Common use of Payment Due to Termination by Contractholder Clause in Contracts

Payment Due to Termination by Contractholder. (a) As of the effective date of termination of this contract by the Contractholder pursuant to Section 8.1, the Contractholder, together with the Plan Sponsor, may elect to have a payment or payments made under the payment option or one of the payment options set out below to whomever the Contractholder directs. Such payment or payments shall be in full settlement of this contract and in lieu of any other payment under its terms. In order for such an election to be effective, it must include the Contractholder's and the Plan Sponsor's agreement to indemnify and hold AUL harmless from any and all losses, claims, or demands that may later arise or be asserted against AUL in connection with the making of such a payment or payments and, if Code Section 403(b) funds are to be transferred to a substitute funding medium, such election must contain the Contractholder's certification that such substitute funding medium meets the requirements of Code Section 403(b) and the Regulations issued thereunder. This Contractholder's and Plan Sponsor's agreement must be received by AUL at its Home Office prior to payment of any termination benefits provided by this Section 8.2.

Payment Due to Termination by Contractholder. (a) As of the effective date of termination of this contract by the Contractholder pursuant to Section 8.1, the ContractholderContractholder may, together with the Plan Sponsor, may elect to have a payment or payments made under the payment option or one of the payment options set out pursuant to (b) below to whomever the Contractholder directs. Such payment or payments shall be in full settlement of this contract and in lieu of any other payment under its terms. In order for such an election to be effective, it must include the Contractholder's and the Plan Sponsor's agreement to indemnify and hold AUL harmless from any and all losses, claims, or demands that may later arise or be asserted against AUL in connection with the making of such a payment or payments and, if Code Section 403(b) these funds are to be transferred to a substitute funding medium, such election must contain the Contractholder's certification that such substitute funding medium meets the requirements of Code Section 403(b) and the Regulations issued thereunder. This Contractholder's and Plan Sponsor's agreement must be received by AUL at its Home Office prior to payment of any termination benefits provided by this Section 8.2.