EXHIBIT 4 (i)
[FARMERS LIFE INSURANCE LOGO]
Head Office: 0000 00xx Xxx. SE, Mercer Island, Washington 98040 / (000) 000-0000
A STOCK COMPANY
Annuitant Contract Number
INDIVIDUAL FLEXIBLE PREMIUM VARIABLE ANNUITY CONTRACT
In this contract "we," "us," and "our" refer to Farmers New World Life Insurance
Company. "You" and "your" refer to the Owner of this contract.
This contract is a legal contract between you and us. PLEASE READ YOUR CONTRACT
CAREFULLY.
Your benefits under this contract, the amount of the premium, and other contract
data are shown as the Contract Specifications on the last page of this contract.
THE AMOUNT OF THE DEATH BENEFIT MAY INCREASE OR DECREASE AS DESCRIBED IN THIS
CONTRACT, DEPENDING ON THE INVESTMENT EXPERIENCE OF THE SUBACCOUNTS.
THE CONTRACT VALUE OF THIS CONTRACT MAY INCREASE OR DECREASE DAILY DEPENDING ON
THE INVESTMENT EXPERIENCE OF THE SUBACCOUNTS. THERE IS NO GUARANTEED MINIMUM
CONTRACT VALUE WITH RESPECT TO AMOUNTS ALLOCATED TO THE VARIABLE ACCOUNT.
NOTICE OF YOUR RIGHT TO RETURN THIS CONTRACT
RIGHT TO EXAMINE PERIOD: YOU MAY CANCEL THIS CONTRACT AT ANY TIME WITHIN 10 DAYS
AFTER YOU RECEIVE IT BY DELIVERING OR MAILING IT TO OUR HOME OFFICE AT MERCER
ISLAND, WASHINGTON OR TO THE AGENT FROM WHOM IT WAS PURCHASED. WE WILL REFUND
THE GREATER OF ALL PREMIUMS PAID OR THE CONTRACT VALUE ON THE DATE WE RECEIVE
THE CONTRACT AT OUR HOME OFFICE.
/s/ X. Xxxx Xxxxxx
------------------
X. Xxxx Xxxxxx
President
/s/ Xxxx X. Xxxxxx
------------------
Xxxx X. Xxxxxx
Secretary
Farmers New World Life Insurance Company
2000-398 NONPARTICIPATING INDIVIDUAL FLEXIBLE PREMIUM DEFERRED VARIABLE
ANNUITY. MONTHLY INCOME BEGINS ON ANNUITY START DATE. DEATH
BENEFIT PAYABLE BEFORE ANNUITY START DATE. ALL PAYMENTS AND
VALUES PROVIDED BY THIS CONTRACT, WHEN BASED ON THE INVESTMENT
EXPERIENCE OF A SUBACCOUNT, ARE VARIABLE AND ARE NOT
GUARANTEED.
GUIDE TO YOUR CONTRACT
DEFINITIONS....................................................................4
GENERAL PROVISIONS.............................................................6
Contract....................................................................6
Change of Contract..........................................................6
Incontestability............................................................6
Misstatement of Age or Sex..................................................6
Minimum Benefits............................................................6
Nonparticipating............................................................6
Transaction Delay...........................................................6
Reports.....................................................................6
Proof of Survival...........................................................6
Protection of Proceeds......................................................6
Discharge of Liability......................................................6
Instructions and Requests...................................................7
OWNERSHIP......................................................................7
Owner.......................................................................7
Rights of Owner.............................................................7
Assignment..................................................................7
Transferability of Qualified Plans, TSAs or IRAs............................7
BENEFICIARY....................................................................8
Beneficiary Designation.....................................................8
Change of Beneficiary.......................................................8
DEATH BENEFIT..................................................................8
Before Annuity Start Date...................................................8
After Annuity Start Date....................................................9
PREMIUM PROVISIONS.............................................................9
Payment of Premiums.........................................................9
Allocation of Premium Payments..............................................9
CONTRACT VALUES...............................................................10
Contract Value.............................................................10
Records Maintenance Charge.................................................10
Cash Value.................................................................10
Surrender Charge...........................................................11
Surrender of the Contract..................................................11
Xxxxxxxxxxx................................................................11
Postponement of Surrenders and Withdrawals.................................12
FIXED ACCOUNT.................................................................12
Fixed Account Value........................................................12
Guaranteed Interest Rate for Fixed Account Value...........................12
Current Interest Rate for Fixed Account Value..............................12
VARIABLE ACCOUNT..............................................................13
General Description........................................................13
Variable Account Value.....................................................13
Subaccounts................................................................13
Accumulation Unit Value....................................................14
TRANSFER PRIVILEGE............................................................15
Transfer Fees..............................................................15
Transfers from Subaccounts.................................................15
Transfers from the Fixed Account...........................................16
INCOME BENEFITS...............................................................16
Election of Annuity Option.................................................16
Payment Interval...........................................................16
Proof of Age and Sex.......................................................16
Evidence of Living.........................................................16
Date of Payment............................................................16
ANNUITY OPTIONS...............................................................17
First Option...............................................................17
Second Option..............................................................17
Third Option...............................................................17
Other Options..............................................................17
ANNUITY TABLES................................................................17
Description of Tables......................................................17
Minimum Payment............................................................17
Guaranteed Annuity Table...................................................18
CONTRACT SPECIFICATIONS ...............................Last page of the contract
DEFINITIONS
ACCUMULATION UNIT An accounting unit used to calculate the variable
account value of this contract before annuity
payments begin. It is a measure of the net investment
results of each of the variable subaccounts.
ADMINISTRATIVE COST A charge deducted from the subaccounts on each
CHARGE valuation day that compensates us for the expenses we
incur to issue and administer this contract.
ANNUITANT Before any annuity payments begin, an Annuitant is a
person on whose life this contract is issued. When
annuity payments begin, an Annuitant is a person
during whose lifetime payments may be made under one
of the annuity options.
ANNUITY START DATE The date on which annuity payments are to begin as
described under the Income Benefits section of this
contract.
BENEFICIARY A person entitled to receive benefits in case of the
death of the Owner or Annuitant, as applicable.
CASH VALUE The contract value less any applicable surrender
charge and less any applicable charges for optional
benefits, for the records maintenance charge and for
premium tax.
CONTRACT MONTH, YEAR, A contract month, year, or anniversary as measured
OR ANNIVERSARY from the issue date.
CONTRACT VALUE The sum of the values you have in the variable
account and the fixed account.
FINAL ANNUITY DATE The contract anniversary when the oldest Annuitant is
age 95.
FIXED ACCOUNT An account that is part of our general account, and
is not part of or dependent on the investment
performance of the variable account.
FIXED ACCOUNT VALUE The portion of the contract value allocated to the
fixed account.
FREE PARTIAL WITHDRAWAL The amount that can be withdrawn as a partial
AMOUNT withdrawal during a contract year without incurring
surrender charges.
ISSUE DATE The date this contract becomes effective. The issue
date is shown on the Contract Specifications page.
Contract months, years, and anniversaries are
measured from the issue date.
MORTALITY AND EXPENSE A charge deducted from the subaccounts on each
RISK CHARGE valuation day that compensates us for providing
the mortality and expense guarantees and assuming the
risks under this contract.
NET INVESTMENT FACTOR The ratio of the subaccount value at the end of the
current valuation day to its value at the end of the
immediately preceding valuation day. The subaccount
value reflects gains and losses in the subaccounts,
dividends paid, any capital gains and losses, any
taxes paid, and the deduction of certain charges.
PAYEE A person or entity who receives any amounts payable
under this contract. A payee must be a natural person
unless we agree otherwise.
PREMIUM TAX The amount of tax, if any, charged by any
government entity on premium payments, on any portion
of the contract value, or on any other funds
associated with this contract. We will deduct any
premium tax assessed against us either: (a) from
premium payments as we receive them, (b) from your
contract value upon surrender or partial withdrawal,
(c) on the annuity start date, or (d) upon payment of
the death benefit.
RECORDS MAINTENANCE An amount deducted from the contract value at the end
CHARGE of each contract year and on the annuity start date
or the date when the contract is surrendered. The
records maintenance charge is shown on the Contract
Specifications page.
SEC The United States Securities and Exchange Commission.
SUBACCOUNT A division of the variable account. The assets of
each subaccount are invested in a corresponding
portfolio of a designated fund.
VALUATION DAY Each day on which the New York Stock Exchange is
open for business.
VALUATION PERIOD The interval of time commencing at the close of
normal trading on the New York Stock Exchange one
valuation day and ending at the close of normal
trading on the New York Stock Exchange on next
succeeding valuation day.
VARIABLE ACCOUNT The variable account is named on the Contract
Specifications page. The variable account is not part
of our general account. The variable account has
subaccounts, each of which is invested in a
corresponding portfolio of a designated mutual fund.
VARIABLE ACCOUNT VALUE The portion of the total value of your contract that
is allocated to the subaccounts of the variable
account.
GENERAL PROVISIONS
CONTRACT The entire contract is:
1. this contract;
2. the application attached at issue;
3. any attached amendments and supplements to
the application; and
4. any attached riders and endorsements.
In the absence of fraud, we will consider all
statements in the application to be representations
and not warranties. No statement will be used by us
to contest a claim unless that statement is in an
attached application or in an amendment or supplement
to the application attached to this contract.
CHANGE OF CONTRACT Any change in the terms of this contract must be in
writing and signed by one of our officers. A copy of
the change will be attached to this contract. No
agent has the authority to change any terms or
conditions of this contract.
INCONTESTABILITY We will not contest this contract after the issue
date.
MISSTATEMENT OF AGE If the Annuitant's age or sex has been misstated, the
OR SEX benefits provided by this contract will be
adjusted to reflect the correct age or sex. After the
annuity start date any adjustment for underpayment
will be paid immediately. Any adjustment for
overpayment will be deducted from future payments. No
interest will be charged or credited on overpayments
or underpayments.
MINIMUM BENEFITS Benefits available under this contract are not less
than the minimums required by the law of the state in
which this contract is delivered.
NONPARTICIPATING This contract is nonparticipating. It does not share
in our surplus earnings.
TRANSACTION DELAY Payment(s) and transfers from the subaccounts will
usually be made promptly but may be delayed under any
of the following circumstances:
1. the New York Stock Exchange is closed; or
2. the SEC permits or orders a postponement; or
3. the SEC declares an emergency requiring trade
to be restricted; or
4. the SEC determines an emergency exists,
making the disposal of, or determination of
value of, securities held in the variable
account not reasonably practicable.
We may defer a withdrawal or transfer from the fixed
account for up to 6 months from the date we receive
your request for such a withdrawal or transfer.
REPORTS At least once each year before the annuity start
date, we will send the Owner a statement showing the
current contract value and cash value along with any
other information required by law.
PROOF OF SURVIVAL The payment of any annuity benefit is subject to
evidence that the Annuitant is alive on the date such
payment is due.
PROTECTION OF PROCEEDS To the extent permitted by law, no benefits payable
under this contract to any person are subject to the
claims of an Owner's or Beneficiary's creditors. No
person may commute, encumber or alienate any payments
under this contract before they are due.
DISCHARGE OF LIABILITY Any payments made by us under an annuity option or in
connection with the payment of any withdrawal,
surrender or death benefit shall discharge our
liability under this contract to the extent of such
payment.
INSTRUCTIONS AND All instructions and requests are effective as of the
REQUESTS end of the valuation period in which we receive them
in a form satisfactory to us, unless the event is
scheduled to take place at a later date. We may
require that you provide signature guarantees or
other safeguards for any instruction, request or
document you send us. You acknowledge and agree that
we are not liable for any loss, liability, cost or
expense of any kind for acting on instructions or
requests submitted to us that we reasonably believe
to be genuine.
OWNERSHIP
OWNER The Annuitant is the Owner of this contract unless:
1. another person is named as Owner in the
application; or
2. a new person is named as provided in the Rights
of Owner section below.
RIGHTS OF OWNER During the lifetime of the Annuitant all rights and
privileges granted by this contract belong to the
Owner. Before the annuity start date the Owner may:
1. Change the Beneficiary or Owner. Any change of
Owner requires our approval and is subject to
our underwriting rules then in effect.
2. Change the annuity start date.
3. Select the annuity option.
4. Select the person to receive the income
payments.
5. Assign or surrender the contract.
6. Withdraw funds from the contract.
7. Allocate payments and transfer contract value
among the investment options.
After the annuity start date during the lifetime of
the Annuitant the Owner may change:
1. the Beneficiary and
2. the person to receive the income payments.
We must receive a signed request to exercise any
ownership rights.
ASSIGNMENT We are not bound by an assignment unless duplicate
signed forms are filed with us. We are not
responsible for the validity of any assignment. The
rights of the Owner and the Beneficiary are subject
to the rights of the assignee.
TRANSFERABILITY OF If this contract is part of a Qualified Plan, as
QUALIFIED PLANS, TSAs defined in Internal Revenue Code Section 401(a), a
OR IRAs Tax Sheltered Annuity (TSA), as defined in IRC
Section 403(b), an Individual Retirement Annuity
(IRA), as defined in IRC Section 408(b), a Savings
Incentive Match Plan for Employees Individual
Retirement Annuity (SIMPLE IRA), as defined in IRC
Section 408(p), or a Xxxx Individual Retirement
Annuity (Xxxx XXX), as defined in IRC Section 408A,
it is nontransferable. This contract cannot be sold,
assigned, discounted, used as collateral for a loan,
or as security for the performance of any obligation.
If this contract is owned by a trust as part of a
Qualified Plan, the trustee may transfer ownership to
the Annuitant.
BENEFICIARY
BENEFICIARY The Beneficiary is the person or persons named to
DESIGNATION receive any death benefit payable. The Beneficiary is
as named in the application or as changed by the
Owners most recent signed request.
If no Beneficiary is living at the time a death
benefit becomes payable, we will pay any death
benefit to you or your estate.
CHANGE OF BENEFICIARY The Beneficiary may be changed at any time before the
Annuitant dies. The change must be signed by the
Owner and sent to us. The change will take effect on
the date it was signed, subject to any action taken
by us before we receive the request.
If you have named a Beneficiary irrevocably, both you
and the Beneficiary must sign any change.
DEATH BENEFIT
BEFORE ANNUITY START We will pay a death benefit if one of the following
DATE occurs before the annuity start date and while this
contract is in force:
1. The last surviving Annuitant dies.
2. Any Owner dies. If any Owner is a non-natural
person, then the death or change of any
Annuitant will be treated as the death of an
Owner.
If there are multiple Beneficiaries, then the
provisions of this section shall apply independently
to each Beneficiary. Only one death benefit will be
payable under this policy. Upon payment of the death
benefit proceeds, the policy will terminate.
Amount of Death Benefit: If the death benefit is paid
on the death of an Annuitant (including an Owner who
is an Annuitant) and the Annuitant dies before his or
her 80th birthday and before the annuity start date,
the death benefit is the greater of:
1. the contract value on the later of the date that
we receive due proof of death and the date when
we receive the beneficiary's instructions on
payment method; or
2. the minimum death benefit. The minimum death
benefit is equal to the sum of all premiums
accepted on this contract, minus any
proportional reductions for each withdrawal. The
proportional reduction in the minimum death
benefit is the product of (a) and (b), where
(a) is the minimum death benefit immediately
prior to the withdrawal.
(b) is the ratio of the amount withdrawn
(including any charges) to the contract
value immediately before the withdrawal.
In all other cases where a death benefit is payable
before the annuity start date (e.g., where the death
benefit is payable on the death of an Xxxxxxxxx who
has attained his or her 80th birthday, or where the
death benefit is payable on the
death of an Owner who is not an Annuitant), the death
benefit is the contract value on the later of the
date when we receive due proof of death and the date
when we receive the Beneficiary's instructions on
payment method.
Distribution requirements: If a death benefit becomes
payable before the annuity start date, the proceeds
must be taken in a lump sum unless we consent to
another arrangement within 90 days of receiving due
proof of death.
In all events, distributions will be made from the
contract in accordance with Section 72(s) of the
Internal Revenue Code of 1986, as amended. Thus, not
withstanding any other provision of this contract, if
any Owner dies before the annuity start date, the
proceeds must be distributed to the Beneficiary
within five years after the date of such death or
distributed over the life (or a period not exceeding
life expectancy) of the Beneficiary provided that
such distributions begin within one year of such
Owner's death. However, if the sole beneficiary is
the surviving spouse of the deceased Owner, the
contract may be continued (in lieu of paying any
death benefit) with the surviving spouse as the sole
Owner.
If an Owner is a non-natural person, then each
Annuitant will be treated as an Owner for purposes of
these distribution requirements and any change in or
the death of any Annuitant will be treated as the
death of the Owner for purposes of these distribution
requirements. Moreover, if an Annuitant is also an
Owner, then the death of such Annuitant will also be
treated as the death of an Owner for purposes of
these distribution requirements.
AFTER ANNUITY START If any Owner dies on or after the annuity start date,
DATE any remaining payments must be distributed at least
as rapidly as under the annuity option in effect on
the date of such death. If an Annuitant dies on or
after the annuity start date, we will pay any
remaining guaranteed payments to the beneficiary as
provided by the annuity option selected. If an Owner
who is not an Annuitant dies while an Annuitant is
still living, we will continue to pay the income
payments for the lifetime of the Annuitant in the
same manner as before the Owner's death.
PREMIUM PROVISIONS
PAYMENT OF PREMIUMS Premiums are payable at our home office. The initial
premium is shown on the Contract Specifications page
and is due on the issue date. Subsequent premiums are
flexible and may be paid at any time before the
annuity start date. Each premium must be at least
equal to the minimum subsequent premium payment shown
on the Contract Specifications page.
The sum of all premiums paid to us may not exceed the
cumulative premium limit shown on the Contract
Specifications page without our prior approval. The
Internal Revenue Code may also limit the maximum
amount of premiums you may pay.
ALLOCATION OF PREMIUM This contract provides investment options for the
PAYMENTS contract value. The initial premium allocation
percentages are indicated in the application for this
contract, a copy of which is attached.
The premium allocation percentages that you specified
in the application will also
apply to subsequent premium allocations until you
change them. You may change your allocation
percentages by giving us written notice.
Allocation percentages must be zero or a whole number
not greater than 100. The sum of the premium
allocation percentages must equal 100. An allocation
to any subaccount or to the fixed account must be at
least $500.
We reserve the right to limit the number of
subaccount allocations in effect at any one time.
Planned periodic premiums and unscheduled premiums
will be invested as requested on the valuation day
they are received by our home office. The premium
payments will be credited to the subaccounts at the
accumulation unit value next determined after receipt
of each payment.
We will allocate the initial premium(s) on the issue
date to the fixed account. While held in the fixed
account, the premium will be credited with interest
at current fixed account interest rates. The
premium(s) will remain in the fixed account for 20
days.
CONTRACT VALUES
CONTRACT VALUE The contract value on the issue date is equal to:
1. the initial premium paid; less
2. any premium taxes due.
On each date after the issue date, the contract value
is equal to the fixed account value plus the variable
account value.
RECORDS MAINTENANCE We will charge a $30 records maintenance charge each
CHARGE year until the annuity start date. The charge for a
contract year will be imposed on the last valuation
day of each contract year.
This charge will also be imposed on the annuity start
date or the date when the contract is surrendered.
The fee will be charged against the variable
subaccounts and the fixed account proportionately. If
the sum of all amounts paid and transferred to the
fixed account during any year plus the interest in
excess of 3% credited to the fixed account is less
than the proportional share to be charged to the
fixed account for the year, then the excess of the
fixed account's proportional share over this sum will
be charged against the variable subaccounts. The
portion of the fee charged to each subaccount will
reduce the number of accumulation units standing to
the credit of the contract in that subaccount.
CASH VALUE The cash value of this contract on any date is:
1. the contract value; minus
2. the surrender charge, if any, that you would
incur if you surrendered the entire contract on
that date; minus
3. the records maintenance charge that would be
assessed if you surrendered the entire contract
on that date; minus
4. any premium taxes and optional benefit charges
that would be assessed on this contract if you
surrendered the entire contract on that date.
Surrender charges are shown in the surrender charge
table below.
SURRENDER CHARGE A surrender charge will apply to certain partial
withdrawals and surrender transactions, and on
annuitization.
When one of these transactions occurs, we will
determine if a charge applies. If a charge applies,
it will be calculated as if all payments were
withdrawn in the same order in which they were made,
which means the contract values associated with the
various premium payments will be withdrawn on a first
in, first out basis (FIFO). The minimum remaining
contract value following a partial withdrawal is
$500.
Each contract year, you may withdraw up to the
greater of:
1. the excess of contract value over total premium
payments less prior withdrawals that were
previously assessed a surrender charge, and
2. 10% of the contract value determined at the time
the current withdrawal is requested
without incurring a surrender charge. If you withdraw
an amount in excess of the above amount, the excess
amount withdrawn will be subject to a surrender
charge. The surrender charge applies during the
entire seven year period following each premium
payment as follows:
Number of Complete Years Surrender Charge
From Date of Premium payment Percentage
---------------------------- ----------
0 7%
1 6%
2 5%
3 5%
4 4%
5 3%
6 2%
7 and thereafter 0%
SURRENDER OF THE You can surrender this contract at any time prior to
CONTRACT the annuity start date by notice to us in writing.
Upon surrender, the contract will terminate and we
will pay you the cash value determined as of the
close of business on the surrender date. Unless a
later date is specified in your request, the
surrender date is the date your written request in
proper form is received at our home office.
If you surrender this contract, the portion of the
contract value subject to surrender charge is reduced
by dividing it by one plus the surrender charge
percentage, as shown in the example for a surrender
in first policy year:
Contract value used in the hypothetical example:
$100,000
Amount subject to surrender charge:
($100,000-10,000)/1.07=$84,112.15
Surrender charge: $84,112.15 X (0.07) = $5,887.85
WITHDRAWALS Before the annuity start date you may withdraw part
of the cash value. Withdrawals are subject to a
surrender charge as own in the Surrender Charge
section.
You will receive a check in the amount of withdrawal
you request (less applicable tax withholding), if
available. If a surrender charge applies, the
contract value will be reduced by the surrender
charge plus the dollar amount sent to you. Any
premium taxes assessed against this contract on the
date of withdrawal will also be deducted from the
contract value.
The minimum withdrawal is $100. You may make only one
withdrawal per
calendar quarter. A withdrawal is not available if
the withdrawal plus the surrender charge would cause
the contract value to fall below $500.
A withdrawal will reduce the amount in each of the
subaccounts and the fixed account proportionately,
unless you request otherwise.
The withdrawal will be processed at the values next
determined after receipt of your request in good
order.
POSTPONEMENT OF We can postpone payment of any amounts withdrawn from
SURRENDERS AND the fixed account for up to six months from the
WITHDRAWALS date of the request for surrender or partial
withdrawal.
FIXED ACCOUNT
FIXED ACCOUNT VALUE We determine the fixed account value for any
valuation period before the annuity start date as the
allocation of any premium less any applicable premium
taxes, plus any amounts transferred from the
subaccounts, increased by credited interest, and
decreased by any transfers and withdrawals from the
fixed account and by any charges deducted from the
fixed account.
Guaranteed minimum fixed account values are not less
than the minimum values required by the state in
which this contract is delivered. Where required, a
statement of the method of computing these values has
been filed with the state insurance department.
GUARANTEED INTEREST The fixed account is part of our general account. It
RATE FOR FIXED ACCOUNT is not part of and does not depend on the investment
VALUE performance of the variable account. We credit
interest at rates we determine. We guarantee that the
effective annual interest rate will not be less than
3%.
CURRENT INTEREST RATE We may use rates that are higher than the guaranteed
FOR FIXED ACCOUNT minimum rate to calculate interest on the fixed
VALUE account.
At the time that money is allocated to the fixed
account, we guarantee a rate for a stated period of
time, usually 12 months. At the end of that period of
time, a new rate is guaranteed for at least a
12-month period. Amounts allocated to the fixed
account at different times may be credited with
different rates of interest. Any withdrawal or
charges deducted from the fixed account value will be
allocated among different portions using a last in,
first out method.
We reserve the right to offer additional fixed
account options in the future such as an option that
is available only for the allocation of premium prior
to the systematic transfer to subaccounts. Special
rules may apply to these fixed account options.
We reserve the right to credit different interest
rates for different policies on the basis of size of
contract value, fixed account value, or other
criteria that do not unfairly discriminate.
VARIABLE ACCOUNT
GENERAL DESCRIPTION The name of the variable account is shown on the
Contract Specifications page. The income, gains and
losses of the variable account are credited to or
charged against the asset held in the variable
account, without regard to any other income, gains or
losses of any other variable account or arising out
of any other business we may conduct.
Although we own the assets in the variable account,
these assets are held separately from our other
assets and are not part of our general account. The
assets in the variable account are used to support
the operation and provide the variable benefits and
values for this contract and similar contracts. The
portion of the assets of the variable account equal
to the reserves and other contract liabilities of the
variable account are not chargeable with liabilities
that arise from any other business that we conduct.
The assets of the variable account are segregated by
investment options, thus establishing a series of
subaccounts within the variable account.
When permitted by law, we reserve the right to:
1. create new variable accounts;
2. combine variable accounts;
3. remove, combine or add subaccounts and make the
new subaccounts available to you at our
discretion;
4. substitute shares of another portfolio of the
funds or shares of another investment company
for those of the funds;
5. deregister the variable account under the
Investment Company Act of 1940 if registration
is no longer required;
6. make any changes required by the Investment
Company Act of 1940 or any other law; and
7. the variable account as a managed investment
company under the Investment Company Act of 1940
or any other form permitted by law.
If a change is made, we will send you a revised
prospectus and any notice required by law. If
required, we would first seek the approval of the
Securities and Exchange Commission and the
appropriate state regulatory authorities before
making a change in the investment options.
VARIABLE ACCOUNT VALUE The variable account value is the sum of the values
of the subaccounts under this contract.
SUBACCOUNTS The subaccounts ore separate investment accounts
named by the company. The subaccount values will
fluctuate in accordance with the investment
experience of the applicable portfolio of the fund
held within each subaccount.
The subaccount value is determined by multiplying the
number of accumulation units credited to the
subaccount by the appropriate accumulation unit
value.
The number of accumulation units to be purchased or
redeemed in a transaction is found by dividing:
1. the dollar amount of the transaction; by
2. the subaccount's accumulation unit value on the
date of that transaction.
At the end of each valuation day:
- The portion of any premiums, less any premium
tax, received since the preceding valuation day
and allocated to each subaccount will be applied
to purchase additional accumulation units in
that subaccount.
- Any transfers to the subaccount from another
subaccount or from the fixed account since the
end of the previous valuation day will be
applied to purchase additional accumulation
units in that subaccount.
- Accumulation units will be redeemed from each
subaccount to cover any transfers from that
subaccount to other subaccounts or to the fixed
account since the preceding valuation day.
- Accumulation units will be redeemed from each
subaccount to cover any amounts withdrawn or
surrendered and any applicable surrender charges
assessed against that subaccount since the
preceding valuation day.
- Accumulation units will be redeemed from each
subaccount to cover the portion of the records
maintenance charge deducted from that
subaccount.
- Accumulation units will be redeemed from each
subaccount to cover any applicable fees and
charges for riders, endorsements and
supplemental benefits attached to this contract.
- Accumulation units will be redeemed from each
subaccount to cover any taxes that, in our sole
judgement, have been assessed against this
contract or have been assessed as a result of
the existence or operation of this contract.
ACCUMULATION UNIT The value of an accumulation unit for each of the
VALUE subaccounts was arbitrarily set at an initial value.
The value at be end of any later valuation day is
equal to: A X B
"A" is equal to the subaccounts accumulation unit
value for the end of the immediately preceding
valuation day.
"B" is equal to the net investment factor for the
most current valuation day. This net investment
factor equals:
X
----- - Z
Y
"X" equals:
1. the net asset value per portfolio share held in
the subaccount at the end of the current
valuation day; plus
2. the per share amount of any dividend or capital
gain distribution on portfolio shares held in
the subaccount during the current valuation day;
less
3. the per share amount of any capital loss
distribution on portfolio shares held in the
subaccount during the current valuation day.
"Y" equals the net asset value per portfolio share
held in the subaccount as of the end of the
immediately preceding valuation day. "Z" equals
charges and fees deducted from the subaccount. These
consist of:
1. Mortality and expense risk charges. The
mortality and expense risk charges are deducted
from each of the subaccounts on each valuation
day. They compensate us for providing the
mortality and expense guarantees and assuming
the risks under this contract. These charges are
shown on the Contract Specifications page.
2. Charge for administrative costs. A charge for
administrative costs is deducted from each of
the subaccounts on each valuation day to
compensate us for expenses we incur to
administer contracts. This charge is shown on
the Contract Specifications page.
3. Any applicable charges, fees and expenses for
elders, endorsements or supplemental benefits
attached to this contract. We will only deduct
these charges if we do not collect them by
redeeming accumulation units (as described in
the Subaccounts section of this contract).
The net investment factor may be greater than, less
than or equal to one. Therefore, the value of the
subaccount may increase, decrease or remain the same.
TRANSFER PRIVILEGE
TRANSFER FEES Twelve transfers per year may be made free of charge.
Any unused free transfers do not carry over to the
next contract year. Any additional transfers during a
contract year will be charged a $25 transfer fee. For
the purpose of assessing a fee, each written request
or telephone request is considered to be one
transfer. Transfers made pursuant to an asset
allocation or dollar cost averaging program we may
offer do not count toward these 12 transfers. The
transfer fee will be deducted from the amount being
transferred.
TRANSFERS FROM After the Right to Examine Period, you may transfer
SUBACCOUNTS all or a part of an amount from the value in any
subaccount of the variable account to one or more of
the subaccounts of the variable account. Transfers
may also be made to the fixed account, but not during
the six months following any transfer from the fixed
account into one or more subaccounts. The minimum
amount that you may transfer is the lesser of:
1. $100; or
2. the total value in that subaccount on that date.
Any transfer that would reduce the amount in a
subaccount below $500 will be treated as a transfer
request for the entire amount in that subaccount.
A transfer fee may apply as described above.
We may suspend or modify this transfer privilege at
any time.
Transfers will be processed based on values
determined at the end of the valuation day during
which the transfer request is received at our home
office.
TRANSFERS FROM THE You may transfer an amount from the value in the
FIXED ACCOUNT fixed account to one or more subaccounts of the
variable account one time during the contract year
during the 30 days following an anniversary of the
issue date. The minimum amount that you may transfer
is the lesser of:
1. $100; or
2. the total value in that subaccount on that date.
Any transfer that would reduce the amount in the
fixed account below $500 will be treated as a
transfer request for the entire amount in the fixed
account.
We can postpone transfers from the fixed account for
up to six months from the date of the request.
A transfer fee may apply as described above.
We may suspend or modify this transfer privilege at
any time.
INCOME BENEFITS
ELECTION OF ANNUITY On or before the final annuity date (the contract
OPTION anniversary when the oldest Annuitant is age 95), an
annuity start date must be chosen. An annuity option
must be chosen on or before the annuity start date.
On the annuity start date, the cash value (or, in
case of death, the death benefit) will be used to
provide annuity payments. On the final annuity date,
we will use the second annuity option with a 10 year
guarantee period for payment of the cash value if no
choice is made.
PAYMENT INTERVAL You may choose to have payments made at the end of 1,
3, 6, or 12 month intervals. If you do not specify
the frequency of payment, we will pay you monthly.
PROOF OF AGE AND SEX We may require proof of the age and sex of the
Annuitant(s) before any payments are made.
EVIDENCE OF LIVING We may require satisfactory proof that each Annuitant
is living when each payment is due. If proof is
required, payments will stop until such proof is
given.
DATE OF PAYMENT The first payment under any option shall be made on
the day of the month you request, subject to our
agreement, and will begin in the month immediately
following the annuity start date or approval of the
death claim for settlement. Subsequent payments shall
be made on the same day of each subsequent period in
accordance with the payment interval and annuity
option selected.
ANNUITY OPTIONS
FIRST OPTION We will pay an income for the lifetime of the
Annuitant, ceasing with the last payment due prior to
the death of the Annuitant.
SECOND OPTION We will pay an income for the lifetime of the
Annuitant, with the guarantee that we will make
payments for at least 10 or 20 years. You select
either the 10 or 20 year guarantee period.
If payments have been made for less than the 10 or 20
year guarantee period at the Annuitant's death, we
will pay the balance of the guaranteed payments to
the Beneficiary or Beneficiaries for the rest of the
guaranteed period.
If the guaranteed payments have been paid, the
payments will stop with the last payment due before
the Annuitant's death.
THIRD OPTION Joint and Survivor Life Annuity - We will pay an
income during the joint lifetime of two Annuitants.
After the death of one of the Annuitants, we will
continue the payments for the lifetime of the
surviving Annuitant. The payments will stop with the
last payment due before the death of the last
surviving Annuitant.
OTHER OPTIONS May be available with our consent.
ANNUITY TABLES
DESCRIPTION OF TABLES The attached tables show the minimum dollar amount of
the first monthly payment for each $1,000 applied
under the first, second and third annuity options.
Under the first or second options, the amount of each
payment will depend upon the adjusted age and sex of
the Annuitant at the time the first payment is due.
Under the third option, the amount of each payment
will depend upon the sex of both Annuitants and their
adjusted ages at the time the first payment is due.
The adjusted age of the Annuitant is determined by
calculating the age at the nearest birthday of the
Annuitant on the annuity start date and subtracting a
number that depends on the year in which the annuity
start date belongs:
Annuity Start Date Adjusted Age is Age Minus0
Before 2001 0
2001 to 2010 1
2011 to 2020 2
2021 to 2030 3
2031 to 2040 4
After 2040 5
Once the Owner has elected an annuity option, that
election may not be changed with respect to any
Annuitant following the commencement of annuity
payments.
MINIMUM PAYMENT The option elected must result in a payment that is
at least equal to the minimum payment amount
according to our rules then in effect. If at any
time, payments to be made to any payee are or become
less than the minimum payment amount,
we have the right to change the frequency of payment
to such interval as will result in a payment at least
equal to the minimum. If any amount due would be less
than the minimum payment amount per year, we may make
such other settlement as may be equitable to the
payee.
GUARANTEED ANNUITY TABLES
Monthly Payments for Each $1000 Applied
OPTION 1 OPTION 2
LIFE INCOME LIFE INCOME
------------------------ ------------------------------------------------------
120 Payments Guaranteed 240 Payments Guaranteed
AGE Male Female Male Female Male Female
--- ---- ------ ---- ------ ---- ------
55 4.20 3.89 4.15 3.86 3.98 3.77
56 4.29 3.97 4.23 3.94 4.04 3.83
57 4.39 4.05 4.32 4.02 4.11 3.90
58 4.49 4.14 4.42 4.10 4.18 3.97
59 4.60 4.23 4.52 4.19 4.24 4.03
60 4.72 4.33 4.63 4.28 4.31 4.10
61 4.84 4.43 4.74 4.38 4.38 4.17
62 4.98 4.55 4.85 4.48 4.45 4.25
63 5.12 4.66 4.98 4.59 4.51 4.32
64 5.27 4.79 5.10 4.71 4.58 4.39
65 5.43 4.93 5.24 4.83 4.64 4.47
66 5.61 5.07 5.38 4.95 4.71 4.54
67 5.79 5.23 5.52 5.09 4.77 4.62
68 5.99 5.39 5.68 5.23 4.83 4.69
69 6.20 5.57 5.83 5.38 4.88 4.75
70 6.42 5.78 5.99 5.54 4.93 4.82
71 6.66 5.97 6.16 5.71 4.98 4.88
72 6.92 6.20 6.33 5.88 5.02 4.94
73 7.19 6.44 6.50 6.06 5.06 4.99
74 7.48 6.70 6.68 6.25 5.10 5.04
75 7.79 6.99 6.86 6.44 5.13 5.08
76 8.12 7.30 7.04 6.64 5.16 5.12
77 8.48 7.63 7.22 6.84 5.18 5.15
78 8.86 7.99 7.39 7.05 5.20 5.18
79 9.27 8.38 7.57 7.25 5.22 5.20
80 9.71 8.81 7.74 7.45 5.24 5.22
81 10.18 9.28 7.91 7.65 5.25 5.24
82 10.69 9.78 8.07 7.85 5.26 5.25
83 11.22 10.32 8.22 8.03 5.27 5.26
84 11.79 10.91 8.36 8.20 5.27 5.27
85 12.41 11.55 8.49 8.36 5.28 5.27
86 13.06 12.23 8.62 8.50 5.28 5.28
87 13.75 12.97 8.73 8.64 5.28 5.28
88 14.49 13.75 8.83 8.76 5.28 5.28
89 15.28 14.59 8.93 8.86 5.28 5.28
90 16.11 15.46 9.01 8.95 5.28 5.28
91 17.00 16.38 9.08 9.04 5.29 5.29
92 17.94 17.34 9.15 9.11 5.29 5.29
93 18.94 18.35 9.21 9.17 5.29 5.29
94 20.01 19.39 9.26 9.23 5.29 5.29
95 21.16 20.49 9.30 9.28 5.29 5.29
OPTION 3
JOINT LIFE ANNUITY WITH 100% TO SURVIVOR - MALE AND FEMALE JOINT ANNUITANTS
MALE FEMALE AGE
AGE 55 60 65 70 75 80 85 90 95
---------------------------------------------------------------------------------------------------------------------------
55 3.51 3.68 3.83 3.95 4.04 4.11 4.15 4.17 4.18
60 3.62 3.85 4.07 4.27 4.43 4.54 4.62 4.66 4.69
65 3.71 4.00 4.30 4.60 4.87 5.08 5.23 5.32 5.37
70 3.78 4.11 4.50 4.92 5.34 5.71 5.99 6.18 6.28
75 3.82 4.19 4.65 5.20 5.79 6.38 6.89 7.25 7.47
80 3.85 4.25 4.76 5.41 6.19 7.05 7.87 8.53 8.98
85 3.87 4.28 4.83 5.55 6.49 7.62 8.84 9.95 10.79
90 3.88 4.30 4.87 5.64 6.69 8.06 9.69 11.35 12.75
95 3.88 4.32 4.90 5.70 6.82 8.37 10.36 12.60 14.70
FARMERS NEW WORLD LIFE INSURANCE COMPANY
Contract Specifications
OWNER CONTRACT NUMBER
ANNUITANT ISSUE DATE
ISSUE AGE 48 ANNUITY START DATE
SEX FEMALE MONTHLY DUE DATE 5
VARIABLE ACCOUNT: FARMERS NEW WORLD LIFE VARIABLE ANNUITY SEPARATE ACCOUNT "A"
INITIAL PREMIUM: $12,000.00
MINIMUM SUBSEQUENT $500.00, OR $50.00 FOR PAYMENTS DRAWN BY US
PREMIUM PAYMENT: ON YOUR ACCOUNT VIA PAPER OR ELECTRONIC DEBIT.
CUMULATIVE PREMIUM $1,000,000
LIMIT:
RECORDS MAINTENANCE $30 (OR $0 IF CONTRACT VALUE AT THE TIME THE
CHARGE (ANNUAL): CHARGE IS MADE IS AT LEAST $50,000)
MORTALITY AND EXPENSE RISK 0.95% (ON AN ANNUAL BASIS) OF THE DAILY NET
CHARGE: ASSETS OF THE VARIABLE ACCOUNT.
ADMINISTRATIVE COST 0.20% (ON AN ANNUAL BASIS) OF THE DAILY NET
CHARGE: ASSETS OF THE VARIABLE ACCOUNT.
NO PREMIUM TAXES APPLY TO WASHINGTON CONTRACTS.
2000-398 NONPARTICIPATING INDIVIDUAL FLEXIBLE PREMIUM DEFERRED
VARIABLE ANNUITY. MONTHLY INCOME BEGINS ON ANNUITY
START DATE. DEATH BENEFIT PAYABLE BEFORE ANNUITY
START DATE. ALL PAYMENTS AND VALUES PROVIDED BY THIS
CONTRACT, WHEN BASED ON THE INVESTMENT EXPERIENCE OF
A SUBACCOUNT, ARE VARIABLE AND ARE NOT GUARANTEED.
