Common use of Surrender Charge Clause in Contracts

Surrender Charge. The surrender charges are shown on page 3. We will deduct any applicable surrender charge if you surrender the policy. The surrender charge is deducted from Policy Account Value. The surrender charge shown on page 3 is the sum of the surrender charge for the Initial Basic Amount and any increase in Basic Amount. Withdrawal Processing Fee. If you request a withdrawal, we will deduct a withdrawal processing fee in addition to the amount of the withdrawal. The withdrawal processing fee is shown on page 3. Transfer Processing Fee. A number of transfers during each policy year are free as shown on page 3. We reserve the right to assess a transfer fee for each transfer in excess of that number during a policy year. The amount of the fee cannot exceed the amount shown on page 3. For the purpose of assessing this fee, each request is considered one transfer, regardless of the number of Subaccounts affected by the transfer. This fee is deducted on a pro-rata basis from any Subaccount and the Fixed Account from which the transfer is made. All transfers involving the Loan Account are not subject to this provision. -------------------------------------------------------------------------------- ALLOCATION AND TRANSFERS PROVISIONS -------------------------------------------------------------------------------- Allocation of Net Premium Payments. You may allocate Net Premium Payments among the Subaccounts and the Fixed Account. The allocation for the Initial Net Premium Payment and any Net Premium Payments we receive prior to the end of the free-look period is shown on page 3. For purposes of this provision, we presume your free-look period will end on the date shown on page 3. On that date, any Policy Account Value will be transferred to the Subaccounts and the Fixed Account on a pro-rata basis using your allocation instructions for Net Premium Payments in effect at that time. Any additional Net Premium Payments received will be allocated according to your allocation instructions for Net Premium Payments in the application or in a subsequent request. Allocation instructions must be in whole percentages. The minimum amount we can allocate to any Subaccount or the Fixed Account is shown on page 3 as a percentage of any Net Premium Payment. We reserve the right to set additional limitations on premium payment allocations.

Surrender Charge. A surrender charge may apply in the event You surrender part of or all of Your Contract Value. The Schedule of Surrender Charges for Your contract is shown under Contract Data. A surrender charge applies if You surrender purchase payments that are still in the surrender charge period. Refer to Waiver of Surrender Charges for situations when surrender charges are shown on page 3not deducted. We will deduct any determine Your surrender charge by multiplying the amount of each purchase payment surrendered which could be subject to a surrender charge by the applicable surrender charge if you surrender the policypercentage. The amount that represents purchase payments surrendered is calculated using a prorated formula based on the percentage of Your Contract Value being surrendered. As a result, the amount that represents purchase payments surrendered may be greater than Your Contract Value surrendered. We determine the amount that represents purchase payments surrendered (PPS), purchase payments not subject to a surrender charge (PPF), and purchase payments which could be subject to a surrender charge (PPSC) by the following formula: PPS = PPSC + PPF PPSC = (PS - FA) X (PP - PPF) CV - FA (but not less than zero) PPF = FA - “contract earnings”, but not less than zero PP = Purchase payments not previously surrendered (total purchase payments – PPS) PS = Amount the Contract Value is deducted from Policy Account reduced by the surrender FA = the “total free amount” CV = Contract Value prior to the surrender Definition of “contract earnings” With respect to these surrender provisions, “contract earnings” is defined as the Contract Value, less purchase payments not previously surrendered, but not less than zero. With respect to these surrender provisions, “contract earnings” are surrendered first followed by purchase payments. After calculating the amount of purchase payments surrendered, We use the surrender order described below to determine the surrender charge. Definition of “total free amount” The “total free amount” is the amount You are allowed to surrender each contract year without incurring a surrender charge. The surrender charge shown “total free amount” calculation is described below and is recalculated on page 3 is the sum of each Contract Anniversary during the surrender charge for the Initial Basic Amount and any increase in Basic Amount. Withdrawal Processing Fee. If you request a withdrawal, we will deduct a withdrawal processing fee in addition to the amount of the withdrawal. The withdrawal processing fee is shown on page 3. Transfer Processing Fee. A number of transfers during each policy year are free as shown on page 3. We reserve the right to assess a transfer fee for each transfer in excess of that number during a policy year. The amount of the fee cannot exceed the amount shown on page 3. For the purpose of assessing this fee, each request is considered one transfer, regardless of the number of Subaccounts affected by the transfer. This fee is deducted on a pro-rata basis from any Subaccount and the Fixed Account from which the transfer is made. All transfers involving the Loan Account are not subject to this provision. -------------------------------------------------------------------------------- ALLOCATION AND TRANSFERS PROVISIONS -------------------------------------------------------------------------------- Allocation of Net Premium Payments. You may allocate Net Premium Payments among the Subaccounts and the Fixed Account. The allocation for the Initial Net Premium Payment and any Net Premium Payments we receive prior to the end of the free-look period is shown on page 3. For purposes of this provision, we presume your free-look period will end on the date shown on page 3. On that date, any Policy Account Value will be transferred to the Subaccounts and the Fixed Account on a pro-rata basis using your allocation instructions for Net Premium Payments in effect at that timeperiod. Any additional Net Premium Payments received will be allocated according unused portion does not carry over to your allocation instructions for Net Premium Payments in future contract years. During the application or in a subsequent request. Allocation instructions must be in whole percentages. The minimum amount we can allocate to any Subaccount or first contract year the Fixed Account “total free amount” is shown on page 3 as a percentage of any Net Premium Payment. We reserve the right to set additional limitations on premium payment allocations.greater of:

Surrender Charge. A surrender charge may apply in the event You surrender part of or all of Your Contract Value. The Schedule of Surrender Charges for Your contract is shown under Contract Data. A surrender charge applies if You surrender purchase payments that are still in the surrender charge period. Refer to Waiver of Surrender Charges for situations when surrender charges are shown on page 3not deducted. We will deduct any determine Your surrender charge by multiplying the amount of each purchase payment surrendered which could be subject to a surrender charge by the applicable surrender charge if you surrender the policypercentage. The amount that represents purchase payments surrendered is calculated using a prorated formula based on the percentage of Your Contract Value being surrendered. As a result, the amount that represents purchase payments surrendered may be greater than Your Contract Value surrendered. We determine the amount that represents purchase payments surrendered (PPS), purchase payments not subject to a surrender charge (PPF), and purchase payments which could be subject to a surrender charge (PPSC) by the following formula: PPS = PPSC + PPF PPSC = ( PS - FA CV - FA ) X (PP - PPF) (but not less than zero) PPF = FA - “contract earnings”, but not less than zero PP = Purchase payments not previously surrendered (total purchase payments – PPS) PS = Amount the Contract Value is deducted from Policy Account reduced by the surrender FA = the “total free amount” CV = Contract Value prior to the surrender Definition of “contract earnings” With respect to these surrender provisions, “contract earnings” is defined as the Contract Value, less purchase payments not previously surrendered, but not less than zero. With respect to these surrender provisions, “contract earnings” are surrendered first followed by purchase payments. After calculating the amount of purchase payments surrendered, We use the surrender order described below to determine the surrender charge. Definition of “total free amount” The “total free amount” is the amount You are allowed to surrender each contract year without incurring a surrender charge. The surrender charge shown “total free amount” calculation is described below and is recalculated on page 3 is the sum of each Contract Anniversary during the surrender charge for the Initial Basic Amount and any increase in Basic Amount. Withdrawal Processing Fee. If you request a withdrawal, we will deduct a withdrawal processing fee in addition to the amount of the withdrawal. The withdrawal processing fee is shown on page 3. Transfer Processing Fee. A number of transfers during each policy year are free as shown on page 3. We reserve the right to assess a transfer fee for each transfer in excess of that number during a policy year. The amount of the fee cannot exceed the amount shown on page 3. For the purpose of assessing this fee, each request is considered one transfer, regardless of the number of Subaccounts affected by the transfer. This fee is deducted on a pro-rata basis from any Subaccount and the Fixed Account from which the transfer is made. All transfers involving the Loan Account are not subject to this provision. -------------------------------------------------------------------------------- ALLOCATION AND TRANSFERS PROVISIONS -------------------------------------------------------------------------------- Allocation of Net Premium Payments. You may allocate Net Premium Payments among the Subaccounts and the Fixed Account. The allocation for the Initial Net Premium Payment and any Net Premium Payments we receive prior to the end of the free-look period is shown on page 3. For purposes of this provision, we presume your free-look period will end on the date shown on page 3. On that date, any Policy Account Value will be transferred to the Subaccounts and the Fixed Account on a pro-rata basis using your allocation instructions for Net Premium Payments in effect at that timeperiod. Any additional Net Premium Payments received will be allocated according unused portion does not carry over to your allocation instructions for Net Premium Payments in future contract years. During the application or in a subsequent request. Allocation instructions must be in whole percentages. The minimum amount we can allocate to any Subaccount or first contract year the Fixed Account “total free amount” is shown on page 3 as a percentage of any Net Premium Payment. We reserve the right to set additional limitations on premium payment allocations.greater of:

Surrender Charge. The Surrender Charge was established on the Issue Date and will not change. It is assessed for both surrenders and withdrawals in excess of any free withdrawal amount, but does not apply to amounts paid as a death benefit, applied to an Annuity Option, or taken as a lump sum as of the Annuity Date. It will be deducted from the amount withdrawn from the Contract Value to satisfy the surrender charges are or withdrawal request. In order to assess the Surrender Charge, we must: 1) assign each Purchase Payment to a Surrender Charge schedule; 2) associate the amount withdrawn with one or more Purchase Payments; and 3) determine the Surrender Charge based on the Surrender Charge schedule(s) assigned to the associated Purchase Payment(s). Each Purchase Payment is assigned to one specific Surrender Charge schedule that is tiered by cumulative Purchase Payments, as shown in the table below. The Surrender Charge tier assigned to each Purchase Payment is the one that includes the sum of adding that Purchase Payment to all prior Purchase Payments applied to the Contract. Subsequent Purchase Payments do not change the Surrender Charge tier assigned to any prior Purchase Payment, with one exception: All Purchase Payments received on page 3or before the Contract’s initial quarterly assessment date for the Premium Based Fee will be added together for the purpose of determining the Surrender Charge tier assigned to each of them. The entire amount withdrawn (in excess of any free withdrawal amount) is associated with one or more Purchase Payments as follows: We allocate the amount withdrawn (in excess of any free withdrawal amount) to Purchase Payments not previously assessed with a Surrender Charge using a “first-in, first-out” (FIFO) basis. We then allocate any remaining amount withdrawn pro rata to these Purchase Payments. If no amount withdrawn was allocated to Purchase Payments as described above, we will deduct deem the entire amount withdrawn (in excess of any applicable surrender charge if you surrender free withdrawal amount) to be allocated to the policymost recent Purchase Payment we accepted. The Surrender Charge percentage applicable to each allocated amount withdrawn is then determined, as shown in the table below, based on: 1) the Surrender Charge tier assigned to the allocated amount’s associated Purchase Payment; and 2) how many complete years have elapsed between the date that Purchase Payment was applied to the Contract and the withdrawal or surrender charge date. Each allocated amount is deducted from Policy Account Valuemultiplied by its applicable Surrender Charge percentage to determine its Surrender Charge. The surrender charge shown on page 3 total Surrender Charge is the sum of the surrender charge for the Initial Basic Amount and any increase in Basic Amount. Withdrawal Processing Fee. If you request a withdrawal, we will deduct a withdrawal processing fee in addition to the amount of the withdrawal. The withdrawal processing fee is shown on page 3. Transfer Processing Fee. A number of transfers during each policy year are free as shown on page 3. We reserve the right to assess a transfer fee Surrender Charges determined for each transfer in excess of that number during a policy year. The amount of the fee cannot exceed the amount shown on page 3. For the purpose of assessing this fee, each request is considered one transfer, regardless of the number of Subaccounts affected by the transfer. This fee is deducted on a pro-rata basis from any Subaccount and the Fixed Account from which the transfer is made. All transfers involving the Loan Account are not subject to this provision. -------------------------------------------------------------------------------- ALLOCATION AND TRANSFERS PROVISIONS -------------------------------------------------------------------------------- Allocation of Net Premium Payments. You may allocate Net Premium Payments among the Subaccounts and the Fixed Account. The allocation for the Initial Net Premium Payment and any Net Premium Payments we receive prior to the end of the free-look period is shown on page 3. For purposes of this provision, we presume your free-look period will end on the date shown on page 3. On that date, any Policy Account Value will be transferred to the Subaccounts and the Fixed Account on a pro-rata basis using your allocation instructions for Net Premium Payments in effect at that time. Any additional Net Premium Payments received will be allocated according to your allocation instructions for Net Premium Payments in the application or in a subsequent request. Allocation instructions must be in whole percentages. The minimum amount we can allocate to any Subaccount or the Fixed Account is shown on page 3 as a percentage of any Net Premium Payment. We reserve the right to set additional limitations on premium payment allocationsamount.