[AXA EQUITABLE LOGO]
OWNER: XXXX XXX
ANNUITANT: XXXX XXX
CONTRACT NUMBER: 1234567
CONTRACT DATE: JANUARY 1, 2008
2007EVBASEA
FLEXIBLE PREMIUM FIXED AND VARIABLE DEFERRED ANNUITY CONTRACT
[Processing Office: EQUI-VEST Processing Office, P.O. Box 4956
Syracuse, New York 13221]
This is the entire Contract. This Contract is issued in return for the
application for coverage under this Contract and the Contributions to be made to
us under this Contract. This Contract is non-participating.
In this Contract, "we", "our" and "us" mean AXA Equitable Life Insurance Company
("AXA Equitable"). "You" and "your" mean the Owner.
We will provide the benefits and other rights pursuant to the terms of this
Contract.
TEN DAYS TO EXAMINE CONTRACT - Not later than ten days after you receive this
Contract, you may return it to us. We will cancel it and refund any Contribution
made to us.
AXA EQUITABLE LIFE INSURANCE COMPANY
[0000 XXXXXX XX XXX XXXXXXXX, XXX XXXX, N.Y. 10104]
[
/s/ Xxxxxxxxxxx X. Xxxxxxx /s/ Xxxxx Xxxxx Xxxxx
------------------------------------- ----------------------------------------
Xxxxxxxxxxx X. Xxxxxxx Xxxxx Xxxxx Xxxxx, Vice President,
President and Chief Executive Officer Secretary and Associate General Counsel]
The portion of the Annuity Account Value held in the Variable Separate Account
may increase or decrease in value. The amount of the Annuity Benefit will be
equal to the sum of any Fixed Annuity Benefit and any Variable Annuity Benefit.
The amount of any Variable Annuity Benefit may increase or decrease depending on
the investment experience of the Separate Account.
This Contract consists of the cover page, the succeeding Contract pages, the
Data Pages, an Endorsement containing provisions applicable to the federal
income tax qualification of your Contract or the provisions specific to
Non-Qualified Contracts, and the optional benefit Rider(s) attached and listed
in the Data Pages, which describe any optional benefits you elected. This is the
entire Contract.
TABLE OF CONTENTS
Page
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Part I - DEFINITIONS 3
Part II - INVESTMENT OPTIONS 6
Part III - CONTRIBUTIONS AND ALLOCATIONS 9
Part IV - TRANSFERS AMONG INVESTMENT OPTIONS 10
Part V - WITHDRAWALS AND TERMINATION 11
Part VI - DEATH BENEFITS 12
Part VII - ANNUITY BENEFITS 14
Part VIII - CHARGES 17
Part IX - GENERAL PROVISIONS 19
TABLE OF GUARANTEED ANNUITY PAYMENTS 21
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PART I DEFINITIONS
SECTION 1.01 ANNUITANT
"Annuitant" means the individual named as such in the Data pages, or any
individual who becomes the Annuitant by operation of the terms of this Contract.
The Annuitant is the person upon whose life various features and benefits of the
Contract depend.
SECTION 1.02 ANNUITY ACCOUNT VALUE
"Annuity Account Value" means the sum of the amounts held for you in the
Investment Options.
SECTION 1.03 ANNUITY BENEFIT
"Annuity Benefit" means a benefit payable by us as described in Part VII.
SECTION 1.04 ANNUITY COMMENCEMENT DATE
"Annuity Commencement Date" means the date on which annuity payments are to
commence as described in Section 7.03. Such date is the date shown in the Data
pages and is subject to change as described in Section 7.03.
SECTION 1.05 BENEFICIARY
"Beneficiary means the person or persons entitled under this Contract to receive
any death benefit payable upon the death of the Annuitant.
SECTION 1.06 BUSINESS DAY
Generally a "Business Day" is any day on which the New York Stock Exchange is
open for trading and generally ends at 4:00 p.m. Eastern Time or such other time
as we state in writing to you.
SECTION 1.07 CASH VALUE
"Cash Value" means an amount equal to the Annuity Account Value, less any
charges that apply in accordance with the terms of this Contract.
SECTION 1.08 CODE
"Code" means the Internal Revenue Code of 1986, as now or hereafter amended, or
any corresponding provisions of prior or subsequent United States revenue laws.
References to the "Code" in this Contract include references to applicable
federal income tax regulations.
SECTION 1.09 CONTRACT
"Contract" means this Contract including the Data pages and any Endorsement(s).
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SECTION 1.10 CONTRACT DATE
"Contract Date" means the date specified on the Data pages.
SECTION 1.11 CONTRACT YEAR
"Contract Year" means the twelve month period starting on (i) the Contract Date
and (ii) each anniversary of the Contract Date, unless we agree to another
period.
SECTION 1.12 CONTRIBUTION
"Contribution" means a payment made to us under the Contract. We have the right
not to accept any Contribution that is less than the amount(s) stated in the
Data Pages.
SECTION 1.13 GUARANTEED INTEREST OPTION
"Guaranteed Interest Option" means the Investment Option that pays interest at
guaranteed rates set by us from time to time.
SECTION 1.14 GUARANTEED INTEREST RATE
"Guaranteed Interest Rate" means the effective annual rate(s) at which interest
accrues on amounts allocated to the Guaranteed Interest Option.
SECTION 1.15 INVESTMENT OPTION
"Investment Option" means a Variable Investment Option or the Guaranteed
Interest Option.
SECTION 1.16 OWNER
"Owner" means the person or persons or entity shown as such in the Data pages,
or any person who becomes the Owner by operation of this Contract.
SECTION 1.17 PLAN
"Plan", if applicable, means the annuity program sponsored by the Employer and
as may be defined in an endorsement hereto.
SECTION 1.18 PORTFOLIO
"Portfolio" means a separate class (or Series) of shares of a specified trust or
investment company, where each class (or series) represents a separate portfolio
in the specified trust or investment company.
SECTION 1.19 PRIOR CONTRACT
"Prior Contract" means another contract or certificate issued by us and from
which the Owner and we have agreed to transfer amounts to this Contract.
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SECTION 1.20 PROCESSING DATE
A "Processing Date" is the last Business Day of each Contract Year, or any other
date on which a fee is deducted from the Annuity Account Value in accordance
with Part VIII.
SECTION 1.21 PROCESSING OFFICE
"Processing Office" means the AXA Equitable office shown on the cover page of
this Contract, or such other location we may state upon written notice to you.
We may establish more than one Processing Office. For example, you may be asked
to send Contributions to one location and other transaction requests to a
different location. Contributions and other transaction requests are considered
to be received by us only when they arrive at the appropriate Processing Office.
SECTION 1.22 SEPARATE ACCOUNT
"Separate Account" means any of the Separate Accounts described or referred to
in Section 2.02.
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SECTION 1.23 SUCCESSOR OWNER AND ANNUITANT
"Successor Owner and Annuitant" means the spouse who has been designated as the
beneficiary and who will succeed as the Successor Owner and Annuitant of the
Contract if you die. Your spouse may elect to continue the Contract as the
Successor Owner and Annuitant at your death.
SECTION 1.24 TRANSACTION DATE
The "Transaction Date" is the Business Day we receive at the Processing Office a
Contribution or a transaction request providing the information we need.
Transaction requests must be in a form acceptable to us.
SECTION 1.25 VARIABLE INVESTMENT OPTION
"Variable Investment Option" means either a subaccount of a Variable Separate
Account or a Variable Separate Account that has not been divided into
subaccounts. A Variable Investment Option may invest its assets in a Portfolio.
SECTION 1.26 VARIABLE SEPARATE ACCOUNT
"Variable Separate Account(s)" refers to our Separate Account [A] and any
separate accounts added to this Contract as described in Part II. Variable
Separate Accounts may be divided into subaccounts.
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PART II - INVESTMENT OPTIONS
SECTION 2.01 GUARANTEED INTEREST OPTION
Any amount held in the Guaranteed Interest Option becomes part of our general
account assets, which support the guarantees of the Contract and other policies
and contracts that we offer.
The amount in the Guaranteed Interest Option at any time is equal to:
o all amounts that have been allocated or transferred to the Guaranteed
Interest Option, plus
o the amount of any interest credited, less
o all amounts that have been withdrawn (including any applicable charges) or
transferred from the Guaranteed Interest Option.
We will credit the amount held in the Guaranteed Interest Option with interest
at effective annual rates that we set. We will also set an annual minimum
Guaranteed Interest Rate that will remain in effect throughout a stated
twelve-month period or a calendar year. We credit interest daily to amounts in
the Guaranteed Interest Option. We will also set a minimum Guaranteed Interest
Rate that will be effective for the duration of the Contract.
We guarantee that any rate so determined will never be less than the minimum
Guaranteed Interest Rate specified in the Data Pages.
SECTION 2.02 SEPARATE ACCOUNT
We have established the Separate Account(s) and maintain such Account(s) in
accordance with the laws of New York State. Xxxxxx, realized and unrealized
gains and losses from the assets of a Separate Account are credited to or
charged against it without regard to our other income, gains or losses. Assets
are placed in the Separate Account(s) to support this Contract and other
variable annuity contracts and certificates. Assets may be placed in the
Variable Separate Account(s) for other purposes, but not to support contracts or
policies other than variable annuities and variable life insurance.
The Data pages set forth the Separate Account(s).
The assets of a Separate Account are our property. The portion of such assets
equal to the reserves and other contract liabilities will not be chargeable with
liabilities which arise out of any other business we conduct. We may transfer
assets of a Separate Account in excess of the reserves and other liabilities
with respect to such Account to another Separate Account or to our general
account.
We may, at our discretion, invest Separate Account assets in any investment
permitted by applicable law. We may rely conclusively on the opinion of counsel
(including counsel in our employ) as to what investments we may make as the law
permits.
SECTION 2.03 VARIABLE SEPARATE ACCOUNT ACCUMULATION UNITS AND UNIT VALUES
The amount you have in a Variable Investment Option at any time is equal to the
number of Accumulation Units you have in that Option multiplied by the Option's
Accumulation Unit Value at that
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time. "Accumulation Unit" means a unit which is purchased in a Variable
Investment Option. "Accumulation Unit Value" means the dollar value of each
Accumulation Unit on a given date.
Amounts allocated or transferred to a Variable Investment Option are used to
purchase Accumulation Units of that Option. Accumulation Units are redeemed when
amounts are deducted, transferred or withdrawn.
The number of Accumulation Units you have in a Variable Investment Option at any
time is equal to the number of Accumulation Units purchased minus the number of
Accumulation Units redeemed in that Option up to that time. The number of
Accumulation Units purchased or redeemed in a transaction is equal to the dollar
amount of the transaction divided by the Variable Investment Option's
Accumulation Unit Value for that Transaction Date.
We determine Accumulation Unit Values for each Variable Investment Option for
each Valuation Period. A "Valuation Period" is each Business Day together with
any consecutive preceding non-Business Days. For example, for each Monday which
is a Business Day, the preceding Saturday and Sunday will be included to equal a
three-day Valuation Period.
The Accumulation Unit Value for a Variable Investment Option for any Valuation
Period is equal to the Accumulation Unit Value for that Variable Investment
Option on the immediately preceding Valuation Period multiplied by the Net
Investment Factor for that Variable Investment Option for the current Valuation
Period. The Net Investment Factor for a Valuation Period is (a) divided by (b)
minus (c), where:
(a) is the value of the Portfolio shares held by the Variable Investment
Option at the end of the current Valuation Period, (before taking into
account any amounts allocated to or withdrawn from, the Variable
Investment Option for the Valuation Period, and after deduction of
fees, charges and expenses of the Portfolio, for this purpose, we use
the share value reported to us by the Portfolio plus the applicable
dividend and capital gain rates on the ex-dividend date;
(b) is the value of the Portfolio shares held by the Variable Investment
Option at the end of the preceding Valuation Period, (taking into
account any amounts allocated or withdrawn for that Valuation Period);
(c) is the daily Variable Separate Account charges for the expenses and
risks of the Contract, times the number of calendar days in the
Valuation Period, plus any charge for applicable taxes or amounts set
aside as a reserve for applicable taxes.
SECTION 2.04 AVAILABILITY OF INVESTMENT OPTIONS
Section 3.01 describes how Contributions are allocated among the Investment
Options based on your election. Your election is subject to the following:
(a) If the Contributions are made pursuant to the terms of a Plan, then
the Investment Options available may be subject to the terms of such
Plan, as reported by the Owner.
(b) We have the right to limit the number of Investment Options which you
may elect.
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The Investment Options may consist of Investment Options that are classified as
"Type A" Investment Options or "Type B" Investment Options or any other type
that may be specified in the Data pages.
The Data pages will list which Investment Options are available as of the
Contract Date.
SECTION 2.05 CHANGES WITH RESPECT TO SEPARATE ACCOUNT
We have the right, subject to compliance with applicable law, including approval
of Contract owners if required to:
(a) add Variable Investment Options to or to remove Variable Investment
Options from, the Variable Separate Account or to add other separate
accounts;
(b) combine any two or more Variable Investment Options;
(c) transfer the assets we determine to be the share of the class of
contracts to which the Contract belongs from any Variable Investment
Options to another Variable Investment Option;
(d) operate any Variable Separate Account or any Variable Investment
Option as a management investment company under the Investment Company
Act of 1940, in which case charges and expenses that otherwise would
be assessed against an underlying trust or investment company would be
assessed against the Variable Separate Account;
(e) operate any Variable Separate Account or any Variable Investment
Option as a unit investment trust under the Investment Company Act of
1940;
(f) deregister the Variable Separate Account under the Investment Company
Act of 1940;
(g) restrict or eliminate any voting rights as to the Variable Separate
Account;
(h) cause one or more Variable Investment Options to invest some or all of
their assets in one or more other Portfolios.
If the exercise of these rights results in a material change in the underlying
investment policy of a Variable Separate Account, you will be notified of such
exercise, as required by law.
We reserve the right to add a Variable Investment Option in which (i) there are
periods during which Contributions are restricted, (ii) amounts therein may be
automatically liquidated pursuant to the investment policy of the Variable
Investment Option, and (iii) investments therein may mature. We will have the
right to reallocate amounts arising from liquidation or maturity according to
your allocation instructions then in effect unless you specify other
instructions in accordance with our rules. If no such allocation instructions
have been made, the reallocation will be made to a designated Investment Option,
or to the next established Variable Investment Option of the same type as
described in this paragraph, if applicable, as specified in the Data pages.
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PART III - CONTRIBUTIONS AND ALLOCATIONS
SECTION 3.01 CONTRIBUTIONS, ALLOCATIONS
In order for this Contract to take effect, the Annuitant must be living on the
date we receive the initial Contribution. All Contributions must be paid by a
check made payable to us, and drawn on a United States bank in United States
dollars, or by any other method acceptable to us.
You also elect how to allocate Contributions among the Investment Options. If
you are not the Annuitant, you may delegate to the Annuitant authority to
allocate Contributions. You may change the allocation election at any time by
sending us the proper form. Allocation percentages must be in whole numbers (no
fractions) and must equal 100%.
Each Contribution is allocated (after deduction of any charges that may apply)
in accordance with the allocation election in effect on the Transaction Date.
Contributions made to a Variable Separate Account purchase Accumulation Units in
that Account, using the Accumulation Unit Value for that Transaction Date.
SECTION 3.02 LIMITS ON CONTRIBUTIONS
We have the right not to accept any Contribution which is less than the amount
shown in the Data pages. The Data pages indicate other minimum and maximum
Contribution requirements which may apply. We also have the right, upon advance
notice to you, to:
(a) change such requirements to apply to Contributions made after the date
of such change, and
(b) discontinue acceptance of Contributions under this Contract with
respect to all Owners or with respect to all Owners to whom the
same type of Contract applies.
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PART IV - TRANSFERS AMONG INVESTMENT OPTIONS
SECTION 4.01 TRANSFER REQUESTS
You may request to transfer all or part of the amount held in an Investment
Option to one or more of the other Investment Options. The request must be in a
form we accept. All transfers will be made on the Transaction Date. Transfers
are subject to the terms of Section 4.02 and to our rules in effect at the time
of transfer. With respect to a Variable Separate Account, the transfers will be
made at the Accumulation Unit Value for that Transaction Date.
SECTION 4.02 TRANSFER RULES
The transfer rules which apply are described in the Data pages. A transfer
request will not be accepted if it involves less than the minimum amount, if
any, stated in the Data pages (unless the Annuity Account Value is less than
such amount). We have the right to change our transfer rules. Any change will be
made upon advance notice to you.
The Data pages will specify whether the Investment Options are designated Type A
or Type B or another type as well as the minimum or maximum limits on transfers
which apply.
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PART V - WITHDRAWALS AND TERMINATION
SECTION 5.01 WITHDRAWALS
Unless otherwise stated in the Data pages, you may request, pursuant to our
procedures then in effect, a withdrawal from the Investment Options before the
Annuity Commencement Date and while the Annuitant is alive. The request must be
in a form we accept.
On the Transaction Date, we will pay the amount of the withdrawal requested or,
if less, the Cash Value. The amount to be paid plus any Withdrawal Charge which
applies (see Section 8.01) will be withdrawn on a pro-rata basis from the
amounts held for you in the Variable Investment Options and the Guaranteed
Interest Option, unless you elect otherwise and unless otherwise stated in the
Data pages.
We will not accept a withdrawal request if it involves less than the minimum
amount, if any, stated in the Data pages. Further conditions or restrictions may
apply if stated in the Data Pages.
SECTION 5.02 TERMINATION
We have the right to terminate this Contract if a withdrawal made under the
preceding section results in the Contract having less than the minimum amount
stated in the Data pages. If we terminate the Contract under these
circumstances, we will so advise you and will pay you the Annuity Account Value
as of the Transaction Date of the withdrawal.
We have the right to pay the Cash Value and terminate this Contract before the
Annuity Commencement Date if no Contributions have been made during the last
three completed Contract Years, and the Contract has less than the minimum
amount stated in the Data pages. We also have the right to terminate this
Contract if no Contributions have been made within 120 days of the Contract
Date.
We have the right to terminate the Contract if there is no Annuity Account
Value.
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PART VI - DEATH BENEFITS
SECTION 6.01 DEATH BENEFIT
Upon receipt of due proof that the Annuitant has died before the Annuity
Commencement Date, we will pay a death benefit to the beneficiary named under
Section 6.02. Payment may be subject to the terms of Section 6.02 and any
special rules which may apply as described in any endorsement hereto.
The amount of the death benefit is described in the Data pages.
The death benefit will be paid as an Annuity Benefit or in a single sum, as
described in Section 7.02.
SECTION 6.02 BENEFICIARY
You give us the name of the person who is to receive any death benefit payable
on the Annuitant's death. This person is called the Beneficiary. You may change
the Beneficiary from time to time during the Annuitant's lifetime and while
coverage under the Contract is in force. Any such change must be made in writing
in a form we accept. A change will, upon receipt at the Processing Office, take
effect as of the date the written form is executed, whether or not you are
living on the date of receipt. We will not be liable as to any payments we made
before we receive any such change.
You may name one or more persons to be primary Beneficiary on the Annuitant's
death and one or more other persons to be successor Beneficiary if the primary
Beneficiary dies before the Annuitant. Unless you direct otherwise, if you have
named two or more persons as Beneficiary, the Beneficiary will be the named
person or persons who survive the Annuitant and payments will be made to such
persons in equal shares or to the survivor.
Any part of a death benefit payable as described in Section 6.01 for which there
is no named Beneficiary living at the Annuitant's death will be payable in a
single sum to your surviving spouse, if any; if there is no surviving spouse,
then to the children who survive you, in equal shares; if there are no children,
then to your estate.
When a beneficiary is named it is subject to the terms of the Plan, if one
applies, including any terms requiring spousal consent.
SECTION 6.03 MANNER OF PAYMENT
If you so elect in writing, any amount that would otherwise be payable to a
Beneficiary in a single sum may be applied to provide an Annuity Benefit, on the
form of annuity elected by you, subject to our rules then in effect. If at the
Annuitant's death there is no election in effect, the Beneficiary may make such
an election. In the absence of any election by either you or the Beneficiary, we
will pay the death benefit in a single sum.
SECTION 6.04 SPECIAL RULES FOR SUCCESSOR OWNER AND ANNUITANT
The surviving spouse of a deceased Owner Xxxxxxxxx, who has elected to continue
this Contract as the Successor Owner and Annuitant, must select a new Annuity
Commencement Date if the existing Annuity Commencement Date no longer complies
with the terms of this Contract when based on the age of the Successor Owner and
Annuitant.
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If your surviving spouse decides to continue the Contract, then as of the date
we receive satisfactory proof of death, any required instructions, information
and forms necessary to effect the Successor Owner and Annuitant feature, we will
increase the Annuity Account Value to equal your minimum death benefit if such
death benefit is greater than such Annuity Account Value. The increase in the
Annuity Account Value will be allocated to the Investment Options according to
the allocation percentages we have on file for your Contract. Thereafter,
withdrawal charges will no longer apply to Contributions made before your death.
Withdrawal charges will apply if additional Contributions are made. These
additional Contributions will be withdrawn only after all other amounts have
been withdrawn. The minimum death benefit will continue to apply.
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PART VII ANNUITY BENEFITS
SECTION 7.01 ANNUITY BENEFIT
Payments under an Annuity Benefit will be made monthly. You may elect instead to
have the Annuity Benefit paid at other intervals, such as every three months,
six months, or twelve months, instead of monthly, subject to our rules at the
time of your election or as otherwise stated in the Data pages or any
Endorsement hereto. This election may be made at the time the Annuity Benefit
form as described in Section 7.02 is elected. In that event, all references in
this Contract to monthly payments will, with respect to the Annuity Benefit to
which the election applies be deemed to mean payments at the frequency elected.
SECTION 7.02 ELECTION OF ANNUITY BENEFITS
As of the Annuity Commencement Date, provided the Annuitant is then living, the
Annuity Account Value will be applied to provide the Normal Form of Annuity
Benefit (described below). However, you may instead elect (i) to have the Cash
Value paid in a single sum, (ii) to apply the Annuity Account Value or Cash
Value, whichever applies pursuant to the first paragraph of Section 7.05, to
provide an Annuity Benefit of any form offered by us or one of our subsidiary
life insurance companies, or (iii) to apply the Cash Value to provide any other
form of benefit payment we offer subject to applicable laws and regulations. At
the time an Annuity Benefit is purchased, we will issue a supplementary contract
which reflects the Annuity Benefit terms. We will permit you to surrender this
Contract at or before commencement of any annuity payment.
We will provide notice and election forms to you not more than six months before
the Annuity Commencement Date.
We will have the right to require you to furnish any information we need to
provide an Annuity Benefit. We will be fully protected in relying on such
information and need not inquire as to its accuracy or completeness.
SECTION 7.03 COMMENCEMENT OF ANNUITY BENEFITS
Before the Annuity Commencement Date, you may elect to change such Date to any
date after your election is filed (other than the 29th, 30th, or 31st of any
month). You must do this in writing in a form acceptable to us. The change will
not take effect until your written election is received and accepted by us at
our Processing Office.
However, no Annuity Commencement Date will be later than the first day of the
month which follows the date the Annuitant attains the "maximum maturity age".
The current maximum maturity age is shown in the Data pages, but may be changed
by us in conformance with applicable law.
SECTION 7.04 ANNUITY BENEFIT FORMS
The "Normal Form" of Annuity Benefit is an Annuity Benefit payable on the
Life-Ten Year Period Certain Annuity Form described below, unless another Form
is to apply pursuant to the terms of the Plan, if applicable, the requirements
of the Employee Retirement Income Security Act of 1974 (ERISA), as amended, or
any other law that applies. The Data pages will state the Normal Form which
applies.
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We may offer other annuity forms as available from us or from one of our
subsidiary life insurance companies.
The Life-Period Certain Annuity is an annuity payable during the lifetime of the
person upon whose life the payments depend, but with 10 years of payments
guaranteed (10 years certain period). That is, if the person on whose life
payments depend dies before the certain period has ended, payments will continue
to the beneficiary named to receive such payments for the balance of the certain
period. In no event will the certain period exceed the life expectancy of the
person on whose life the annuity payments depend.
SECTION 7.05 AMOUNT OF ANNUITY BENEFITS
If you elect pursuant to Section 7.02 to have an Annuity Benefit paid in lieu of
the Cash Value, the amount applied to provide the Annuity Benefit will, unless
otherwise stated in the Data pages or required by applicable laws or
regulations, be (i) the Annuity Account Value if the annuity form elected
provides payments for a person's remaining lifetime or (ii) the Cash Value if
the annuity form elected does not provide such lifetime payments.
The amount applied to provide an Annuity Benefit may be reduced by a charge for
any taxes applicable to the state of residence which applies on annuity purchase
payments. If we have previously deducted charges for such applicable taxes from
Contributions, we will not again deduct charges for the same taxes before an
Annuity Benefit is provided. The balance will be used to purchase the Annuity
Benefit on the basis of either (i) the Tables of Guaranteed Annuity Payments or
(ii) our then current individual annuity rates, whichever rates would provide a
larger benefit with respect to the payee.
SECTION 7.06 CONDITIONS
We may require proof acceptable to us that the person on whose life a benefit
payment is based is alive when each payment is due. We will require proof of the
age of any such person on whose life an Xxxxxxx Xxxxxxx is based.
If a benefit was based on information that is later found not to be correct,
such benefit will be adjusted on the basis of the correct information. The
adjustment will be made in the number or amount of the benefit payments, or any
amount used to provide the benefit, or any combination. Overpayments by us will
be charged against future payments. Underpayments will be added to future
payments. Our liability is limited to the correct information and the actual
amounts used to provide the benefits.
If the age (or sex, if applicable as stated in the Tables of Guaranteed Annuity
Payments) of any person upon whose life an Annuity Benefit depends has been
misstated, any benefits will be those which would have been purchased at the
correct age (or sex). Any overpayments or underpayments made by us will be
charged or credited with interest at (a) the rate shown in the Data pages or (b)
the then current Guaranteed Interest Rate; we will choose which rate will apply
on a uniform basis for like Contracts. Such interest will be deducted from or
added to future payments.
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If we receive acceptable proof that (i) a payee entitled to receive any payment
under the terms of this Contract is physically or mentally incompetent to
receive such payment or a minor, (ii) another person or an institution is then
maintaining or has custody of such payee, and (iii) no guardian, committee, or
other representative of the estate of such payee has been appointed, we may make
the payments to such other person or institution. In the case of a minor, the
payments will not exceed $200, or such other amount as may be shown in the Data
pages. We will have no further liability with respect to the payments so made.
If the amount to be applied hereunder is less than the minimum amount stated in
the Data pages, we may pay the amount to the payee in a single sum instead of
applying it under the annuity form elected.
SECTION 7.07 CHANGES
We have the right, upon advance notice to you, to change at any time after the
fifth anniversary of the Contract Date and at intervals of not less than five
years, the actuarial basis used in the Tables of Guaranteed Annuity Payments.
However, no such change will apply to any Annuity Benefit provided before the
change.
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PART VIII - CHARGES
SECTION 8.01 WITHDRAWAL CHARGES
A withdrawal charge will be imposed as a percentage of each Contribution made to
the extent that a withdrawal exceeds the Free Corridor Amount described below,
or if the Contract is surrendered to receive the Cash Value. Transfers of
Annuity Account Value or Cash Value to a third party are withdrawals subject to
a withdrawal charge. We determine the withdrawal charge separately for each
Contribution based on the percentages set forth in the Data Pages.
"Free Corridor Amount" equals a percentage of the Annuity Account Value set
forth in the Data pages, minus the total of all prior withdrawals (and
associated withdrawal charges) made in the current Contract Year. We have the
right to increase or decrease the Free Corridor Amount, but it will be a
percentage between 0% and 30% as stated in the Data pages.
If the amount of a withdrawal is more than the Free Corridor Amount (defined
above) we will (a) first withdraw from the Investment Options in accordance with
your instructions, or on a pro-rata basis from the Investment Option(s) if no
instructions are given, an amount equal to the Free Corridor Amount, and (b)
then withdraw from the Investment Options an amount equal to the excess of the
amount requested over the Free Corridor Amount, plus a withdrawal charge if one
applies. Withdrawal charges will be deducted from the Investment Options from
which each withdrawal is made in proportion to the amount being withdrawn from
each Investment Option. Any amount deducted to pay withdrawal charges is also
subject to a withdrawal charge.
For purposes of this Section, amounts withdrawn up to the Free Corridor Amount
will not be deemed a withdrawal of any Contributions. Withdrawals in excess of
the Free Corridor Amount will be deemed withdrawals of Contributions in the
order in which they were made (that is, on a first-in, first-out basis). We have
the right to carry forward the Free Corridor Amount into a future Contract Year,
if not used in any Contract Year, if so stated in the Data pages.
We have the right to change the withdrawal charge described in this section for
future Contributions, subject to any maximum stated in the Data pages. We will
give you advance notification of any change. The withdrawal charge may be
reduced or waived as described in the Data pages, or as necessary in order to
comply with any applicable state or federal law or regulation.
SECTION 8.02 ADMINISTRATIVE AND OTHER CHARGES DEDUCTED FROM ANNUITY ACCOUNT
VALUE
As of each Processing Date, we will deduct Administrative Charges or other
Charges related to the administration and/or distribution of this Contract from
the Annuity Account Value. Such Charges are shown in the Data pages.
If specified in the Data pages, the Charges will be deducted in full or prorated
for the Contract Year, or portion thereof, in which the Contract Date occurs or
in which the Annuity Account Value is withdrawn or applied to provide an Annuity
Benefit or death benefit. If so, the Charges will be deducted when withdrawn or
so applied.
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The amount of any such Charge will in no event exceed any maximum amount shown
in the Data pages, subject to any maximum amount permitted under any applicable
law.
We have the right to change the amount of the Charges with respect to future
Contributions. We will give you advance notice of any such change.
SECTION 8.03 TRANSFER CHARGES
We have the right to impose a charge with respect to any transfer among
Investment Options after the number of free transfers, shown in the Data pages,
made on behalf of the Annuitant. The amount of such charge will be set forth in
a notice from us to you and will in no event exceed any maximum amount stated in
the Data pages.
SECTION 8.04 VARIABLE SEPARATE ACCOUNT CHARGE
Assets of the Variable Separate Account will be subject to a daily asset charge
if so stated in the Data pages. This daily asset charge may be for mortality
risk, administrative, distribution or other expenses and expense risk that we
assume. The amount of the charge will be set forth in the Data pages. We have
the right to increase or decrease this charge, but the charge will never exceed
the maximum annual rate stated in the Data pages. The charge will be made on a
daily basis as described under clause (c) in the Section called "Variable
Separate Account Accumulation Units and Unit Values".
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PART IX - GENERAL PROVISIONS
SECTION 9.01 CONTRACT
This Contract and any Endorsements and any Riders constitute the entire contract
between the parties. It will govern with respect to our rights and obligations.
The Contract may not be changed, nor may any of our rights or rules be waived,
except in writing and by our authorized officer. In addition to the rights of
change reserved by us as provided in this Contract, this Contract may be changed
by amendment or replacement upon agreement between the Owner and us without the
consent of any other person as long as any such change does not reduce any
Annuity Benefit provided before such change and provided that no rights,
privileges or benefits under the Contract with respect to Contributions made
hereunder prior to the effective date of such change may be adversely affected
by an amendment without the consent of the Owner.
SECTION 9.02 STATUTORY COMPLIANCE
We have the right to change this Contract without the consent of any other
person in order to comply with any laws and regulations that apply. Such right
will include, but not be limited to, the right to conform this Contract to
reflect changes in the Code, in Treasury regulations or published rulings of the
Internal Revenue Service, Employee Retirement Income Security Act, and in
Department of Labor regulations.
The benefits and values available under this Contract will not be less than the
minimum benefits required by any state law that applies.
SECTION 9.03 DEFERMENT
The use of proceeds to provide a payment of a death benefit and payment of any
portion of the Annuity Account Value (less any Withdrawal Charge that applies)
will be made within seven days after the Transaction Date. Payments or use of
proceeds from the Variable Investment Options can be deferred for any period
during which (1) the New York Stock Exchange is closed or trading is restricted,
(2) sales of securities or determination of the fair value of a Variable
Investment Option's assets is not reasonably practicable because of an
emergency, or (3) the Securities and Exchange Commission, by order, permits us
to defer payment in order to protect persons with interests in the Variable
Investment Options. We can defer payment or transfer of any portion of the
Annuity Account Value in the Guaranteed Interest Option for up to six months
while you are living.
SECTION 9.04 REPORTS AND NOTICES
At least once each year until the Annuity Commencement Date, we will send you a
report showing:
(a) the total number of Accumulation Units in each Variable Investment
Option;
(b) the Accumulation Unit Value;
(c) the Annuity Account Value in the Guaranteed Interest Option and each
Variable Investment Option;
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(d) the Cash Value; and
(h) the amount of the death benefit
The terms which require us to send you a report as described above or any
written notice as described in any other Section will be satisfied by our
mailing any such report or notice to your last known address. The report will
provide the status of the Contract as of a date not more than four months
previous to the date of mailing.
All written notices sent to us will not be effective until received at the
Processing Office. Your Contract Number should be included in all
correspondence.
SECTION 9.05 ASSIGNMENTS, NONTRANSFERABILITY, NONFORFEITABILITY
Your rights under this Contract may be assigned before the Annuity Commencement
Date for any purpose other than as collateral or security for a loan either
directly or indirectly. We will not be bound by any assignment unless we have
received it and it is in writing. Your rights and those of any other person
referred to in this Contract will be subject to the assignment. We assume no
responsibility for the validity of any assignment. Other restrictions may apply
if stated in any Endorsement hereto.
SECTION 9.06 MANNER OF PAYMENT
We will pay all amounts hereunder by check (drawn on a United States bank in
United States dollars), and we will mail the check using the United States
Postal Service, unless we agree to transmit the funds in another form.
SECTION 9.07 HOW TO COMMUNICATE WITH US
All transaction requests and other notices to us must be in writing in a form
satisfactory to us, and delivered by U.S. mail to our Processing Office, except
to the extent we agree, by advance written notification to you, to receive such
requests or notices in another manner. We may choose to change a previously
accepted manner of communication at our discretion. Transaction requests or
other communications sent to us will not be effective until received at the
Processing Office. Your Contract Number should be included in all
correspondence.
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TABLE OF GUARANTEED ANNUITY PAYMENTS
AMOUNT OF ANNUITY BENEFIT PAYABLE MONTHLY ON THE LIFE ANNUITY FORM WITH
TEN *YEARS CERTAIN PROVIDED BY APPLICATION OF $1,000.
Monthly Income Monthly Income
Ages Males Females Age Males Females
---- ----- ------- --- ----- -------
60 3.69 3.43 78 5.31 4.86
61 3.76 3.48 79 5.43 4.97
62 3.82 3.54 80 5.55 5.10
63 3.89 3.59 81 5.76 5.26
64 3.96 3.65 82 5.97 5.44
65 4.03 3.72 83 6.20 5.64
66 4.11 3.78 84 6.45 5.84
67 4.19 3.85 85 6.71 6.06
68 4.27 3.92 86 6.98 6.29
69 4.36 4.00 87 7.26 6.52
70 4.45 4.08 88 7.56 6.77
71 4.55 4.16 89 7.85 7.02
72 4.64 4.25 90 8.14 7.27
73 4.75 4.34 91 8.43 7.53
74 4.85 4.43 92 8.74 7.79
75 4.96 4.53 93 9.07 8.07
76 5.07 4.64 94 9.43 8.37
77 5.19 4.75 95 9.80 8.69
* At age 80 and over the rates are adjusted so that the certain period does not
exceed life expectancy. See Data Pages for Period Certain tables for ages 80 and
older.
The amount of income provided under an Annuity Benefit payable on the Life
Annuity Form with Ten Years Certain is based on 2.5% interest and mortality
equal to 70% for males and 75% for females of the Annuity 2000 Mortality Table
projected at 1% for males and 1.35% for females for a number of years equal to
attained age minus 20, but not less than 30.
Amounts required for ages or for annuity forms not shown in the above Table or
for other annuity forms will be calculated by us on the same actuarial basis.
If a variable annuity form is available from us and elected pursuant to Section
7.01, then the amounts required will be calculated by us based on the 1983
Individual Annuity Mortality Table "a" projected with modified Scale "G" and a
modified two year age setback and on an Assumed Base Rate of Net Investment
Return of 5.0%.
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