignee for any payment or other action
taken by the Company before receipt of the assignment in writing at its Home
Office.
The interest of any beneficiary will be subject to any collateral
assignment made either before or after the beneficiary is named.
A collateral assignee is not an Owner. A collateral assignment is not a
transfer of ownership. Ownership can be transferred only by complying with
Section 8.2.
8.5 VOTING RIGHTS AND REPORTS TO OWNERS
As long as the Separate Account continues to be registered as a unit
investment trust under the Investment Company Act of 1940 and the assets of the
Separate Account are invested in shares of a Portfolio, the Company will vote
shares held by the Separate Account in accordance with the instructions received
from the Owners of Accumulation Units or, after payments have commenced under a
variable payment plan, from the beneficiaries receiving payments under those
payment plans. Each Owner or beneficiary will receive:
19
o periodic reports relating to the Portfolio;
o proxy material;
o a form with which to give voting instructions; and
o information regarding the proportion of shares of each Portfolio held
in the Separate Account corresponding either to the Accumulation Units
credited to this contract or the number of shares held in the Separate
Account representing the Company's actuarial liability under the
variable payment plan.
At least once each Contract Year, the Company will also send to the Owner
or beneficiary a statement of the Accumulation Values of the Investment
Accounts, the number of units credited to the contract, the dollar value of a
unit as of a date not more than two months previous to the date of mailing, and
a statement of the investments held by the Separate Account.
SECTION 9. THE CONTRACT
9.1 GUARANTEES
The Company guarantees that mortality and expense results will not
adversely affect the amount of variable payments.
9.2 VALUATION OF SEPARATE ACCOUNT ASSETS
The value of the shares of each Portfolio held in the Separate Account on
each Valuation Date will be the redemption value of the shares on that date. If
the right to redeem shares of a Portfolio has been suspended, or payment of the
redemption value has been postponed, the shares held in the Separate Account
(and Annuity Units) may be valued at fair value as determined in good faith by
the Board of Trustees of the Company for the sole purpose of computing annuity
payments.
9.3 DETERMINATION OF SEPARATE ACCOUNT VALUES
The method of determination by the Company of the Net Investment Factor,
and the number and value of Accumulation Units and Annuity Units, will be
conclusive upon the Owner, any assignee, the Annuitant, and any beneficiary.
9.4 DEFERMENT OF BENEFIT PAYMENTS
SEPARATE ACCOUNT DIVISIONS. The Company reserves the right to defer
determination of the contract values of the Separate Account portion of this
contract, or the payment of benefits under a variable payment plan, until after
the end of any period during which the right to redeem shares of a Portfolio is
suspended, or payment of the redemption value is postponed. Any deferment would
be in accordance with the provisions of the Investment Company Act of 1940 by
reason of closing of, or restriction of trading on, the New York Stock Exchange,
or other emergency, or as otherwise permitted by the Act. In addition, the
Company
20
reserves the right to defer payment of contract values until seven days after
the end of any deferment in the determination of contract values.
GUARANTEED INTEREST FUND. The Company may defer paying contract values of the
Guaranteed Interest Fund for up to six months from the effective date of the
withdrawal or full surrender. If payment is deferred for 30 days or more,
interest will be paid on the withdrawal amounts at an annual effective rate of
3% from the effective date of the withdrawal or surrender to the date of the
payment.
9.5 DIVIDENDS
This contract will share in the divisible surplus of the Company, except
while payments are being made under a variable payment plan. This surplus will
be determined each year, and the dividend, if any, will be credited on the
contract anniversary. Any dividend credited prior to the Maturity Date will be
applied on the effective date as a Net Purchase Payment unless the Owner elects
to have the dividend paid in cash. The effective date of the dividend will be
the contract anniversary. However, if the New York Stock Exchange is closed on
the contract anniversary, the effective date will be the next following
Valuation Date.
Since this policy is not expected to contribute to divisible surplus, it is
not expected that any dividends will be paid.
9.6 INCONTESTABILITY
The Company will not contest this contract after it has been in force
during the lifetime of the Annuitant for two years from the Issue Date. This
Issue Date is shown on page 3.
9.7 MISSTATEMENTS
If the age of the Annuitant has been misstated, the amount payable will be
the amount which the Purchase Payments paid would have purchased at the correct
age. If any amounts have been overpaid by the Company due to a misstatement of
age, the amount of the overpayment may be deducted from payments to be made by
the Company. If any amounts have been underpaid by the Company due to a
misstatement of age, the amount of the underpayment will be paid.
9.8 ENTIRE CONTRACT; CHANGES
This contract with any amendments and additional benefits and the attached
application is the entire contract. Statements in the application are
representations and not warranties. A change in the contract is valid only if it
is approved by an officer of the Company. The Company may require that the
contract be sent to it for endorsement to show a change. No agent has the
authority to change the contract or to waive any of its terms.
All payments by the Company under this contract are payable at its Home
Office.
Assets of the Separate Account are owned by the Company and the Company is
not a trustee with respect thereto. The Company may from time to time adjust the
amount of assets contained in the Separate Account, by periodic withdrawals or
additions, to reflect the contract deductions and the Company's reserves for
this and other similar contracts.
This contract is subject to the laws of the state in which it is delivered.
All benefits are at least as great as those required by that state.
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9.9 TERMINATION OF CONTRACT
The Company may terminate the contract and pay the Owner the Accumulation
Value of the contract and be released of any further obligation if:
o prior to the Maturity Date no Purchase Payments have been received
under the contract for a period of two full years and each of the
following is less than the Minimum Accumulation Value shown on page 4:
a. the Accumulation Value of the contract; and
b. total Purchase Payments paid under the contract, less any amounts
withdrawn under Section 4.5; or
o on the Maturity Date the Accumulation Value of the contract is less
than the Minimum Accumulation Value shown on page 4 or would provide
an initial monthly income which is less than the minimum payment
amount shown on page 4.
SECTION 10. PAYMENT OF CONTRACT BENEFITS
10.1 PAYMENT OF BENEFITS
All or part of the contract benefits may be paid under one or more of the
following:
o a variable payment plan;
o a fixed payment plan; or
o in cash.
The provisions and rates for variable and fixed payment plans are described
in Section 11. Contract benefits may not be placed under a payment plan unless
the plan would provide to each beneficiary an initial monthly income of at least
the minimum payment amount shown on page 4.
10.2 DEATH BENEFIT
A beneficiary entitled to the Death Benefit upon the death of an Annuitant
may elect to receive the Accumulation Value under a payment plan or in cash
provided no payment plan was elected by the Owner. The cash value of any amount
distributed will be the Accumulation Value withdrawn as of the date of
withdrawal as determined in Section 4.6.
10.3 EFFECTIVE DATE FOR PAYMENT PLAN
A payment plan that is elected for maturity benefits will take effect on
the Maturity Date.
If the Annuitant is an Owner, a payment plan that is elected by the Owner
for the Death Benefit will take effect on the date proof of death of the
Annuitant is received at the Home Office.
22
In all other cases, a payment plan that is elected will take effect:
o on the date the election is received at the Home Office; or
o on a later date, if requested.
10.4 PAYMENT PLAN ELECTIONS
FOR DEATH BENEFITS BY OWNER. The Owner may elect payment plans for death
benefits while the Annuitant is living.
FOR MATURITY BENEFITS OR WITHDRAWAL AMOUNTS. The Owner may elect payment plans
for maturity benefits or withdrawal amounts.
TRANSFER BETWEEN PAYMENT PLANS. A beneficiary who is receiving payment under a
payment plan which includes the right to withdraw may transfer the amount
withdrawable to any other payment plan that is available.
SECTION 11. PAYMENT PLANS
11.1 DESCRIPTION OF PAYMENT PLANS
INSTALLMENT INCOME FOR SPECIFIED PERIOD
(OPTION B)
The Company will make monthly installment income payments providing for
payment of benefits over a specified period of 10 to 30 years during the first
five contract years and over a specified period of 5 to 30 years beginning with
the sixth contract year.
LIFE INCOME PLANS
o SINGLE LIFE INCOME (OPTION C). The Company will make monthly payments
for the selected certain period, if any, and thereafter during the
remaining lifetime of the individual upon whose life income payments
depend. The selections available are: (a) no certain period; or (b) a
certain period of 10 or 20 years.
o JOINT AND SURVIVOR LIFE INCOME (OPTION E). The Company will make
monthly payments for a 10-year certain period and thereafter during
the joint lifetime of the two individuals upon whose lives income
payments depend and continuing during the remaining lifetime of the
survivor.
o OTHER SELECTIONS. The Company may offer other selections under the
Life Income Plans.
o LIMITATIONS. A direct or contingent beneficiary who is a natural
person may be paid under a Life Income Plan only if the payments
depend on that beneficiary's life. A corporation may be paid under a
Life Income Plan only if the payments depend on the life of the
Annuitant or, after the death of the Annuitant, on the life of the
Annuitant's spouse or dependent.
23
These payment plans are available on either a fixed or variable basis.
Under a fixed payment plan the payment remains level. Under a variable payment
plan the payment will increase or decrease as described in Section 11.4.
11.2 ALLOCATION OF BENEFITS
Upon election of a variable payment plan, the Owner or direct or contingent
beneficiary may select the allocation of variable benefits among the Divisions.
If no selection is made, the allocation of benefits will be as follows:
o for amounts in the Separate Account Divisions, benefits will be
allocated in proportion to the Accumulation Value of each Division on
the effective date of the variable payment plan; and
o for amounts in the Guaranteed Interest Fund, benefits will be
allocated 100% to the Money Market Division.
11.3 ANNUITY UNITS UNDER VARIABLE PAYMENT PLANS
The interest of this contract in the Separate Account after the effective
date of a variable payment plan is represented by Annuity Units.
The dollar value of Annuity Units for each Division will increase or
decrease to reflect the investment experience of the Division. The value of an
Annuity Unit on any Valuation Date is the product of:
o the Annuity Unit value on the immediately preceding Valuation Date;
o the Net Investment Factor for the period from the immediately
preceding Valuation Date up to and including the current Valuation
Date (the current period); and
o the Daily Adjustment Factor of .99990575 raised to a power equal to
the number of days in the current period to reflect the Assumed
Investment Rate of 3 1/2% used in calculating the monthly payment
rate.
11.4 PAYMENTS UNDER VARIABLE PAYMENT PLANS
FIRST PAYMENT. The first payment under a variable payment plan will be due as of
the effective date of the payment plan.
The amount of the first payment is the sum of payments from each Division, each
determined by multiplying the benefits allocated to the Division under the
variable payment plan by the applicable monthly variable payment rate per $1,000
of benefits.
NUMBER OF ANNUITY UNITS. The number of Annuity Units in each Division under a
variable payment plan is determined by dividing the amount of the first payment
payable from the Division by the Annuity Unit value for the Division at the
close of business on the effective date of the variable payment plan. The number
of Annuity Units will not be changed by any subsequent change in the dollar
value of Annuity Units.
24
SUBSEQUENT VARIABLE PAYMENTS. The amount of each subsequent payment from each
Division under a variable payment plan will increase or decrease in accord with
the increase or decrease in the value of an Annuity Unit which reflects the
investment experience of that Division of the Separate Account.
The amount of subsequent variable payments is the sum of payments from each
Division, each determined by multiplying the fixed number of Annuity Units for
the Division by the value of an Annuity Unit for the Division on:
o the fifth Valuation Date prior to the payment due date if the payment
due date is a Valuation Date; or
o the sixth Valuation Date prior to the payment due date if the payment
due date is not a Valuation Date.
11.5 TRANSFERS INVOLVING VARIABLE PAYMENT PLANS
A beneficiary receiving payments under a variable payment plan may transfer
Annuity Units from one Division to another. The number of Annuity Units in each
Division will be adjusted to reflect the respective value of the Annuity Units
in the Divisions on the date the transfer is effective.
A Transfer Fee may be deducted from the amount transferred. The amount of
the Transfer Fee is shown on page 4. Transfers from the Money Market Division
may be made at any time. No transfer from the other Divisions may be made within
90 days of the effective date of a variable payment plan or within 90 days from
the effective date of the last transfer.
A beneficiary receiving payments under a variable payment plan may transfer
from an Installment Income Plan (Option B) to either form of the Life Income
Plan (Option C or E). Other transfers may be permitted subject to conditions set
by the Company.
A transfer will be effective on the Valuation Date on which a satisfactory
transfer request is received in the Home Office, or a later date if requested.
However, the transfer will be effective on the following Valuation Date if the
request is received at the Home Office either:
o on a Valuation Date after the close of trading on the New York Stock
Exchange; or
o on a day on which the New York Stock Exchange is closed.
11.6 WITHDRAWAL UNDER PAYMENT PLANS
Withdrawal of the present value of any unpaid income payments may be
elected at any time by the beneficiary, except that withdrawal may not be
elected under a Life Income Plan (Option C or E) until the death of all
individuals upon whose lives income payments depend.
The withdrawal value under the Installment Income Plan (Option B) will be
the present value of any unpaid payments. The withdrawal value under a Life
Income Plan (Option C or E) will be the present value of any unpaid payments for
the certain period.
For a fixed payment plan, the present value of any unpaid income payments
will be based on the rate of interest used to determine the amount of the
payments. For a variable payment plan, the present value of any
25
unpaid income payments will be based on interest at the Assumed Investment Rate
used in calculating the amount of the variable payments. The amount of variable
payments used in calculating the present value of unpaid payments will be
determined by multiplying the number of Annuity Units by the value of an Annuity
Unit on the effective date of withdrawal.
A withdrawal will be effective on the Valuation Date on which the request
is received in the Home Office. However, the withdrawal will be effective on the
following Valuation Date if the request is received at the Home Office either:
o on a Valuation Date after the close of trading on the New York Stock
Exchange; or
o on a day on which the New York Stock Exchange is closed.
11.7 NAMING AND CHANGING OF BENEFICIARIES UNDER PAYMENT PLANS
FOR PAYMENT PLANS ELECTED BY OWNER. If the Owner of the contract elected a
payment plan, a direct beneficiary may name and change the contingent
beneficiaries and further payees of the direct beneficiary's share of the
benefits only if:
o the direct beneficiary was the Owner of the contract; or
o no contingent beneficiary or further payee of that share is living.
FOR PAYMENT PLANS ELECTED BY DIRECT BENEFICIARY. If the direct beneficiary
elected the payment plan, the direct beneficiary may name and change the
contingent beneficiaries and further payees of the direct beneficiary's share of
the benefits.
11.8 SUCCESSION IN INTEREST OF BENEFICIARIES UNDER PAYMENT PLANS
DIRECT BENEFICIARY. Amounts payable under a payment plan will be payable to the
direct beneficiary.
CONTINGENT BENEFICIARIES. At the death of the direct beneficiary, the present
value of any unpaid payments under a payment plan, will be payable in equal
shares to the contingent beneficiaries who survive and receive payment. If a
contingent beneficiary dies before receiving all or part of the contingent
beneficiary's full share, the unpaid portion will be payable in equal shares to
the other contingent beneficiaries who survive and receive payment.
FURTHER PAYEES. At the death of all direct and contingent beneficiaries, the
present value of any unpaid payments under a payment plan, will be paid in one
sum:
o in equal shares to the further payees who survive and receive payment;
or
o if no further payees survive and receive payment, to the estate of the
last to die of all beneficiaries.
11.9 PAYMENT PLAN RATES
PAYMENT RATE TABLES. The guaranteed monthly payment rates for both a fixed
payment plan and the first payment under a variable payment plan are shown in
the Payment Rate Tables. The tables show rates for
26
the Installment Income Plan for a Specified Period (Option B) and Life Income
Plans (Options C and E). Life Income Plan (Option C or E) rates are based on the
adjusted age of any individual upon whose life payments depend. The adjusted age
is:
o the age on the birthday that is nearest to the date on which the
payment plan takes effect; plus
o the age adjustment shown below for the number of Contract Years that
have elapsed from the Issue Date to the date that the payment plan
takes effect. A part of a Contract Year is counted as a full year.
CONTRACT AGE CONTRACT AGE
YEARS ADJUST- YEARS ADJUST-
ELAPSED MENT ELAPSED MENT
------- ---- ------- ----
1 to 8 0 33 to 40 -4
9 to 16 -1 41 to 48 -5
17 to 24 -2 49 or more -6
25 to 32 -3
Current Fixed Payment Plan Rates
o INSTALLMENT INCOME FOR SPECIFIED PERIOD (OPTION B). The Company may
offer fixed payment plan rates higher than those guaranteed in this
contract with conditions on withdrawal.
o LIFE INCOME PLANS (OPTION C OR E). Payments will be based on rates
declared by the Company that will not be less than the rates
guaranteed in this contract. The declared rates will provide at least
as much income as would the Company's rates, on the date that the
payment plan takes effect, for a single premium immediate annuity
contract.
ALTERNATE VARIABLE RATE BASIS. The Company may from time to time publish higher
initial rates for variable payment plans under this contract. These higher rates
will not be available to increase payments under payment plans already in
effect.
27
When a variable payment plan is effective on an alternate rate basis, the Daily
Adjustment Factor described in Section 11.3 will be determined based on the
Assumed Investment Rate used in calculating the alternate payment rate.
28
PAYMENT RATE TABLES
MONTHLY INCOME PAYMENTS PER $1,000 BENEFITS
FIRST PAYMENT UNDER VARIABLE PAYMENT PLAN
INSTALLMENT INCOME PLANS (OPTION B)
PERIOD MONTHLY PERIOD MONTHLY PERIOD MONTHLY
(YEARS) PAYMENT (YEARS) PAYMENT (YEARS) PAYMENT
Years 1-4 11 $ 9.09 21 $ 5.56
Not Available 12 8.46 22 5.39
13 7.94 23 5.24
14 7.49 24 5.09
5 18.12 15 7.10 25 4.96
6 15.35 16 6.76 26 4.84
7 13.38 17 6.47 27 4.73
8 11.90 18 6.20 28 4.63
9 10.75 19 5.97 29 4.53
10 9.83 20 5.75 30 4.45
29
GUARANTEED FIXED PAYMENT PLANS
INSTALLMENT INCOME PLANS (OPTION B)
PERIOD MONTHLY PERIOD MONTHLY PERIOD MONTHLY
(YEARS) PAYMENT (YEARS) PAYMENT (YEARS) PAYMENT
1 $84.09 11 $ 8.42 21 $ 4.85
2 42.46 12 7.80 22 4.67
3 28.59 13 7.26 23 4.51
4 21.65 14 6.81 24 4.36
5 17.49 15 6.42 25 4.22
6 14.72 16 6.07 26 4.10
7 12.74 17 5.77 27 3.98
8 11.25 18 5.50 28 3.87
9 10.10 19 5.26 29 3.77
10 9.18 20 5.04 30 3.68
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PAYMENT RATE TABLES
MONTHLY INCOME PAYMENTS PER $1,000 BENEFITS
GUARANTEED FIXED PAYMENT OR FIRST PAYMENT UNDER VARIABLE PAYMENT PLAN
LIFE INCOME PLAN (OPTION C)
SINGLE LIFE MONTHLY PAYMENTS
CHOSEN PERIOD (YEARS)
ADJUSTED
AGE* ZERO 10 20
---- ---- -- --
55 $ 4.11 $ 4.09 $ 4.01
56 4.18 4.15 4.07
57 4.25 4.22 4.13
58 4.33 4.29 4.18
59 4.40 4.36 4.24
60 4.49 4.45 4.30
61 4.58 4.53 4.37
62 4.68 4.61 4.43
63 4.77 4.71 4.50
64 4.89 4.81 4.57
65 5.01 4.92 4.64
66 5.13 5.03 4.72
67 5.26 5.15 4.78
68 5.41 5.27 4.85
69 5.57 5.40 4.93
70 5.74 5.55 5.00
71 5.92 5.69 5.07
72 6.12 5.84 5.13
73 6.33 6.00 5.20
74 6.55 6.17 5.26
75 6.79 6.35 5.32
76 7.06 6.53 5.37
77 7.34 6.72 5.41
78 7.65 6.90 5.46
79 7.98 7.10 5.50
80 8.34 7.30 5.53
81 8.73 7.49 5.56
82 9.15 7.68 5.59
83 9.60 7.88 5.61
84 10.09 8.07 5.62
85 and over 10.61 8.24 5.63
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LIFE INCOME PLAN (OPTION E)
JOINT AND SURVIVOR MONTHLY PAYMENTS (with 10 years certain)
OLDER LIFE YOUNGER LIFE ADJUSTED AGE*
ADJUSTED
AGE* 55 60 65 70 75 80 85 and over
55 $ 3.75
60 3.83 $ 4.02
65 3.90 4.13 $ 4.39
70 3.94 4.22 4.54 $ 4.89
75 3.98 4.28 4.65 5.10 $ 5.59
80 4.00 4.32 4.73 5.24 5.86 $ 6.51
85 and over 4.01 4.34 4.77 5.34 6.04 6.84 $ 7.58
* See Section 11.7
The amount of the payment for any other combination of ages will be furnished by
the Company on request. The maximum initial monthly income per $1,000 will be
$7.58.
Monthly payment rates are based on an Assumed Investment Rate of 3 1/2% and the
1983 Table A with Projection Scale G.
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AMENDMENT OF CONTRACT TO QUALIFY AS ANNUITY
AS OF THE ISSUE DATE, THIS AMENDMENT IS MADE A PART OF THIS ANNUITY
CONTRACT ISSUED BY THE NORTHWESTERN MUTUAL LIFE INSURANCE COMPANY.
NOTWITHSTANDING ANY OTHER SPECIFIC PROVISIONS IN THIS CONTRACT TO THE CONTRARY
AND SUBJECT TO THE TAX QUALIFICATION PROVISIONS HEREIN, THIS CONTRACT IS AMENDED
TO RESTRICT THE EXERCISE OF THE RIGHTS OF THE OWNER OR ANNUITANT AND ANY
BENEFICIARY AS FOLLOWS:
1. Required Distributions.
a. If any Owner dies on or after the annuity starting date and before
entire interest in this contract has been distributed, the remaining
portion of such interest shall be distributed at least as rapidly as
under the method of distribution being used as of the date of the
Owner's death.
b. If any Owner dies before the annuity starting date, the entire
interest in this contract shall be distributed within five years after
the Owner's death.
c. For purposes of paragraphs a and b, if any portion of the Owner's
interest in this contract is payable to or for the benefit of a
designated beneficiary and such designated beneficiary timely elects
to have such portion distributed over a period not exceeding the life
or life expectancy of such designated beneficiary in distributions
that begin within one year of the Owner's death, such portion shall be
treated as distributed entirely on the date such distributions begin.
d. For purposes of paragraphs a and b, if any portion of the Owner's
interest in the contract is payable to or for the benefit of a
designated beneficiary who is the Owner's surviving spouse , such
spouse shall be treated as the Owner and, absent a contrary
designation by such spouse, as a contingent annuitant with respect to
such portion.
e. For purposes of paragraphs a. and b., if the Owner is not an
individual, the primary annuitant under the contract shall be treated
as the Owner, any change in the primary annuitant shall be treated as
the death of the Owner and any designation of a beneficiary by the
Owner shall be deemed to be a designation of the same beneficiary by
the primary annuitant. The primary annuitant is the individual, the
events in the life of whom are of primary importance in affecting the
timing or amount of the payout under the contract.
33
f. For purposes of this section, a "designated beneficiary" is any
individual designated by the Owner as a beneficiary, including a
co-owner or successor owner who succeeds to any portion of a deceased
owner's interest upon death.
g. For purposes of this section, "annuity starting date" is the first day
of the first period for which periodic annuity payments are made under
the contract.
2. 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,
including any amendment, endorsement or rider, are to be interpreted to
ensure or maintain any such tax qualification, despite any other provision
to the contrary (including the provisions of any amendment, endorsement or
rider that do not expressly override these tax qualification provisions).
The Company reserves the right to amend this contract at any time to
reflect any clarification that may be needed or may be appropriate to
maintain any such tax qualification or to conform the contract to any
applicable changes in the tax qualification requirements.
(signed)
SECRETARY
THE NORTHWESTERN MUTUAL LIFE
INSURANCE COMPANY
RRV 313 (032000)
34
IT IS RECOMMENDED THAT YOU ...
read your contract.
notify your agent or the Company at 000 Xxxx Xxxxxxxxx Xxxxxx, Xxxxxxxxx, XX
00000, of an address change.
call your agent for information--particularly on a suggestion to terminate or
exchange this contract for another contract or plan.
ELECTION OF TRUSTEES
The members of The Northwestern Mutual Life Insurance Company are its
policyholders of insurance policies and deferred annuity contracts. The members
exercise control through a Board of Trustees. Elections to the Board are held
each year at the annual meeting of members. Members are entitled to vote in
person or by proxy.
XXXXX STREET VARIABLE ANNUITY
FLEXIBLE PAYMENT VARIABLE ANNUITY - ACCOUNT B
AMOUNTS ALLOCATED TO THE SEPARATE ACCOUNT DIVISIONS AND VARIABLE PAYMENTS
PROVIDED BY THIS CONTRACT ARE NOT GUARANTEED AS TO FIXED DOLLAR AMOUNT BUT ARE
VARIABLE AND MAY INCREASE OR DECREASE TO REFLECT THE INVESTMENT EXPERIENCE OF
THE SEPARATE ACCOUNT.
RR.V.B.MSNST.(032000)
35
Exhibit B(4)(b)
CONTRACT AGE CONTRACT AGE
YEARS ADJUST- YEARS ADJUST-
ELAPSED MENT ELAPSED MENT
---------- ---------- ---------- ----------
1 to 8 0 33 to 40 -4
9 to 16 -1 41 to 48 -5
17 to 24 -2 49 or more -6
25 to 32 -3
CURRENT FIXED PAYMENT PLAN RATES
o INSTALLMENT INCOME FOR SPECIFIED PERIOD (OPTION B). The Company may offer
fixed payment plan rates higher than those guaranteed in this contract with
conditions on withdrawal.
o LIFE INCOME PLANS (OPTION C OR E). Payments will be based on rates declared
by the Company that will not be less than the rates guaranteed in this
contract. The declared rates will provide at least as much income as would
the Company's rates, on the date that the payment plan takes effect, for a
single premium immediate annuity contract.
ALTERNATE VARIABLE RATE BASIS. The Company may from time to time publish higher
initial rates for variable payment plans under this contract. These higher rates
will not be available to increase payments under payment plans already in
effect.
When a variable payment plan is effective on an alternate rate basis, the Daily
Adjustment Factor described in Section 11.3 will be determined based on the
Assumed Investment Rate used in calculating the alternate payment rate.
36
PAYMENT RATE TABLES
MONTHLY INCOME PAYMENTS PER $1,000 BENEFITS
FIRST PAYMENT UNDER VARIABLE PAYMENT PLAN
INSTALLMENT INCOME PLANS (OPTION B)
PERIOD MONTHLY PERIOD MONTHLY PERIOD MONTHLY
(YEARS) PAYMENT (YEARS) PAYMENT (YEARS) PAYMENT
------- ------- ------- ------- ------- -------
Years 1-4 11 $ 9.09 21 $ 5.56
Not Available 12 8.46 22 5.39
13 7.94 23 5.24
14 7.49 24 5.09
5 18.12 15 7.10 25 4.96
6 15.35 16 6.76 26 4.84
7 13.38 17 6.47 27 4.73
8 11.90 18 6.20 28 4.63
9 10.75 19 5.97 29 4.53
10 9.83 20 5.75 30 4.45
GUARANTEED FIXED PAYMENT PLANS
INSTALLMENT INCOME PLANS (OPTION B)
PERIOD MONTHLY PERIOD MONTHLY PERIOD MONTHLY
(YEARS) PAYMENT (YEARS) PAYMENT (YEARS) PAYMENT
------- ------- ------- ------- ------- -------
1 $84.09 11 $ 8.42 21 $ 4.85
2 42.46 12 7.80 22 4.67
3 28.59 13 7.26 23 4.51
4 21.65 14 6.81 24 4.36
5 17.49 15 6.42 25 4.22
6 14.72 16 6.07 26 4.10
7 12.74 17 5.77 27 3.98
8 11.25 18 5.50 28 3.87
9 10.10 19 5.26 29 3.77
10 9.18 20 5.04 30 3.68
37
PAYMENT RATE TABLES
MONTHLY INCOME PAYMENTS PER $1000 BENEFITS
GUARANTEED FIXED PAYMENT OR FIRST PAYMENT UNDER VARIABLE PAYMENT PLAN
LIFE INCOME PLAN (OPTION C)
SINGLE LIFE MONTHLY PAYMENTS
MALE CHOSEN PERIOD (YEARS) FEMALE CHOSEN PERIOD (YEARS)
ADJUSTED ADJUSTED
AGE* ZERO 10 20 AGE* ZERO 10 20
-------- ---------- ---------- --------- -------- --------- --------- ---------
55 $ 4.41 $ 4.36 $ 4.23 55 $ 4.04 $ 4.02 $ 3.96
56 4.49 4.44 4.29 56 4.10 4.08 4.01
57 4.58 4.52 4.35 57 4.17 4.14 4.07
58 4.67 4.60 4.41 58 4.24 4.21 4.12
59 4.77 4.69 4.47 59 4.31 4.28 4.18
60 4.87 4.79 4.54 60 4.39 4.36 4.24
61 4.98 4.89 4.60 61 4.48 4.44 4.31
62 5.10 4.99 4.67 62 4.57 4.52 4.37
63 5.23 5.11 4.74 63 4.66 4.61 4.44
64 5.36 5.22 4.81 64 4.77 4.71 4.51
65 5.51 5.35 4.87 65 4.88 4.81 4.58
66 5.67 5.47 4.94 66 5.00 4.92 4.66
67 5.84 5.61 5.00 67 5.12 5.03 4.73
68 6.02 5.75 5.07 68 5.26 5.15 4.80
69 6.21 5.89 5.13 69 5.41 5.28 4.88
70 6.41 6.05 5.19 70 5.57 5.42 4.95
71 6.63 6.20 5.25 71 5.74 5.56 5.02
72 6.86 6.36 5.30 72 5.93 5.71 5.09
73 7.11 6.53 5.35 73 6.13 5.87 5.16
74 7.37 6.70 5.39 74 6.34 6.04 5.23
75 7.65 6.87 5.44 75 6.58 6.22 5.29
76 7.96 7.05 5.47 76 6.83 6.40 5.34
77 8.28 7.23 5.51 77 7.11 6.59 5.39
78 8.63 7.40 5.54 78 7.40 6.78 5.44
79 9.01 7.58 5.56 79 7.72 6.98 5.48
80 9.41 7.76 5.59 80 8.07 7.18 5.52
81 9.84 7.93 5.61 81 8.45 7.38 5.55
82 10.30 8.10 5.62 82 8.86 7.58 5.58
83 10.79 8.27 5.63 83 9.30 7.78 5.60
84 11.31 8.42 5.64 84 9.78 7.98 5.62
85 and over 11.87 8.57 5.65 85 and over 10.30 8.16 5.63
38
LIFE INCOME PLAN (OPTION E)
JOINT AND SURVIVOR MONTHLY PAYMENTS (with 10 years certain)
MALE FEMALE ADJUSTED AGE*
ADJUSTED
AGE* 55 60 65 70 75 80 85 and over
-------- ------- ------- ------- ------- ------- ------- -----------
55 $ 3.75 $ 3.89 $ 4.02 $ 4.14 $ 4.23 $ 4.29 $ 4.33
60 3.83 4.02 4.21 4.39 4.54 4.65 4.73
65 3.90 4.13 4.39 4.65 4.89 5.09 5.22
70 3.94 4.22 4.54 4.89 5.26 5.58 5.81
75 3.98 4.28 4.65 5.10 5.59 6.07 6.45
80 4.00 4.32 4.73 5.24 5.86 6.51 7.07
85 and over 4.01 4.34 4.77 5.34 6.04 6.84 7.58
* See Section 11.7
The amount of the payment for any other combination of ages will be furnished by
the Company on request. The maximum initial monthly income per $1,000 will be
$7.58.
Monthly payment rates are based on an Assumed Investment Rate of 3 1/2% and the
1983 Table A with Projection Scale G.
39
EXHIBIT B(4)(c)
ENHANCED DEATH BENEFIT
As of the Issue Date, this amendment is made part of this annuity contract
issued by The Northwestern Mutual Life Insurance Company. In the case of a
conflict with any provisions in the contract, the provisions of this amendment
will control.
SECTION 5.2 AND SECTION 5.3 ARE AMENDED IN THEIR ENTIRETY TO READ AS FOLLOWS:
SECTION 5.2 DEATH BENEFIT IF PRIMARY ANNUITANT IS AN OWNER
If the Primary Annuitant is an Owner, the beneficiary becomes entitled to the
Death Benefit upon receipt at the Home Office of satisfactory proof of the death
of the Primary Annuitant before the Maturity Date. The Death Benefit will be the
greater of:
o the Accumulation Value of the contract on the effective date; or
o the Enhanced Death Benefit.
As of the effective date, the Accumulation Value of the contract will be set at
an amount equal to the Death Benefit. Unless a payment plan was elected by the
Owner, the beneficiary becomes the Owner and Annuitant of the contract. However,
if the beneficiary is not a natural person and no payment plan was elected by
the Owner, the beneficiary may select a natural person to be the Annuitant. If a
natural person is not selected to be the Annuitant within 60 days of the date on
which proof of death of the Annuitant is received at the Home Office, the
Accumulation Value will be distributed to the beneficiary.
If a beneficiary becomes entitled to the Death Benefit in an amount less than
the Minimum Accumulation Value shown on page 4, the Accumulation Value will be
distributed to the beneficiary.
The cash value of any amount distributed will be the Accumulation Value
withdrawn as of the date of withdrawal as determined in Section 4.6.
ENHANCED DEATH BENEFIT. Prior to the first contract anniversary, the Enhanced
Death Benefit will equal the total Purchase Payments paid under the contract
less any amounts withdrawn under Section 4.5.
On the first contract anniversary and on each subsequent contract anniversary
prior to the Primary Annuitant's 80th birthday, the Enhanced Death Benefit will
equal the greater of:
o the Accumulation Value of the contract on that contract anniversary;
or
o the Enhanced Death Benefit on the most recent Valuation Date prior to
that contract anniversary.
On any other Valuation Date prior to the Primary Annuitant's 80th birthday, the
Enhanced Death Benefit will be equal to the Enhanced Death Benefit on the most
recent contract anniversary,
40
increased by any Purchase Payments paid since that contract anniversary and
decreased by any amounts withdrawn under Section 4.5 since that contract
anniversary.
On any Valuation Date on or after the Primary Annuitant's 80th birthday, the
Enhanced Death Benefit will equal the Enhanced Death Benefit on the contract
anniversary immediately prior to the Primary Annuitant's 80th birthday increased
by any Purchase Payments paid since that contract anniversary and decreased by
any amounts withdrawn under Section 4.5 since that contract anniversary.
ENHANCED DEATH BENEFIT CHARGE. On each contract anniversary while this amendment
is in effect, a charge for the Enhanced Death Benefit will be deducted from the
Investment Accounts in proportion to the Accumulation Value of the Investment
Accounts. The charge is shown on page 4.
EFFECTIVE DATE. The effective date is the date on which proof of death is
received at the Home Office. However, the effective date will be the next
following Valuation Date if the proof of death is received at the Home Office
either:
o on a Valuation Date after the close of trading on the New York Stock
Exchange; or
o on a day on which the New York Stock Exchange is closed.
TERMINATION OF ENHANCED DEATH BENEFIT. This amendment will remain in effect
until Maturity unless the Owner requests that it be removed, the contract
terminates, or the Primary Annuitant dies. Once the amendment is removed, it
cannot be added again. The provisions of Section 5.2 in the contract are
applicable if this amendment terminates.
SECTION 5.3 DEATH BENEFIT IF PRIMARY ANNUITANT IS NOT AN OWNER
If the Primary Annuitant is not an Owner, upon the death of the Primary
Annuitant, the contract continues with the Contingent Annuitant (Section 6.5) as
the new Annuitant. The Death Benefit will be the greater of:
o the Accumulation Value of the contract on the effective date; or
o the Enhanced Death Benefit.
As of the effective date, the Accumulation Value of the contract will be set at
an amount equal to the Death Benefit.
ENHANCED DEATH BENEFIT. Prior to the first contract anniversary, the Enhanced
Death Benefit will equal the total Purchase Payments paid under the contract
less any amounts withdrawn under Section 4.5.
On the first contract anniversary and on each subsequent contract anniversary
prior to the Primary Annuitant's 80th birthday, the Enhanced Death Benefit will
equal the greater of:
o the Accumulation Value of the contract on that contract anniversary;
or
o the Enhanced Death Benefit on the most recent Valuation Date prior to
that contract anniversary.
41
On any other Valuation Date prior to the Primary Annuitant's 80th birthday, the
Enhanced Death Benefit will be equal to the Enhanced Death Benefit on the most
recent contract anniversary, increased by any Purchase Payments paid since that
contract anniversary and decreased by any amounts withdrawn under Section 4.5
since that contract anniversary.
On any Valuation Date on or after the Primary Annuitant's 80th birthday, the
Enhanced Death Benefit will equal the Enhanced Death Benefit on the contract
anniversary immediately prior to the Primary Annuitant's 80th birthday increased
by any Purchase Payments paid since that contract anniversary and decreased by
any amounts withdrawn under Section 4.5 since that contract anniversary.
ENHANCED DEATH BENEFIT CHARGE. On each contract anniversary while this amendment
is in effect, a charge for the Enhanced Death Benefit will be deducted from the
Investment Accounts in proportion to the Accumulation Value of the Investment
Accounts. The charge is shown on page 4.
EFFECTIVE DATE. The effective date is the date on which proof of death is
received at the Home Office. However, the effective date will be the next
following Valuation Date if the proof of death is received at the Home Office
either:
o on a Valuation Date after the close of trading on the New York Stock
Exchange; or
o on a day on which the New York Stock Exchange is closed.
TERMINATION OF ENHANCED DEATH BENEFIT. This amendment will remain in effect
until Maturity unless the Owner requests that it be removed, the contract
terminates, or the Primary Annuitant dies. Once the amendment is removed it
cannot be added again. The provisions of Section 5.3 in the contract are
applicable if this amendment terminates.
(signed)
Secretary
The Northwestern Mutual Life Insurance Company
42
EXHIBIT B(4)(d)
WAIVER OF WITHDRAWAL CHARGE
As of the Issue Date, this amendment is made part of this annuity contract
issued by The Northwestern Mutual Life Insurance Company. In the case of a
conflict with any provisions in the contract, the provisions of this amendment
will control. The following provisions are hereby added to the contract:
1. TERMINAL ILLNESS BENEFIT
Withdrawal charges will be waived if the Primary Annuitant has a terminal
illness.
A terminal illness is an illness that is expected to result in the death of
the Primary Annuitant in 12 months or less. An Owner requesting waiver of
withdrawal charges is required to provide proof, satisfactory to the
Company, of the Primary Annuitant's terminal illness. The proof must
include a certification from a licensed physician stating that the Primary
Annuitant's life expectancy is 12 months or less. No withdrawal charges
will be waived if the determination that the Primary Annuitant's life
expectancy is 12 months or less was first made prior to the Issue Date.
No Purchase Payments can be made to the contract once proof of terminal illness
is provided to the Company.
2. NURSING HOME BENEFIT
Withdrawal charges will be waived after the first Contract Year if:
o the Primary Annuitant is confined, on a 24 hour per day basis, to a
Nursing Home or Hospital for a period of at least 90 consecutive days;
and
o such confinement is medically necessary.
A Nursing Home is a facility that is licensed by the jurisdiction in which
it is located to provide nursing care (skilled, intermediate or custodial).
A Hospital is a facility that is licensed as a hospital by the jurisdiction
in which it is located, and operates primarily for the diagnosis and
treatment of and medical or surgical care of sick or injured persons.
An Owner requesting waiver of withdrawal charges is required to provide
proof, satisfactory to the Company, of the Primary Annuitant's confinement.
The proof must include a certification from a licensed physician that the
confinement is medically necessary. No withdrawal charges will be waived if
the confinement began before the Issue Date. A request for waiver of
withdrawal charges must be made no later than 90 days following the date
the Primary Annuitant's confinement ended.
43
No Purchase Payments can be made to the contract once proof of confinement
is provided to the Company.
(Signed)
Secretary, The Northwestern Mutual Life
Insurance Company
44
EXHIBIT B(5)
XXXXX STREET
VARIABLE ANNUITY
APPLICATION
Client Account Number Contract Number
================================================================================
1. OTHER POLICIES
================================================================================
Has a Northwestern Mutual Policy ever been issued on the annuitant's life?
[ ] YES, THE LAST POLICY NUMBER IS:______________________ [ ] NO
================================================================================
2. ANNUITANT
================================================================================
Name: First, MI, Last Sex Birthdate: mm-dd-yyyy
---------------------------------------------------------------------------
Street Address City, State, Zip
---------------------------------------------------------------------------
Country, if other than US Taxpayer ID Number E-mail Address
---------------------------------------------------------------------------
================================================================================
3. MARKET
================================================================================
Select one:
[ ] NON-TAX QUALIFIED
[ ] NET INCOME MAKEUP CHARITABLE REMAINDER UNITRUST (NIM-CRUT)
[ ] OTHER Market
------------------------------------------------------------
================================================================================
4. OWNER
================================================================================
A minor owner limits future contract actions.
Select one:
[ ] ANNUITANT )
) Go to section 5.
[ ] SEE ATTACHMENT )
[ ] UGMA/UTMA - CUSTODIAN IS THE OWNER FOR )
THE BENEFIT OF MINOR. )Enter information below.
[ ] CORPORATION OR TRUST )
[ ] OTHER )
NAME: First, MI, Last/ Corporation/ Trust Sex Birthdate: mm-dd-yyyy
---------------------------------------------------------------------------
Street Address City, State, Zip
---------------------------------------------------------------------------
Relationship to Annuitant Taxpayer ID Number E-mail Address
---------------------------------------------------------------------------
Date of Trust Name of Trustees
---------------------------------------------------------------------------
Product of The Northwestern Mutual Life Insurance Company
45
================================================================================
5. BENEFICIARY
================================================================================
Cannot be annuitant unless "Estate of Annuitant" named.
[ ] SEE ATTACHMENT - Go to section 6.
DIRECT BENEFICIARY: [ ] OWNER [ ] OTHER - Enter information below:
Name Taxpayer ID Number (Optional) Relationship %
---------------------------------------------------------------------------
Name Taxpayer ID Number (Optional) Relationship %
---------------------------------------------------------------------------
CONTINGENT BENEFICIARY:
Name Taxpayer ID Number (Optional) Relationship %
---------------------------------------------------------------------------
Name Taxpayer ID Number (Optional) Relationship %
---------------------------------------------------------------------------
[ ] And all (other) children of the Annuitant.
================================================================================
6. REPLACEMENT
================================================================================
As a result of this purchase, will the values or benefits of any other life
insurance policy or annuity contract, on any life, be affected in any way?
[ ] YES [ ] NO
Note to Agent: Values or benefits are affected if any question on the
Definition of Replacement Supplement could be answered "yes."
Will this annuity:
A. Replace Northwestern Mutual Life? [ ] YES [ ] NO
B. Replace other companies? [ ] YES [ ] NO
C. Result in 1035 exchange? [ ] YES [ ] NO
================================================================================
7. OPTIONAL ENHANCED DEATH BENEFIT
================================================================================
[ ] I ELECT THE ENHANCED DEATH BENEFIT RIDER.
There is an additional charge. Available to age 65. If this rider is not
elected, the standard death benefit will apply. See prospectus for more
information.
46
================================================================================
8. PAYMENT ALLOCATION AND OPTIONS
================================================================================
A. PAYMENT ALLOCATION
You must indicate payment allocations. Use whole percentages. Total must
equal 100%.
NORTHWESTERN MUTUAL SERIES FUND, INC.
%
_____ Select Bond
_____ Xxxxxxxxx International Equity
_____ Money Market
_____ Balanced
_____ Index 500 Stock
_____ Aggressive Growth Stock
_____ High Yield Bond
_____ Growth Stock
_____ XX Xxxxxx Select Growth and Income
_____ Index 400 Stock
_____ Small Cap Growth Stock
_____ Xxxxxxx Multi-Style Equity
_____ Xxxxxxx Aggressive Equity
_____ Xxxxxxx Non-US
_____ Xxxxxxx Real Estate Securities
_____ Xxxxxxx Core Bond
_____ Asset Allocation
_____ International Growth Stock
_____ X Xxxx Price Small Cap Value
_____ Cap Guardian Domestic Equity
FIXED FUND
%
_____ Guaranteed Interest
Fund availability subject to state approval.
B. OPTIONS
You may select one of the following options:
[ ] AUTOMATIC DOLLAR-COST AVERAGING
Amount
I authorize $___________ to be transferred from the Money Market Fund:
[ ] MONTHLY [ ] QUARTERLY
to the following funds:
$ Fund Name
_____ _____________________________________
_____ _____________________________________
_____ _____________________________________
_____ _____________________________________
_____ _____________________________________
_____ _____________________________________
[ ] PORTFOLIO RE-BALANCING
Minimum contract value $10,000. Re-balancing transfers are not made
to or from the Guaranteed Interest Fund.
I authorize re-balancing transfers to be made according to the elected
Payment Allocations:
[ ] MONTHLY [ ] QUARTERLY
[ ] SEMI-ANNUALLY [ ] ANNUALLY
47
================================================================================
9. INITIAL PAYMENT
================================================================================
METHOD OF PAYMENT
Minimum initial purchase payment is $50,000.
Select one:
Amount
[ ] CHECK ATTACHED $____________
Estimated Amount
[ ] CHECK COMING FROM ANOTHER INSTITUTION $__________
================================================================================
SIGNATURES
================================================================================
THE ANNUITANT CONSENTS TO THIS APPLICATION.
EACH PERSON SIGNING THIS APPLICATION DECLARES THAT THE ANSWERS AND STATEMENTS
MADE IN THIS APPLICATION ARE CORRECTLY RECORDED, COMPLETE AND TRUE TO THE BEST
OF HIS OR HER KNOWLEDGE AND BELIEF.
IT IS UNDERSTOOD AND AGREED THAT:
If the Owner is a Trustee or successor Trustee under a tax qualified plan or the
employer under a tax qualified non-trusteed plan, Northwestern Mutual Life will
be fully discharged of liability for any action taken by the Owner in the
exercise of any contract right and for all amounts paid to, or at the direction
of, the Owner and will have no obligation as to the use of the amounts. In all
dealings with the Owner, Northwestern Mutual Life will be fully protected
against the claims of every other person.
The first purchase payment will be credited the valuation date coincident with
or next following the date both the application and the purchase payment are
received at Northwestern Mutual Life.
If an IRA is applied for, the Applicant and/or Annuitant have received and
reviewed the appropriate IRA disclosure statements.
No agent is authorized to make or alter contracts or to waive the rights or
requirements of Northwestern Mutual Life.
I acknowledge receipt of the Prospectus and I understand that all payments and
values provided by this contract, when based on the investment experience of a
separate account, are variable and are not guaranteed as to amount.
X
--------------------------------------------------------------------
Signature of Applicant (Indicate relationship below if applicable)
[ ] Trustee
X
--------------------------------------------------------------------
Signature of Annuitant (if other than Applicant)
X
--------------------------------------------------------------------
Signature of Licensed Agent
Date Signed at: City County State
--------------------------------------------------------------------------------
48
================================================================================
AGENT'S CERTIFICATE
================================================================================
Annuitant Name: First, MI, Last
1. To the best of your knowledge will the annuity applied for replace any life
insurance or annuity contract in this company or elsewhere? [ ] YES [ ] NO
Date of Delivery
2. On ________________ the Account B Prospectus dated _____________ was
delivered.
3. Was any part of this application translated?
[ ] YES, PLEASE EXPLAIN: [ ] NO
================================================================================
CERTIFICATION:
================================================================================
I certify that to the best of my knowledge I have presented to Northwestern
Mutual Life all pertinent facts, have asked all questions and have completely
and correctly recorded the Applicant's and Xxxxxxxxx's answers in accordance
with the instructions. I know nothing unfavorable about the Annuitant that is
not stated in the application or accompanying letter. I further certify that I
have reasonable grounds for believing the purchase of the annuity applied for is
suitable as an investment for the Annuitant based on the information furnished
by the Applicant and Annuitant and contained herein.
I certify that a current Prospectus was delivered and that no written sales
materials other than those furnished by the Northwestern Mutual Life were used.
Print Name
X
--------------------------------------------------------------------------------
Signature of Agent
Agent Number Baird Rep Number Agent Phone Number
--------------------------------------------------------------------------------
Primary or Secondary If secondary contract,
Contract (P or S) secondary Appt. Agt. No. General Agent's Number
--------------------------------------------------------------------------------
Print Name
X
--------------------------------------------------------------------------------
Baird Branch Manager Signature
49
================================================================================
DEMOGRAPHICS
================================================================================
ANNUITANT'S EDUCATION
[ ] Some Education [ ] High School [ ] Associate Degree [ ] Some College
[ ] Bachelors [ ] Masters [ ] Attorney at Law [ ] Doctorate
NUMBER OF CHILDREN
Number
___________ [ ] None
OCCUPATION INDUSTRY SOURCE OF APPLICANT
[ ] Business Owner [ ] Agriculture, Forestry & Fishing [ ] Agent's Own Policyowner
[ ] Clerical [ ] Construction [ ] Orphan Policyowner
[ ] Consultant [ ] Finance, Insurance & Real Estate [ ] Referred Lead
[ ] Craftsman [ ] Manufacturing [ ] Acquaintance
[ ] Homemaker [ ] Mining [ ] Newcomer Service
[ ] Legal [ ] Nonclassifiable Establishments [ ] Cold Canvass
[ ] Managerial/Executive [ ] Public Administration [ ] Lead Letter Reply
[ ] Medical [ ] Retail Trade [ ] Published Sources
[ ] Professional [ ] Services [ ] Walk-in
[ ] Sales [ ] Transportation, Communication & Utilities [ ] Family member or yourself
[ ] Service Worker [ ] Wholesale Trade [ ] Other
[ ] Technical _____________________________
================================================================================
CONTRACT DELIVERY INSTRUCTIONS
================================================================================
Deliver contract package to the servicing agent at the: [ ] GA office
[ ] DA office
[ ] Agent's own office
