Common use of ELECTION OF ANNUITY OPTION Clause in Contracts

ELECTION OF ANNUITY OPTION. A Participant eligible to receive a distribution under the Code or a Beneficiary of a deceased Participant may notify LL&A in writing in a form acceptable to LL&A that the Participant or the Beneficiary is electing to convert all or part of the Participant's Account balance or Death Benefit to an annuity option available under this Contract. Upon being notified of such an election, LL&A shall calculate the amount to be converted to an annuity as either the Participant's Account balance, or a portion thereof, or the Death Benefit as of the initial Annuity Payment Calculation Date, as appropriate, less the charge for premium taxes, if any. If the Participant's Account balance or the Beneficiary's Death Benefit is less than two thousand dollars ($2,000) or if the amount of the first scheduled payment is less than twenty dollars ($20), LL&A may, at its option, cancel the annuity and pay the Participant or Beneficiary his entire Account balance or Death Benefit in a lump sum.