Service Office: One Sun Life Executive Park Wellesley Hills, MA 02481 Home Office: Suite 1115 New York, NY 10165
One
Sun
Life Executive Park
Wellesley
Hills, MA 02481
000-000-0000
Home
Office:
00
Xxxx
00xx
Xxxxxx
Suite
1115
New
York, NY 10165
Sun
Life Insurance and Annuity Company
of New
York
Flexible
Premium Variable Universal Life Insurance Policy
Insured [Xxxx
Xxx]
Policy
Number [E00#00001]
|
This
Policy is a legal contract in which We, Sun Life Insurance and Annuity
Company of New York, promise to provide the kind of insurance described
below. Upon death of the Insured, We agree to pay the Beneficiary
such
amounts as then become due and payable. Until that time, We agree
to
provide You, as Owner, the other rights and benefits of this Policy.
These
rights and benefits are subject to the provisions on the pages which
follow.
|
Signed
for the Company at its Home Office:
[Missing
Graphic Reference]
[Xxxxxx
X. Xxxxxxxxx, President]
[Missing
Graphic Reference]
[Xxxxxxx
X. Xxxxx, Secretary]
|
As
described in Section 7, the amount of the Death Benefit or the duration of
the
Death Benefit may increase or decrease to reflect the investment experience
of
the Variable Account.
The
Account Value in each Sub-Account of the Variable Account may increase or
decrease in accordance with the investment experience of that Sub-Account of
the
Variable Account. There is no minimum guaranteed Account Value for
amounts in the Sub-Accounts of the Variable Account.
Upon
receipt of Due Proof, the Policy Proceeds are payable at the death of the
Insured and while this Policy is in force. See Section
7.
This
Policy does not participate in dividends and will not share in any surplus
earnings of the Company.
Flexible
Premiums are payable during the lifetime of the Insured and while this Policy
is
in force. See Section 6.
RIGHT
TO RETURN POLICY PERIOD. Please read Your Policy
carefully. If You are not satisfied with it, You may return it by
delivering or mailing it to Us at One Sun Life Executive Park, Attn: Corporate
Markets, Wellesley Hills, Massachusetts 02481, or to the sales representative
through whom You purchased this Policy within 10 days from the date of receipt
(the "Free Look Period"). This Policy will then be deemed void as
though it had never been applied for. You will receive a refund equal to the
sum
of all Premiums paid.
VUL-SCOLI-07
NY Page
TABLE
OF CONTENTS
SECTION
POLICY
SPECIFICATIONS 1
TABLE
OF GUARANTEED MAXIMUM MONTHLY COST OF INSURANCE
RATES
PER $1,000 OF NET AMOUNT AT
RISK 2
DEFINITIONS 3
GENERAL
PROVISIONS 4
THE
VARIABLE ACCOUNT AND THE FIXED
ACCOUNT 5
PREMIUMS 6
DEATH
BENEFIT 7
ACCOUNT
VALUE 8
POLICY
BENEFITS 9
RIDERS
AND ENDORSEMENTS
|
|
APPLICATION
|
VUL-SCOLI-07
NY Page
|
|
1. POLICY
SPECIFICATIONS
|
Insured [Xxxx
Xxx]
Policy
Number [E00000001]
Issue
Age,
Sex [35,
Male]
Class [Preferred
Non Tobacco - Medical Issue]
Specified
Face
Amount [$100,000]
Supplemental
Insurance
Face
Amount [$00,000]
Total
Face
Amount [$100,000]
Minimum
Total Face
Amount [$100,000]
Minimum
Specified Face
Amount [$10,000]
Planned
Periodic
Premium [$1,400]
|
Death
Benefit Compliance Test
|
Guideline
Premium
|
Billing
Period [Annual]
Issue
Date [May
1, 2007]
Currency [United
States Dollars]
Owner [XYZ
Corporation]
|
Beneficiary
|
As
stated in the Application unless later
changed
|
Death
Benefit
Option [Option
A: Specified Face Amount]
Variable
Account
Name [I]
Securities
& Exchange Commission
Registration [Unit
Investment Trust]
THE
PLANNED PERIODIC PREMIUM SHOWN ABOVE MAY BE INSUFFICIENT TO CONTINUE COVERAGE
FOR THE LIFETIME OF THE INSURED. THE PERIOD FOR WHICH THIS POLICY
WILL REMAIN IN FORCE DEPENDS ON THE AMOUNT AND TIMING OF PREMIUMS PAID,
DEDUCTIONS FOR BENEFITS AND RIDERS, CHANGES IN THE SPECIFIED FACE AMOUNT AND
DEATH BENEFIT OPTION, SUB-ACCOUNT PERFORMANCE, POLICY LOANS, PARTIAL SURRENDERS
AND FEES. ADDITIONAL AMOUNTS, EITHER EXCESS INTEREST OR REDUCED
CHARGES, WHICH WE MAY EMPLOY ARE NOT GUARANTEED. WE RESERVE THE RIGH
TO CHANGE SAID AMOUNTS WHICH MAY REQUIRE MORE PREMIUM TO BE PAID THAN WAS
ILLUSTRATED OR THE ACCOUNT VALUES MAY BE LESS THAN THOSE
ILLUSTRATED.
VUL-SCOLI-07
NY Page
1. POLICY
SPECIFICATIONS (CONTINUED)
Xxxx
Xxx VL0000001
Premium
Expense Load
Policy
Year [1]
On
Premium paid during the Policy Year up to and including Target
Premium35%
On
Premium paid during the Policy Year in excess of Target
Premium 5%
Policy
Years [2 – 10]
On
Premium paid during the Policy Year up to and including Target
Premium12%
On
Premium paid during the Policy Year
in excess of Target
Premium 5%
Policy
Years [11] and after on all
Premium 5%
Target
Premium [$3,965]
Monthly
Expense
Charge [10.00
Monthly
Face Amount
Charge $0.20
during Policy Years 1-10
$0.00
Policy Years 11 and
after
Mortality
and Expense Risk
Percentage [0.60]%
Daily
Risk
Percentage [0.0016389]%
Policy
Loan Interest Rate (payable in
arrears) 3.75%
annually during Policy Years 1-10
3%
annually in Policy Years 11 and
after
Interest
Credited on Loan
Account 3%
annually
Fixed
Account
Guaranteed
Interest Crediting
Rate 3%
(0.008099% daily)
Transfer
Percentage [25]%
Transfer
Period [4]
Policy Years
Transfer
Minimum [$5,000]
VUL-SCOLI-07
NY Page
1. POLICY
SPECIFICATIONS (CONTINUED)
Supplemental
Benefit Rider(s):
[Charitable
Giving Benefit Rider
Charitable
Gift
Amount [$10,000]
Charitable
Beneficiary [ABC
Charity]]
VUL-SCOLI-07
NY Page
1. POLICY
SPECIFICATIONS (CONTINUED)
Table
of Death Benefit Percentages
|
Applicable Applicable
AgePercentageAgePercentage
[20 250%60 130%
21 250%61 128%
22 250%62 126%
23 250%63 124%
24 250%64 122%
25 250%65 120%
26 250%66 119%
27 250%67 118%
28 250%68 117%
29 250%69 116%
30 250%70 115%
31 250%71 113%
32 250%72 111%
33 250%73 109%
34 250%74 107%
35 250%75 105%
36 250%76 105%
37 250%77 105%
38 250%78 105%
39 250%79 105%
40 250%80 105%
41 243%81 105%
42 236%82 105%
43 229%83 105%
44 222%84 105%
45 215%85 105%
46 209%86 105%
47 203%87 105%
48 197%88 105%
49 191%89 105%
50 185%90 105%
51 178%91 104%
52 171%92 103%
53 164%93 102%
54 157%94 101%
55 150%95
and after 100%]
56 146%
57 142%
58 138%
59 134%
|
VUL-SCOLI-07
NY Page
2. TABLE
OF GUARANTEED MAXIMUM MONTHLY COST OF INSURANCE RATES
PER
$1,000 OF NET AMOUNT AT RISK FOR SPECIFIED FACE AMOUNT AND SUPPLEMENTAL
INSURANCE FACE AMOUNT
|
Monthly
Rates
|
Monthly
Rates
|
|||||||
|
Age
|
Males
|
Females
|
Unisex
|
Age
|
Males
|
Females
|
Unisex
|
|
|
[20
|
0.15836
|
0.08751
|
0.14502
|
60
|
1.34180
|
0.78979
|
1.22817
|
|
|
21
|
0.15919
|
0.08917
|
0.14585
|
61
|
1.46381
|
0.84488
|
1.33511
|
|
|
22
|
0.15752
|
0.09084
|
0.14419
|
62
|
1.60173
|
0.91417
|
1.45796
|
|
|
23
|
0.15502
|
0.09251
|
0.14252
|
63
|
1.75809
|
1.00267
|
1.59922
|
|
|
24
|
0.15169
|
0.09501
|
0.14085
|
64
|
1.93206
|
1.10539
|
1.75725
|
|
|
25
|
0.14752
|
0.09668
|
0.13752
|
65
|
2.12283
|
1.21731
|
1.92955
|
|
|
26
|
0.14419
|
0.09918
|
0.13585
|
66
|
2.32623
|
1.33511
|
2.11195
|
|
|
27
|
0.14252
|
0.10168
|
0.13418
|
67
|
2.54312
|
1.45461
|
2.30614
|
|
|
28
|
0.14169
|
0.10501
|
0.13418
|
68
|
2.77350
|
1.57247
|
2.50878
|
|
|
29
|
0.14252
|
0.10835
|
0.13585
|
69
|
3.02328
|
1.69955
|
2.72909
|
|
|
30
|
0.14419
|
0.11251
|
0.13752
|
70
|
3.30338
|
1.84590
|
2.97466
|
|
|
31
|
0.14836
|
0.11668
|
0.14169
|
71
|
3.62140
|
2.02325
|
3.25640
|
|
|
32
|
0.15252
|
0.12085
|
0.14585
|
72
|
3.98666
|
2.24419
|
3.58279
|
|
|
33
|
0.15919
|
0.12502
|
0.15252
|
73
|
4.40599
|
2.51548
|
3.95978
|
|
|
34
|
0.16669
|
0.13168
|
0.15919
|
74
|
4.87280
|
2.83552
|
4.38330
|
|
|
35
|
0.17586
|
0.13752
|
0.16836
|
75
|
5.37793
|
3.19685
|
4.84334
|
|
|
36
|
0.18670
|
0.14669
|
0.17837
|
76
|
5.91225
|
3.59370
|
5.33245
|
|
|
37
|
0.20004
|
0.15752
|
0.19170
|
77
|
6.46824
|
4.01942
|
5.84227
|
|
|
38
|
0.21505
|
0.17003
|
0.20588
|
78
|
7.04089
|
4.47410
|
6.36948
|
|
|
39
|
0.23255
|
0.18503
|
0.22338
|
79
|
7.64551
|
4.97042
|
6.92851
|
|
|
40
|
0.25173
|
0.20171
|
0.24173
|
80
|
8.30507
|
5.52957
|
7.54229
|
|
|
41
|
0.27424
|
0.22005
|
0.26340
|
81
|
9.03761
|
6.17118
|
8.22883
|
|
|
42
|
0.29675
|
0.23922
|
0.28508
|
82
|
9.86724
|
6.91414
|
9.01216
|
|
|
43
|
0.32260
|
0.25757
|
0.31010
|
83
|
10.80381
|
7.77075
|
9.90124
|
|
|
44
|
0.34929
|
0.27674
|
0.33428
|
84
|
11.82571
|
8.72632
|
10.87533
|
|
|
45
|
0.37931
|
0.29675
|
0.36263
|
85
|
12.91039
|
9.76952
|
11.92213
|
|
|
46
|
0.41017
|
0.31677
|
0.39182
|
86
|
14.03509
|
10.89151
|
13.01471
|
|
|
47
|
0.44353
|
0.33761
|
0.42268
|
87
|
15.18978
|
12.08770
|
14.15507
|
|
|
48
|
0.47856
|
0.36096
|
0.45437
|
88
|
16.36948
|
13.35774
|
15.33494
|
|
|
49
|
0.51777
|
0.38598
|
0.49107
|
89
|
17.57781
|
14.70820
|
16.56493
|
|
|
50
|
0.55948
|
0.41350
|
0.53028
|
90
|
18.82881
|
16.15259
|
17.85746
|
|
|
51
|
0.60870
|
0.44270
|
0.57533
|
91
|
20.14619
|
17.71416
|
19.23899
|
|
|
52
|
0.66377
|
0.47523
|
0.62539
|
92
|
21.57655
|
19.43814
|
20.76665
|
|
|
53
|
0.72636
|
0.51276
|
0.68297
|
93
|
23.20196
|
21.40786
|
22.49837
|
|
|
54
|
0.79730
|
0.55114
|
0.74722
|
94
|
25.28174
|
23.83051
|
24.70915
|
|
|
55
|
0.87326
|
0.59118
|
0.81566
|
95
|
28.27411
|
27.16158
|
27.82758
|
|
|
56
|
0.95591
|
0.63123
|
0.88996
|
96
|
33.10677
|
32.32378
|
32.78845
|
|
|
57
|
1.04192
|
0.66961
|
0.96593
|
97
|
41.68475
|
41.21204
|
41.45783
|
|
|
58
|
1.13378
|
0.70633
|
1.04609
|
98
|
58.01259
|
57.81394
|
57.95663
|
|
|
59
|
1.23235
|
0.74556
|
1.13211
|
99
|
83.33333
|
83.33333
|
83.33333]
|
|
BASIS
OF VALUES:
Commissioners'
1980 Standard Ordinary Tables, Age Nearest Birthday, Male, Female and Unisex
Tables.
VUL-SCOLI-07
NY Page
3.
DEFINITIONS
Account
Value: The sum of the amounts in each Sub-Account of the
Variable Account, the Fixed Account and the Loan Account.
Anniversary: The
same day in each succeeding year as the day of the year corresponding to the
Issue Date.
Application: Your
application for this Policy, a copy of which is attached hereto and incorporated
herein.
Attained
Age: The Insured’s Issue Age plus the number of completed Policy
Years.
Base
Death Benefit: The death benefit under the Policy exclusive of the
Supplemental Insurance Death Benefit or any other supplemental
benefits.
Beneficiary: The
person or entity entitled to receive the Policy Proceeds as they become due
after the death of the Insured.
Business
Day: Any day that We are open for business.
Cash
Surrender Value: The Gross Cash Surrender Value decreased by
the balance of any outstanding Policy Debt.
Class: The
risk, underwriting and substandard table rating, if any, classification of
the
Insured. See Section 1.
Company: Sun
Life Insurance and Annuity Company of New York.
Daily
Risk Percentage: The daily rate for deduction of the mortality and
expense risk charge as specified in Section 1.
Death
Benefit: The sum of the Base Death Benefit and the Supplemental
Insurance Death Benefit.
Due
Proof: Such evidence as We may reasonably require in order to establish
that Policy Proceeds are due and payable.
Effective
Date of Coverage: Initially, the Investment Start Date; with
respect to any increase in the Total Face Amount, the Monthly Anniversary Day
that falls on or next follows the date We approve the supplemental application
for such increase; with respect to any decrease in the Total Face Amount, the
Monthly Anniversary Day that falls on or next follows the date We receive Your
request.
Enhancement
Benefit: An amount that may be payable upon Surrender of
this Policy. See Section 9.
Fixed
Account: The portion of the Account Value funded by assets invested in
the General Account.
Fund: A
mutual fund in which a Sub-Account invests.
General
Account: The assets held by Us other than those allocated to the
Sub-Accounts of the Variable Account or any other separate account of the
Company.
Gross
Cash Surrender Value: The Account Value increased by the
Enhancement Benefit, if any.
Home
Office: Our office at 00 Xxxx 00xx Xxxxxx,
Xxxxx 0000,
Xxx Xxxx, XX 00000
Insured: The
person on whose life this Policy is issued.
Investment
Option: Any of the Sub-Accounts of the Variable Account or the Fixed
Account.
Investment
Start Date: The date the first Premium is applied, which will be the
later of the Issue Date, the Business Day We approve the application for this
Policy, or the Business Day We receive a Premium.
Issue
Age: The Insured's age as of the Insured's birthday nearest
the Issue Date.
Issue
Date: The date specified as such in Section 1, from which
Anniversaries, Policy Years and Policy Months are measured.
Loan
Account: An account established for this Policy, the value
of which is the principal amount of any outstanding loan against this Policy,
plus credited interest thereon.
Monthly
Anniversary Day: The same day in each succeeding month as
the day of the month corresponding to the Issue Date.
Monthly
Cost of Insurance: A deduction made on a monthly basis for
the insurance coverage provided by this Policy. See Section
8.
Monthly
Expense Charge: A per Policy deduction, made on a monthly
basis, for administration and other expenses. See Section
1.
Monthly
Face Amount Charge: A per Specified Face Amount deduction,
made on a monthly basis, for administration and other expenses. See
Section 1.
Mortality
and Expense Risk Percentage: The annual percentage rate
deducted from the Account Value in the Sub-Accounts for the mortality and
expense risk charge. This annual rate is converted to a daily rate,
the Daily Risk Percentage, and deducted from the Variable Account on a daily
basis. See Section 1.
Net
Premium: The Premium less the Premium Expense Load.
Our
Principal Office: Sun Life Insurance and Annuity Company of
New York (Attn: Corporate Markets), One Sun Life Executive Park,
Wellesley Hills, Massachusetts, 02481, or such other address as We may hereafter
specify to You by written notice.
Owner:
The person, persons or entity entitled to all rights and benefits under this
Policy, unless otherwise stated.
Partial
Surrender: A surrender of a portion of the Account Value in
exchange for a payment to the Owner in accordance with the terms of Section
9.
Planned
Periodic Premium: The Premium amount specified as such in
Section 1.
Policy: This
life insurance contract, including the attached copy of the Application and
any
attached copies of supplemental applications for increases in the Total Face
Amount.
Policy
Debt: The principal amount of any outstanding loan against
this Policy, plus accrued but unpaid interest on such loan.
Policy
Month: A one-month period commencing on the Issue
Date or any Monthly Anniversary Day and ending on the next Monthly Anniversary
Day.
Policy
Proceeds: The amount determined in accordance with the terms
of this Policy which is payable at the death of the Insured. This
amount is the Death Benefit as described in Section 7, decreased by the amount
of any outstanding Policy Debt, and increased by the amounts payable under
any
supplemental benefits.
Policy
Year: A one-year period commencing on the Issue Date or any Anniversary
and ending on the next Anniversary.
Premium: An
amount paid to Us by the Owner or on the Owner's behalf as consideration for
the
benefits provided by this Policy.
Premium
Expense Load: The percentage charge applied to Premium. See
Section 1.
Specified
Face Amount: The amount of life insurance coverage under the
base Policy and specified as such in Section 1.
Supplemental
Insurance Death Benefit: The death benefit associated with
the Supplemental Insurance Face Amount.
Supplemental
Insurance Face Amount: The amount of additional insurance
coverage specified as such in Section 1.
Sub-Accounts:
Accounts into which the assets of the Variable Account are divided.
Target
Premium: The amount of Premium specified as such in Section
1. The Premium Expense Load deduction varies depending on whether
Premiums paid in a given Policy Year are below, equal to or above Target
Premium.
Total
Face Amount: The Specified Face Amount plus the Supplemental
Insurance Face Amount specified as such in Section 1.
Unit: A
unit of measurement that We use to calculate the value of Your investment in
each Sub-Account.
Unit
Value: The value of each Unit of a Sub-Account, as
determined by Us.
Valuation
Date: A day that the New York Stock Exchange (or its successor; or, if
the securities in which the assets of the Sub-Account are invested are not
traded on the New York Stock Exchange, any principal exchange on which such
securities are traded), We and, with respect to a Sub-Account, the relevant
Fund
are open for business. At a minimum, a Valuation Date will occur once
each Policy Month. We will determine Unit Values for each Valuation Date as
of
the close of the New York Stock Exchange on that Valuation Date.
Valuation
Period: The period of time from one Valuation Date to the
next subsequent Valuation Date.
Variable
Account: A separate account of the Company consisting of assets set
aside by the Company, the investment performance of which is kept separate
from
that of the general assets of the Company as specified in Section
1.
We, Our
and Us: Sun Life Insurance and Annuity Company of
New York.
You
and Your: In this Policy, You and Your
refer to the Owner of this Policy.
4. GENERAL
PROVISIONS
Entire
Contract. Your entire contract with Us consists of this
Policy, including the attached copy of the Application, any attached copies
of
supplemental applications for increases in the Total Face Amount, any riders
and
any endorsements. All statements made in the Application or in a
supplemental application are representations and not warranties. We
relied and will rely on these statements when approving the issuance of this
Policy, increase in Total Face Amount, increase in Death Benefit over Premium
paid, reinstatement, or change in Death Benefit Option of this
Policy. No statement can be used by Us in defense of a claim unless
the statement was made in the Application or in a supplemental application
and
was a material misrepresentation. Any illustrations prepared in
connection with this Policy do not form a part of Our contract with You and
are
intended solely to provide information about possible future performance, based
solely upon data available at the time such illustrations are
prepared.
Alteration. Sales
representatives do not have the authority to alter or modify this Policy or
to
waive any of its provisions. The only persons with this authority are
Our president, actuary, secretary or one of Our vice presidents.
Modification. Upon
written notice to You, We may modify this Policy if such modification (1) is
necessary to make this Policy, the Variable Account or the Fixed Account comply
with any law or regulation issued by a governmental agency to which the Company,
the Variable Account or the Fixed Account is subject; or (2) is necessary to
assure continued qualification of this Policy under the Internal Revenue Code
or
other federal or state laws as a life insurance policy; or (3) is necessary
to
reflect a change in the operation of the Variable Account or the Sub-Accounts;
or (4) adds, deletes or otherwise changes Investment Options. We also reserve
the right to modify certain provisions of this Policy as stated in those
provisions. In the event of any such modification, We may make an
appropriate endorsement to this Policy to reflect such
modification.
Assignments. During
the lifetime of the Insured, You may assign all or some of Your rights under
this Policy. All assignments must be filed at Our Principal Office
and must be in a form satisfactory to Us. The assignment will then be
effective as of the date You signed the form, subject to any action taken before
it was recorded by Us at Our Principal Office. We are not responsible
for the validity or legal effect of any Assignment. Neither this Policy nor
any
of Your rights or those of a Beneficiary under it may be assigned or transferred
without Our permission.
Nonparticipating. This
Policy does not pay dividends and will not share in any surplus earnings of
the
Company.
Misstatement
of Age or Sex (Non-Unisex Policy). If the age or sex (in the
case of a Non-Unisex Policy) of the Insured is stated incorrectly in the
Application, the amounts payable by Us will be adjusted as follows:
|
·
|
Misstatement
discovered at death: The Death Benefit will be recalculated to
that which would be purchased by the most recently charged Monthly
Cost of
Insurance Rate for the correct age or sex (for a Non-Unisex
Policy).
|
|
·
|
Misstatement
discovered prior to death: The Account Value will be
recalculated from the Issue Date using the Monthly Cost of Insurance
Rates
based on the correct age or sex (for a Non-Unisex
Policy).
|
If
Your
Policy is Unisex, it is so indicated in Section 1.
Suicide. If
the Insured, whether sane or insane, commits suicide within two years after
the
Issue Date, We will not pay any part of the Policy Proceeds. We will
refund to You the Premiums paid, less the amount of any Policy Debt and less
any
Partial Surrenders.
Incontestability. After
this Policy has been in force during the lifetime of the Insured for a period
of
two years from its Issue Date, We cannot contest it except for non-payment
of
Premiums in accordance with the Insufficient Value provision of Section
8. However, any increase in the Total Face Amount which is effective
after the Issue Date will be incontestable only after such increase has been
in
force during the lifetime of the Insured for two years from the Effective Date
of Coverage of such increase. Any increase in Death Benefit over
Premium paid or increase in Death Benefit due to a Death Benefit Option change
will be incontestable only after such increase has been in force during the
lifetime of the Insured for two years from the date of the
increase. Further, any reinstatement will be incontestable after the
reinstated policy has been in force during the lifetime of the Insured for
two
years from the effective date of the reinstatement. Contestability
will be based only on material misrepresentations made in the
application(s).
Report
to Owner. We will send You a report at least once each
Policy Year. The report will show current Policy values, Premiums
paid, deductions made since the last report, and any other information required
by the insurance regulatory official of the jurisdiction in which the Policy
was
delivered. It will also show the balance of any Policy
Debt. There is no charge for this report.
Illustrations. Upon
request, We will provide You with an illustration of future Account Value and
Death Benefits. This illustration will be furnished to You for
no charge once per year and subsequent requests in a year for a nominal fee
not
to exceed $25.
Owner
and Beneficiary. The Owner is as stated in Section
1. The Owner has the sole and absolute power to exercise all rights
and privileges under this Policy without the consent of any other person unless
You provide otherwise by written notice. The Beneficiary
has no rights under this Policy until the death of the Insured. A
Beneficiary is any person or entity, named in Our records as the proper
recipient of the Policy Proceeds. While the Insured is alive, you may
change the Owner and Beneficiary by written notice. No change or revocation
will
take effect We receive such notice. If such acknowledgment occurs,
then (1) a change of Beneficiary will take effect on the date the notice is
signed, and (2) a change or a revocation of Owner will take effect as of the
date specified in the notice, or if no such date is specified, on the date
the
notice is signed. If there is no Beneficiary living when the Insured
dies, We will pay the Policy Proceeds to You. If You are also the
Insured, the Policy Proceeds will be paid to Your estate. The
Beneficiary designation in effect on the Issue Date is stated in
the Application for this Policy.
Important
Notice About this Policy After Age 100. This Policy may not
qualify as life insurance after the Insured attains age 100 and may therefore
be
subject to adverse tax consequences. Please consult a tax advisor
before deciding to continue this Policy after the Insured’s age
100.
Policy
loans and repayment of Policy loans (see Section 9), partial withdrawals (see
Section 9) and transfers (see Section 5) are permitted after the Insured attains
age 100. The fact that the Insured has attained age 100 will not
adversely affect Your rights under this Policy as regards Policy loans and
their
repayment, partial withdrawals and transfers.
Claims
of Creditors. The Policy Proceeds will be exempt from the
claims of creditors to the extent permitted by the laws of the jurisdiction
in
which this Policy was delivered.
5. THE
VARIABLE ACCOUNT AND THE FIXED ACCOUNT
The
assets of the Variable Account shall be kept separate from Our other
assets. We have the right to transfer to the General Account any
assets of the Variable Account which are in excess of the reserves and other
Policy liabilities of the Variable Account. Although the assets
maintained in the Variable Account will not be charged with any liabilities
arising out of any other business conducted by Us, all obligations arising
under
this Policy, including the promise to make all benefit payments, are Our general
corporate obligations.
At
Our
election, and subject to any necessary vote by those having voting rights,
the
Variable Account may be operated as a unit investment trust or a management
company under the Investment Company Act of 1940. It may be
registered under the Investment Company Act of 1940 or de-registered in the
event registration is no longer required. In the event of any change
in the operation of the Variable Account pursuant to this provision, We may
make
an appropriate endorsement to this Policy to reflect the change and take such
other action as may be necessary and appropriate to effect the
change.
Fixed
Account. The Fixed Account represents the portion of the
Account Value funded by assets invested in the General Account. The guaranteed
interest crediting rate is specified in Section 1 of this Policy. Interest
in
excess of the guaranteed rate may be applied to the amount in the Fixed Account
at such increased rates and in such manner as We may determine, based on Our
expectations of future experience with respect to interest, mortality costs,
persistency, profit, expenses, taxes, as well as size, timing and frequency
of
deposits. Interest credited will be computed on a compound interest
basis.
Sub-Accounts. The
assets of the Variable Account are divided into Sub-Accounts. Each Sub-Account
invests exclusively in a Fund. Income, gains and losses, whether or
not realized, from the assets of each Sub-Account are credited or charged
against that Sub-Account without regard to income, gains or losses in other
Sub-Accounts of the Variable Account. All amounts allocated to the
Variable Account will be used to purchase shares of one or more of the Funds,
as
You designate. Deductions and surrenders from the Variable Account
will, in effect, be made by redeeming the number of Fund shares at net asset
value equal in total value to the amount to be deducted. The Variable
Account will be fully invested in Fund shares at all times. The
assets of the Variable Account are valued at least as often as any Policy
benefits vary, but at least monthly.
The
Sub-Accounts available under this Policy are further described in supplementary
materials.
Addition,
Deletion or Substitution of Investments. Shares of any or
all of the Funds may not always be available for purchase by the Sub-Accounts
of
the Variable Account, or We may decide that further investment in any such
shares is no longer appropriate. In either event, shares of other
registered open-end investment companies or unit investment trusts may be
substituted both for Fund shares already purchased by the Variable Account
and/or as the security to be purchased in the future, provided that these
substitutions have been approved by the Securities and Exchange Commission
and
the Superintendent of Insurance of the State of New York. In
addition, the investment policies of the Variable Account will not be changed
without the approval of the Superintendent of Insurance of the State of New
York. We also reserve the right to eliminate or combine existing
Sub-Accounts or to transfer assets between Sub-Accounts upon a Sub-Account
elimination or combination. In the event of a substitution or other act pursuant
to this provision, We may make appropriate amendment to this Policy to reflect
the substitution.
Transfers
Between Investment Options. Subject to any limits that may
be imposed by the Funds, You may transfer from one Sub-Account to another
Sub-Account, or to the Fixed Account, all or a portion of the Account Value
allocated to a Sub-Account. We will make transfers pursuant to an
authorized request received at Our Principal Office.
Transfer
privileges are subject to Our consent. We reserve the right to impose
the following limitations on transfers, including, but not limited
to: (1) the minimum amount that may be transferred; (2) the frequency
of transfers; and (3) the minimum amount that may remain in a Sub-Account
following a transfer from that Sub-Account.
In
any
Policy Year, transfers from the Fixed Account to another Sub-Account in the
Variable Account are limited to the greater of (a) or (b) where:
|
|
(a) is
the Transfer Percentage, as specified in Section 1, multiplied by
the
greatest amount in the Fixed Account during the Transfer Period;
and
|
(b) is
the Transfer Minimum as specified in Section 1.
You
may
transfer to the Fixed Account 100% of the portion of the Account Value
attributable to the Variable Sub-Accounts at the time Your request is
received. You may apply the Cash Surrender Value to purchase a
guaranteed fixed paid-up benefit based on the mortality table stated in the
Basis of Computation provision in Section 8 and the minimum Fixed Account
interest rate stated in Section 1.
6. PREMIUMS
All
Premium payments are payable to Us and should be sent to Our Principal
Office.
Planned
Periodic Premiums. While You are not required to make
subsequent Premium payments according to a fixed schedule, You may select a
planned periodic Premium schedule and corresponding billing period, subject
to
Our Premium limits. Except as otherwise provided herein, the billing
period must be annual, semi-annual, or quarterly. We will send You reminder
notices for the planned periodic Premium at each billing period as specified
in
Section 1 unless reminder notices have been suspended as described
below.
You
are
not required to pay the planned periodic Premium. You may increase or
decrease the planned periodic Premium subject to Our limits. You may
skip a planned payment or make unscheduled payments. Unscheduled
payments are subject to Our approval. You may change Your planned
payment schedule or the billing period, subject to Our
approval. Depending on the investment performance of the Investment
Options You select, the planned periodic Premium may not be sufficient to keep
this Policy in force. You may need to make additional payments in
order to prevent termination of Your Policy. We will suspend reminder
notices at your request, and We reserve the right to suspend reminder notices
if
Premiums are not being paid (except for notices in connection with the grace
period). We will notify You prior to suspending reminder
notices.
Premium. No
Premium payment may be less than $100 without Our consent, although We will
accept a smaller Premium payment if it is necessary to keep this Policy in
force. We reserve the right not to accept a Premium payment that
causes the Death Benefit to increase by an amount that exceeds the Premium
received. Evidence of insurability satisfactory to Us may be required
before We accept such a Premium. After the first Policy Year, we
reserve the right not to accept unscheduled premiums in any Policy Year in
excess of $100,000.
We
will
not accept Premium payments that would, in Our opinion, cause the Policy to
fail
to qualify as life insurance under applicable tax law. If a Premium
payment is made in excess of these limits, We will accept only that portion
of
the Premium within those limits and will refund the remainder to
You. We will also not accept any Premium payments made after the
Anniversary on which the Insured is Attained Age 100, except as needed to keep
this Policy from lapsing.
Premium
Expense Load. The Premium Expense Load will not be greater
than as specified in Section 1. The Premium Expense Load will be determined
by
Us from time to time based on, among other factors, Our expectations of future
experience with respect to interest, mortality experience, persistency,
expenses, profit and taxes.
Allocation
of Net Premium. Except as otherwise provided herein, Net Premium will
be allocated to the Investment Options in accordance with the allocation
percentages specified by You, subject to special provisions applicable during
the Free Look Period. For any Premium received during the Free Look
Period, We will allocate the Net Premium to the Sub-Account that invests
exclusively in shares of the money market Portfolio. Account Value in
the money market Sub-Account will be transferred to the Investment Options
in
accordance with the allocation percentages specified by You when this period
expires. While there are no limitations concerning the number of
Investment Options to which Net Premium may be allocated, We reserve the right
to impose minimum allocation amounts as determined by the Fund for any or all
Investment Options.
You
may
change the allocation percentages at any time pursuant to a request submitted
to
Our Principal Office in a form acceptable to Us.
An
allocation change will be effective as of the date We receive the request for
that change provided that it is received on a Valuation Day before the close
of
the New York Stock Exchange. If a request is received on a day that
is not a Valuation Day or after the close of the New York Stock Exchange on
a
Valuation Day, it will become effective on the next Valuation Day.
Modified
Endowment Contract. At the time a Premium is received that
would, in Our opinion, cause this Policy to become a modified endowment contract
based on Our reasonable interpretation of Section 7702A of the Internal Revenue
Code, We will so notify You or Your sales representative within one Business
Day, and will not credit the Premium unless We have received specific
instructions to do so. Any such Premium received will be held,
for a period of time no greater than 90 days, in a non-interest bearing
account. This Premium will be refunded at the end of the 90-day
period if we have not, at that time, received specific instruction from You
or
Your sales representative concerning the Premium.
7. DEATH
BENEFIT
Death
Benefit Compliance Test. The Death Benefit compliance test,
as specified by You in the Application, is either the cash value accumulation
test or the guideline premium test, as shown in Section 1. The choice You make
determines the Death Benefit Percentages as shown in Section 1. Once
selected, this test may not be changed to another test.
Death
Benefit and Death Benefit Option. The Death Benefit depends
upon the Death Benefit Option in effect at the time of the Insured's
death. The Death Benefit Option in effect on the Issue Date is
specified in Section 1. The three options are:
Option
A - Specified Face Amount. The Base Death Benefit is the greater of
the Specified Face Amount, or the Gross Cash Surrender Value multiplied by
the
applicable Death Benefit Percentage specified in Section 1.
Option
B - Specified Face Amount plus Gross Cash Surrender Value. The Base
Death Benefit is the greater of the Specified Face Amount plus Gross Cash
Surrender Value, or the Gross Cash Surrender Value multiplied by the applicable
Death Benefit Percentage specified in Section 1.
Option
C – Specified Face Amount plus cumulative Premiums paid. The Base
Death Benefit is the greater of the Specified Face Amount plus the sum of all
Premium payments less any Partial Surrenders, or the Gross Cash Surrender Value
multiplied by the applicable Death Benefit Percentage specified in Section
1.
The
Supplemental Insurance Death Benefit is the greater of zero or the result of
the
Supplemental Insurance Face Amount minus the excess, if any, of the Base Death
Benefit over:
· the
Specified Face Amount if Option A or
· the
Specified Face Amount plus the Gross Cash Surrender Value if Option B
or
· the
Specified Face Amount plus cumulative Premiums less any Partial Surrenders
if
Option C
The
Policy’s Death Benefit equals the sum of the Base Death Benefit and the
Supplemental Insurance Death Benefit.
On
any
Monthly Anniversary Day where the Death Benefit is defined as the Gross Cash
Surrender Value multiplied by the applicable Death Benefit Percentage, and
the
Death Benefit less the Gross Cash Surrender Value exceeds the greater of (1)
the
Total Face Amount and (2) the Death Benefit less the Gross Cash Surrender Value
on the prior Monthly Anniversary Day, We reserve the right to distribute Account
Value to You as a Partial Surrender to the extent necessary so that the Death
Benefit less the Gross Cash Surrender Value does not exceed the greater of
(1)
and (2) above.
The
Policy Proceeds will be paid as they become due upon the death of the
Insured. If the Insured dies while this Policy is in force, We will
make a lump sum payment when We receive Due Proof of that death.
Changes
in Specified Face Amount and Supplemental Insurance Face Amount. You
may change the Specified Face Amount or Supplemental Insurance Face
Amount. You must send Your request for a change to Our Principal
Office, in writing. If We approve the changes, each such change
will be effective on the Effective Date of Coverage for the change.
Decreases
in Specified Face Amount and Supplemental Insurance Face
Amount. The Specified Face Amount may not decrease to less
than the Minimum Specified Face Amount specified in Section 1. A
decrease in Specified Face Amount or Supplemental Insurance Face Amount may
not
decrease this Policy’s Total Face Amount to an amount less than the Minimum
Total Face Amount specified in Section 1. A decrease in Specified
Face Amount or Supplemental Insurance Face Amount will be applied in the
following order:
|
·
|
first,
to the most recent increase, either Specified Face Amount or Supplemental
Insurance Face Amount, if any, whichever is most recent. If the
increase was processed to the Specified Face Amount and Supplemental
Insurance Face Amount simultaneously, then to the Supplemental Insurance
Face Amount first;
|
|
·
|
second,
to the next most recent increases, either Specified Face Amount or
Supplemental Insurance Face Amount, if any, in reverse chronological
order. If the increase was processed to the Specified Face
Amount and Supplemental Insurance Face Amount simultaneously, then
to the
Supplemental Insurance Face Amount
first;
|
· third,
to the initial Supplemental Insurance Face Amount; and
· finally,
to the initial Specified Face Amount.
Increases
in Specified Face Amount and Supplemental Insurance
Amount. An increase in the Specified Face Amount or
Supplemental Insurance Face Amount is subject to Our underwriting rules in
effect at the time of the increase. You may be required to submit
evidence of the Insured’s insurability satisfactory to Us.
Changes
in the Death Benefit Option. Requests for a change in the
Death Benefit Option must be made in writing to Our Principal
Office. You will be required to submit evidence of insurability on
the Insured if, at the time of a Death Benefit Option change, the subsequent
net
amount at risk is increased. Otherwise, a change in Death Benefit
Option is not subject to evidence of insurability. The effective date
of the change will be the Anniversary on or next following the date We approve
Your request.
8. ACCOUNT
VALUE
Account
Value. The Account Value varies depending upon the Net
Premium, Mortality and Expense Risk Percentage deductions, Monthly Expense
Charges, Monthly Cost of Insurance charges, Policy loans, loan repayments,
Partial Surrenders, fees and the Net Investment Factor for the Sub-Accounts
to
which Your Account Value is allocated.
We
measure the amounts in the Sub-Accounts in terms of Units and Unit
Values. On any given date, the amount You have in a Sub-Account is
equal to the Unit Value multiplied by the number of Units credited to You in
that Sub-Account. Amounts allocated to a Sub-Account will be used to
purchase Units of that Sub-Account. Units are redeemed when You make
Partial Surrenders, undertake Policy loans or transfer amounts from a
Sub-Account, and for payment of the mortality and expense risk charge, the
Monthly Expense Charge, the Monthly Face Amount Charge, and the Monthly Cost
of
Insurance charge. The number of Units of each Sub-Account purchased
or redeemed is determined by dividing the dollar amount of the transaction
by
the Unit Value for the Sub-Account. The Unit Value for each
Sub-Account is established by Us for the first Valuation Date. The
Unit Value for any subsequent Valuation Date is equal to the Unit Value for
the
preceding Valuation Date multiplied by the Net Investment Factor (determined
as
provided below). The Unit Value of a Sub-Account for any Valuation
Date is determined as of the close of the Valuation Period ending on that
Valuation Date.
Transactions
are processed on the date We receive a Premium at Our Principal Office or any
acceptable request is received at Our Principal Office. If Your
Premium or request is received on a date that is not a Valuation Date, or after
the close of the New York Stock Exchange on a Valuation Date, the transaction
will be processed on the next subsequent Valuation Date.
The
Account Value for Investment Options on the Investment Start Date
equals:
|
·
|
that
portion of Net Premium received and allocated to Investment Options,
less
|
|
·
|
the
Monthly Expense Charges due on the Issue Date and subsequent Monthly
Anniversary Days through the Investment Start Date,
less
|
|
·
|
the
Monthly Face Amount Charges due on the Issue Date and subsequent
Monthly
Anniversary Days through the Investment Start Date,
less
|
|
·
|
the
Monthly Cost of Insurance deductions due from the Issue Date through
the
Investment Start Date.
|
The
Account Value for Investment Options on subsequent Valuation Dates is equal
to:
|
·
|
the
Account Value attributable to each Sub-Account on the preceding Valuation
Date multiplied by that Sub-Account’s Net Investment Factor, less the
Daily Risk Percentage multiplied by the number of days in the Valuation
Period multiplied by the Account Value in the Sub-Account,
plus
|
|
·
|
the
value of the Fixed Account on the preceding Valuation Date, accrued
at
interest, plus
|
|
·
|
that
portion of Net Premium received and allocated to each Investment
Option
during the current Valuation Period,
plus
|
|
·
|
that
portion of any loan repayment allocated to any Investment Option
during
the current Valuation Period, less
|
|
·
|
that
portion of any Partial Surrender deducted from each Investment Option
during the current Valuation Period,
less
|
|
·
|
that
portion of any Policy loan transferred from each Investment Option
to the
Loan Account during the current Valuation Period,
less
|
|
·
|
if
a Monthly Anniversary Day occurs during the current Valuation Period,
that
portion of the Monthly Expense Charge due for the Policy Month just
beginning charged to each Investment Option,
less
|
|
·
|
if
a Monthly Anniversary Day occurs during the current Valuation Period,
that
portion of the Monthly Face Amount Charge due for the Policy Month
just
beginning charged to each Investment Option,
less
|
|
·
|
if
a Monthly Anniversary Day occurs during the current Valuation Period,
that
portion of the Monthly Cost of Insurance to each Investment
Option.
|
Net
Investment Factor. The Net Investment Factor for each
Sub-Account for any Valuation Period is determined by dividing (1) by (2)
where:
(1)
is
the net result of:
|
|
(I) the
net asset value of a Fund share held in the Sub-Account determined
as of
the end of the Valuation Period,
plus
|
|
|
(II)
the amount of any dividend or other distribution declared on amounts
held
in the Sub-Account if the "ex-dividend" date occurs during the Valuation
Period, which for some assets will not be credited with investment
experience until the dividend is paid, plus or
minus
|
|
|
(III)
a credit or charge with respect to any taxes reserved for by Us,
or paid
by Us if not previously reserved for, during the Valuation Period
which
are determined by Us to be attributable to the operation of the
Sub-Account; and
|
(2)
is
the net asset value of a Fund share held in the Sub-Account determined as of
the
end of the preceding Valuation Period.
Loan
Account. The Loan Account is an account established for this
Policy, the value of which is the principal amount of any outstanding Policy
loan against this Policy, plus credited interest thereon.
The
Account Value in the Loan Account is zero on the Investment Start
Date.
The
Account Value in the Loan Account on subsequent Valuation Dates
equals:
|
·
|
the
Account Value in the Loan Account on the preceding day credited with
interest at the Interest Credited on Loan Account rate specified
in
Section 1, plus
|
|
·
|
any
amount transferred from any Investment Option to the Loan Account
for
Policy loans requested on that day,
less
|
· any
loan repayments made on that day.
Daily
Risk Percentage, Monthly Expense Charge and Monthly Face Amount
Charge. These deductions will be determined by Us from time
to time based on, among other factors, Our expectations of future experience
with respect to interest, mortality experience, persistency, expenses, profit
and taxes. However, these deductions will not be greater than that
specified in Section 1.
Monthly
Cost of Insurance. We deduct a Monthly Cost of Insurance
charge from Your Account Value to cover anticipated costs of providing insurance
coverage. This charge is made on the Monthly Anniversary
Day. If You Surrender this Policy on any day other than a Monthly
Anniversary Day, a pro-rata charge will be made.
The
Monthly Cost of Insurance equals the sum of (1), (2), (3), and (4)
where:
|
|
(1)
is the Specified Face Amount Monthly Cost of Insurance Rate (described
below) multiplied by the net amount at risk divided by
1,000. The net amount at risk equals the Base Death Benefit
less the Account Value;
|
|
|
(2)
is the Supplemental Insurance Face Amount Monthly Cost of Insurance
Rate
(described below) multiplied by the net amount at risk divided by
1,000. The net amount at risk equals the Supplemental
Insurance;
|
|
|
(3)
is the monthly rider cost for any riders which are a part of this
Policy
(with the monthly rider cost as described in the rider itself);
and
|
|
|
(4)
is any Flat Extra specified in Section 1 of this Policy, times the
Total
Face Amount divided by 1000.
|
The
Account Value deduction occurs first to the initial Total Face Amount and second
to successive increases.
The
cost of insurance deductions described above are determined separately for
the
initial Specified Face Amount and the Supplemental Insurance Face Amount and
each increase in Specified Face Amount or Supplemental Insurance Face
Amount.
Monthly
Cost of Insurance Rates. The Monthly Cost of Insurance Rates
are based on the length of time this Policy has been in force, the Insured’s Sex
(in the case of Non-Unisex Policies), Issue Age and Class. The Monthly Cost
of
Insurance Rates will be determined by Us from time to time based on, among
other
factors, Our expectations of future experience with respect to interest,
mortality experience, persistency, expenses, profit and
taxes. However, the Monthly Cost of Insurance Rates for the Specified
Face Amount and Supplemental Insurance Face Amount will not be greater than
those shown in Section 2.
Basis
of Computation. Guaranteed Maximum Monthly Cost of Insurance
Rates are based on the Guaranteed Mortality Table specified in Section
1. We have filed a detailed statement of Our methods for computing
Account Value with the insurance department in the jurisdiction where this
Policy is delivered. These values are equal to or exceed the minimum
required by law.
Directed
Deductions. You may allocate the Mortality and Expense Risk Charge, the
Monthly Expense Charge, Monthly Face Amount Charges or the Monthly Cost of
Insurance deductions among Investment Options. The deductions will be
allocated among the selected Investment Options in the same proportion that
the
Account Value attributable to each of those Investment Options bears to the
aggregate value of the Account Value in all Investment Options
selected. If You do not specify the allocation, or to the extent the
aggregate value of the Account Value in all Investment Options selected is
less
than the deduction, deductions will be allocated among Investment Options in
the
same proportion that the Account Value attributable to each Investment Option
bears to the total Account Value less the Loan Account immediately prior to
the
deduction.
Insufficient
Value. If, on a Valuation Date, the Account Value less the
outstanding Policy Debt is less than or equal to zero, then this Policy will
terminate for no value, subject to the Grace Period provision.
Grace
Period. If, on a Valuation Date, this Policy will terminate
by reason of insufficient value, We will allow a grace period. This
grace period will allow 61 days from that Valuation Date for the payment of
a
Premium sufficient to keep this Policy in force for three
months. Notice of Premium due will be mailed to Your last known
address or the last known address of any assignee of record within thirty days
after that Valuation Date. We will assume that Your last known
address is the address shown on the Application (or notice of assignment),
unless We receive notice of a change in address in a form satisfactory to
Us. If the Premium due is not paid within 61 days after the beginning
of the Grace Period, then this Policy will terminate without value at the end
of
the 61 day period. This Policy will continue to remain in force
during the Grace Period. If the Policy Proceeds become payable by Us
during the Grace Period, they will be reduced by any overdue
deductions.
Splitting
Units. We reserve the right to split or combine the value of
Units. In effecting any such change, strict equity will be preserved
and no change will have a material effect on the benefits or other provisions
of
this Policy.
Age
100 Continuation
If
the
Insured is alive on the Monthly Anniversary Day on which the Attained Age of
the
Insured is 100 and if this Policy is in force on that date, then this Policy
will continue in force until the death of the Insured regardless of the amount
of Account Value. The Death Benefit after that date will continue to be based
on
the Death Benefit and Death Benefit Option provision in Section 7. As of that
date, no more Premiums will be accepted and the Monthly Cost of Insurance,
Monthly Expense Charge and Monthly Face Amount Charge will cease. Any Policy
Debt will continue and interest on Policy loans will continue to be
charged. The Account Value will remain invested in the Investment
Options chosen at that time.
You
should note that this Policy may not qualify as life insurance after the
Insured's Attained Age 100, which may result in adverse tax
consequences. Consult your tax advisor prior to continuing this
Policy beyond Insured's Attained Age 100.
9. POLICY
BENEFITS
Benefits
at Death. The Policy Proceeds will be paid in one lump sum
payment as they become due upon the death of the Insured while this Policy
is in
force. Payment will include interest on the Policy Proceeds from the
date of death until the date of payment. The interest rate applicable is the
rate paid by the Company on proceeds left on deposit.
Payment
of Claims. When this Policy becomes a claim by death of the
Insured, settlement will be made upon receipt of Due Proof of
death.
Surrender. You
may Surrender this Policy for the Cash Surrender Value at any time.
Enhancement
Benefit. If You Surrender this Policy, we may pay an
Enhancement Benefit. The Enhancement Benefit, if any, represents a return of
a
portion of the charges You paid under this Policy including the Premium Expense
Load,
Monthly Cost of Insurance, Monthly Expense Charge, and Monthly Face Amount
Charge. No Enhancement Benefit will paid upon a Surrender made as part of
an exchange under Internal Revenue Code §1035.
Partial
Surrender. You may make a Partial Surrender of this Policy
once each Policy Year after the first Policy Year by request to Our Principal
Office, in a form satisfactory to Us. The maximum amount of any
Partial Surrender is the Account Value decreased by the balance of any
outstanding Policy Debt. Unless You provide evidence satisfactory to
Us that the Insured is still insurable, the Total Face Amount will be reduced
to
the extent necessary so that (1) does not exceed (2) where
|
|
(1)
is the Death Benefit increased by the amounts payable under supplemental
benefits less the Account Value immediately after the Partial Surrender;
and
|
|
|
(2)
is the Death Benefit increased by the amounts payable under supplemental
benefits less the Account Value immediately before the Partial
Surrender.
|
If
You
provide such evidence, You will have the option of keeping the Death Benefit
equal to what it was immediately prior to the Partial Surrender. The
Specified Face Amount remaining in force after the Partial Surrender must be
no
lower than the Minimum Specified Face Amount shown in Section 1. A
Partial Surrender may not decrease this Policy’s Total Face Amount shown in
Section 1 to an amount less than the Minimum Total Face Amount shown in Section
1.
Allocation
of Partial Surrender. You may allocate the Partial Surrender
among the Investment Options. However, We reserve the right to
restrict Partial Surrenders from the Fixed Account. If You do not
specify the allocation, then the Partial Surrender will be allocated among
Investment Options in the same proportion that the Account Value attributable
to
each Investment Option bears to the total Account Value less the Loan Account
immediately prior to the Partial Surrender.
Policy
Loan. You may request a Policy loan of up to this Policy’s
Account Value, decreased by the sum of (a) and (b) where
|
(a)
|
is
the amount of any outstanding Policy Debt on the date the Policy
loan is
made; and
|
|
(b)
|
is
the sum of the projected monthly deductions, described in Section
8, to
the next Anniversary.
|
Account
Value equal to the Policy loan will be transferred from the Investment Options
to the Loan Account on the date the Policy loan is made. You may
allocate the Policy loan among the Investment Options; however, We reserve
the
right to restrict loans from the Fixed Account. If You do not specify
the allocation, then the Policy loan shall be allocated among the Investment
Options in the same proportion that the Account Value attributable to each
Investment Option bears to the total Account Value less the Loan Account
immediately prior to the Policy Loan.
Interest
on the Policy loan will accrue daily at the Policy Loan Interest Rate specified
in Section 1. This interest shall be due and payable to Us in arrears
on each Anniversary. Any unpaid interest will be added to the
principal amount as an additional Policy loan and will bear interest at the
same
rate and in the same manner as the prior Policy loan.
All
amounts paid by You that We receive will be credited to Your Policy as Premium
unless We have received notice, in form satisfactory to Us, that the amounts
paid are for loan repayment. Loan repayments will first reduce the
outstanding balance of the Policy loan and then accrued but unpaid interest
on
such loans. We will accept repayment of any Policy loan at any time
while this Policy is in force. The amount of the loan repayment up to
the outstanding balance of the Policy loan will be transferred from the Loan
Account to the Investment Options. You may allocate the loan
repayment among the Investment Options. If You do not specify the
allocation, then the loan repayment shall be allocated among the Investment
Options in the same proportion that the Account Value of each Investment Option
bears to the total Account Value less the Loan Account immediately prior to
the
loan repayment. We may require that loan repayments, up to the amount
of the loan allocated to the Fixed Account, first be allocated back to the
Fixed
Account.
Deferral
of Payment. We will usually pay any amount due from the
Variable Account within seven days after the Valuation Date following Our
receipt of notice, in a form acceptable to Us, giving rise to such payment
or,
in the case of death of the Insured, of Due Proof of such death. Payment of
any
amount payable from the Variable Account on death, Surrender, Partial Surrender
or Policy loan may be postponed whenever:
|
·
|
the
New York Stock Exchange ("NYSE") is closed other than customary weekend
and holiday closing, or trading on the NYSE is otherwise restricted,
or
|
|
·
|
an
emergency exists as determined by the Securities and Exchange Commission,
as a result of which disposal of securities is not reasonably practicable,
or it is not reasonably practicable to determine the value of the
assets
of the Variable Account.
|
In
the
event of the Insured’s death, interest on death proceeds, at the same rate We
pay on proceeds left on deposit with Us, will begin to accrue from the date
of
death.
We
reserve the right to defer payment of any portion of the Cash Surrender Value,
Policy loan or Partial Surrender payable from the Fixed Account for a period
not
exceeding six months from the date We receive Your request.
We
will
not postpone or defer any payment that is to be used to pay premiums. If payment
of any portion of the Cash Surrender Value or Policy Loan is deferred for more
than ten business days, We will add to that payment. The interest rate
applicable is the rate paid by the Company on proceeds left on
deposit.
Termination. This
Policy terminates on the earlier of the date We receive Your request to
Surrender, the expiration date of the Grace Period due to insufficient value
or
the date of death of the Insured.
Reinstatement. Prior
to the death of the Insured, this Policy may be reinstated provided the Policy
has not been surrendered for the Cash Surrender Value, and provided
that:
|
·
|
You
make Your reinstatement request within three years from the Policy
termination date;
|
|
·
|
You
submit satisfactory evidence of the Insured's insurability to
Us;
|
|
·
|
You
pay an amount sufficient to put the Policy in
force.
|
An
amount sufficient to put the Policy in force is not less than any excess of
the
Policy Debt over the Account Value at end of the Grace Period plus the greater
of:
|
(1)
|
three
times the Monthly Cost of Insurance deduction applicable at the date
of
reinstatement; or
|
|
(2)
|
110%
of the increase in Account Value resulting from reinstatement plus
all the
monthly deductions which were overdue at the end of the Grace Period
with
interest at a rate not exceeding 6.0% per year compounded
annually.
|
The
Specified Face Amount of the reinstated Policy cannot exceed the Specified
Face
Amount at the time of termination. The Account Value on the Policy
reinstatement date will reflect:
|
(1)
|
the
Account Value at the time of termination;
plus
|
|
(2)
|
the
Net Premium attributable to Premiums paid to reinstate the Policy;
less
|
|
(3)
|
the
monthly deductions which were overdue at the end of the grace period;
less
|
|
(4)
|
any
excess of the Policy Debt over the Account Value at the end of the
grace
period; less
|
|
(5)
|
the
Monthly Expense Charge; less
|
|
(6)
|
the
Monthly Face Amount charge; less
|
|
(7)
|
the
monthly mortality and expense risk charge;
less
|
|
(8)
|
the
Monthly Cost of Insurance deduction applicable on the date of
reinstatement.
|
The
effective date of reinstatement will be the Monthly Anniversary Day that falls
on or next follows the date We approve Your request.
VUL-SCOLI-07
NY Page
One
Sun
Life Executive Park
Wellesley
Hills, MA 02481
000-000-0000
Home
Office:
00
Xxxx
00xx
Xxxxxx
Suite
1115
New
York, NY 10165
SUN
LIFE INSURANCE AND ANNUITY
COMPANY
OF NEW
YORK
Flexible
Premium Variable Universal Life Insurance Policy
Nonparticipating
VUL-SCOLI-07
NY Page
