EXHIBIT 1.A.(13)(d)(iv)
RIDER FOR LEVEL TERM INSURANCE BENEFIT ON
DEPENDENT CHILDREN
Benefit
We will pay the amount of term insurance under this benefit if we receive due
proof that a dependent child died on or after the effective date of this rider,
while this contract is in force and not in default past the last day of the
grace period, and before the term insurance provided by the benefit on his or
her life ends. But our payment is subject to all the provisions of this rider
and of the rest of this contract.
The phrase dependent child means the Insured's child, stepchild, or
legally adopted child who: (1) has reached the 14th day after his or her date of
birth; (2) has not reached the first contract anniversary after his or her 25th
birthday; and either (3) is named in the application for this rider and on the
date of the request has not reached his or her 18th birthday; or (4) becomes the
child of the Insured by birth, marriage or adoption after the date of the
request but before the child's 18th birthday.
We show the amount of term insurance under this benefit on a contract
data page. The insurance on each dependent child's life will end on the earliest
of: (1) the end of the day before the first contract anniversary after the
child's 25th birthday; (2) the end of the day before the first contract
anniversary after the Insured's 75th birthday; and (3) the end of the last day
before the contract date of any other contract to which the insurance on the
dependent child is converted or changed.
Benefit Charges
The monthly charge for this benefit is deducted each month from the contract
fund starting on the effective date of this rider. The amount of that charge is
shown under Adjustments to the Contract Fund. Monthly charges for this benefit
stop on the earlier of the date of the Insured's death and the first anniversary
after the Insured's 75th birthday.
This benefit has no cash value, but it can affect the cash value of the
contract.
PAID-UP INSURANCE
Paid-up Insurance on a Dependent Child
If the Insured dies while this contract is in force and not in default past the
last day of the grace period, any term insurance provided by this benefit on a
dependent child's life will become paid-up term insurance. While this paid-up
insurance is in effect, the contract will remain in force. The paid-up insurance
will have cash values but no loan value.
If the Insured dies by suicide within the period which we state in the
Suicide Exclusion under Death Benefits provision of the contract and our
liability is limited as we state for suicide in that provision, any provision
for paid up insurance on a dependent child who was, until the Insured died,
insured under this contract will not apply. Instead, we will then offer to
insure a dependent child under a new contract of life insurance. The new
contract will be subject to conditions and charges that are then determined, in
accordance with regular rules in effect at the time. It's amount will not be
less than the greater of (1) the amount of insurance on that person's life under
this contract, and (2) the lowest amount offered for the plan of insurance to be
provided by the new contract. Proof that the dependent child is insurable will
not be required, unless the new contract is to provide either an increased
amount of insurance or a benefit that did not apply to the dependent child under
this contract.
If this benefit becomes paid-up, it may be surrendered for its net cash
value. This will be the net value on the date of surrender of the paid-up
insurance. But, within 30 days after a contract anniversary, the net cash value
will not be less than it was on that anniversary. To compute this net cash
value, we use the Commissioners 1980 Standard Ordinary Mortality Table. We use
continuous functions based on age last birthday. We use an effective interest
rate of 4% a year.
ORD 97320-98
II-138
We will usually pay any cash value promptly. But we have the right to
postpone paying it for up to six months. If we do so for more than ten days, we
will pay interest at the rate that then applies to Option 3 (Interest Payment)
of the Settlement Options provision in this contract.
CONVERSION OF INSURANCE ON A DEPENDENT CHILD
Right to Convert
The insurance on each dependent child may be converted under this rider to a new
contract of life insurance. The insurance on each child's life may be converted
only once and once converted, all coverage under this rider on such child will
end. A conversion may be made only on (a) the day the insurance ends as
described in the last paragraph under Benefit above, and (b) each contract
anniversary immediately following his or her 18th and 22nd birthdays provided
that such anniversary occurs before the insurance ends. It will not be necessary
to prove that the child is insurable.
Conditions
The right to convert to a new contract is subject to these conditions: (1) The
insurance on the child must be converted while this contract is in force and not
in default past the last day of the grace period. (2) The amount of the new
contract must meet the minimum as we describe under Contract Specifications. (3)
We must receive a written application for the new contract no later than the
date the insurance on the child may be converted.
The new contract will not take effect unless the premium for it is paid
while the child is living and within 31 days after its contract date. If the
premium is paid as we state, it will be deemed that the insurance under the
new contract took effect on its contract date.
Premium Credit
When the insurance on a dependent child is converted, we will allow a premium
credit on the first premium for the new contract. The credit is equal to the
lesser of $1.00 for each full $1,000 of the term insurance under this benefit
and $1.00 for each full $1,000 of the new contract's basic amount of insurance.
Contract Date
The date of the new contract will be the day after the date the insurance on the
dependent child is converted. If a dependent child's coverage is converted, that
child's coverage will end at the end of the day before the contract date of the
new contract.
Contract Specifications
The new contract will be in the standard rating class. We will set the issue age
and the premiums for the new contract in accordance with our regular rules in
use on its contract date.
We will endorse the new contract to show that the period we state in its
Incontestability provision will start on the date coverage of the child began
under this benefit. But if this contract was reinstated after the date the
coverage began but before the date of the new contract, that period will start
on the date of the most recent reinstatement. We will have the right to use the
statements that were made to us as the basis for reinstatement to contest the
new contract. The period during which we will have that right will be the period
we state in the Incontestability provision of the new contract.
We will endorse the new contract to show that the period we state in its
Suicide Exclusion provision will start on the date coverage of the child began
under this benefit.
Except as we state in the next sentence, the new contract may be any
life or endowment policy we regularly issue on its contract date for the same
rating class, amount, issue age, and sex. It may not be; a single premium
contract; one that insures anyone in addition to the child; one that includes or
provides for term insurance, other than extended insurance; one with premiums
that increase after a stated time, if its first premium is less than 80% of any
later premium; or one with any benefit other than the basic insurance benefit
and the waiver benefit we refer to below. A waiver benefit may either waive or
pay premiums in the event of the Insured's total disability.
The basic amount of the new contract may be any amount you ask for as
long as it is at least $10,000 and not more than five times the amount of
insurance on the child's life under this benefit, but the total amount for the
child may not exceed the maximum amount allowed by law. If the amount you want
is smaller than the smallest amount we would regularly issue on the plan you
want, we will issue a new contract for as low as $10,000 on the Life Paid Up at
Age 85 plan Life Paid Up at Age 65 plan if the issue age for the new contract is
less than 15 years) if you ask us to.
ORD 97320-98
II-139
If the new contract provides for premium payment to at least age 85, or
age 65 if the issue age for it is less than 15 years, we will include a waiver
benefit in the event of the total disability of the person insured if we would
include a waiver benefit in other contracts like the new one.
We will not waive or pay any premium under the new contract unless the
total disability started on or after its contract date. And we will not waive or
pay any premium under the new contract unless it has a waiver benefit, even if
we have paid premiums into this contract due to the Insured's total disability.
Any waiver benefit in the new contract will be the same one, with the
same provisions, that we put in other contracts like it on its contract date. In
any of these paragraphs, when we refer to other contracts, we mean contracts we
would regularly issue on the same plan as the new contract and for the same
rating class, amount, issue age and sex.
MISCELLANEOUS PROVISIONS
Changes
The insurance on a dependent child may be changed to a new contract of life
insurance other than in accordance with the requirements we state in this form.
But this kind of change may be made only if we consent, and will be subject to
conditions and charges that are then determined.
Beneficiary
The word beneficiary where we use it in this contract without qualification
means the beneficiary for insurance payable upon the death of the Insured.
On the contract date, the following two statements apply, unless we
issue the contract with an endorsement that states otherwise: (1) The
beneficiary for insurance payable upon the death of a dependent child will be
the Insured if living, otherwise the beneficiary for this insurance named in the
application. (2) If no such beneficiary is living when insurance under this
benefit becomes payable, we will make the payment in one sum to the estate of
the later to die of the Insured and such beneficiary.
You may change a beneficiary for insurance payable upon the death of a
dependent child by sending us a request in a form that meets our needs. We may
ask you to send us the contract to be endorsed. If we receive your request, and
the contract if we ask for it, at our Home Office, we will file and record the
change and it will take effect as of the date you signed the request. But if we
make any payment(s) before we receive the request, we will not have to make the
payment(s) again. Any beneficiary's interest is subject to the rights of any
assignee we know of. When a beneficiary is designated, any relationship shown is
to the Insured, unless otherwise stated.
Reinstatement
If this contract is reinstated, it will not include the insurance that we
provide under this benefit on the dependent children unless you prove to us that
each child who is to be insured on or within 15 days after the date of
reinstatement is insurable for the benefit. If you do not submit such proof for
any child, the benefit may be reinstated if all the other conditions are met to
reinstate the contract, but any child for whom proof is not submitted will not
be insured under the reinstated benefit. In this case, you may be required to
send the contract to us for endorsement.
Incontestability
Except for non-payment of premium, we will not contest this benefit with respect
to the insurance on any dependent child's life after it has been in force during
the child's lifetime for two years from the effective date of this rider.
ORD 97320-98
II-140
TERMINATION OF BENEFIT
This benefit will end on the earliest of:
1. end the last day of the grace period if the contract is in
default;
2. the end of the day before the first contract anniversary after
the Insured's 75th birthday;
3. the date the contract is surrendered for its net cash value, if
it has any, or the paid-up insurance, if any, under the benefit
is surrendered; and
4. the date the contract ends for any other reason.
Further, if you ask us in a form that meets our needs, we will cancel
the benefit as of the first monthly date on or after we receive your request.
Monthly charges due then and later will be reduced accordingly.
MAXIMUM TOTAL AMOUNT OF INSURANCE ALLOWED BY LAW
A dependent child might die when his or her age is less than 14 years
and six months. And there might be other life insurance, with us or other
companies, payable on the child's life under a contract(s) that was issued and
dated before the insurance for the child took effect under this benefit. If so,
the most we could pay under this benefit for that death is the excess of: (1)
the maximum that is allowed to be paid in accordance with the Table below, over
(2) the amount of the insurance on the child's life under (all) the other
contract(s). If the amount of insurance on the child's life under this benefit
is greater than that excess, we will reduce it by the difference, with
appropriate adjustment of the premium as filed with the Superintendent of
Insurance of New York.
If the insurance under this benefit is more than we would be allowed to
pay upon a dependent child's death, you may wish to have us reduce it to what we
could pay, with appropriate adjustment of the premium as filed with the
Superintendent of Insurance of New York. To do so, you must ask us in writing
and in a form that meets our needs. You must also send the contract to us to be
endorsed.
When we compute insurance under this or other contracts we will not
include: (1) return premium benefits; (2) dividend additions; or (3) benefits
that are paid only for death by accident.
[DEPENDENT CHILD]
THIS SUPPLEMENTARY BENEFIT RIDER ATTACHED TO THIS CONTRACT ON THE EFFECTIVE DATE
II-141
