1
EXHIBIT 99.B9
The Northwestern Mutual Life Insurance Company agrees to pay the benefits
provided in this contract, subject to its terms and conditions. Signed at
Milwaukee, Wisconsin on the Issue Date.
/s/ Xxxxx X. Xxxxxxx /s/ Xxxx X. Xxxxxx
PRESIDENT AND C.E.O. SECRETARY
FLEXIBLE PAYMENT VARIABLE ANNUITY-ACCOUNT B
Net Purchase Payments accumulated in a Separate Account, assets
of which are invested in shares of one or more mutual funds, or
Guaranteed Interest Fund.
Retirement benefit payable at maturity.
Payment at death before maturity.
Contract benefits payable in one sum or as variable or
guaranteed monthly income. Variable Payment Plan benefits
described in Section 11.
Participating.
AMOUNTS ALLOCATED TO THE SEPARATE ACCOUNT DIVISIONS AND VARIABLE PAYMENTS
PROVIDED BY THIS CONTRACT ARE NOT GUARANTEED AS TO FIXED DOLLAR AMOUNT BUT ARE
VARIABLE AND MAY INCREASE OR DECREASE TO REFLECT THE INVESTMENT EXPERIENCE OF
THE SEPARATE ACCOUNT.
RIGHT TO RETURN CONTRACT -- Please read this contract carefully. The Owner may
return the contract for any reason within ten days after receiving it. Return
of the contract is effective on the date written notice of the return is
delivered, mailed or sent by telegram to either The Northwestern Mutual Life
Insurance Company, 000 X. Xxxxxxxxx Xxxxxx, Xxxxxxxxx, Xxxxxxxxx 00000 or the
agent who sold the contract. If returned, the contract will be cancelled and
the Company will refund the sum of (a) the difference between the Purchase
Payments paid and the amounts, if any, allocated to the Separate Account plus
(b) the value of the contract on the effective date of return.
[NORTHWESTERN MUTUAL LIFE LOGO]
CONTRACT NUMBER V12 345 678
ANNUITANT Xxxx X. Xxx
ISSUE DATE January 15, 1996
Sex Neutral
2
TABLE OF CONTENTS
PAGE
CONTRACT INFORMATION, SEPARATE ACCOUNT DIVISIONS 3
LOADS, FEES, AND CHARGES;
PURCHASE PAYMENTS, ACCUMULATION VALUE, PAYMENT PLANS 4
SECTION 1. GENERAL TERMS AND DEFINITIONS 5
SECTION 2. SEPARATE ACCOUNT 6
- Definition of Separate Account
- Accumulation Units
- Net Investment Factor
- Substitution and Change
SECTION 3. GUARANTEE INTEREST FUND 7
- Guaranteed Interest Fund
- Accumulation Value
- Transfer Restrictions
- Maximum Accumulation Value
SECTION 4. PURCHASE PAYMENTS TRANSFERS AND WITHDRAWALS 7
- Payment of Purchase Payments
- Application of Purchase Payments
- Selection of Division for Purchase Payments
- Transfer of Accumulation Units
- Withdrawals and Full Surrender
- Effective Date
SECTION 5. BENEFITS 8
- Maturity Benefit
- Payment at Death
SECTION 6. BENEFICIARIES 9
- Definition of Beneficiaries
- Naming and Change of Beneficiaries
- Succession in Interest of Beneficiaries
- General
SECTION 7. LOADS, FEES, AND CHARGES 10
- Contract Fee
- Sales Load and Premium Taxes
- Withdrawal Charge
SECTION 8. OWNERSHIP 11
- The Owner
- Transfer of Ownership
- Collateral Assignment
- Voting Rights and Reports to Owners
1
3
PAGE
----
SECTION 9. THE CONTRACT 11
- Guarantees
- Valuation of Assets
- Determination of Values
- Deferment of Benefit Payments
- Dividends
- Incontestability
- Misstatement of Age or Sex
- Entire Contract; Changes
- Termination of Contract
SECTION 10. PAYMENT OF CONTRACT BENEFITS 12
- Payment of Benefits
- Payment at Death
- Effective Date for Payment Plan
- Payment Plan Elections
SECTION 11. PAYMENT PLANS 13
- Description of Payment Plans
- Allocation of Benefits
- Annuity Units under Variable Payment Plans
- Payments under Variable Payment Plans
- Transfers between Variable Payment Plans
- Withdrawal under Payment Plans
- Payment Plan Rates
ADDITIONAL BENEFITS (if any) Following page
APPLICATION Attached to the contract
ENDORSEMENTS
to be made only by the Company at the Home Office
2
4
CONTRACT INFORMATION
CONTRACT NUMBER V12 345 678
PLAN Flexible Payment Variable Annuity
ADDITIONAL BENEFITS None
TAX REPORTING CATEGORY Personal Annuity
ANNUITANT Xxxx X. Xxx
AGE AND SEX 35 Male - SN
OWNER Xxxx X. Xxx, the Annuitant
ISSUE DATE January 15, 1996
CONTRACT ANNIVERSARY January 15, 1997 and each January 15
thereafter
MATURITY DATE January 15, 2026
DIRECT BENEFICIARY Xxxx X. Xxx, Wife of the Annuitant
INVESTMENT DIVISIONS
On the Issue Date, Purchase Payments and contract values may be allocated among
the following Investment Accounts. Available Separate Account Divisions are
subject to change. See Section 2.1.
Divisions of Separate Account B:
Select Bond Division
International Equity Division
Money Market Division
Balanced Division
Index 500 Stock Division
Aggressive Growth Stock Division
High Yield Bond Division
Growth Stock Division
Growth and Income Stock Division
Guaranteed Accounts:
Guaranteed Interest Fund
Page 3
5
CONTRACT NUMBER V12 345 678
LOADS, FEES, AND CHARGES
DEDUCTION FROM PURCHASE PAYMENTS:
SALES LOAD (See Section 7.2):
Total Purchase Payments Amount Deducted
Paid Under the Contract From Purchase Payment
First $100,000 4.0%
Next $400,000 2.0%
Next $500,000 1.0%
Balance over $1,000,000 0.5%
PREMIUM TAX (See Section 7.2):
For the first Contract Year, Premium Taxes are not deducted
from Purchase Payments. After the first Contract Year, the Company
may deduct Premium Taxes from Purchase Payments received or
benefits paid.
ANNUAL ANNUITY RATE AND EXPENSE GUARANTEE CHARGE (See Section 2.3):
0.40% at Issue; 0.75% Maximum
ANNUAL CONTRACT FEE (See Section 7.1):
$30 charged on the contract anniversary. The contract fee will
be waived if the Accumulation Value of the contract equals or exceeds
$50,000 on the contract anniversary.
TRANSFER FEE (See Sections 4.4 and 11.5):
$25 beginning with the thirteenth transfer in any Contract Year.
WITHDRAWAL CHARGE: Not Applicable
MINIMUM PURCHASE PAYMENTS, ACCUMULATION VALUE, PAYMENT PLANS
MINIMUM PURCHASE PAYMENT (See Section 4.1): $25
MINIMUM ACCUMULATION VALUE (See Section 9.9):
$2,000 after the first contract anniversary
MINIMUM PAYMENT UNDER PAYMENT PLAN (See Sections 9.9 and 10.4): $20
Page 4
6
GUARANTEED INTEREST FUND - TABLE OF GUARANTEED VALUES
The table shows minimum guaranteed values and assumes a $10,000 Purchase
Payment made at the time of issue followed by subsequent $1,000 Purchase
Payments made annually thereafter on each contract anniversary. The values are
based on the assumption that 100% of all net Purchase Payments are allocated
to, and remain in, the Guaranteed Interest Fund.
End of
Contract Accumulation Cash
Year October 1, Value Value
1 1996 $ 9,888 $9,888
2 1997 11,143 11,143
3 1998 12,435 12,435
4 1999 13,766 13,766
5 2000 15,137 15,137
6 2001 16,549 16,549
7 2002 18,003 18,003
8 2003 19,501 19,501
9 2004 21,044 21,044
10 2005 22,633 22,633
11 2006 24,270 24,270
12 2007 25,956 25,956
13 2008 27,692 27,692
14 2009 29,481 29,481
15 2010 31,323 31,323
16 2011 33,221 33,221
17 2012 35,176 35,176
18 2013 37,189 37,189
19 2014 39,262 39,262
20 2015 41,398 41,398
Age 60 2020 53,108 53,108
Age 65 2025 66,817 66,817
This table is based on the guaranteed annual interest rate of 3%. Higher
declared rates of interest will increase values. Values shown at the end of
contract years do not reflect any Purchase Payments paid on that contract
anniversary. The actual guaranteed values may differ from those shown above,
depending on the amount and frequency of Purchase Payments.
Page 4A
7
SECTION 1. GENERAL TERMS AND DEFINITIONS
ACCUMULATION UNIT. A unit of measure used to determine the value of the
interest of this contract in the Separate Account prior to the date on which
amounts are placed under a payment plan.
ACCUMULATION VALUE. The Accumulation Value of a Separate Account Division is
the total value of all Accumulation Units in that Division. The Accumulation
Value of the Guaranteed Interest Fund is the sum of amounts applied to the
fund, plus credited interest, less amounts withdrawn or transferred from the
fund. The Accumulation Value of the contract is the sum of the Accumulation
Values of all Investment Accounts.
ANNUITANT. The person upon whose life this contract is issued and contract
benefits depend.
ANNUITY UNIT. A unit of measure used to determine the amount of variable
payments under a variable payment plan and the value of the interest of a
variable payment plan in the Separate Account.
COMPANY. The Northwestern Mutual Life Insurance Company.
CONTRACT FEE. An annual charge for administrative expenses made on each
contract anniversary prior to the Maturity Date.
CONTRACT YEAR. The first Contract Year is the period of time ending on the
first contract anniversary. Subsequent Contract Years are the annual periods
between contract anniversaries.
DIVISION. A component of the Separate Account to which the Owner may allocate
Purchase Payments and contract values.
GUARANTEED INTEREST FUND. The portion of the contract that is credited with a
guaranteed interest rate and which is held as part of the general assets of the
Company.
HOME OFFICE. The office of the Northwestern Mutual Life Insurance Company
located at 000 Xxxx Xxxxxxxxx Xxxxxx, Xxxxxxxxx, Xxxxxxxxx 00000.
INVESTMENT ACCOUNT. The Guaranteed Interest Fund and Separate Account
Divisions available for allocation of Purchase Payments and contract values.
The available Investment Accounts are listed on page 3.
ISSUE DATE. The date this contract is issued and becomes effective.
MATURITY DATE. The date upon which contract benefits will become payable.
If the contract is continued in force under the Optional Maturity Date
provision, the Optional Maturity Date will become the Maturity Date.
NET PURCHASE PAYMENT. A Purchase Payment less all applicable deductions.
Deductions may include the Sales Load and Premium Tax.
OPTIONAL MATURITY DATE. The contract anniversary nearest the Annuitant's 90th
birthday. Upon reaching the Maturity Date shown on page 3, the Owner may elect
to continue the contract in force until this Optional Maturity Date.
OWNER. The person possessing the ownership rights stated in this contract.
PREMIUM TAX. A tax imposed by a governmental entity when Purchase Payments and
charges for the Disability Waiver of Purchase Payment Benefit are received or
benefits are paid.
PURCHASE PAYMENT. A payment made by or on behalf of the Owner with respect to
this contract excluding any charge for the Disability Waiver of Purchase
Payment Benefit.
SALES LOAD. A deduction made from Purchase Payments received.
SEPARATE ACCOUNT. NML Variable Annuity Account B. The Separate Account
consists of assets set aside by the Company, the investment performance of
which is kept separate from that of the general assets and all other separate
account assets of the Company.
WITHDRAWAL CHARGE. A deduction that is made from maturity benefits and
withdrawal amounts.
WITHDRAWAL CHARGE FREE AMOUNT. For a withdrawal, the amount that can be
withdrawn without a Withdrawal Charge prior to the withdrawal of Net Purchase
Payments.
TRANSFER FEE. A deduction that is made from the amount transferred between
Investment Accounts.
VALUATION DATE. Any day on which the assets of the Separate Account are
valued. Assets are valued as of the close of trading on the New York Stock
Exchange for each day the Exchange is open.
5
8
SECTION 2. SEPARATE ACCOUNT
2.1 SEPARATE ACCOUNT
The Separate Account (NML Variable Annuity Account B) has been
established by the Company and is registered as a unit investment trust under
the Investment Company Act of 1940. The Separate Account consists of assets set
aside by the Company, the investment performance of which is kept separate from
that of the general assets and all other separate account assets of the
Company. The assets of the Separate Account will not be charged with
liabilities arising out of any other business the Company may conduct.
Interests in the Separate Account are represented by Accumulation Units and
Annuity Units, described in Sections 2.2 and 11.3, respectively.
The Separate Account is comprised of the Divisions listed on page 3.
The assets allocated to these Divisions are invested in shares of corresponding
Portfolios of the Northwestern Mutual Series Fund, Inc. (the Series Fund). The
Series Fund is registered under the Investment Company Act of 1940 as an
open-end, diversified management investment company. Shares of the Series Fund
Portfolios are purchased for the Separate Account at their net asset value.
The Company reserves the right to eliminate or add additional Divisions
and Portfolios.
2.2 ACCUMULATION UNITS
The interest of this contract in the Separate Account, prior to the
date on which amounts become payable under a payment plan, is represented by
Accumulation Units. The dollar value of Accumulation Units for each Division
will increase or decrease to reflect the investment experience of the Division.
The value of an Accumulation Unit on any Valuation Date is determined by
multiplying:
- the value on the immediately preceding Valuation Date; by
- the Net Investment Factor for the period from the immediately
preceding Valuation Date up to and including the current Valuation
Date (the current period).
2.3 NET INVESTMENT FACTOR
For each Division of the Separate Account the Net Investment Factor for
the current period is one plus the net investment rate for the Division. The
net investment rate for the current period is equal to the gross investment
rate for the Division reduced on each Valuation Date by a charge for annuity
rate and expense guarantees. The charge for these guarantees on the Issue Date
is shown on page 4. The Company may increase or decrease the charge after the
Issue Date, but the Company may not increase the charge to exceed the maximum
charge shown on page 4.
The gross investment rate for the current period for each Division is
equal to a. divided by b. where:
a. is:
- the investment income of the Division for the current period; plus
- captial gains for the period, whether realized or unrealized,
on the assets of the Division; less
- capital losses for the period, whether realized or unrealized, on
the assets of the Division; less
- deduction for any tax liability paid or reserved for by the Company
resulting from the maintenance or operation of the Division; and
less
- any reasonable expenses paid or reserved for by the Company which
result from a substitution of other securities for shares of the
Portfolio(s) as set forth in Section 2.4 and
b. is the value of the assets in the Division on the immediately preceding
Valuation Date.
The gross investment rate may be positive or negative. The deduction
for any tax liability may be charged proportionately against those contracts to
which the liability is attributable by a reduction in the gross investment rate
for those contracts.
2.4 SUBSTITUTION AND CHANGE
Pursuant to a vote of the Owners of variable annuity contracts having
an interest in a Division or as otherwise permitted by applicable insurance and
securities law, a substitution or change may be made as follows:
- the assets of the Division may be invested in securities other than
shares of the Portfolio(s) as a substitute for those shares already
purchased or as the securities to be purchased in the future;
- the Separate Account, or a Division, may be operated as a management
company under the Investment Company Act of 1940, or in any other
form permitted by law, if deemed by the Company to be in the best
interests of the contract Owners;
- the Separate Account may be deregistered under the Investment
Company Act of 1940 in the event registration is no longer required;
or
- the provisions of the contracts may be modified to comply with any
other applicable federal or state laws.
In the event of a substitution or change, the Company may make
appropriate endorsement on this and other contracts having an interest in the
Separate Account and take other actions as may be necessary to effect the
substitution or change.
6
9
SECTION 3. GUARANTEED INTEREST FUND
3.1 GUARANTEED INTEREST FUND
Net Purchase Payments (see Section 4.2) and amounts transferred from
other Investment Accounts under this contract (see Section 4.4) may be applied
to the Guaranteed Interest Fund. Contract benefits placed under a variable
payment plan may not be applied to the Guaranteed Interest Fund. Amounts
applied to the Guaranteed Interest Fund become part of the general assets of
the Company.
3.2 ACCUMULATION VALUE
The Accumulation Value of the Guaranteed Interest Fund is the sum of
the amounts applied to it, plus credited interest, less any amounts withdrawn
or transferred from the fund. Interest begins to accrue on the effective date
of the Purchase Payment or transfer (see Section 4.6). Interest will be
credited at an annual effective interest rate of not less than 3%. A higher
rate may be declared by the Company from time to time for a period set by the
Company.
3.3 TRANSFER RESTRICTIONS
Neither transfers of Accumulation Value into the Guaranteed Interest
Fund nor transfers of Accumulation Value from the Guaranteed Interest Fund will
be allowed for a period of 365 days following the most recent transfer of
Accumulation Value from the Guaranteed Interest Fund. The maximum amount of
the Accumulation Value that may be transferred from the Guaranteed Interest
Fund in one transfer is limited to the greater of:
- 20% of the Accumulation Value of the Guaranteed Interest Fund on the
last contract anniversary preceding the transfer, and
- the amount of the most recent transfer from the Guaranteed Interest
Fund.
However, in no event will this maximum transfer amount be less than
$1,000 or greater than $50,000.
3.4 MAXIMUM GUARANTEED INTEREST FUND
ACCUMULATION VALUE
The Accumulation Value of the Guaranteed Interest Fund may not exceed
$1,000,000 without prior consent of the Company, except when the maximum is
exceeded because of interest accruing to the Guaranteed Interest Fund.
3.5 TABLE OF GUARANTEED VALUES
Accumulation and cash values are shown on page 4A for the end of the
contract years shown. Values for contract years not shown are calculated on the
same basis as those shown on page 4A. All values are at least as great as
those required by the state in which this contract is delivered.
SECTION 4. PURCHASE PAYMENTS, TRANSFERS, WITHDRAWALS
4.1 PAYMENT OF PURCHASE PAYMENTS
All Purchase Payments are payable at the Home Office or to an
authorized agent. A receipt signed by an officer of the Company will be
furnished on request.
Purchase Payments may be made at any time prior to the Maturity Date.
The Owner may vary the amount of Purchase Payments, but no Purchase Payment
may be less than the minimum Purchase Payment shown on page 4. Total Purchase
Payments may not exceed $5,000,000 without the consent of the Company.
4.2 APPLICATION OF PURCHASE PAYMENTS
Each Purchase Payment, net of the Sales Load and Premium Tax, will be
applied to one or more Investment Accounts. Net Purchase Payments applied to
the Guaranteed Interest Fund will accrue interest from the effective date of
the Purchase Payment. Net Purchase Payments applied to the Separate Account
will provide Accumulation Units in one or more Divisions. Accumulation Units
are credited as of the effective date of the Purchase Payment.
The number of Accumulation Units will be determined by dividing the Net
Purchase Payment by the value of an Accumulation Unit on the effective date.
This number of Accumulation Units will not be changed by any subsequent change
in the dollar value of Accumulation Units.
4.3 SELECTION OF INVESTMENT ACCOUNT FOR PURCHASE PAYMENTS
The Owner may at any time change the allocation of Net Purchase
Payments among the Investment Accounts by written notice to the Company. Net
Purchase Payments received at the Home Office on or after the date on which
notice is received will be applied to the designated Investment Accounts on the
basis of the new allocation.
4.4 TRANSFER OF ACCUMULATION VALUE
Before the Maturity Date the Owner may, on request satisfactory to the
Company, transfer amounts from one Investment Account to another, subject to
the transfer restrictions described in Section 3.3. For transfers among the
Separate Account Divisions, the number of Accumulation Units to be applied or
deducted will be adjusted to reflect the respective value of the Accumulation
Units in each of the Divisions on the date the transfer is effective. A
Transfer Fee will be deducted from the amount transferred. The amount of the
Transfer Fee is shown on page 4. The minimum amount which may be transferred is
the lesser of $100 or the entire Accumulation Value of the Investment Account
from which the transfer is being made.
For transfers from the Guaranteed Interest Fund, amounts closest to
expiration of an interest rate guarantee will be removed first. In the event
that two amounts are equally close to expiration, the one which was applied to
the Guaranteed Interest Fund earlier will be removed first.
7
10
4.5 WITHDRAWALS AND FULL SURRENDER
Before the Maturity Date the Owner may, on request satisfactory to the
Company, withdraw all or a portion of the Accumulation Value of the contract.
The Company may require that at least 100 Accumulation Units or $100 of
Accumulation Value of the Guaranteed Interest Fund remain after a partial
withdrawal. Withdrawal of the entire value of the contract constitutes a full
surrender, and receipt of the contract at the Home Office will terminate this
contract. Receipt of the contract may be waived by the Company.
The cash value of the amount withdrawn will be the Accumulation Value
withdrawn determined as of the date the withdrawal is effective, less any
applicable Withdrawal Charge. The Withdrawal Charge is described, in Section
7.3.
The term "withdrawal amounts" as used in this contract includes amounts
paid as full surrenders and withdrawals of a portion of the Accumulation Value
of the contract.
For withdrawals from the Guaranteed Interest Fund, amounts closest to
expiration of an interest rate guarantee will be removed first. In the event
that two amounts are equally close to expiration, the one which was applied to
the Guaranteed Interest Fund earlier will be removed first.
4.6 EFFECTIVE DATE
The effective date of a Purchase Payment, transfer, or withdrawal is
the Valuation Date on which the Purchase Payment or the request for transfer or
withdrawal is received at the Home Office. However, the Purchase Payment,
transfer, or withdrawal will be effective on the following Valuation Date if
the Purchase Payment or request for transfer or withdrawal is received at the
Home Office either:
- on a Valuation Date after the close of trading on the New York Stock
Exchange; or
- on a day on which the New York Stock Exchange is closed.
SECTION 5. BENEFITS
5.1 MATURITY BENEFIT
MATURITY OPTIONS. If the Annuitant is living on the Maturity Date shown on
page 3, and that Maturity Date is earlier than the contract anniversary nearest
the Annuitant's 90th birthday, the Owner may elect between the following
maturity options:
- payment of a monthly income to the Annuitant under a payment plan
chosen by the Owner; or
- deferral of the maturity benefit and continuation of this contract,
without any Disability Waiver of Purchase Payment Benefit, to the
Optional Maturity Date. The contract will continue under this
option if a written election for this purpose is received by the
Company or if on the Maturity Date shown on page 3, the Owner has
not chosen a payment plan.
If the Annuitant is living on the Maturity Date and that Maturity Date
is on or after the contract anniversary nearest the Annuitant's 90th birthday,
the Company will pay a monthly income to the Annuitant under a payment form
chosen by the Owner.
PAYMENT OF MATURITY BENEFIT. The amount of the monthly income paid as
the maturity benefit will depend on the payment plan chosen (see Section 11)
and the maturity value. The maturity value of this contract will be the
Accumulation Value of the contract on the effective date of the maturity
benefit, less any applicable Withdrawal Charge (see Section 7.3). The maturity
benefit will be effective on the Maturity Date. However, if the New York Stock
Exchange is closed on the Maturity Date, the effective date will be the
Valuation Date next preceding the Maturity Date.
If no payment form is chosen at the time a monthly income becomes
payable, payments will be made to the Annuitant under the variable payment form
of Life Income Plan (Option C), with installments certain for ten years, as
described in Section 11.1.
OPTIONAL MATURITY DATE. The Optional Maturity Date is the contract
anniversary nearest the Annuitant's 90th birthday. If the contract is
continued to the Optional Maturity Date, all contract rights of the Owner will
continue in effect to the Optional Maturity Date except that the Disability
Waiver of Purchase Payment Benefit will not continue in force after the
Maturity Date shown on page 3. The Optional Maturity Date will become the
Maturity Date for all other purposes of this contract.
5.2 PAYMENT AT DEATH
The Company will make a payment to the beneficiary upon receipt at its
Home Office of satisfactory proof of the death of the Annuitant before the
Maturity Date. The payment at death will be the Accumulation Value of the
contract determined on the effective date of the payment at death. The payment
at death will be effective on the Valuation Date on which proof of death is
received at the Home Office or, if later, the date on which a method of
payment is elected. However, payment at death will be effective on the next
following Valuation Date if the proof of death is received at the Home Office
either:
- on a Valuation Date after the close of trading on the New York Stock
Exchange; or
- on a day on which the New York Stock Exchange is closed.
If the date of death is before the Annuitant's 65th birthday, the
payment at death will not be less than:
- total Purchase Payments paid under the contract; less
- any amounts withdrawn under Section 4.5.
The term "death benefits" as used in this contract refers to the
payment at death.
8
11
SECTION 6. BENEFICIARIES
6.1 DEFINITIONS
The term "beneficiaries" as used in this contract includes direct
beneficiaries, contingent beneficiaries and further payees.
6.2 NAMING AND CHANGE OF BENEFICIARIES
FOR MATURITY BENEFITS BY OWNER. The Owner may name and change the
beneficiaries of maturity benefits before the Maturity Date. If no direct
beneficiary is named by the Owner, the Annuitant will be the direct
beneficiary.
FOR DEATH BENEFITS BY OWNER. The Owner may name and change the beneficiaries:
- while the Annuitant is living; or
- during the first 60 days after the date of death of tire Annuitant,
if the Annuitant was not the Owner immediately prior to the
Annuitant's death. A change made during this 60 days cannot be
revoked.
FOR WITHDRAWAL AMOUNTS BY OWNER. The Owner may name the beneficiaries at the
time of withdrawal.
FOR DEATH BENEFITS BY DIRECT BENEFICIARY. A direct beneficiary may name and
change the contingent beneficiaries and further payees of the direct
beneficiary's share of the benefits:
- if the direct beneficiary is the Owner,
- if, at any time after the death of the Annuitant, no contingent
beneficiary or further payee of that share is living; or
- if, after the death of the Annuitant, the direct beneficiary
elects a payment plan. The interest of any other beneficiary
in the share of that direct beneficiary will end.
These direct beneficiary rights are subject to the Owner's rights during
the 60 days after the date of death of the Annuitant.
FOR MATURITY BENEFITS OR WITHDRAWAL AMOUNTS BY DIRECT BENEFICIARY. After a
withdrawal or the maturity of the contract, the direct beneficiary may name and
change the contingent beneficiaries and further payees of the direct
beneficiary's share of benefits that is under a payment plan.
FOR MATURITY OR DEATH BENEFITS OR WITHDRAWAL AMOUNTS BY SPOUSE (MARITAL
DEDUCTION PROVISION).
- POWER TO APPOINT. The spouse of the Annuitant will have the power
alone and in all events to appoint all amounts payable to the
spouse under the contract if:
a. just before the Annuitant's death, the Annuitant was the Owner,
and
b. the spouse is a direct beneficiary; and
c. the spouse survives the Annuitant.
- TO WHOM SPOUSE CAN APPOINT. Under this power, the spouse can
appoint:
a. to the estate of the spouse; or
b. to any other persons as contingent beneficiaries and further
payees.
- EFFECT OF EXERCISE. As to the amounts appointed, the exercise
of this power will:
a. revoke any other designation of beneficiaries;
b. revoke any election of payment plan as it applies to them; and
c. cause any provision to the contrary in Section 6 or 10 of this
contract to be of no effect.
EFFECTIVE DATE. A naming or change of a beneficiary will be made on receipt at
the Home Office of a written request that is acceptable to the Company. The
request will then take effect as of the date that it was signed. The Company
is not responsible for any payment or other action that is taken by it before
the receipt of the request. The Company may require that the contract be sent
to it to be endorsed to show the naming or change.
6.3 SUCCESSION IN INTEREST OF BENEFICIARIES
DIRECT BENEFICIARIES. The maturity or death benefits or withdrawal amounts
will be payable in equal shares to the direct beneficiaries who survive and
receive payment. If a direct beneficiary dies before receiving all or part of
the direct beneficiary's full share, the unpaid portion will be payable in equal
shares to the other direct beneficiaries who survive and receive payment.
CONTINGENT BENEFICIARIES. At the death of all of the direct beneficiaries, the
maturity or death benefits, the withdrawal amounts, or the present value of any
unpaid payments under a payment plan, will be payable in equal shares to the
contingent beneficiaries who survive and receive payment. If a contingent
beneficiary dies before receiving all or part of the contingent
beneficiary's full share, the unpaid portion will be payable in equal shares to
the other contingent beneficiaries who survive and receive payment.
FURTHER PAYEES. At the death of all the direct and contingent beneficiaries,
the maturity or death benefits, the withdrawal amounts, or the present value of
any unpaid payments under a payment plan, will be paid in one sum:
- in equal shares to the further payees who survive and receive
payment; or
- if no further payees survive and receive payment, to the estate of
the last to die of all beneficiaries who survive the Annuitant.
9
12
OWNER OR THE OWNER'S ESTATE. If no beneficiaries are alive when the Annuitant
dies, the benefits will be paid to the Owner or to the Owner's estate.
6.4 TRUSTEE AS BENEFICIARY
If a trustee is named as a beneficiary and no qualified trustee makes
claim to the proceeds, or to the present value of any unpaid payments under a
payment plan, within one year after payment becomes due to the trustee, or if
satisfactory evidence is furnished to the Company within that year showing that
no trustee can qualify to receive payment, payment will be made as though the
trustee had not been named.
The Company will be fully discharged of liability for any action taken
by the trustee and for all amounts paid to, or at the direction of, the trustee
and will have no obligation as to the use of the amounts. In all dealings with
the trustee the Company will be fully protected against the claims of every
other person. The Company will not be charged with notice of a change of
trustee unless written evidence of the change is received at the Home Office.
6.5 GENERAL
TRANSFER OF OWNERSHIP. A transfer of ownership of itself will not change the
interest of a beneficiary.
CLAIMS OF CREDITORS. So far as allowed by law, no amount payable under this
contract will be subject to the claims of creditors of a beneficiary.
SUCCESSION UNDER PAYMENT PLANS. A direct or contingent beneficiary who
succeeds to an interest in a payment plan will continue under the terms of the
plan.
SECTION 7. FEES AND CHARGES
7.1 CONTRACT FEE
On each contract anniversary prior to the Maturity Date, a Contract
Fee will be charged for administrative expenses. The amount of the Contract
Fee is shown on page 4. The Contract Fee will be deducted from the Investment
Accounts in proportion to the Accumulation Value of the Investment Accounts.
The effective date of the Contract Fee will be the contract anniversary.
However, if the New York Stock Exchange is closed on the contract anniversary,
the effective date will be the next following Valuation Date.
7.2 SALES LOAD AND PREMIUM TAXES
The Company will deduct from Purchase Payments received the Sales Load
shown on page 4. The Company may also deduct from Purchase Payments received
any Premium Taxes incurred.
7.3 WITHDRAWAL CHARGE
CONDITIONS. Maturity benefits and withdrawals are subject to a Withdrawal
Charge described on page 4. There is no Withdrawal Charge on benefits that are
paid under a variable Instalment Income or variable Life Income Payment Plan.
However, the withdrawal of the present value of any unpaid installments under
a variable Installment Income Plan (Option B) will be subject to a withdrawal
charge if the withdrawal is made less than five years after the date that the
payment plan takes effect.
CALCULATIONS. The amount of the Withdrawal Charge on the contract is equal to
the sum of the Withdrawal Charges on all Net Purchase Payments. The Withdrawal
Charge on a Net Purchase Payment is equal to the Withdrawal Charge percentage
on the date the Withdrawal Charge is determined, multiplied by the amount of
the Net Purchase Payment. The Withdrawal Charge percentages are shown on page
4. The excess of the Accumulation Value of the contract over the total of Net
Purchase Payments paid is not subject to a Withdrawal Charge.
Withdrawal Charges are determined:
- for maturity benefits, as of the Maturity Date.
- for withdrawals under Section 4.5, as of the effective date of the
withdrawal.
- for withdrawals from payment plans, as of the effective date of the
withdrawal.
WITHDRAWAL CHARGE FREE AMOUNT. If the Accumulation Value of the contract is at
least $10,000 on the most recent contract anniversary preceding a withdrawal
under Section 4.5, then the amount withdrawn will be taken first from any
eligible portion of the Accumulation Value of the contract that exceeds the
total of Net Purchase Payments paid. For each Contract Year, the amount
eligible for the Withdrawal Charge Free Amount is the lesser of the following:
- the excess of the Accumulation Value of the contract on the
effective date of the withdrawal over the total of Net Purchase
Payments paid up to the effective date of the withdrawal; and
- 10% of the Accumulation Value of the contract on the most
recent contract anniversary preceding the withdrawal.
ORDER OF WITHDRAWAL. A withdrawal will be taken from the contract in
the following order:
- first, from the Withdrawal Charge Free Amount, if any;
- next, from the Net Purchase Payments in the order that
produces the lowest Withdrawal Charge; and
- last, from any remaining amount by which the Accumulation
Value of the contract exceeds the total of Net Purchase Payments.
10
13
SECTION 8. OWNERSHIP
8.1 THE OWNER
The Owner is named on page 3. All contract rights may be exercised by the
Owner, the Owner's successor, or the Owner's transferee without the consent of
any beneficiary. After the Annuitant's death, contract rights may be exercised
only as provided in Sections 6 and 1).
If the contract has more than one Owner, contract rights may be exercised
only by authorization of all Owners.
8.2 TRANSFER OF OWNERSHIP
The Owner may transfer the ownership of this contract. Written proof of
transfer satisfactory to the Company must be received at its Home Office. The
transfer will then take effect as of the date it was signed. The Company may
require that the contract be sent to it for endorsement to show the transfer.
The Company will not be responsible to a transferee Owner for any payment or
other action taken by the Company before receipt of the proof of transfer at
its Home Office.
8.3 COLLATERAL ASSIGNMENT
The Owner may assign this contract as collateral security. The Company
is not responsible for the validity or effect of a collateral assignment. The
Company will not be responsible to an assignee for any payment or other action
taken by the Company before receipt of the assignment in writing at its Home
Office.
The interest of any beneficiary will be subject to any collateral
assignment made either before or after the beneficiary is named.
A collateral assignee is not an Owner. A collateral assignment is not a
transfer of ownership. Ownership can be transferred only by complying with
Section 8.2.
8.4 VOTING RIGHTS AND REPORTS TO OWNERS
As long as the Separate Account continues to be registered as a unit
investment trust under the Investment Company Act of 1940 and the assets of the
Separate Account are invested in shares of the Series Fund, the Company will
vote shares held by the Separate Account in accordance with instructions
received from the Owners of Accumulation Units or, after payments have commenced
under those payment plans from the payees receiving payments under those
payment plans. Each Owner or payee will receive:
* periodic reports relating to the Series Fund;
* proxy material;
* a form with which to give voting instructions; and
* information regarding the proportion of shares of each
Portfolio held in the Separate Account corresponding either to the
Accumulation Units credited to this contract or the number of shares
held in the Separate Account representing the Company's actuarial
liability under the variable payment plan.
At least once each Contract Year, the Company will also send to the Owner
or payee a statement of the Accumulation Values of the Investment Accounts, the
number of units credited to the contract, the dollar value of a unit as of a
date not more than two months previous to the date of mailing, and a statement
of the investments held by the Separate Account.
SECTION 9. THE CONTRACT
9.1 GUARANTEES
The Company guarantees that mortality and expense results will not
adversely affect the amount of variable payments.
9.2 VALUATION OF SEPARATE ACCOUNT ASSETS
The value of the shares of each Portfolio held in the Separate Account on
each Valuation Date will be the redemption value of the shares on that date. If
the right to redeem shares of a Portfolio has been suspended, or payment of the
redemption value has been postponed, the shares held in the Separate Account
(and Annuity Units) may be valued at fair value as determined in good faith by
the Board of Trustees of the Company for the sole purpose of computing annuity
payments.
9.3 DETERMINATION OF SEPARATE ACCOUNT VALUES
The method of determination by the Company of the Net Investment Factor,
and the number and value of Accumulation Units and Annuity Units, will be
conclusive upon the Owner, any assignee, the Annuitant, and any beneficiary.
9.4 DEFERMENT OF BENEFIT PAYMENTS
SEPARATE ACCOUNT DIVISIONS. The Company reserves the right to defer
determination of the contract values of the Separate Account portion of this
contract, or the payment of benefits under a variable payment plan, until
after the end of any period during which the right to redeem shares of a
Portfolio is suspended, or payment of the redemption value is postponed. Any
deferment would be in accordance with the provisions of the Investment Company
Act of 1940 by reason of closing of, or restriction of trading on, the New York
Stock Exchange, or other emergency, or as otherwise permitted by the Act. In
addition, the Company reserves the right to defer payment of contract values
until seven days after the end of any deferment in the determination of
contract values.
GUARANTEED INTEREST FUND. The Company may defer paying contract values of
the Guaranteed Interest Fund for up to six months from the effective date of
the withdrawal or full surrender. If payment is deferred for 30 days or more,
interest will be paid on the withdrawal amounts at an annual effective rate of
3% from the effective date of the withdrawal or surrender to the date of the
payment.
11
14
9.5 DIVIDENDS
This contract will share in the divisible surplus of the Company, except
while payments are being made under a variable payment plan. This surplus will
be determined each year, and the dividend, if any, will be credited on the
contract anniversary. Any dividend credited prior to the Maturity Date will be
applied on the effective date as a Net Purchase Payment unless the Owner elects
to have the dividend paid in cash. The effective date of the dividend will be
the contract anniversary. However, if the New York Stock Exchange is
closed on the contract anniversary, the effective date will be the next
following Valuation Date.
9.6 INCONTESTABILITY
The Company will not contest this contract after it has been in force
during the lifetime of the Annuitant for two years from the Issue Date. This
Issue Date is shown on page 3.
9.7 MISSTATEMENT OF AGE OR SEX
If the age or sex of the Annuitant has been misstated, the amount payable
will be the amount which the Purchase Payments paid would have purchased at the
correct age and sex.
9.8 ENTIRE CONTRACT; CHANGES
This contract with the attached application is the entire contract.
Statements in the application are representations and not warranties. A change
in the contract is valid only if it is approved by an officer of the Company.
The Company may require that the contract be sent to it for endorsement to
show a change. No agent has the authority to change the contractor or to waive
any of its terms.
All payments by the Company under this contract are payable at its Home
Office.
Assets of the Separate Account are owned by the Company and the Company is
not a trustee with respect thereto. The Company may from time to time adjust
the amount of assets contained in the Separate Account, by periodic withdrawals
or additions, to reflect the contract deductions and the Company's reserves for
this and other similar contracts.
This contract is subject to the laws of the state in which it is delivered.
All benefits are at least as great as those required by that state.
9.9 TERMINATION OF CONTRACT
At any time after the first contract anniversary, the Company may terminate
the contract and pay the Owner the Accumulation Value of the contract and be
released of any further obligation if:
- prior to the Maturity Date no Purchase Payments have been received
under the contract for a period of two full years and each of the
following is less than the Minimum Accumulation Value shown on page 4:
a. the Accumulation Value of the contract; and
b. total Purchase Payments paid under the contract, less any amounts
withdrawn under Section 4.5; or
- on the Maturity Date the Accumulation Value of the contract is less
than the Minimum Accumulation Value shown on page 4 or would provide a
monthly income the initial amount of which is less than the minimum
payment amount shown on page 4.
SECTION 10. PAYMENT OF CONTRACT BENEFITS
10.1 PAYMENT OF BENEFITS
All or part of the contract benefits may be paid under one or more of the
following:
- a variable payment plan;
- a fixed payment plan; or
- in cash.
The provisions and rate for variable and fixed payment plans are described
in Section 11. Contract benefits may not be placed under a payment plan unless
the plan would provide to each beneficiary a monthly income the initial amount
of which is at least the minimum payment amount shown on page 4. A Withdrawal
Charge will be deducted from contract benefits before their payment under
certain conditions described in Section 7.3.
10.2 PAYMENT AT DEATH
Upon the death of the Annuitant prior to the Maturity Date, the payment at
death will be made under any payment plan previously elected. If no payment
plan has been elected, the payment at death will be made under a payment plan
or in cash as elected by the Owner or beneficiary.
12
15
10.3 EFFECTIVE DATE FOR PAYMENT PLAN
A payment plan that is elected for maturity benefits will take effect on the
Maturity Date.
A payment plan that is elected for death benefits will take effect on the
date proof of death of the Annuitant is received at the Home Office if:
- the plan is elected by the Owner; and
- the election is received at the Home Office while the Annuitant is
living.
In all other cases, a payment plan that is elected will take effect:
- on the date the election is received at the Home Office; or
- on a later date, if requested.
10.4 PAYMENT PLAN ELECTIONS
FOR DEATH BENEFITS BY OWNER. The Owner may elect payment plans for death
benefits:
- while the Annuitant is living; or
- during the first 60 days after the date of death of the Annuitant, if
the Annuitant was not the Owner immediately prior to the Annuitant's
death. An election made during the 60 days cannot be changed.
FOR DEATH BENEFITS BY DIRECT OR CONTINGENT BENEFICIARY. A direct or contingent
beneficiary may elect payment plans for death benefits payable to the direct or
contingent beneficiary if no payment plan that has been elected is in effect.
This right is subject to the Owner's rights during the above 60 days.
FOR MATURITY BENEFITS OR WITHDRAWAL AMOUNTS. The Owner may elect payment plans
for maturity benefits or withdrawal amounts.
TRANSFER BETWEEN PAYMENT PLANS. A beneficiary who is receiving payment under a
payment plan which includes the right to withdraw may transfer the amount
withdrawable to any other payment plan that is available.
SECTION 11. PAYMENT PLANS
11.1 DESCRIPTION OF PAYMENT PLANS
INSTALLMENT INCOME FOR SPECIFIED PERIOD (OPTION B)
The Company will make monthly installment income payments providing for
payment of benefits over a specified period of 5 to 3 years.
LIFE INCOME PLANS
- SINGLE LIFE INCOME (OPTION C). The Company will make monthly payments
for the selected certain period, if any, and thereafter during the
remaining lifetime of the individual upon whose life income payments
depend. The selections available are: (a) no certain period; or (b) a
certain period of 10 or 20 years.
- JOINT AND SURVIVOR LIFE INCOME (OPTION E). The Company will make
monthly payments for a 10-year certain period and thereafter during
the joint lifetime of the two individuals upon whose lives income
payments depend and continuing during the remaining lifetime of the
survivor.
- OTHER SELECTIONS. The Company may offer other selections under the
Life Income Plans.
- LIMITATIONS. A direct or contingent beneficiary who is a natural
person may be paid under a Life Income Plan only if the payments
depend on that beneficiary's life. A corporation may be paid under a
Life Income Plan only if the payments depend on the life of the
Annuitant or, after the death of the Annuitant, on the life of the
Annuitant's spouse or dependent.
These payment plans are available on either a fixed or variable basis.
Under a fixed payment plan the payment remains level. Under a variable payment
plan the payment will increase or decrease as described in Section 11.4.
11.2 ALLOCATION OF BENEFITS
Upon election of a variable payment plan, the Owner or direct or contingent
beneficiary may select the allocation of variable benefits among the Divisions.
If no selection is made, the allocation of benefits will be as follows:
- for amounts in the Separate Account Divisions, benefits will be
allocated in proportion to the Accumulation Value of each Division on
the effective date of the variable payment plan, and
- for amounts in the Guaranteed Interest Fund, benefits will be
allocated 100% to the Money Market Division.
11.3 ANNUITY UNITS UNDER VARIABLE PAYMENT PLANS
The interest of this contract in the Separate Account after the effective
date of a variable payment plan is represented by Annuity Units. The dollar
value of Annuity Units for each Division will increase or decrease to reflect
the investment experience of the Division. The value of Annuity Unit on any
Valuation Date is the product of:
- the Annuity Unit value on the immediately preceding Valuation Date;
- the Net Investment Factor for the period from the immediately
preceding Valuation Date up to and including the current Valuation
Date (the current period); and
- the Daily Adjustment Factor of .99990575 raised to a power equal to
the number of days in the current period to reflect the Assumed
Investment Rate of 3 1/2% used in calculating the monthly payment
rate.
13
16
11.4 PAYMENTS UNDER VARIABLE PAYMENT PLANS
FIRST PAYMENT. The first payment under a variable payment plan will be due as
of the effective date of the payment plan.
The amount of the first payment is the sum of payments from each Division,
each determined by multiplying the benefits allocated to the Division under the
variable payment plan by the applicable monthly variable payment rate per
$1,000 of benefits.
NUMBER OF ANNUITY UNITS. The number of Annuity Units in each Division under a
variable payment plan is determined by dividing the amount of the first payment
payable from the Division by the Annuity Unit value for the Division at the
close of business on the Valuation Date on which the variable payment plan
becomes effective. The number of Annuity Units will not be changed by any
subsequent change in the dollar value of Annuity Units.
SUBSEQUENT VARIABLE PAYMENTS. The amount of each subsequent payment from each
Division under a variable payment plan will increase or decrease in accord with
the increase or decrease in the value of an Annuity Unit which reflects the
investment experience of that Division of the Separate Account.
The Amount of subsequent variable payments is the sum of payments from each
Division, each determined by multiplying the fixed number of Annuity Units for
the Division by the value of an Annuity Unit for the Division on:
- the fifth Valuation Date prior to the payment due date if the payment
due date is a Valuation Date; or
- the sixth Valuation Date prior to the payment due date if the payment
due date is not a Valuation Date.
11.5 TRANSFER BETWEEN VARIABLE PAYMENT PLANS
A payee or joint payees receiving payments under a variable payment plan
may:
- transfer Annuity Units from one Division to another. The number of
Annuity Units in each Division will be adjusted to reflect the
respective value of the Annuity Units in the Divisions on the date the
transfer is effective. A Transfer Fee will be deducted from the
amount transferred. The amount of the Transfer Fee is shown on page
4. Transfers from the Money Market Division may be made at any time.
No transfer from the other Divisions may be made within 90 days of the
effective date of the variable payment plan or within 90 days from the
effective date of the last transfer.
- transfer from an Installment Income Plan (Option B) to either form of
the Life Income Plan (Option C or E).
Other transfers may be permitted subject to conditions set by the Company.
A transfer will be effective on the Valuation Date on which a satisfactory
transfer request is received in the Home Office, or a later date if requested.
However, the transfer will be effective on the following Valuation Date if the
request is received at the Home Office either:
- on a Valuation Date after the close of trading on the New York Stock
Exchange; or
- on a day on which the New York Stock Exchange is closed.
11.6 WITHDRAWAL UNDER PAYMENT PLANS
Withdrawal of the present value of any unpaid income payments may be
elected at any time by the beneficiary, except at withdrawal may not be elected
under a Life Income Plan (Option C or E) until the death of all individuals
upon whose lives income payments depend.
The withdrawal value under the Installment Income Plan (Option B) will be
the present value of any unpaid payments, less any applicable Withdrawal Charge
under Section 7.3. The withdrawal value under a Life Income Plan (Option C or
E) will be the present value of any unpaid payments for the certain period with
no Withdrawal Charge.
For a fixed payment plan, the present value of any unpaid income payments
will be based on the rate of interest used to determine the amount of the
payments. For a variable payment plan, the present value of any unpaid income
payments will be based on interest at the Assumed Investment Rate used in
calculating the amount of the variable payments. The amount of variable
payments used in calculating the present value of unpaid payments will be
determined by multiplying the number of Annuity Units by the value of an
Annuity Unit on the effective date of the withdrawal.
A withdrawal will be effective on the Valuation Date on which the request
is received in the Home Office. However, the withdrawal will be effective on
the following Valuation Date if the request is received at the Home Office
either:
- on a Valuation Date after the close of trading on the New York Stock
Exchange; or
- on a day on which the New York Stock Exchange is closed.
14
17
11.7 PAYMENT PLAN RATES
PAYMENT RATE TABLES. The guaranteed monthly payment rates for both a fixed
payment plan and the first payment under a variable payment plan are shown in
the Payment Rate Tables. The tables show rates for the Installment Income Plan
for a Specified Period (Option B) and Life Income Plans (Options C and E).
Life Income Plan (Option C or E) rates are based on the sex and adjusted age of
any individual upon whose life payments depend. The adjusted age is:
- the age on the birthday that is nearest to the date on which the
payment plan takes effect; plus
- the age adjustment shown below for the number of Contract Years that
have elapsed from the Issue Date to the date that the payment plan
takes effect. A part of a Contract Year is counted as a full year.
CONTRACT CONTRACT
YEARS AGE YEARS AGE
ELAPSED ADJUSTMENT ELAPSED ADJUSTMENT
---------------------------------------------------------------
1 to 8 0 33 to 40 -4
9 to 16 -1 41 to 48 -5
17 to 24 -2 49 or more -6
25 to 32 -3
CURRENT FIXED PAYMENT PLAN RATES
- INSTALLMENT INCOME FOR SPECIFIED PERIOD (OPTION B). The Company may
offer fixed payment plan rates higher than those guaranteed in this
contract with conditions on withdrawal.
- LIFE INCOME PLANS (OPTION C OR E). Payments will be based on rates
declared by the Company which will not be less than the rates
guaranteed in this contract. The declared rates will provide at least
as much income as would the Company's rates, on the date that the
payment plan takes effect, for a single premium immediate annuity
contract.
ALTERNATE VARIABLE RATE BASIS. The Company may from time to time publish
higher initial rates for variable payment plans under this contract. These
higher rates will not be available to increase payments under payment plans
already in effect.
When a variable payment plan is effective on an alternate rate basis, the
Daily Adjustment Factor described in Section 11.3 will be determined based on
the Assumed Investment Rate used in calculating the alternate payment rate.
PAYMENT RATE TABLES
MONTHLY INCOME PAYMENTS PER $1,000 BENEFITS
FIRST PAYMENT UNDER VARIABLE PAYMENT PLAN
INSTALLMENT INCOME PLAN (OPTION B)
PERIOD MONTHLY PERIOD MONTHLY PERIOD MONTHLY
(YEARS) PAYMENT (YEARS) PAYMENT (YEARS) PAYMENT
--------------------------------------------------------------------
Years 1-4 11 $9.09 21 $5.56
Not Available 12 8.46 22 5.39
13 7.94 23 5.24
14 7.49 24 5.09
5 $18.12 15 7.10 25 4.96
6 15.35 16 6.76 26 4.84
7 13.38 17 6.47 27 4.73
8 11.90 18 6.20 28 4.63
9 10.75 19 5.97 29 4.53
10 9.83 20 5.75 30 4.45
GUARANTEED FIXED PAYMENT PLANS
INSTALLMENT INCOME PLAN (OPTION B)
PERIOD MONTHLY PERIOD MONTHLY PERIOD MONTHLY
(YEARS) PAYMENT (YEARS) PAYMENT (YEARS) PAYMENT
Years 1-4 11 $ 8.42 21 $ 4.85
Not Available 12 7.80 22 4.67
13 7.26 23 4.51
14 6.81 24 4.36
5 $17.49 15 6.42 25 4.22
6 14.72 16 6.07 26 4.10
7 12.74 17 5.77 27 3.98
8 11.25 18 5.50 28 3.87
9 10.10 19 5.26 29 3.77
10 9.18 20 5.04 30 3.68
15
18
PAYMENT RATE TABLES
MONTHLY INCOME PAYMENTS PER $1,000 BENEFITS
LIFE INCOME PLAN (OPTION C)
SINGLE LIFE MONTHLY PAYMENTS
---------------------------------------------
CHOSEN PERIOD (YEARS)
ADJUSTED
AGE ZERO 10 20
---------------------------------------------
55 $ 4.17 $ 4.14 $ 4.06
56 4.23 4.20 4.11
57 4.31 4.28 4.17
58 4.39 4.35 4.23
59 4.47 4.43 4.29
60 4.56 4.51 4.35
61 4.65 4.59 4.42
62 4.76 4.69 4.49
63 4.87 4.79 4.56
64 4.98 4.90 4.63
65 5.10 5.00 4.70
66 5.24 5.12 4.77
67 5.38 5.24 4.84
68 5.54 5.37 4.91
69 5.70 5.51 4.98
70 5.88 5.66 5.05
71 6.07 5.81 5.12
72 6.27 5.96 5.19
73 6.49 6.13 5.24
74 6.73 6.30 5.30
75 6.99 6.48 5.36
76 7.27 6.67 5.40
77 7.58 6.86 5.45
78 7.91 7.05 5.49
79 8.26 7.25 5.52
80 8.64 7.45 5.55
81 9.05 7.65 5.58
82 9.50 7.84 5.60
83 9.98 8.02 5.62
84 10.50 8.20 5.63
85 and over 11.06 8.38 5.64
LIFE INCOME PLAN (OPTION E)
JOINT AND SURVIVOR MONTHLY PAYMENTS
-------------------------------------------------------------------------
OLDER LIFE YOUNGER LIFE ADJUSTED AGE*
ADJUSTED
AGE 55 60 65 70 75 80 85 and over
-------------------------------------------------------------------------
55 $ 3.79
60 3.87 $ 4.07
65 3.94 4.18 $ 4.45
70 3.99 4.27 4.61 $ 4.99
75 4.02 4.34 4.73 5.20 $ 5.72
80 4.05 4.38 4.81 5.35 6.00 $ 6.67
85 and over 4.06 4.40 4.06 5.45 6.18 7.00 $ 7.75
*See Section 10.7.
The amount of the payment for any other combination of ages will be furnished
by the Company on request. The maximum initial monthly income per $1,000 will
be $7.75.
Monthly payment rates are based on an Assumed Investment Rate of 3 1/2% and the
1983 Table a with Projection Scale G.
16
19
THE NORTHWESTERN MUTUAL LIFE
INSURANCE COMPANY
MILWAUKEE, WISCONSIN
CONTRACT NUMBER
-----------------
DEFERRED ANNUITY APPLICATION
-----------------------------------------------------------------------------
1 Has a Northwestern Mutual policy ever been issued on the annuitant's
life? / / Yes / / No
If yes, the last policy number is -------------------.
2 ANNUITANT
-------------------------------------------------------------------------
/X/ Mr. / / Mrs. / / Ms. / / Dr. / / Other: ------ /X/ Male / / Female
-------------------------------------------------------------------------
NAME BIRTHDATE (MONTH, DAY, YEAR)
XXXX X XXX 01-15-1961
-------------------------------------------------------------------------
STATE OF BIRTH (OR FOREIGN COUNTRY) TAXPAYER IDENTIFICATION NUMBER
Wisconsin ###-##-####
-------------------------------------------------------------------------
PRIMARY RESIDENCE
STREET OR PO BOX 1234 Main Street
-------------------------------------------------------------------------
CITY, STATE, ZIP (COUNTRY IF OTHER THAN U.S.)
Milwaukee, WI 53200
-------------------------------------------------------------------------
-----------------------------------------------------------------------------
3 MARKET CATEGORY (Select One)
NON-TAX QUALIFIED
/ / Personal
/ / Estate or Business
/ / Eligible 457 Deferred Compensation Plan
GO TO QUESTION 4.
TAX QUALIFIED
/ / IRA Individual
/ / IRA Simplified Employee Pension Plan (SEPP)
/ / TDA Employee salary reduction only
/ / TDA Employer matching or non-elective contributions included
/ / 401(g) Non-transferable annuity
THE OWNER IS THE ANNUITANT. GO TO QUESTION 5.
/X/ Pension and Profit Sharing
If new trust, attach
Trust Number 000123 Declaration of Employer (31-3344).
MONTH DAY
Contract Anniversary Date / / - / / Complete only if
required by plan.
THE OWNER AND BENEFICIARY ARE THE TRUSTEE(S) OF THE PLAN. GO TO QUESTION 6.
20
4 OWNER (NOTE: A minor owner limits future contract actions.)
/ / Annuitant / / See attached supplement / / Other: (Complete A, B, C
below)
A. / / Mr. / / Mrs. / / Ms. / / Dr. / / Other: / / Male / / Female
------
PERSONAL NAME BIRTHDATE (MONTH, DAY, YEAR)
- -
--------------------------------------- -----------
OR
BUSINESS/TRUST NAME
-----------------------------------------------------------------------
B. RELATIONSHIP TO ANNUITANT TAXPAYER IDENTIFICATION NUMBER
- -
---------------------------------------- ----------------
C. ADDRESS / / ANNUITANT'S ADDRESS, OR
STREET OR PO BOX
------------------------------------------------------------------------
CITY, STATE, ZIP (COUNTRY IF OTHER THAN US)
------------------------------------------------------------------------
--------------------------------------------------------------------------------
5 BENEFICIARY (NOTE: Cannot be annuitant unless "Estate of Annuitant" named.)
A. Direct Beneficiary of payment at DEATH:
/ / Owner / / Other
FIRST MIDDLE INITIAL LAST RELATIONSHIP TO ANNUITANT
-------------------------------------------------------------------------
FIRST MIDDLE INITIAL LAST RELATIONSHIP TO ANNUITANT
-------------------------------------------------------------------------
FIRST MIDDLE INITIAL LAST RELATIONSHIP TO ANNUITANT
-------------------------------------------------------------------------
FIRST MIDDLE INITIAL LAST RELATIONSHIP TO ANNUITANT
-------------------------------------------------------------------------
B. Contingent Beneficiary of payment at DEATH:
FIRST MIDDLE INITIAL LAST RELATIONSHIP TO ANNUITANT
-------------------------------------------------------------------------
FIRST MIDDLE INITIAL LAST RELATIONSHIP TO ANNUITANT
-------------------------------------------------------------------------
Box (1) or (2) may be selected to include all children or brothers and
sisters without naming them, or to add to the contingent beneficiaries
named. Box (3) may be selected to provide for children of a deceased
contingent beneficiary; use only if contingent beneficiaries are named
and/or box (1) or (2) is checked. NOTE: The word "children" includes
child and legally adopted children.
/ / (1) and all (other) children of the Annuitant.
/ / (2) and all (other) brothers and sisters of the Annuitant born of the
marriage of or legally adopted by ________ and ________ before the
Annuitant's death.
/ / (3) any amount that would have been paid to a deceased contingent
beneficiary, if living, will be paid in one sum and in equal
shares to the children of that contingent beneficiary who
survive and receive payment.
C. Further Payee of payment at DEATH:
FIRST MIDDLE INITIAL LAST RELATIONSHIP TO ANNUITANT
-------------------------------------------------------------------------
D. / / See attached supplement form (Use in place of 5A, 5B, 5C)
6 Will the policy applied for replace any Northwestern Mutual Life Insurance or
annuities? / / Yes /X/ No
7 Will the policy applied for replace insurance or annuities from another
insurance company? / / Yes /X/ No
8 PLAN (Select One)
/X/ VARIABLE ANNUITY. Complete Variable Annuity Supplement (Pages 3-4)
/ / FLEXIBLE PREMIUM ANNUITY. Complete Fixed Rate Annuity Supplement (Page 5)
/ / SINGLE PREMIUM RETIREMENT ANNUITY. Complete Fixed Annuity Supplement
(Page 5)
21
VARIABLE ANNUITY SUPPLEMENT
V1 / / Back-end Design
TYPE /X/ Front-end Design ($10,000 minimum initial purchase payment)
(MONTH, DAY, YEAR)
V2 MATURITY AGE or MATURITY DATE - - If neither
specified,
defaults to
age 85.
V3 A. COMPLETE IN ALL CASES TO INDICATE ALLOCATION OF NET PURCHASE PAYMENTS.
(Use whole %. Total must equal 100%)
VARIABLE FUNDS
10 Select Bond
10 International Equity
10 Money Market
10 Balanced
10 Index 500 Stock
10 Aggressive Growth Stock
10 High Yield Bond
10 Growth Stock
10 Growth and Income Stock
FIXED FUNDS
10 Guaranteed Interest
----
100% Total
B. COMPLETE ONLY IF THE ALLOCATION OF THE ATTACHED INITIAL PAYMENT IS TO BE
DIFFERENT THAN INDICATED IN A.
(Use whole %. Total must equal 100%)
VARIABLE FUNDS
______ Select Bond
______ International Equity
______ Money Market
______ Balanced
______ Index 500 Stock
______ Aggressive Growth Stock
______ High Yield Bond
______ Growth Stock
______ Growth and Income Stock
FIXED FUNDS
______ Guaranteed Interest
100% Total
V4 INITIAL PURCHASE PAYMENT
/X/ PREPAID A purchase payment for the contract applied for has been paid
to the agent in exchange for the receipt with the same number as this
application. NOTE: ALL PURCHASE PAYMENT CHECKS MUST BE MADE PAYABLE TO
NORTHWESTERN MUTUAL LIFE. DO NOT MAKE CHECK PAYABLE TO AGENT OR LEAVE
PAYEE BLANK.
AMOUNT
$5,000.00
For IRA and SEPP only, indicate how initial purchase payment is to be
applied. Total must equal amount above.
$ Current (19 ) tax year
$ Prior (19 ) tax year
$ Rollover distribution received by Annuitant in last
60 days.
$ Direct transfer of / / IRA / / TDA / / Pension from
another insti-
tution or plan
trustee
/ / NON-PREPAID (NOTE: Contract will not be issued until initial purchase
payment is received.)
/ / Collected via Multiple Contract Xxxx (MCB).
/ / Automatic withdrawal from checking account (ISA/EFT).
/ / Check coming from another financial institution.
Estimated Amount $
V5 Waiver of Purchase Payment Benefit requested? / / Yes /X/ No (If yes, send
evidence of insurability).
If waiver not approved, issue contract without benefit? / / Yes /X/ No
22
VARIABLE ANNUITY SUPPLEMENT (CONTINUED)
V6 SUBSEQUENT PURCHASE PAYMENTS (Select One) ISA NUMBER
/ / None Anticipated. ____________
/X/ Send Investment Reminders to Owner with Confirmations
and Quarterly Summary Statements.
ANTICIPATED ANNUAL AMOUNT
$2,000.00
/ / Automatic Withdrawal from Checking Account (ISA/EFT).
Amount DATE OF FIRST DRAFT (MONTH, DAY, YEAR)
$________ _____________ - _________ - __________
FREQUENCY
/ / Monthly / / Quarterly / / Semiannual / / Annual
NOTE: Subsequent withdrawals will be on the same day of the month (1-28
ONLY) as the initial draft. ATTACH VOID CHECK IF ONGOING DRAFT DRAWN ON
DIFFERENT ACCOUNT THAN INITIAL PAYMENT CHECK OR IF CHECK NOT ATTACHED.
ISA/EFT Payer / / Annuitant at annuitant address / / Other:
A. / / Mr. / / Mrs. / / Ms. / / Dr. / / Other:______ / / Male / / Female
PERSONAL NAME BIRTHDATE (MONTH, DAY, YEAR)
_______________________________________ __________ - _______ - _____
OR
BUSINESS/TRUST NAME
_________________________________________________________________________
B. TAXPAYER IDENTIFICATION NUMBER DAYTIME TELEPHONE NUMBER
__________________________________ (___)_______________________
C. ADDRESS
STREET OR PO BOX ________________________________________________________
CITY, STATE, ZIP (COUNTRY IF OTHER THAN US)
_________________________________________________________________________
Payer signature below is authorization to the depository institution
named on the attached check to pay and charge named account electronic
funds transfers, or other form of pre-authorized check or withdrawal
order transfers, initiated by the Northwestern Mutual Life Insurance
Company to its own order. This authorization will remain in effect until
revoked in writing.
X____________________________________
ISA/EFT PAYER SIGNATURE
/ / Add to Multiple Contract Bill.
AMOUNT MCB NUMBER MCB PAYER
$_________________ _________________ ______________________________
V7 ANNUITANT'S PURPOSE FOR CONTRACT
/ / Fund tax-qualified retirement plan
/ / Personal retirement planning
/ / Other. Specify _____________________
CURRENT FINANCIAL STATUS
Total Annual Income (all sources) $ ______________
Total Net Worth $ ______________
ANTICIPATED NUMBER OF YEARS CONTRACT WILL BE IN FORCE _______________
INVESTMENT OBJECTIVES FOR CONTRACT
/ / Preservation of principal
/ / Lower risk, lower return potential
/ / Moderate risk, moderate return potential
/ / Higher risk, higher return potential
THE COMPANY IS REQUIRED TO MAKE THE ABOVE INQUIRIES FOR PURPOSES OF
DETERMINING SUITABILITY OF THIS SALE. ALL RESPONSES WILL BE KEPT STRICTLY
CONFIDENTIAL. CHECK ONE:
/ / The answers to V7 accurately describe my current financial status and
objectives.
/X/ I have been asked these questions and decline to answer.
ON (date of delivery: ____ - ___ - ____) THE FOLLOWING PROSPECTUS OR OFFERING
CIRCULAR AND REPORT WAS DELIVERED:
/ / Account A Offering Circular dated ___ - ___ - ___ and
Report dated ___ - ___ - ___ (Corporate Pension Plans)
/X/ Account A Prospectus dated 01-15-96 (Partnership or Sole Proprietorship
Pension Plans)
/ / Account B Prospectus dated ___ - ___ - ___ (all others)
I ACKNOWLEDGE RECEIPT OF THE PROSPECTUS OR OFFERING CIRCULAR AND REPORT AND I
UNDERSTAND THAT ALL PAYMENTS AND VALUES PROVIDED BY THIS CONTRACT, WHEN BASED
ON THE INVESTMENT EXPERIENCE OF A SEPARATE ACCOUNT, ARE VARIABLE AND ARE NOT
GUARANTEED AS TO AMOUNT.
X X (signed) Xxxx X Xxx
---------------------------------- ----------------------
ANNUITANT SIGNATURE APPLICANT SIGNATURE
(IF OTHER THAN APPLICANT)
23
FIXED RATE ANNUITY SUPPLEMENT
------------------------------------------------------------------------------
F1 Single Premium Retirement Annuity Guarantee Period: / / One Year
/ / Three Year
------------------------------------------------------------------------------
F2 Maturity Age ______. If not specified, defaults to age 85.
------------------------------------------------------------------------------
F3 Initial Premium:
A. Has the initial premium for the policy been paid to the agent
in exchange for the receipt with the same number as this application?
/ / Yes. Check attached. NOTE: ALL PREMIUM CHECKS MUST BE MADE PAYABLE
TO NORTHWESTERN MUTUAL LIFE. DO NOT MAKE
CHECK PAYABLE TO AGENT OR LEAVE PAYEE BLANK.
/ / Non-prepaid TDA or 457 Deferred Compensation.
/ / Check coming from another financial institution.
B. Amount $__________ (Can be estimated amount if check coming from another
financial institution)
C. For IRA and SEPP only, indicate how premium to be applied. Total must
equal amount above.
$__________ Current (19__) tax year
$__________ Prior (19__) tax year
$__________ Rollover/Transfer from another institution (Always
credited as of current year)
------------------------------------------------------------------------------
F4 Waiver of Premium Benefit requested? / / Yes / / No (If yes, send
evidence of insurability).
If waiver not approved, issue contract without benefit? / / Yes / / No
------------------------------------------------------------------------------
F5 Subsequent Premiums: (Flexible Premium Annuity only)
A. Periodic Billing Amount $_________________ or Monthly Retirement Life
Income $___________________________
DEFINED BENEFIT POLICY ONLY
B. Billing Frequency / / Monthly / / Quarterly / / Semiannual / / Annual
C. Billing Method: / / Send Billing Notices
/ / TDA Policy. Payer #__________
/ / Add to Multiple Contract Bill:
______________ _____________________________
(MCB NUMBER) (MCB PAYER)
/ / Automatic Withdrawal from DATE OF FIRST DRAFT (MONTH, DAY, YEAR)
Checking Account (ISA/EFT). - -
NOTE: Subsequent withdrawals will be on the
same day of the month (1-28 ONLY) as the initial draft.
ATTACH VOID CHECK IF ONGOING DRAFT DRAWN ON DIFFERENT
ACCOUNT THAN INITIAL PAYMENT CHECK OR IF CHECK NOT ATTACHED.
X. Xxxx Billing To: / / Annuitant at Annuitant's Address
/ / Annuitant at address shown below:
/ / Owner at Owner's address (Pension and Profit
Sharing only)
/ / Owner at address shown below:
/ / MCB Payer
/ / Other/TDA Payer:
------------------------------------------------------------------------------
/ / Mr. / / Mrs. / / Ms. / / Dr. / / Other: ____________ / / Male / / Female
------------------------------------------------------------------------------
PERSONAL NAME BIRTHDATE (MONTH, DAY, YEAR)
- -
------------------------------------------------------------------------------
OR
------------------------------------------------------------------------------
BUSINESS/TRUST NAME
------------------------------------------------------------------------------
TAXPAYER IDENTIFICATION NUMBER DAYTIME TELEPHONE NUMBER ISA NUMBER
( )
------------------------------------------------------------------------------
ADDRESS
STREET OR PO BOX
------------------------------------------------------------------------------
CITY, STATE, ZIP (COUNTRY IF OTHER THAN US)
------------------------------------------------------------------------------
Payer signature below is authorization to the depository institution
named on the attached check to pay and charge named account electronic
funds transfers, or other form of pre-authorized check or withdrawal order
transfers, initiated by the Northwestern Mutual Life Insurance Company to
its own order. This authorization will remain in effect until revoked in
writing.
X
___________________________________
ISA/EFT PAYER SIGNATURE
-----------------------------------------------------------------------------------
24
THE ANNUITANT CONSENTS TO THIS APPLICATION.
EACH PERSON SIGNING THIS APPLICATION DECLARES THAT THE ANSWERS AND STATEMENTS
MADE ON PAGES 1, 2, (3 AND 4, OR 5) AND 6 ARE CORRECTLY RECORDED, COMPLETE AND
TRUE TO THE BEST OF HIS OR HER KNOWLEDGE AND BELIEF.
IT IS UNDERSTOOD AND AGREED THAT:
For the purposes of this application, if a Variable Annuity is applied for, the
word "policy" means contract and the word "premium" means purchase payment.
If the Owner is a Trustee or successor Trustee under a tax qualified plan or
the employer under a tax qualified non-trusteed plan, Northwestern Mutual Life
will be fully discharged of liability for any action taken by the Owner in the
exercise of any policy right and for all amounts paid to, or at the direction
of, the Owner and will have no obligation as to the use of the amounts. In all
dealings with the Owner, Northwestern Mutual Life will be fully protected
against the claims of every other person.
If paid at the time of application, the first premium will be credited the date
it is received at the Home Office, if this is a Flexible Premium or Single
Premium Retirement Annuity, or the valuation date coincident with or next
following the date it is received at the Home Office, if this is a Variable
Annuity.
If a Tax Qualified Employee Plan, an IRA or TDA is applied for, the Applicant
and/or Annuitant have received and reviewed the appropriate ERISA, IRA or
TDA disclosure statements.
FIXED RATE ANNUITY AND BACK LOADED VARIABLE ANNUITY POLICIES HAVE PROVISIONS
FOR THE ASSESSMENT OF SURRENDER CHARGES ON CASH WITHDRAWAL.
No agent is authorized to make or alter contracts or to waive the rights or
requirements of Northwestern Mutual Life.
X X (signed) Xxxx X. Xxx
-------------------------------------- ---------------------------------------
SIGNATURE OF ANNUITANT SIGNATURE OF APPLICANT
(If Other Than Applicant) (Indicate relationship below if
applicable)
/ / TRUSTEE / / EMPLOYER
SIGNED at Milwaukee, Milwaukee WI Date 01 - 15 - 1996
---------------------------- ----------------------------------
CITY COUNTY STATE MONTH DAY YEAR
X (signed) Xxxx X. Western
------------------------------------------
SIGNATURE OF LICENSED AGENT
25
IT IS RECOMMENDED THAT YOU ...
read your contract.
notify your Northwestern Mutual agent or the Company at
000 X. Xxxxxxxxx Xxxxxx, Xxxxxxxxx, Xxx. 53202, of an
address change.
call your Northwestern Mutual agent for information --
particularly on a suggestion to terminate or exchange
this contract for another contract or plan.
ELECTION OF TRUSTEES
The members of The Northwestern Mutual Life Insurance
Company are its policyholders of insurance policies and
deferred annuity contracts. The members exercise
control through a Board of Trustees. Elections to the
Board are held each year at the annual meeting of
members. Members are entitled to vote in person or by
proxy.
FLEXIBLE PAYMENT VARIABLE ANNUITY-ACCOUNT B
AMOUNTS ALLOCATED TO THE SEPARATE ACCOUNT DIVISIONS AND
VARIABLE PAYMENTS PROVIDED BY THIS CONTRACT ARE NOT
GUARANTEED AS TO FIXED DOLLAR AMOUNT BUT ARE VARIABLE
AND MAY INCREASE OR DECREASE TO REFLECT THE INVESTMENT
EXPERIENCE OF THE SEPARATE ACCOUNT.
[NORTHWESTERN
MUTUAL LIFE LOGO]
