Common use of Application of Contract Value Clause in Contracts

Application of Contract Value. Unless directed otherwise, We will apply the fixed account value to provide a fixed annuity, and the Variable Account value to provide a variable annuity. You must tell Us In Writing at least 30 days prior to the annuity commencement date if You want Us to apply fixed and Variable Account values in different proportions. ANNUITY COMMENCEMENT DATE The annuity commencement date is selected by You and stated in the Application. You may change the annuity commencement date at any time if We receive Written notice at least 30 days before both the current annuity commencement date and the new annuity commencement date. If the annuity commencement date does not occur on a Valuation Date that is at least two years after the Issue Date, We reserve the right to change the annuity commencement date to the first Valuation Date that is at least two years after the Issue Date. FREQUENCY AND AMOUNT OF PAYMENTS Annuity payments will be made monthly unless We agree to a different payment schedule. We reserve the right to change the frequency of either a fixed annuity payment or a variable annuity payment so that each payment will be at least $50 ($20 in Texas). FIXED ANNUITY PAYMENTS Fixed annuity payments start on the end of the Valuation Period that contains the annuity commencement date. The amount of a first monthly payment for the annuity form selected will be at least as favorable as that produced by the annuity tables of this contract for each $1,000 of Contract Value applied as of the end of such Valuation Period. The dollar amount of any payments after the first payment are specified during the entire period of annuity payments, according to the provisions of the annuity form selected. ANNUITY UNITS We convert the Subaccount Accumulation Units into Subaccount Annuity Units at the values determined at the end of the Valuation Period which contains the annuity commencement date. The number of Subaccount Accumulation Units remains constant as long as an annuity remains in force and allocation among the Subaccounts has not changed. Each Subaccount Annuity Unit value was arbitrarily set when the Subaccount first converted Subaccount Accumulation Units into Annuity Units. Subsequent values on any Valuation Date are equal to the previous Subaccount Annuity Unit value times the Net investment factor for that Subaccount for the Valuation Period ending on that Valuation Date, with an offset for the 3% assumed interest rate used in the annuity tables of this contract. Variable annuity payments start on the end of the Valuation Period that contains the annuity commencement date. The amount of a first monthly payment for the illlustrated annuity forms is shown on the annuity tables of this contract for each $1,000 of Contract Value applied as of the end of such Valuation Period. Payments after the first payment will vary in amount and are determined on the first Valuation Date of each subsequent payment period. If the payment under the annuity form selected is based on the variable annuity unit value of a single Subaccount, the payment is found by multiplying the Subaccount Annuity Unit value on the payment date by the number of Subaccount Annuity Units. If the payment under the annuity form selected is based upon variable Annuity Unit values of more than one Subaccount, the above procedure is repeated for each applicable Subaccount. The sum of these payments is the variable annuity payment. We guarantee that the amount of each payment after the first payment will not be affected by variations in expense or mortality experience. <PAGE> You may select an annuity form or change a previous selection. The selection or change must be In Writing and received by Us at least 30 days before the annuity commencement date. If no annuity form selection is in effect on the annuity commencement date, We automatically apply Option B, with payments guaranteed for 10 years. The following options are available for the fixed annuity payments and the variable annuity payments:

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

Application of Contract Value. Unless directed otherwise, We will apply the fixed account Fixed Account value adjusted by the Market Value Adjustment, to provide a fixed annuityFixed Annuity, and the Variable Account value to provide a variable annuityVariable Annuity. You must tell Us In Writing at least 30 days prior to the annuity commencement date if You want Us to apply fixed Fixed and Variable Account values in different proportions. ANNUITY COMMENCEMENT DATE The annuity commencement date is selected by You and stated in the Application. The date must be before the Annuitant's 75th birthday unless We agree to it. You may change the annuity commencement date at any time if We receive Written notice at least 30 days before both the current annuity commencement date and the new annuity commencement date. The Annuity Commencement Date cannot be later than the Annuitant's 90th birthday. If the annuity commencement date does not occur on a Valuation Date that is at least two 2 years after the Issue Date, We reserve the right to change the annuity commencement date to the first Valuation Date that is at least two 2 years after the Issue Date. FREQUENCY AND AMOUNT OF PAYMENTS Annuity payments will be made monthly unless We agree to a different payment schedule. We reserve the right to change the frequency of either a fixed annuity Fixed Annuity payment or a variable annuity Variable Annuity payment so that each payment will be at least $50 ($20 in Texas)50. FIXED ANNUITY PAYMENTS Fixed annuity Annuity payments start on the end of the Valuation Period that contains the annuity commencement date. The amount of a the first monthly payment for the annuity form selected will be at least as favorable as that produced by the annuity tables of this contract Contract for each $1,000 of Contract Value adjusted by the Market Value Adjustment, applied as of the end of such Valuation Period. We may, as of the annuity commencement date, offer for sale single premium immediate annuity contracts. If so, the annuity benefits available under this contract will be at least as favorable as the benefit available by using the Contract Value, adjusted by the Market Value Adjustment, to purchase one of our single premium immediate annuities. The dollar amount of any payments after the first payment are specified during the entire period of annuity payments, according to the provisions of the annuity form selected. VARIABLE ANNUITY UNITS PAYMENTS We convert the Subaccount Accumulation Units into Subaccount Annuity Units at the values determined at the end of the Valuation Period which contains the annuity commencement date. The number of Subaccount Accumulation Units remains constant as long as an annuity remains in force and allocation among the Subaccounts has not changed. Each Subaccount Annuity Unit value Value was arbitrarily set when the Subaccount first converted Subaccount Accumulation Units into Annuity Units. Subsequent values on any Valuation Date are equal to the previous Subaccount Annuity Unit value Value times the Net investment factor Investment Factor for that Subaccount for the Valuation Period ending on that Valuation Date, with an offset for the 3% assumed interest rate used in the annuity tables of this contractContract. <PAGE> Variable annuity Annuity payments start on the end of the Valuation Period that contains the annuity commencement date. The amount of a the first monthly payment for the illlustrated annuity forms form selected, is shown on the annuity tables of this contract Contract for each $1,000 of Contract Value applied as of the end of such Valuation Period. Payments after the first payment will vary in amount and are determined on the first Valuation Date of each subsequent payment monthly period. If the monthly payment under the annuity form selected is based on the variable annuity unit value of a single Subaccount, the monthly payment is found by multiplying the Subaccount Annuity Unit unit value on the payment date by the number of Subaccount Annuity Units. If the monthly payment under the annuity form selected is based upon variable Annuity Unit values of more than one Subaccount, the above procedure is repeated for each applicable Subaccount. The sum of these payments is the variable annuity payment. We guarantee that the amount of each payment after the first payment will not be affected by variations in expense or mortality experience. <PAGE> OPTIONAL ANNUITY FORMS You may select an annuity form or change a previous selection. The selection or change must be In Writing and received by Us at least 30 days before the annuity commencement date. If no annuity form selection is in effect on the annuity commencement date, We automatically apply Option B, with payments guaranteed for 10 years. The following options are available for the fixed annuity Fixed Annuity payments and the variable annuity Variable Annuity payments: