Common use of EFFECTIVE DATE AND CHANGES TO THE POLICY Clause in Contracts

EFFECTIVE DATE AND CHANGES TO THE POLICY. The change to the Paid-up Option will be effective on the monthly processing date on which the request is received at the Home Office, but if the request is not received on a monthly processing date then it will be effective on the next monthly processing date. Upon the change to the Paid-up Option, the following will occur: • any amounts in the Investment Account will be transferred to the Company’s general account; • any amounts in the NM Strength and Stability Account will be combined with the amounts transferred from the Investment Account and will become the Contract Fund Value subject to Section 11.3; • any existing Policy Debt continues; • the Death Benefit Option will be changed to Option A, if Option A is not in effect at the time of election; • the Definition of Life Insurance will be changed to the Cash Value Accumulation Test, if the Cash Value Accumulation test is not in effect at the time of election; • the Specified Amount will be changed to equal the Paid-up Specified Amount which is equal to the Policy Value (after deduction of any withdrawals on the date of the change) divided by the factor shown on the Table of Factors for Paid-up Option shown on the Policy Schedule Pages (page 8), for the applicable monthly processing date; • any Death Benefit Guarantee will be terminated; and • any additional benefits will be terminated.

EFFECTIVE DATE AND CHANGES TO THE POLICY. The change to the Paid-up Option will be effective on the monthly processing date on which the request is received at the Home Office, but if the request is not received on a monthly processing date then it will be effective on the next monthly processing date. Upon the change to the Paid-up Option, the following will occur: • any amounts in the Investment Account will be transferred to the Company’s general account; • any amounts in the NM Strength and Stability Account will be combined with the amounts transferred from the Investment Account and will become the Contract Fund Value subject to Section 11.3; • any applicable surrender charge will be deducted; • any existing Policy Debt continues; • the Death Benefit Option will be changed to Option A, if Option A is not in effect at the time of election; • the Definition of Life Insurance will be changed to the Cash Value Accumulation Test, if the Cash Value Accumulation test is not in effect at the time of election; • the Specified Amount will be changed to equal the Paid-up Specified Amount which is equal to the Policy Value (after deduction of the surrender charge and any withdrawals on the date of the change) divided by the factor shown on the Table of Factors for Paid-up Option shown on the Policy Schedule Pages (page 8), for the applicable monthly processing date; • any Death Benefit Guarantee will be terminated; and • any additional benefits will be terminated.