A Stock Company
(Herein Called the Company)
This is a legal Contract between you (referred to in this Contract as you and
your) and Preferred Life Insurance Company of New York (herein referred to as
- we, us, and our). We will pay benefits to you, the Annuitant or Joint
Annuitant, if any, if either of you are living on the Income Date. The manner
in which the dollar amounts of annuity payments are determined is described in
this Contract. The First annuity payment will be paid on the Income Date and
subsequent payments will be made on the corresponding day of each month (or
other agreed to intervals) thereafter in accordance with the Annuity Option
selected.
This Contract is issued in consideration of the payment of the Single Purchase
Payment.
READ YOUR CONTRACT CAREFULLY
RIGHT TO CANCEL THIS CONTRACT
THIS CONTRACT MAY BE RETURNED WITHIN 10 DAYS AFTER YOU RECEIVE IT (THE
"FREE-LOOK PERIOD"). IT CAN BE MAILED OR DELIVERED TO EITHER US OR THE AGENT
WHO SOLD IT. RETURN OF THIS CONTRACT BY MAIL IS EFFECTIVE ON BEING POSTMARKED,
PROPERLY ADDRESSED AND POSTAGE PRE-PAID. WE WILL PROMPTLY REFUND THE NET
AMOUNT ALLOCATED TO THE VARIABLE ACCOUNT MODIFIED FOR INVESTMENT EXPERIENCE,
IN STATES WHERE PERMITTED, PLUS ANY TAXES DEDUCTED LESS ANY BENEFITS PAID.
THIS MAY BE MORE OR LESS THAN THE SINGLE PURCHASE PAYMENT. WE HAVE THE RIGHT
TO ALLOCATE THE SINGLE PURCHASE PAYMENT TO THE MONEY MARKET SUB-ACCOUNT UNTIL
THE EXPIRATION OF THE FREE-LOOK PERIOD. IF WE SO ALLOCATE THE PURCHASE
PAYMENT, WE WILL REFUND THE SINGLE PURCHASE PAYMENT, LESS ANY BENEFITS PAID.
THIS IS A VARIABLE ANNUITY CONTRACT WITH ANNUITY PAYMENTS AND OTHER ANNUITY
BENEFITS INCREASING OR DECREASING DEPENDING ON THE EXPERIENCE OF THE VARIABLE
ACCOUNT WHICH IS SET FORTH IN THE CONTRACT SCHEDULE.
Signed by the Company:
INDIVIDUAL IMMEDIATE VARIABLE ANNUITY
NONPARTICIPATING
Annuity Payments will not decrease as long as the investment return of the
variable account assets equals or exceeds the Assumed Investment Return plus
1.25% plus the Administrative Expense Charge on an annual basis. Variable
Account expenses consist of a mortality and expense risk charge and an
administrative charge. These are shown on the Contract Schedule page.
The Variable provisions can be located on pages 4, 5, 6, & 7 of this Contract.
TABLE OF CONTENTS
RIGHT TO CANCEL THIS CONTRACT
CONTRACT SCHEDULE
INTRODUCTION
DEFINITIONS
Age
Annuitant
Annuity Calculation Date
Annuity Option
Annuity Unit
Assumed Investment Return
Contract Anniversary
Contract Owner
Contract Value
Effective Date
Eligible Investment(s)
Fund
Income Date
Joint Annuitant
Net Asset Value
Valuation Date
Valuation Period
Variable Account
VIP Unit
GENERAL PROVISIONS
The Contract
Modification of Contract
Non-Participating in Surplus
Incontestability
Misstatement of Age
Reports
Taxes
Evidence of Survival
Protection of Proceeds
OWNERSHIP PROVISIONS
Ownership
Assignment
BENEFICIARY PROVISIONS
Beneficiary
Change of Beneficiary
Death of Beneficiary
PURCHASE PAYMENT PROVISIONS
Single Purchase Payment
Net Purchase Payment
Allocation of Net Purchase Payment
VARIABLE ACCOUNT
General Description
Investment Allocations to the Variable Account
Valuation of Assets
VIP Unit
Contract Value
Transfers
Mortality and Expense Risk Charge
Administrative Expense Charge
Mortality and Expense Guarantee
ANNUITY PROVISIONS
Income Date
Annuity Options
Option 1 - Life Annuity
Option 2 - Life Annuity with 60, 120, 180, or 240 Monthly Payments Guaranteed
Option 3 - Joint and Last Survivor Annuity
Option 4 - Joint and Last Survivor Annuity with 60, 120, 180, or 240 Monthly
Payments Guaranteed
Option 5 - Unit Refund Life Annuity
Determination of Annuity Payments
Basis for Purchase of Annuity
PROCEEDS PAYABLE ON DEATH
DELAY OF PAYMENTS
CONTRACT SCHEDULE
ANNUITANT: (XXX XXX) SINGLE PURCHASE PAYMENT: ($50,000)
DATE OF BIRTH:(JANUARY 1, 1941)
JOINT ANNUITANT: (XXXX XXX) ANNUITY OPTION SELECTED: ( )
DATE OF BIRTH: (JANUARY 1, 1940)
CONTRACT NUMBER: (********)
EFFECTIVE DATE: (12/20/1993)
INCOME DATE: (1/15/1994)
MORTALITY AND EXPENSE RISK CHARGE: Equal on an annual basis
to 1.25% of the average daily net assets of the Variable Account.
ADMINISTRATIVE EXPENSE CHARGE: Equal on an annual basis to .15%
of the average daily net assets of the Variable Account.
BASIS OF ANNUITY TABLE: (1983(a) Blended Unisex Mortality Table,
with 50% female content projected to the year 2000 with Projection
Scale G.)
ASSUMED INVESTMENT RETURN: (5%)
ELIGIBLE INVESTMENTS: The Franklin Valuemark Funds
(- CAPITAL GROWTH FUND) (- XXXXXXXXX DEVELOPING MARKETS EQUITY FUND)
(- GROWTH & INCOME FUND) (- TEMPLETON GLOBAL ASSET ALLOCATION FUND)
(- INCOME SECURITIES FUND) (- XXXXXXXXX GLOBAL GROWTH FUND)
(- MONEY MARKET FUND) (- TEMPLETON INTERNATIONAL EQUITY FUND)
(- RISING DIVIDENDS FUND) (- TEMPLETON INTERNATIONAL SMALLER COMPANIES FUND)
(- SMALL CAP FUND) (- TEMPLETON PACIFIC GROWTH FUND)
(- UTILITY EQUITY FUND)
VARIABLE ACCOUNT: (Preferred Life Variable Account C)
INCOME ANNUITY SERVICE OFFICE:
Preferred Life Insurance Company of New York
(700 Central Avenue)
(St. Petersburg, FL 33701)
((000) 000-0000)
FOR USE WITH (PREFERRED LIFE VARIABLE ACCOUNT C)
A SEPARATE INVESTMENT ACCOUNT OF
PREFERRED LIFE INSURANCE COMPANY OF NEW YORK
INTRODUCTION
THIS CONTRACT IS ISSUED ON THE LIFE OF THE ANNUITANT AND THE JOINT ANNUITANT,
IF ANY. THE ANNUITANT IS ALSO THE CONTRACT OWNER.
IF YOU DIE BEFORE THE INCOME DATE AND THERE IS NO JOINT ANNUITANT, THE
CONTRACT WILL BE TREATED AS IF WE HAD NEVER ISSUED IT AND WE WILL RETURN THE
SINGLE PURCHASE PAYMENT TO YOUR ESTATE.
DEFINITIONS
AGE - Age to the nearest month unless otherwise specified.
ANNUITANT - The primary person upon whose continuation of life any annuity
payment involving life contingencies depends. The Contract Owner is the
Annuitant. See also, Joint Annuitant.
ANNUITY CALCULATION DATE - The date on which the first annuity payment is
calculated which will be no more than 10 business days prior to the Income
Date.
ANNUITY OPTION - An arrangement under which annuity payments are made under
this Contract.
ANNUITY UNIT - An accounting unit of measure used to calculate annuity
payments after the Annuity Calculation Date.
ASSUMED INVESTMENT RETURN - The investment return upon which the initial
annuity payment is based.
CONTRACT ANNIVERSARY - An anniversary of the Effective Date of this Contract.
CONTRACT OWNER - The person who owns the Contract as named in our records.
The Annuitant is the Contract Owner of this Contract.
CONTRACT VALUE - The dollar value as of any Valuation Date prior to the
Annuity Calculation Date of all amounts accumulated under this Contract.
EFFECTIVE DATE - The date on which the Net Purchase Payment is allocated to
the Variable Account.
ELIGIBLE INVESTMENT(S) - Those investments available under the Contract.
Current Eligible Investments are shown on the Contract Schedule.
FUND - A segment of an Eligible Investment which constitutes a separate and
distinct class of interests under an Eligible Investment.
INCOME DATE - The date on which annuity payments are to begin.
JOINT ANNUITANT - A person other than the Annuitant on whose life annuity
payments may also be based.
NET ASSET VALUE - The total value of the shares of the Eligible Investment or
Fund less the liabilities of the Eligible Investment or Fund held by the
sub-account, as of the close of trading on a Valuation Date.
VALUATION DATE - The Variable Account will be valued each day that the New
York Stock Exchange is open for trading.
VALUATION PERIOD - The period beginning at the close of business of the New
York Stock Exchange on each Valuation Date and ending at the close of business
for the next succeeding Valuation Date.
VARIABLE ACCOUNT - A separate investment account maintained by us in which a
portion of our assets has been allocated for this and certain other contracts.
It has been designated on the Contract
Schedule.
VIP UNIT - An accounting unit of measure used to calculate the Contract Value
prior to the Annuity Calculation Date.
GENERAL PROVISIONS
THE CONTRACT - The entire Contract consists of this Contract, and any attached
application, endorsements or riders. This Contract may be changed or altered
only by our President or Secretary.
Any change, modification or waiver must be made in writing.
MODIFICATION OF CONTRACT: This Contract may not be modified by us without
your consent except as may be required by applicable law.
NON-PARTICIPATION IN SURPLUS - This Contract does not share in any
distribution of our profits or surplus.
INCONTESTABILITY - We will not contest this Contract from its Effective Date.
MISSTATEMENT OF AGE - We require proof of your Age and that of any Joint
Annuitant before making any life contingent annuity payment provided for by
this Contract. If your Age or that of any Joint Annuitant has been misstated,
the amount payable will be adjusted to reflect the amount that would have been
provided at the true Age.
Any underpayments plus a percent interest equal to the assumed investment
return will be made up in one sum with the next annuity payment, and
overpayments will be deducted from the future annuity payments until the total
is repaid.
REPORTS - We will furnish you with a semi-annual and an annual report of the
Variable Account. This report will be sent to your last known address.
TAXES - Any Taxes paid to any governmental entity, including any premium
taxes, will be charged against the Contract. We will, at our sole discretion,
determine when Taxes have resulted from: the
investment experience of the Variable Account; receipt by us of the Single
Purchase Payment; or commencement of annuity payments.
EVIDENCE OF SURVIVAL - Where any benefits under this Contract are contingent
upon the recipient being alive on a given date, we may require proof
satisfactory to us that the condition has been met.
PROTECTION OF PROCEEDS - No payee may commute, encumber, alienate or assign
any payments under this Contract before they are due. To the extent permitted
by law, no payments will be subject to the debts, contracts or engagements of
any payee or to any judicial process to levy upon or attach the same for
payment thereof.
OWNERSHIP PROVISIONS
OWNERSHIP - The Annuitant is the Contract Owner. The Contract Owner exercises
all the rights of this Contract, subject to the rights of:
1. any assignee under an assignment filed with our Service Office, and
2. any irrevocably named Beneficiary.
Upon your death, the Joint Annuitant, if any, will become the Owner. On or
after the Income Date, if there is no Joint Annuitant or upon the death of the
Joint Annuitant, the Beneficiary(ies) become the Owner(s) of their respective
shares.
ASSIGNMENT - You may assign this Contract. A copy of any assignment must be
filed with our Service Office. We are not responsible for the validity of any
assignment. If you assign this Contract, your rights and those of any
revocably-named person will be subject to the assignment. An assignment will
not affect any payments we may make or actions we may take before such
assignment has been recorded at our Service Office.
BENEFICIARY PROVISIONS
BENEFICIARY - The Beneficiary and any Contingent Beneficiary are named by the
Contract Owner.
CHANGE OF BENEFICIARY - The Contract Owner may change the Beneficiary. A
written request, dated and signed by the Contract Owner, must be filed at our
Service Office. After the change is recorded, it will take effect as of the
date the request was signed. If the request reaches our Service Office after
the Contract Owner dies but before any payment to a Beneficiary, the change
will be valid.
DEATH OF BENEFICIARY - Unless you have provided otherwise, any amount payable
after your death and that of any Joint Annuitant will be payable;
1. in respective shares to such Beneficiaries as are then living;
2. if no Beneficiary is then living, payment will be made in respective
shares to such Contingent Beneficiaries as are then living;
3. if no Beneficiary or Contingent Beneficiary is then living, payment
will be made to the Contract Owner's estate.
PURCHASE PAYMENT PROVISIONS
SINGLE PURCHASE PAYMENT - The Single Purchase Payment is paid to the Company
at its Annuity Service Office.
NET PURCHASE PAYMENT - The Net Purchase Payment is equal to the Single
Purchase Payment less any Taxes levied.
ALLOCATION OF NET PURCHASE PAYMENT - The Net Purchase Payment is allocated to
one or more of the sub-accounts of the Variable Account on the Effective Date.
The allocation to each sub-account is made in percentages of the Net Purchase
Payment. Whole percentages must be used and each must be at least 10%. We have
the right to allocate the Net Purchase Payment to the Money Market sub-account
until the expiration of the free-look period. Thereafter, the allocations will
be made to the sub-accounts as selected by the Contract Owner. We reserve the
right to limit the number of allocations that you can have at any time.
VARIABLE ACCOUNT
GENERAL DESCRIPTION - The name of the Variable Account is shown in the
Contract Schedule. The assets of the Variable Account are our property but are
not chargeable with the liabilities arising out of any other business we may
conduct, except to the extent that the assets of the Variable Account exceed
the liabilities of the Variable Account arising under the Contracts supported
by the Variable Account.
INVESTMENT ALLOCATIONS TO THE VARIABLE ACCOUNT - The assets of the Variable
Account are segregated by Eligible Investments or Funds and where appropriate
by Funds within the Eligible Fund, thus establishing a series of sub-accounts
within the Variable Account.
We may, from time to time, add additional Eligible Investments or Funds. In
such event, you may be permitted to select from these other Eligible
Investments or Funds limited by the terms and conditions we may impose on such
transactions.
We may also substitute other Eligible Investments or Funds. The investment
policy of the Variable Account will not be changed without approval pursuant
to the insurance laws of the State of New York.
VALUATION OF ASSETS - Assets of Eligible Investments within each sub-account
will be valued at their Net Asset Value on each Valuation Date.
VIP UNIT - When the Net Purchase Payment is allocated, the amount
allocated to each sub-account is converted to VIP Units. The number of VIP
Units credited to each sub-account is determined by dividing the portion of
the Net Purchase Payment allocated to the sub-account by the value of the VIP
Unit for the sub-account as of the Effective Date. The VIP Unit value for each
sub-account was initially set arbitrarily. The VIP Unit value for any later
Valuation Period on or before the Annuity Calculation Date is determined by
subtracting (2) from (1) and dividing the result by (3) where:
1. is the net result of:
a. the assets of the sub-account attributable to VIP Units; plus or
minus
b. the cumulative charge or credit for Taxes reserved which is
determined by us to have resulted from the operation of the
sub-account;
2. is the cumulative unpaid charge for the Mortality and Expense Risk
Charge and for the Administrative Expense Charge, which are shown on the
Contract Schedule; and
3. is the number of VIP Units outstanding at the end of the Valuation
Period.
The VIP Unit value may increase or decrease from Valuation Period to Valuation
Period.
CONTRACT VALUE - The Contract Value on or before the Annuity Calculation Date
is the sum of the values for the Contract within each sub-account. The value
within each sub-account is determined by multiplying the number of VIP Units
attributable to this Contract in the sub-account by the VIP Unit value for the
sub-account. On the Annuity Calculation Date the Contract Value is converted
to annuity payments. After the Annuity Calculation Date, there is no Contract
Value.
TRANSFERS - You may transfer all or part of your interest in a sub-account to
another sub-account. All transfers are subject to the following:
1. No partial transfer will be made if it would result in any selected
sub-account providing less than 10% of the benefits under the Contract.
2. Transfers will take effect during the Valuation Period next following
receipt by us of a written transfer request containing all required
information. No transfers may occur until the end of the free-look
period.
3. Any transfer direction must clearly specify:
a. the new allocation percentage(s); and
b. the sub-accounts which are to be re-allocated.
4. We reserve the right to limit the number of transfers among
sub-accounts to not fewer than six transfers per calendar year.
We also reserve the right at any time and without prior notice to any
party to modify the transfer provisions described above.
MORTALITY AND EXPENSE RISK CHARGE - We deduct a Mortality and Expense Risk
Charge equal, on an annual basis, to the amount shown on the Contract
Schedule. The Mortality and Expense Risk Charge compensates us for assuming
the mortality and expense risks under this Contract.
ADMINISTRATIVE EXPENSE CHARGE - We deduct an Administrative Expense Charge
equal, on an annual basis, to the amount shown on the Contract Schedule. The
Administrative Expense Charge compensates us for some of the costs associated
with the administration of this Contract and the Variable Account.
MORTALITY AND EXPENSE GUARANTEE - We guarantee that the dollar amount of each
annuity payment after the first will not be affected by variations in
mortality or expense experience.
ANNUITY PROVISIONS
INCOME DATE - You select an Income Date at the time of issue. The Income Date
must be the first or fifteenth day of a calendar month and not later than 60
days from the Effective Date.
ANNUITY OPTIONS - This Contract provides an Annuity under one of the Annuity
Options described below, provided the Annuitant or any Joint Annuitant are
alive on the Income Date. The Annuity Option selected is shown on the Contract
Schedule. Once selected the option is irrevocable. The amount of each payment
depends upon the Annuity Option chosen and the Annuitant's and any Joint
Annuitant's Age on the Annuity Calculation Date. Additionally, annuity
payments under all Options will vary with the investment experience of the
sub-account(s) of the Variable Account and may be either higher or lower than
the first payment.
OPTION 1 - LIFE ANNUITY - Monthly annuity payments are paid during the life of
the Annuitant ceasing with the last annuity payment due prior to the
Annuitant's death.
OPTION 2 - LIFE ANNUITY WITH 60, 120, 180, OR 240 MONTHLY PAYMENTS GUARANTEED
- Monthly annuity payments are paid during the life of an Annuitant with a
guarantee that if, at the Annuitant's death, annuity payments have been made
for less than a 60, 120, 180, or 240 month period as elected then annuity
payments will be continued thereafter to the Beneficiary for the remainder of
the guaranteed period. The Beneficiary may elect to have the present value of
the guaranteed annuity payments remaining, as of the date notice of death is
received by us, commuted at the Assumed Investment Return and paid in a lump
sum. The Company will require the return of the Contract and proof of death
prior to the payment of any commuted values.
OPTION 3 - JOINT AND LAST SURVIVOR ANNUITY - Monthly annuity payments are paid
during the joint lifetime of the Annuitant and the Joint Annuitant. Upon the
death of the Annuitant, if the Joint Annuitant is then living, payments will
be paid thereafter during the remaining lifetime of the Joint Annuitant at a
level of 100%, 75%, or 50% of the original level as elected. Monthly payments
cease with the final annuity payment due prior to the last survivor's death.
OPTION 4 - JOINT AND LAST SURVIVOR ANNUITY WITH 60, 120, 180, OR 240 MONTHLY
PAYMENTS GUARANTEED - Monthly annuity payments are paid during the joint
lifetime of the Annuitant and the Joint Annuitant. Monthly payments are paid
thereafter during the remaining lifetime of the Joint Annuitant at 100% of the
original level. If at the last death of the Annuitant and the Joint Annuitant,
annuity payments have been made for less than a 60, 120, 180 or 240 month
period as elected then annuity payments will be continued thereafter to the
Beneficiary for the remainder of the guaranteed period. The Beneficiary may
elect to have the present value of the guaranteed Annuity Payments remaining,
as of the date notice of death is received by us, commuted at the Assumed
Investment Return and paid in a lump sum. The Company will require the return
of the Contract and proof of death prior to the payment of any commuted
values.
OPTION 5 - UNIT REFUND LIFE ANNUITY - Monthly annuity payments are paid during
the life of the Annuitant ceasing with the last annuity payment due prior to
the Annuitant's death with a guarantee that, at the Annuitant's death, the
Beneficiary will receive, in a single cash sum, the then dollar value of the
number of Annuity Units equal to (1) total net amount applied to purchase the
Annuity divided by the Annuity Unit value used to determine the first annuity
payment, minus (2) the product of the number of the Annuity Units represented
by each payment and the number of payments made. No payment will be made if
the difference of (1) minus (2) is negative. This calculation will be made
based upon the assumption that the allocation of Annuity Units actually
in-force at the time of the Annuitant's death had been the allocation of
Annuity Units at issue and at all times thereafter.
DETERMINATION OF ANNUITY PAYMENTS - On the Annuity Calculation Date, a fixed
number of Annuity Units will be purchased, determined as follows:
The first annuity payment is equal to the Contract Value, divided first by
$1,000 and then multiplied by the appropriate annuity payment amount for each
$1,000 of value for the Annuity Option selected. In each sub-account the fixed
number of Annuity Units is determined by dividing the amount of the initial
annuity payment determined for each sub-account by the Annuity Unit value on
the Annuity Calculation Date. Thereafter, the number of Annuity Units in each
sub-account remains unchanged unless you elect to transfer between
sub-accounts. All calculations shall appropriately reflect the annuity payment
frequency selected.
On each subsequent annuity payment date, the total annuity payment is the sum
of the annuity payments determined for each sub-account. The annuity payment
in each sub-account is determined by multiplying
the number of Annuity Units then allocated to such sub-account by the Annuity
Unit value for that sub-account.
For each sub-account, the value of an Annuity Unit was initially set
arbitrarily. On each subsequent Valuation Date the value of an Annuity Unit is
determined in the following way:
FIRST: The Net Investment Factor is determined by dividing (a) by (b) and
adding (c) to the result, where:
a. is the net increase or decrease in the Net Asset Value per share of the
Fund (or other Eligible Investment) plus the per share amount of any
dividend or capital gain distribution paid by the Fund (or Eligible
Investment) during the Valuation Period, plus or minus a per share charge
or credit for any Taxes incurred by or reserved for in the sub-account as
of the end of the current Valuation Period which the Company determines
to have resulted from maintenance of the sub-account; and
b. is the Net Asset Value per share of the Fund (or other Eligible
Investment) at the beginning of the Valuation Period, plus or minus
a per share charge or credit for any Taxes incurred by or reserved for
in the sub-account as of the end of the immediately preceding Valuation
Period which the Company determines to have resulted from maintenance
of the sub-account; and
c. is the net result of 1.000 less the Valuation Period deduction for the
charges to the sub-account.
The Net Investment Factor may be more or less than one.
SECOND: The value of an Annuity Unit for a Valuation Date is equal to:
a. the value of the Annuity Unit on the immediately preceding Valuation
Date;
b. multiplied by the Net Investment Factor for the Valuation Period ending on
the current Valuation Date;
c. divided by the Assumed Net Investment Factor (see below) for the Valuation
Period.
The Assumed Net Investment Factor is equal to one plus the Assumed Investment
Return which is used in determining the basis for the purchase of an Annuity,
adjusted to reflect the particular Valuation Period. For example, with a 5%
Assumed Investment Return, the Assumed Net Investment Factor for a one-year
Valuation Period would be 1.05. For a one-day Valuation Period, the Assumed
Net Investment Factor would be 1.000133.
The value of an Annuity Unit as of any date other than a given Valuation Date
is equal to its value on the next succeeding Valuation Date.
BASIS FOR PURCHASE OF ANNUITY - The annuity benefits, provided for under this
Contract are based upon:
a. MORTALITY. The mortality table as set forth on the Contract Schedule.
b. INTEREST. Assumed Investment Return as set forth on the Contract Schedule.
c. TAXES. Any applicable taxes.
PROCEEDS PAYABLE AT DEATH
If you die before the Income Date and there is no Joint Annuitant, the
Contract will be treated as if we had never issued it and we will return the
Single Purchase Payment to your estate.
If you have chosen either Option 3 or Option 4 and either you or the Joint
Annuitant dies before the Income Date, the Annuity Option will be changed to
Option 2 with 120 monthly payments guaranteed. If the life expectancy of the
survivor, based on the mortality table as set forth on the Contract Schedule,
is less than 120 months, the period of guaranteed payments will be 60 months.
If you or any Joint Annuitant die on or after the Income Date, the death
benefit, if any, will be payable under the selected Annuity Option. We will
require proof of death.
DELAY OF PAYMENTS
We will make any payments under this Contract within seven days of a request
received in good order. We reserve the right to suspend or postpone any type
of payment from the Variable Account for any period when:
1. the New York Stock Exchange is closed for other than customary weekend and
holiday closings;
2. trading on the New York Stock Exchange is restricted;
3. an emergency exists as a result of which it is not reasonably practicable
to dispose of securities held in the Variable Account or determine their
value; or
4. the Securities and Exchange Commission so permits delay for the protection
of security holders.
The applicable rules of the Securities and Exchange Commission will govern as
to whether the conditions in (2) or (3) exist.
INDIVIDUAL IMMEDIATE VARIABLE ANNUITY
NONPARTICIPATING
Secretary President
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