Common use of Actuarial Unsoundness Clause in Contracts

Actuarial Unsoundness. An actuarial valuation study of the Program shall be made annually by a certified actuary. If this actuary determines that the Program does not have sufficient funds to ensure the actuarial soundness of the Program and the Board reasonably determines there will be an insufficient number of new Contracts in the future with reasonably predictable terms to ensure the actuarial soundness of the Program, the Program may provide Qualified and Non-qualified Refunds at a reduced rate, may pay Educational Benefits at a reduced rate or may Terminate all Contracts and prorate the assets of Program among the existing Contracts. If the Trust Fund is liquidated, the amount to be returned is uncertain and could be less than any Purchaser’s contributions. Upon Termination of the Program pursuant to this subsection, the Program may stop providing Educational Benefits from the Program and will pay Non-qualified Refunds determined as follows: a. The Program will calculate the Contract’s “asset value,” which is the Lump Sum or cumulative Monthly Purchase Amount paid by the Purchaser, less any Educational Benefits or Qualified/Non-qualified Refunds paid by the Program, less any Program Fees due and payable to the Program; b. A percentage of the amount of the total Trust Fund assets after liquidating all of the Trust Fund investments. The percentage is determined by dividing the asset value of a given Contract by the asset value of all Program Contracts combined. This Non-qualified Refund shall be applied, at the option of each Purchaser, either toward the purposes of this Contract on behalf of the Beneficiary, or paid to the Purchaser.

Actuarial Unsoundness. An actuarial valuation study of the Program shall be made annually by a certified actuary. If this actuary determines that the Program does not have sufficient funds to ensure the actuarial soundness of the Program and the Board reasonably determines there will be an insufficient number of new Contracts in the future with reasonably predictable terms to ensure the actuarial soundness of the Program, the Program may provide Qualified and Non-Non- qualified Refunds at a reduced rate, may pay Educational Benefits at a reduced rate rate, or may Terminate all Contracts and prorate the assets of Program among the existing Contracts. If the Trust Fund is liquidated, the amount to be returned is uncertain and could be less than any the Purchaser’s contributions. Upon Termination termination of the Program pursuant to this subsection, the Program may stop providing Educational Contract Benefits from the Program and will pay Non-qualified Refunds determined as follows: a. The Program will calculate the Contract’s “asset value,” ”, which is the Lump Sum or cumulative Monthly Purchase Amount paid by the Purchaser, less any Educational Contract Benefits or Qualified/Qualified or Non-qualified Refunds paid by the Program, less any Program Fees due and payable to the Program;Refunds b. A percentage of the amount of the total Trust Fund assets after liquidating all of the Trust Fund investments. The percentage is determined by dividing the asset value of a given Contract by the asset value of all Program Contracts combined. This Non-qualified Refund shall be applied, at the option of each Purchaser, either toward the purposes of this Contract on behalf of the Beneficiary, Beneficiary or paid to the Purchaser.

Actuarial Unsoundness. An actuarial valuation study of the Program shall be made annually by a certified actuary. If this actuary determines that the Program does not have sufficient funds to ensure the actuarial soundness of the Program and the Board reasonably determines there will be an insufficient number of new Contracts in the future with reasonably predictable terms to ensure the actuarial soundness of the Program, the Program may provide Qualified and Non-Non- qualified Refunds at a reduced rate, may pay Educational Benefits at a reduced rate rate, or may Terminate all Contracts and prorate the assets of Program among the existing Contracts. If the Trust Fund is liquidated, the amount to be returned is uncertain and could be less than any the Purchaser’s contributions. Upon Termination termination of the Program pursuant to this subsection, the Program may stop providing Educational Contract Benefits from the Program and will pay Non-qualified Refunds determined as follows: a. The Program will calculate the Contract’s “asset value,” ”, which is the Lump Sum or cumulative Monthly Purchase Amount paid by the Purchaser, less any Educational Contract Benefits or Qualified/Qualified or Non-qualified Refunds paid by the Program, less any Program Fees due and payable to the Program;; or b. A percentage of the amount of the total Trust Fund assets after liquidating all of the Trust Fund investments. The percentage is determined by dividing the asset value of a given Contract by the asset value of all Program Contracts combined. This Non-qualified Refund shall be applied, at the option of each Purchaser, either toward the purposes of this Contract on behalf of the Beneficiary, Beneficiary or paid to the Purchaser.

Actuarial Unsoundness. An actuarial valuation study of the Program shall be made annually by a certified actuary. If this actuary determines that the Program does not have sufficient funds to ensure the actuarial soundness of the Program and the Board reasonably determines there will be an insufficient number of new Contracts in the future with reasonably predictable terms to ensure the actuarial soundness of the Program, the Program may provide Qualified and Non-Non- qualified Refunds at a reduced rate, may pay Educational Benefits at a reduced rate rate, or may Terminate all Contracts and prorate the assets of Program among the existing Contracts. If the Trust Fund is liquidated, the amount to be returned is uncertain and could be less than any the Purchaser’s contributions. Upon Termination termination of the Program pursuant to this subsection, the Program may stop providing Educational Contract Benefits from the Program and will pay Non-qualified Refunds determined as follows: a. The Program will calculate the Contract’s “asset value,” which is the Lump Sum or cumulative Monthly Purchase Amount paid by the Purchaser, less any Educational Contract Benefits or Qualified/Non-qualified Refunds paid by the Program, less any Program Fees due and payable to the Program; b. A percentage of the amount of the total Trust Fund assets after liquidating all of the Trust Fund investments. The percentage is determined by dividing the asset value of a given Contract by the asset value of all Program Contracts combined. This Non-Non- qualified Refund shall be applied, at the option of each Purchaser, either toward the purposes of this Contract on behalf of the Beneficiary, or paid to the Purchaser.

Actuarial Unsoundness. An To protect Purchasers and Beneficiaries, an actuarial valuation study of the Program shall be made annually by a certified actuary. If this actuary determines that the Program does not have sufficient funds to ensure the actuarial soundness of the Program and the Board reasonably determines there will be an insufficient number of new Contracts in the future with reasonably predictable terms to ensure the actuarial soundness of the Program, the Program may provide Qualified and Non-qualified Refunds at a reduced rate, may pay Educational Benefits at a reduced rate or may Terminate all Contracts and prorate the assets of Program among the existing Contracts. If the Trust Fund is liquidated, the amount to be returned is uncertain and could be less than any Purchaser’s contributions. Upon Termination of the Program pursuant to this subsection, the Program may stop providing Educational Benefits from the Program and will pay Non-qualified Refunds determined as follows: a. The Program will calculate the Contract’s “asset value,” which is the Lump Sum or cumulative Monthly Purchase Amount paid by the Purchaser, less any Educational Benefits or Qualified/Non-qualified Refunds paid by the Program, less any Program Fees due and payable to the Program; b. A percentage of the amount of the total Trust Fund assets after liquidating all of the Trust Fund investments. The percentage is determined by dividing the asset value of a given Contract by the asset value of all Program Contracts combined. This Non-qualified Refund shall be applied, at the option of each Purchaser, either toward the purposes of this Contract on behalf of the Beneficiary, or paid to the Purchaser.