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EXHIBIT 4.1
TDA VOLUNTARY CONTRACT, FORM P-12511
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CONTRACT NUMBER
CONTRACTHOLDER
DATE OF ISSUE
CONTRACT DATE
FIRST CONTRACT ANNIVERSARY
American United Life Insurance Company (AUL) shall provide all the rights and
benefits of this contract.
This contract is issued in consideration of the application and of the payment
of Contributions to AUL.
All provisions and conditions stated on this and subsequent pages are made a
part of this contract.
Signed for AUL at its Home Office in Indianapolis, Indiana.
NOTICE OF TEN DAY RIGHT TO EXAMINE CONTRACT
Please read this contract carefully. The Contractholder may return the contract
for any reason within ten days after receiving it. If returned, the contract
shall be considered void from the beginning and any Contributions shall be
refunded.
AMERICAN UNITED LIFE INSURANCE COMPANY
By: /s/ Xxxxx X. Xxxxxx
Chairman of the Board,
President, & Chief Executive Officer
Attest
By: /s/ Xxxxxxx X. Xxxxx
Secretary
AUL American Series Contract
TDA Multiple-Fund Group Variable Annuity
THE ASSETS HELD IN ANY INVESTMENT ACCOUNT FOR WHICH THIS CONTRACT MAKES
PROVISION MAY INCREASE OR DECREASE IN DOLLAR VALUE ACCORDING TO THE INVESTMENT
PERFORMANCE OF THE CORRESPONDING PORTFOLIO OF THE MUTUAL FUND IN WHICH THE
INVESTMENT ACCOUNT INVESTS. THE VALUE OF SUCH ASSETS IS NOT GUARANTEED. ARTICLE
5 OF THIS CONTRACT EXPLAINS THE VALUATION OF SUCH ASSETS.
P-12511
TABLE OF CONTENTS
ARTICLE 1 DEFINITIONS
ARTICLE 2 CONTRACT AND AUTHORITY
2.1--------Entire Contract
2.2--------Authority
ARTICLE 3 CONTRIBUTIONS, INVESTMENTS, AND TRANSFERS
3.1--------Amount of Contributions
3.2--------How Contributions Are Handled
3.3--------Addition, Deletion, or Substitution of Investments
3.4--------Transfers
3.5--------Limitations on Transfers
ARTICLE 4 BENEFITS AND LOANS
4.1--------Election of Annuity Options
4.2--------Annuity Options
4.3--------Guaranteed Rate of Interest
4.4--------Alternate Nonparticipating Retirement Annuity
4.5--------Minimum Payments
4.6--------Due Proof of Date of Birth and Survival
4.7--------Death Benefits
4.8--------Withdrawal Benefits
4.9--------Loans from the Fixed Interest Account
ARTICLE 5 VALUATIONS
5.1--------Time of Valuation
5.2--------Accumulation Units
5.3--------Value of Accumulation Units
5.4--------Determining the Net Investment Factor
5.5--------Determining the Value of Each Participant Account's Share
of Any Investment Account
ARTICLE 6 OTHER CHARGES
6.1--------Mortality Risk and Expense Risk Charges
6.2--------Investment Management Charge
6.3--------Administrative Charge
6.4--------Transfer Charge
6.5--------Other Charge
6.6--------Reduction or Waiver of Certain Charges
P-12511
ARTICLE 7 RIGHT OF AUL TO CHANGE CERTAIN PROVISIONS
7.1--------Right of AUL to Change Interest Rates
7.2------- Right of AUL to Change Annuity Table
7.3--------Right of AUL to Change Charges
7.4--------Amendment of Contract to Conform with Law
ARTICLE 8 MISCELLANEOUS
8.1--------Ownership
8.2--------AUL's Annual Statement
8.3--------Tax Status
8.4--------Essential Data
8.5--------Reliance
8.6--------Misstatement of Essential Data
8.7--------Annuity Certificates
8.8--------Election, Notice, or Direction Requirements
8.9--------Quarterly Statement of Account Value
8.10-------Conformity with State Laws
8.11-------Reference to Federal Laws
8.12-------Sex and Number
8.13-------Facility of Payment
8.14-------Insulation from Liability
8.15-------Voting
8.16-------Acceptance of New Participants or Contributions
8.17-------Nonforfeitability and Nontransferability
8.18-------Termination
8.19-------Notice of Annual Meeting of Members
TABLE OF IMMEDIATE ANNUITIES
P-12511
ARTICLE 1 - DEFINITIONS
1.1 "Account Value" for any Participant Account on any given date means:
(a) the balance of the Participant Account's share of the Fixed Interest
Account on that date; plus (b) the value of the Participant Account's
share of each Investment Account on that date.
1.2 "Accumulation Period" means the period of time commencing on the date
on which a Participant's initial Contribution is credited to the Participant
Account and terminating on the date when such Participant Account is closed.
1.3 "Accumulation Unit" means a statistical device used to measure amounts
of increases to, decreases from, and accumulations in any Investment Account
during the Accumulation Period.
1.4 "Annuity Commencement Date" means the first day of any month upon which
an annuity begins under this contract. However, for any Participant, this date
shall not be later than the required beginning date as defined in the applicable
sections of the Code and Regulations issued thereunder.
1.5 "Code" means the Internal Revenue Code of l986, as amended.
1.6 "Contract Anniversary" means the first day of each Contract Year. Each
Contract Anniversary after the First Contract Anniversary shall be the same day
of the same month as the day and month which is stated on the face page of this
contract for the First Contract Anniversary.
1.7 "Contract Quarter" means each of the four successive intervals of three
months, the sum of which corresponds to a 12-month Contract Year.
1.8 "Contract Year" means, for the first such year, the period beginning
with the Contract Date and ending on the day immediately preceding the First
Contract Anniversary, and for each succeeding Contract Year, the period
beginning with a Contract Anniversary and ending on the day immediately
preceding the next succeeding Contract Anniversary.
1.9 "Contributions" means amounts paid to AUL by the Contractholder and
credited to a Participant Account hereunder.
1.10 "Current Rates of Interest" means each of the annual effective rates
of interest as determined and declared by AUL from time-to-time and as credited
to each interest pocket maintained within the Fixed Interest Account. The
Current Rates of Interest shall always be equal to or greater than the
Guaranteed Rate of Interest.
1.11 "Elective Deferrals" means, with respect to any taxable year, any
Contribution made under a salary reduction agreement. A Contribution made under
a salary reduction agreement shall not be treated as an
P-12511.1 (rpl)
Elective Deferral if, under the salary reduction agreement, such Contribution is
made pursuant to a one-time irrevocable election made by the Participant at the
time of initial eligibility to participate in the agreement, or is made pursuant
to a similar arrangement involving a one-time irrevocable election specified in
Regulations issued under the Code.
1.12 "Excess Contributions" means those Contributions made on behalf of a
Participant which exceed the limitations in effect under applicable provisions
of the Code and Regulations issued thereunder.
1.13 "Fixed Interest Account" means that fund of AUL's general asset
account in which all or a portion of a Participant's Account Value may be held
for accumulation at the Current Rates of Interest.
(a) Contributions allocated, or amounts transferred, to the Fixed Interest
Account shall be credited to the open interest pocket and shall earn
interest at the Current Rate of Interest in effect for that interest
pocket. Such Contributions or transferred amounts, during the time
that the Current Rate of Interest exceeds the Guaranteed Rate of
Interest, shall earn interest at such credited Current Rate of
Interest for at least 1 year. After such 1-year period, AUL reserves
the right to declare, at any time, a new Current Rate of Interest to
be applied to funds held within that interest pocket. Any such new
Current Rate of Interest must remain in effect for that interest
pocket for at least 1 year.
(b) If AUL changes the Current Rate of Interest for new Contributions or
new amounts transferred to the Fixed Interest Account, the previous
open interest pocket shall close, and any Contributions or amounts
transferred on or after the effective date of such change shall be
credited to a new open interest pocket and shall earn interest at the
new Current Rate of Interest in effect for such new open interest
pocket. Therefore, at any given time, various funds credited to a
Participant Account and allocated to the Fixed Interest Account may be
earning interest at different Current Rates of Interest for different
periods of time.
1.14 "Guaranteed Rate of Interest" means interest at an annual effective
rate of 4.00%.
1.15 "Home Office" means the principal office of AUL. The mailing address
is P. O. Xxx 0000, Xxxxxxxxxxxx, Xxxxxxx 00000-0000.
1.16 "Investment Account" means each subaccount of the Variable Account,
which subaccounts include the Equity Investment Account, the Bond Investment
Account, the Money Market Investment Account, and the Managed Investment
Account, as the case may be, where:
(a) Amounts allocated to the Equity Investment Account shall be invested
in shares of the AUL American Equity Portfolio of the Mutual Fund.
(b) Amounts allocated to the Bond Investment Account shall be invested in
shares of the AUL American Bond Portfolio of the Mutual Fund.
P-12511.2 (rpl)
(c) Amounts allocated to the Money Market Investment Account shall be
invested in shares of the AUL American Money Market Portfolio of the
Mutual Fund.
(d) Amounts allocated to the Managed Investment Account shall be invested
in shares of the AUL American Managed Portfolio of the Mutual Fund.
1.17 "Investment Option" means the Fixed Interest Account or any of the
Investment Accounts of the Variable Account. AUL reserves the right to provide
other Investment Options under this contract at any time.
1.18 "Mutual Fund" means the AUL American Series Fund, Inc., a diversified,
open-end management investment company registered under The Investment Company
Act of l940.
1.19 "Participant" means any person reported to AUL by the Contractholder
as eligible for, and as participating in, this contract, and for whom a
Participant Account is established.
1.20 "Participant Account" means an account established under this contract
for a Participant. Contributions received by AUL shall be credited to
Participant Accounts as AUL is directed in writing.
1.21 "Portfolio" means a series of the Mutual Fund as described in the
prospectus for the Mutual Fund as such prospectus may be amended or supplemented
from time to time.
1.22 "Valuation Date" means any day when the Home Office of AUL and the New
York Stock Exchange are open and operational.
1.23 "Valuation Period" means the period beginning at the close of business
on a Valuation Date and ending at the close of business on the next succeeding
Valuation Date.
1.24 "Variable Account" means a separate account established by AUL called
the AUL American Unit Trust, which is registered under The Investment Company
Act of l940 as a unit investment trust.
1.25 "Withdrawal Charge" means a charge taken by AUL equal to a percentage
of the Account Value withdrawn pursuant to Section 4.8, where the percentage
varies by the number of full years measured from the date a Participant Account
is established to the date the Withdrawal Charge is determined. Such percentage
is as follows:
During
Account Years Percentage
1-5 8
6-10 4
Thereafter 0
P-12511.3
In no event will the cumulative total of all Withdrawal Charges, including those
previously assessed against any amount withdrawn from a Participant Account,
exceed 9% of total Contributions allocated to that Participant Account.
1.26 "Withdrawal Value" means a Participant's Account Value minus the
applicable Withdrawal Charge, and minus the Participant's outstanding loan
balance, if any, and any expense charges due on such loans.
P-12511.4
ARTICLE 2 - CONTRACT AND AUTHORITY
2.1 Entire Contract: This contract and the application of the
Contractholder is the entire agreement between AUL and the Contractholder. AUL
is not a party to, nor bound by, a plan, trust, custodial agreement, or other
agreement, or any amendment or modification to any of the same. AUL is not a
fiduciary under this contract or under any such plan, trust, custodial
agreement, or other agreement.
2.2 Authority: This contract cannot be modified or amended, nor can any
provision or condition be waived, except by a written agreement signed by a
corporate officer of AUL. Such authority may not be delegated to any other
person or entity, except by a written agreement signed by a corporate officer of
AUL.
P-12511.5
ARTICLE 3 - CONTRIBUTIONS, INVESTMENTS, AND TRANSFERS
3.1 Amount of Contributions:
(a) Contributions may vary in amount and frequency; however, they must be
at least equal to a minimum annual Contribution of $200 per
Participant in any full Contract Year. AUL may change the minimum
annual Contribution acceptable under this contract, but any such
change shall apply only to individuals who become Participants on or
after the date of the change.
(b) Excess Contributions (plus gains or minus losses thereon) shall be
withdrawn from a Participant Account and returned to the Participant
upon receipt by AUL at its Home Office of complete written
instructions from the Contractholder or the Participant. Such written
instructions must include the amount to be withdrawn and returned, and
certification that such Contributions constitute Excess Contributions
and that such returns are permitted by applicable provisions of the
Code and Regulations issued thereunder. It shall not be the
responsibility of AUL to determine the existence or amount of Excess
Contributions or gains or losses thereon. In withdrawing and returning
the identified amount, AUL may rely solely on such written
instructions and certification. Such a withdrawal and return of Excess
Contributions shall not be subject to Section 4.8.
3.2 How Contributions Are Handled:
(a) When a Contribution is received at the Home Office, it shall be
credited to Participant Accounts as directed in written allocation
instructions.
(b) The initial Contribution for a Participant shall be credited and
allocated to the Participant Account no later than the close of
business on the second business day of AUL after the later of (1) the
business day that AUL receives the initial Contribution at its Home
Office, or (2) the business day that AUL receives, at its Home Office,
the data required to establish the Participant Account and allocation
instructions regarding the initial Contribution. If the data required
to establish the Participant Account and allocation instructions
regarding the initial Contribution are not received by AUL at its Home
Office within 5 business days after AUL first receives the initial
Contribution, AUL shall return the initial Contribution to the
Contractholder unless the Participant consents to AUL retaining the
initial Contribution until AUL receives the data and allocation
instructions for the Participant.
(c) All Contributions subsequent to the initial Contribution shall be
credited and allocated as of the close of business on the Valuation
Period in which AUL receives the Contribution at its Home Office,
provided that the Contribution is received by 4:00 p.m. E.S.T. If the
Contribution is received after 4:00 p.m. E.S.T.,
P-12511.6 (rpl)
such Contribution shall be deemed to be received, and shall be
credited and allocated as of the close of business, on the next
succeeding Valuation Period.
(d) Within any one Participant Account, the amount so credited shall be
allocated to an Investment Option in increments of 10%, 25%, or
33-1/3%, as elected by the Participant in writing. If no allocation
instruction is made with respect to any Participant Account, AUL shall
process such credits in accordance with the allocation instruction
applicable to the immediately preceding Contribution. If there should
be no allocation instruction applicable to a portion of a
Contribution, that amount shall be credited to the Fixed Interest
Account until such time as an appropriate allocation instruction is
received, except as provided above for the initial Contribution. The
Participant may change an allocation instruction with respect to
future allocations to his Participant Account by giving new written
allocation instructions to AUL.
3.3 Addition, Deletion, or Substitution of Investments:
(a) AUL reserves the right, subject to compliance with applicable law, to
make additions to, deletions from, substitution for, or combinations
of, the securities that are held by the Variable Account or any
Investment Account or that the Variable Account or any Investment
Account may purchase. AUL reserves the right to eliminate the shares
of any of the eligible Portfolios and to substitute shares of, or
interests in, another Portfolio of the Mutual Fund, of another
open-end, registered investment company, or other investment vehicle,
for shares already purchased or to be purchased in the future under
the contract, if the shares of any or all eligible Portfolios are no
longer available for investment, or if, in AUL's judgment, further
investment in any or all eligible Portfolios becomes inappropriate in
view of the purposes of the Variable Account or the contract. Where
required under applicable law, AUL will not substitute any shares
attributable to the Contractholder's interest in the Variable Account
or any Investment Account without notice, Participant approval, or
prior approval of the Securities and Exchange Commission or a state
insurance commissioner, and without following the filing or other
procedures established by applicable state insurance regulators.
Nothing contained herein shall prevent the Variable Account from
purchasing other securities for other series or classes of contracts,
or from effecting a conversion between series or classes of contracts
on the basis of requests made by a majority of other contractholders
or as permitted by federal law.
(b) AUL reserves the right to establish additional Investment Accounts,
each of which would invest in a new Portfolio of the Mutual Fund, or
in other securities, investment vehicles, or shares of another
diversified open-end management investment company or series thereof.
AUL reserves the right to eliminate existing Investment Accounts if,
in its sole discretion, marketing, tax, or investment conditions so
warrant. AUL also reserves the right to provide other Investment
Options under this contract at any time.
(c) In the event of any such substitution or change, AUL may, by
appropriate amendment, make such changes in this contract as may be
necessary or appropriate to reflect such substitution or change. If
deemed by AUL to be in the best interests of persons or entities
having voting rights under this contract, the Variable Account may be
operated as a management investment company or any other form
permitted by law, it may be deregistered in the event such
registration is no longer required, or it may be combined with other
separate accounts of AUL or an affiliate thereof. AUL may take such
action as is necessary to comply with, or to obtain, exemptions from
the Securities and Exchange Commission with regard to the Variable
Account. Subject to compliance with applicable law, AUL also may
combine one or more Investment Accounts and may establish a committee,
board, or other group to manage one or more aspects of the operation
of the Variable Account.
3.4 Transfers:
(a) Subject to the limitations of Section 3.5, the Participant may direct
AUL in writing to transfer the amounts credited to an Investment
Option to any other Investment Option during the Accumulation Period.
Any transfer from an Investment Account shall be effective as of the
close of business on the Valuation Date that AUL receives the
Participant's direction, provided that AUL receives such direction by
4:00 p.m. E.S.T. on that Valuation Date. If such direction is received
after 4:00 p.m. E.S.T., such transfer shall be effective as of the
close of business on the next succeeding Valuation Date.
(b) AUL shall make the transfer as requested by the Participant within 7
days from the date a proper request is received by AUL at its Home
Office, except as AUL may be permitted to defer such payment of
amounts withdrawn from the Variable Account in accordance with
appropriate provisions of the federal securities laws. AUL reserves
the right to defer a transfer of amounts from the Fixed Interest
Account for a period of 6 months after AUL receives the transfer
request at its Home Office.
(c) All transfers from the Fixed Interest Account to any Investment
Account shall be made on a first-in/first-out accounting basis.
3.5 Limitations on Transfers:
(a) The Participant may not direct a transfer with regard to his
Participant Account's share of any Investment Option in an amount less
than $500 or the Participant Account's entire share, if less than
$500. If such a transfer reduces the Participant Account's remaining
share of an Investment Option to less than $500, the entire remaining
share shall also be transferred.
(b) Amounts transferred from the Fixed Interest Account on behalf of a
Participant during any Contract Year shall not exceed 20% of the
Participant Account's share of the Fixed Interest Account determined
as of the last Contract Anniversary preceding the request for
transfer, or the Participant Account's entire share of the Fixed
Interest Account if such share would be less than $500 after the
transfer.
P-12511.7
(c) Amounts under this contract which have been transferred from other
group annuity contracts, whether issued by AUL or otherwise, shall be
allocated pursuant to the provisions of Section 3.2.
(d) AUL reserves the right to change the limitation on the minimum
transfer, to change the limit on remaining balances, to limit the
number and frequency of transfers, to suspend the transfer privilege
provided in Sections 3.4 and 3.5, and to impose a charge on a
transfer.
(e) Where a Participant has outstanding loans under this contract, a
transfer from the Fixed Interest Account to the Variable Account shall
be permitted only to the extent that the remaining Withdrawal Value of
the Participant held in the Fixed Interest Account equals twice the
total of the Participant's outstanding loans under this contract.
P-12511.8
(c) Amounts under this contract which have been transferred from other
group annuity contracts, whether issued by AUL or otherwise, shall be
allocated pursuant to the provisions of Section 3.2.
(d) AUL reserves the right to change the limitation on the minimum
transfer, to change the limit on remaining balances, to limit the
number and frequency of transfers, to suspend the transfer privilege
provided in Sections 3.4 and 3.5, and to impose a charge of not more
than $25 on a transfer. AUL reserves the right to change the maximum
limit on such transfer charge upon delivery of written notice to the
Contractholder. Any such change in the maximum limit shall apply only
to transfers by an individual who becomes a Participant on or after
the effective date of such change, and shall apply as long as that
individual remains a Participant.
(e) Where a Participant has outstanding loans under this contract, a
transfer from the Fixed Interest Account to the Variable Account shall
be permitted only to the extent that the remaining Withdrawal Value of
the Participant held in the Fixed Interest Account equals twice the
total of the Participant's outstanding loans under this contract.
P-12511.9 (PA)
ARTICLE 4 - BENEFITS AND LOANS
4.1 Election of Annuity Options: At the written request of the Participant,
AUL shall apply all or a portion of the Account Value (subject to Section 6.5,
and minus any outstanding loan balance of the Participant and any unpaid expense
charges on such loans) of the Participant Account for the purpose of providing a
fixed payment annuity. Upon receipt of such request, AUL is hereby authorized by
such Participant to value and transfer the Participant Account's share of the
Variable Account to the Fixed Interest Account as of the date that AUL receives
such written request at its Home Office. Such transferred amounts shall be held
in the Fixed Interest Account until the Participant's Annuity Commencement Date.
The Participant request shall include certification as to the purpose for the
annuity and the election of one of the following annuity options. The amount of
the annuity shall be computed from the Table of Immediate Annuities then
included in this contract, except as provided under Section 4.4.
4.2 Annuity Options:
(a) Life Annuity. The monthly annuity shall be payable to the annuitant
for as long as the annuitant lives, and shall end with the last
monthly payment before the death of the annuitant.
(b) Certain and Life Annuity. The monthly annuity shall be payable to the
annuitant for as long as the annuitant lives. If the annuitant dies
before receiving payments for the certain period (5, 10, 15, or 20
years, as specified in the election), any remaining payments for the
balance of the certain period shall be paid to the annuitant's
beneficiary.
(c) Survivorship Annuity. The monthly annuity shall be payable to the
annuitant for as long as the annuitant lives. After the death of the
annuitant, a portion (all, 2/3, or 1/2, as specified in the election)
of the monthly annuity shall be paid to the contingent annuitant named
in the election for as long as the contingent annuitant lives. An
election of this option is automatically cancelled if either the
Participant or the contingent annuitant dies before the Annuity
Commencement Date.
(d) Installment Refund Life Annuity. The monthly annuity shall be payable
to the annuitant for as long as the annuitant lives, and shall end
with the last monthly payment before the death of the annuitant. If,
at the death of the annuitant, the sum of the monthly payments
previously received is less than the amount applied to provide the
annuity, monthly payments of the same amount shall continue to the
annuitant's beneficiary until the total of the monthly payments
received equals such amount.
(e) Fixed Period. The monthly annuity shall be payable to the annuitant
for a fixed period of time (not less than 5 years nor more than 30
years, as specified in the election). If, at the death of the
annuitant, payments have been made for less than the selected fixed
period, monthly annuity payments to the annuitant's beneficiary shall
be continued during the remainder of such fixed period.
(f) Lump Sum Payment. If the total Account Value is less than $2,000, such
value shall not be annuitized under options (a), (b), (c), (d), (e),
or (g) of this Section, but shall be paid in a lump sum.
(g) Any other options mutually agreed upon between the Contractholder and
AUL shall be made available.
If the annuity option selected is not included in the attached Table of
Immediate Annuities, the amount of monthly annuity shall be based on rates
determined in the same manner as those found in the Table.
If no annuity option election for a Participant has been received by AUL at its
Home Office at least 30 days prior to the Annuity Commencement Date, the Account
Value (subject to Section 6.5, and minus any outstanding loan balance of the
Participant and any unpaid expense charges on such loans) of his Participant
Account shall be applied under (b) above as a 10 Year Certain and Life Annuity.
AUL must receive written notification of such Annuity Commencement Date, written
designation of the contingent annuitant or beneficiary, and any election forms
needed in connection with any annuity option provided in this Section.
In no event shall any option elected provide annuity benefits to the Participant
or to the Participant and the contingent annuitant which would extend for a
certain period beyond the life expectancy of such Participant or the joint life
expectancy of such Participant and such contingent annuitant as determined on
the Annuity Commencement Date.
4.3 Guaranteed Rate of Interest: The retirement annuity options provided in
this Article and illustrated in the attached Table of Immediate Annuities are
based on a guaranteed interest rate of 4.00% compounded annually.
4.4 Alternate Nonparticipating Retirement Annuity: Any annuity elected
shall be provided at whatever current single premium nonparticipating immediate
annuity rates are available under this class of group annuity contract if such
rates produce a higher income than that provided under the Table of Immediate
Annuities provided in this contract.
4.5 Minimum Payments: If the monthly annuity is less than AUL's then
current established minimum, AUL reserves the right to make payments on a less
frequent basis or to pay the Account Value (minus any outstanding loan balances
of the Participant and any unpaid expense charges on such loans) in a single
sum.
4.6 Due Proof of Date of Birth and Survival: Before commencing payments
under any annuity, AUL may require proof of the date of birth of any annuitant
and may require due proof that any annuitant is living before the payment of
each or any installment under the option.
4.7 Death Benefits:
(a) Upon receipt of written instructions from the Participant's
beneficiary (or, if applicable, the secondary beneficiary of the
Participant) and of due proof of the Participant's (and, if
applicable, the beneficiary's) death during the Accumulation Period at
its Home Office, AUL shall apply the Account Value (minus the
Participant's outstanding loan balance, if any, under this contract
and any unpaid expense charges due on such loans) of the Participant
Account for the purpose of providing a death benefit. The death
benefit shall be paid to the beneficiary last properly designated in
writing to AUL at its Home Office by the Participant, or, if there is
no designated beneficiary living on the date of the Participant's
death, to the Participant's estate. If any beneficiary dies while
receiving payments and no beneficiary is designated to receive any
remaining payments, such remaining payments shall be made to the
deceased beneficiary's estate.
(b) The Account Value to be applied pursuant to (a) above shall be
determined as of the close of business on the later of (1) the
Valuation Date that AUL receives such written instructions at its Home
Office, or (2) the Valuation Date that AUL receives such due proof of
death at its Home Office, provided that such written instructions or
due proof of death received on the later of (1) or (2) above are(is)
received by 4:00 p.m. E.S.T. If the written instructions or due proof
of death received on the later of (1) or (2) above are(is) received
after 4:00 p.m. E.S.T., such valuation shall be made as of the close
of business on the next succeeding Valuation Date.
(c) (1) The benefit shall be payable in accordance with one of the
following provisions as elected by the Participant or the beneficiary
if the Participant did not make an election:
(i) The entire Account Value to be applied shall be paid to the
beneficiary in a single sum or by another elected method on
or before December 31 of the calendar year which contains
the fifth anniversary of the date of the Participant's
death; or
(ii) The benefit shall be paid as an annuity in accordance with
the Annuity Options shown in Section 4.2 over the life or
life expectancy of the beneficiary. If the beneficiary is
not the Participant's surviving spouse, the annuity must
begin on or before December 31 of the calendar year
immediately following the calendar year in which the
Participant died. If the beneficiary is the Participant's
surviving spouse, the annuity need not begin before December
31 of the calendar year in which the Participant would have
attained age 70 1/2.
(2) If a Participant dies on or after his Annuity Commencement Date,
any interest remaining under the Annuity Option selected shall be
paid at least as rapidly as prior to the Participant's death.
(3) If payment is to be made in a cash lump sum, payment shall be
made within 7 days of the date of valuation, as determined above
in this Section, except as AUL may be permitted to defer such
payment of amounts derived from the Variable Account in
accordance with the provisions of federal securities laws. Also,
AUL reserves the right to defer the payment of amounts withdrawn
from the Fixed Interest Account for a period of 6 months after
AUL receives written instructions at its Home Office.
4.8 Withdrawal Benefits:
(a) Except as stated below, a Participant, upon submitting a proper
written request to AUL at its Home Office, may direct AUL to withdraw
all or a portion of the Account Value (subject to the Withdrawal
Charge) of his Participant Account, provided:
(l) the Participant has:
(i) attained age 59 1/2; or
(ii) terminated employment; or
(iii) become totally disabled (as defined by the Internal Revenue
Service); or
(iv) experienced a hardship (as defined by the Internal Revenue
Service); or
(2) the amount being withdrawn is attributable to Contributions made
other than pursuant to a salary reduction agreement (within the
meaning of Code Section 402(g)(3)(C); or
(3) the amount being withdrawn is attributable to amounts held as of
December 31, l988 under another Code Section 403(b) annuity
contract.
(4) In the case of a hardship withdrawal referred to in (1)(iv)
above, any gain credited to Contributions made pursuant to a
salary reduction agreement may not be withdrawn.
(5) AUL shall not be responsible for determining a Participant's
compliance with the requirements above, and it may rely upon the
representations of the Participant made in the withdrawal
request.
(b) Withdrawals from a Participant Account's share of an Investment Option
may not be made in an amount less than the smaller of $500 or the
Participant Account's entire share of the Investment Option. If a
withdrawal reduces the Participant Account's share of an Investment
Option to less than $500, such remaining share shall also be withdrawn
(except for amounts prohibited from being distributed because
provision (a)(1) above is not met).
(c) A withdrawal request shall be effective as of the close of business on
the Valuation Date that AUL receives a proper written withdrawal
request at its Home Office, provided that AUL receives such request by
4:00 p.m. E.S.T. on that Valuation Date. If such request is received
after 4:00 p.m. E.S.T., such request shall be effective as of the
close of business on the next succeeding Valuation Date.
(d) The Account Value to be applied pursuant to this Section shall be
determined as of the applicable Valuation Date determined in (c)
above. If the entire Account Value of a Participant Account is
withdrawn, the Participant shall be paid the Withdrawal Value. If the
Participant requests that a specified percentage or dollar amount be
paid to the Participant, AUL shall withdraw from the Participant
Account an amount equal to the dollar amount to be paid divided by the
difference between 1 and the decimal equivalent of the applicable
Withdrawal Charge. Notwithstanding the previous sentence, in any
Contract Year the Participant may withdraw up to 10% of the Account
Value of his Participant Account determined as of the last Contract
Anniversary preceding the request for the withdrawal without
application of any Withdrawal Charge, provided that 12 months have
elapsed from the date that the Participant's first Contribution is
credited to his Participant Account by AUL to the date of such
withdrawal. Also, where a Participant has outstanding loans under this
contract, a partial withdrawal by a Participant from the Fixed
Interest Account shall be permitted only to the extent that the
remaining
Withdrawal Value of the Participant held in the Fixed Interest
Account equals twice the total of the Participant's outstanding loans
under this contract.
(e) AUL shall pay such amount in a cash lump sum to the Participant. Such
cash lump sum will be paid within 7 days from the date that AUL
receives the withdrawal request at its Home Office, except as AUL may
be permitted to defer such payment of amounts withdrawn from the
Variable Account in accordance with appropriate provisions of the
federal securities laws. AUL reserves the right to defer the payment
of amounts withdrawn from the Fixed Interest Account for a period of
up to 6 months after AUL receives the withdrawal request at its Home
Office.
(f) Withdrawals from a Participant Account's share of the Fixed Interest
Account shall be made on a first-in/first-out basis so that all or a
portion of the amounts credited to the Participant Account's share of
the Fixed Interest Account (other than amounts which are prohibited
from being distributed because provision (a)(1) above is not met)
which have been on deposit for the longest period of time, as well as
the interest credited thereon, shall be withdrawn first.
4.9 Loans from the Fixed Interest Account:
(a) A Participant who has all or a portion of his Account Value held in
the Fixed Interest Account may borrow money from AUL, using such
Account Value held in the Fixed Interest Account as the only security
for the loan, by submitting a proper written request to AUL at its
Home Office. The minimum amount of any single loan is $2,000. The
maximum amount that may be borrowed at any time is an amount which,
when combined with the largest loan balance during the prior 12
months, does not exceed the lesser of (l) 50% of the Withdrawal Value
of the Participant Account held in the Fixed Interest Account, or (2)
$50,000. The Withdrawal Value of the Participant Account held in the
Fixed Interest Account, which must be at least twice the amount of the
outstanding loan balance, shall serve as security for the loan, and
shall continue to earn interest. Payment by AUL of the loan amount may
be delayed for up to 6 months.
(b) Interest will be charged for the loan, and will accrue on the loan
balance from the effective date of such loan. The interest rate shall
be declared by AUL at the beginning of each calendar quarter. The
interest rate charged shall be equal to the Xxxxx'x Corporate Bond
Yield Average - Monthly Average Corporates as of the date of the loan,
as published by Xxxxx'x Investors Service. However, no change from a
previously established rate may be made in an amount less than .50% in
any periodic adjustment. The loan balance shall also be subject to a
loan expense charge equal to 2% of each loan repayment.
(c) Loans to Participants must be repaid to AUL within a term of 5 years,
unless the Participant certifies to AUL that the loan is to be used to
acquire a principal residence for the Participant, in which case the
term may be longer. Loan repayments must be made at least quarterly.
Upon receipt of a repayment, AUL shall deduct the 2% expense charge
from the repayment, and shall apply the balance of such repayment
first to any accrued interest and then to the outstanding loan
principal.
P-12511.10
(e) AUL shall pay such amount in a cash lump sum to the Participant. Such
cash lump sum will be paid within 7 days from the date that AUL
receives the withdrawal request at its Home Office, except as AUL may
be permitted to defer such payment of amounts withdrawn from the
Variable Account in accordance with appropriate provisions of the
federal securities laws. AUL reserves the right to defer the payment
of amounts withdrawn from the Fixed Interest Account for a period of
up to 6 months after AUL receives the withdrawal request at its Home
Office.
(f) Withdrawals from a Participant Account's share of the Fixed Interest
Account shall be made on a first-in/first-out basis so that all or a
portion of the amounts credited to the Participant Account's share of
the Fixed Interest Account (other than amounts which are prohibited
from being distributed because provision (a)(1) above is not met)
which have been on deposit for the longest period of time, as well as
the interest credited thereon, shall be withdrawn first.
4.9 Loans from the Fixed Interest Account:
(a) A Participant who has all or a portion of his Account Value held in
the Fixed Interest Account may borrow money from AUL, using such
Account Value held in the Fixed Interest Account as the only security
for the loan, by submitting a proper written request to AUL at its
Home Office. The minimum amount of any single loan is $2,000. The
maximum amount that may be borrowed at any time is an amount which,
when combined with the largest loan balance during the prior 12
months, does not exceed the lesser of (l) 50% of the Withdrawal Value
of the Participant Account held in the Fixed Interest Account, or (2)
$50,000. The Withdrawal Value of the Participant Account held in the
Fixed Interest Account, which must be at least twice the amount of the
outstanding loan balance, shall serve as security for the loan, and
shall continue to earn interest. Payment by AUL of the loan amount may
be delayed for up to 6 months.
(b) Interest will be charged for the loan, and will accrue on the loan
balance from the effective date of such loan. The interest rate shall
be declared by AUL at the beginning of each calendar year. The
interest rate charged during a particular calendar year shall be equal
to the Moody's Corporate Bond Yield Average - Monthly Average
Corporates as published by Xxxxx'x Investors Service for October of
the previous calendar year. However, no change from a previously
established rate may be made in an amount less than .50% in any
periodic adjustment. If the Moody's rate for any October decreases by
at least .50% from the Moody's rate for the immediately preceding
October, AUL shall declare such reduced interest rate to be in effect
during the next succeeding calendar year. The loan balance shall also
be subject to a loan expense charge equal to 2% of each loan
repayment.
(c) Loans to Participants must be repaid to AUL within a term of 5 years,
unless the Participant certifies to AUL that the loan is to be used to
acquire a principal residence for the Participant, in which case the
term may be longer. Loan repayments must be made at least quarterly.
Upon receipt of a repayment, AUL shall deduct the 2% expense charge
from the repayment, and shall apply the balance of such repayment
first to any accrued interest and then to the outstanding loan
principal.
P-12511.14 (SC)
(d) If a loan either remains unpaid at the end of its term, or if, at any
time, l02% of the total of all the Participant's loan balances equals
the Participant's Withdrawal Value allocated to the Fixed Interest
Account, then AUL shall deduct these balances plus an expense charge
equal to 2% of the outstanding loan balances from the Participant
Account's share of the Fixed Interest Account. If a Participant has
outstanding loans, then withdrawals or transfers to the Variable
Account shall be permitted only to the extent that the Participant's
remaining Withdrawal Value in the Fixed Interest Account equals twice
the total of any outstanding loans of the Participant under the
contract. All loan balances plus the 2% expense charge shall be paid
or satisfied in full before any amount from the Participant Account's
share of the Fixed Interest Account is paid as a full withdrawal, as a
death benefit, upon annuitization, or as another permitted
distribution.
(e) AUL may modify the loan restrictions or limitations stated above in
this Section, or may add new restrictions and limitations, to the
extent necessary to comply with Code Section 72(p) or other applicable
law, as determined solely by AUL.
P-12511.15
ARTICLE 5 - VALUATIONS
5.1 Time of Valuation: All assets of each Portfolio shall be valued as
provided in the prospectus for the Mutual Fund as such prospectus may be amended
or supplemented from time to time.
5.2 Accumulation Units: Any amounts that are allocated to any Investment
Account on behalf of a Participant shall be credited to his Participant Account
in the form of Accumulation Units on the basis of the value of such units in
that Investment Account as of the end of the Valuation Period on which such
amounts are received by AUL at its Home Office. Such crediting shall be made
separately for amounts allocated to each Investment Account. The number of
Accumulation Units in each Investment Account credited to each Participant
Account as of any Valuation Period shall be determined by dividing the amounts
allocated to that Investment Account for that Participant Account as of such
Valuation Period by the dollar value of one Accumulation Unit in that Investment
Account as of the close of business on the applicable Valuation Period. The
number of Accumulation Units thus determined shall not be changed by any
subsequent change in the dollar value of the Accumulation Units.
5.3 Value of Accumulation Units: The value of an Accumulation Unit in each
Investment Account was established at $1.00 as of April 12, 1990. The value of
an Accumulation Unit in each Investment Account as of any Valuation Period
thereafter is equal to the dollar value of one Accumulation Unit in that
Investment Account as of the immediately preceding Valuation Period multiplied
by the Net Investment Factor, as defined in Section 5.4, for that Investment
Account for the current Valuation Period. The value of an Accumulation Unit for
each Investment Account shall be determined for each Valuation Period before
giving effect to any additions, withdrawals, or transfers. After such
determination, the additions, withdrawals, or transfers which are effective as
of that day shall then be made.
5.4 Determining the Net Investment Factor: The Net Investment Factor for
each Investment Account for any Valuation Period is determined by dividing (a)
by (b), and then subtracting (c) from that result, where:
(a) is equal to:
(l) the net asset value of a Portfolio share held in the Investment
Account determined as of the end of the current Valuation Period,
plus
(2) the per share amount of any dividend or other distribution, if
any, paid by the Portfolio during the current Valuation Period,
plus or minus
(3) any credit or charge for any taxes paid or reserved for by AUL
during the current Valuation Period which are determined by AUL
to be attributable to operation of the Investment Account;
(b) is the net asset value of a Portfolio share held in the Investment
Account determined as of the end of the immediately preceding
Valuation Period; and
(c) is a daily charge factor determined by AUL to reflect the charges
assessed against the assets of the Investment Account for mortality
and expense risks.
5.5 Determining the Value of Each Participant Account's Share of any
Investment Account: The value of each Participant Account's share of any
Investment Account as of any Valuation Date shall be determined by multiplying
the Participant Account's aggregate Accumulation Units in that Investment
Account as of such Valuation Date by the dollar value of one Accumulation Unit
in that Investment Account as of such Valuation Date. The value of the
Participant Account's share of any Investment Account as of any date other than
a Valuation Date is equal to the value of its share of that Investment Account
as of the immediately preceding Valuation Date.
P-12511.16
ARTICLE 6 - OTHER CHARGES
6.1 Mortality Risk and Expense Risk Charges: AUL shall deduct a daily
mortality risk charge and a daily expense risk charge equal to the daily
equivalent of an annual charge of .85% and .40%, respectively, against the
average daily net assets of each Investment Account.
6.2 Investment Management Charge: The Mutual Fund shall pay an investment
advisory fee and certain other expenses, which may include its operational and
organizational expenses, as described in the current prospectus as it may be
amended or supplemented from time to time. These expenses may vary from year to
year. The net asset value of each Portfolio reflects such investment advisory
fee and other expenses which are deducted from the assets of such Portfolio.
6.3 Administrative Charge: AUL shall deduct an administrative charge per
Contract Quarter equal to the lesser of $7.50 or 0.5% of the Account Value on
the last day of each Contract Quarter from each Participant Account in existence
on such day for so long as the Participant Account is in effect during the
Accumulation Period. This charge is to be prorated among each subaccount of the
Participant Account which corresponds to each Investment Option utilized under
this contract by that Participant Account. If the entire balance of a
Participant Account is applied or withdrawn pursuant to Sections 4.1, 4.7, or
4.8, the administrative charge attributable to the period of time which has
elapsed since the first day of the Contract Quarter in which such application or
withdrawal of funds is made shall not be deducted from the amount applied or
withdrawn.
6.4 Transfer Charge: AUL reserves the right to deduct a charge for each
transfer transaction pursuant to Section 3.4. This charge would be prorated
among the Investment Options from which the amounts are transferred in the same
proportion that the amount transferred from the Investment Option bears to the
total amount transferred from all Investment Options.
6.5 Other Charges: AUL reserves the right to deduct the appropriate premium
tax charge at the time annuity payments commence pursuant to Section 4.1 or such
other time that premium taxes are incurred by AUL. AUL also reserves the right
to deduct the appropriate charges for federal, state, or local income taxes
incurred by AUL that are attributable to the Variable Account and its Investment
Accounts.
6.6 Reduction or Waiver of Certain Charges: AUL may reduce or waive the
amount of the Withdrawal Charge or the administrative charge discussed in
Section 6.3 where the expenses associated with the sale of this contract or the
administrative costs associated with this contract are reduced, or where this
contract is sold to the directors or employees of AUL or any of its affiliates,
or to directors or any employees of the Mutual Fund.
P-12511.17
ARTICLE 6 - OTHER CHARGES
6.1 Mortality Risk and Expense Risk Charges: AUL shall deduct a daily
mortality risk charge and a daily expense risk charge equal to the daily
equivalent of an annual charge of .85% and .40%, respectively, against the
average daily net assets of each Investment Account.
6.2 Investment Management Charge: The Mutual Fund shall pay an investment
advisory fee and certain other expenses, which may include its operational and
organizational expenses, as described in the current prospectus as it may be
amended or supplemented from time to time. These expenses may vary from year to
year. The net asset value of each Portfolio reflects such investment advisory
fee and other expenses which are deducted from the assets of such Portfolio.
6.3 Administrative Charge: AUL shall deduct an administrative charge per
Contract Quarter equal to the lesser of $3.00 or 0.5% of the Account Value on
the last day of each Contract Quarter from each Participant Account in existence
on such day for so long as the Participant Account is in effect during the
Accumulation Period. This charge is to be prorated among each subaccount of the
Participant Account which corresponds to each Investment Option utilized under
this contract by that Participant Account. If the entire balance of a
Participant Account is applied or withdrawn pursuant to Sections 4.1, 4.7, or
4.8, the administrative charge attributable to the period of time which has
elapsed since the first day of the Contract Quarter in which such application or
withdrawal of funds is made shall not be deducted from the amount applied or
withdrawn.
6.4 Transfer Charge: AUL reserves the right to deduct a charge for each
transfer transaction pursuant to Section 3.4. This charge would be prorated
among the Investment Options from which the amounts are transferred in the same
proportion that the amount transferred from the Investment Option bears to the
total amount transferred from all Investment Options.
6.5 Other Charges: AUL reserves the right to deduct the appropriate premium
tax charge at the time annuity payments commence pursuant to Section 4.1 or such
other time that premium taxes are incurred by AUL. AUL also reserves the right
to deduct the appropriate charges for federal, state, or local income taxes
incurred by AUL that are attributable to the Variable Account and its Investment
Accounts.
6.6 Reduction or Waiver of Certain Charges: AUL may reduce or waive the
amount of the Withdrawal Charge or the administrative charge discussed in
Section 6.3 where the expenses associated with the sale of this contract or the
administrative costs associated with this contract are reduced, or where this
contract is sold to the directors or employees of AUL or any of its affiliates,
or to directors or any employees of the Mutual Fund.
P-12511.18 (g&w)
ARTICLE 7 - RIGHT OF AUL TO CHANGE CERTAIN PROVISIONS
7.1 Right of AUL to Change Interest Rates: AUL has the right at any time,
upon delivery of written notice to the Contractholder, to change the Guaranteed
Rate of Interest. Any such change shall apply only to Participant Accounts
established on or after the effective date of such change, and shall apply for
the duration of such affected Participant Accounts. Any change in the Guaranteed
Rate of Interest shall not result in a rate less than that prescribed by
applicable state law.
7.2 Right of AUL to Change Annuity Table: After the first five Contract
Years, AUL has the right at any time, upon delivery of written notice to the
Contractholder, to change any annuity table included in this contract, but any
such change shall apply only to Participant Accounts established on or after the
effective date of such change.
7.3 Right of AUL to Change Charges: AUL has the right at any time, upon
delivery of written notice to the Contractholder, to change the charges set out
in Sections 1.25 and 6.3. Any such change to the Withdrawal Charge set out in
Section 1.25 shall apply only to Participant Accounts established on or after
the effective date of such change, and shall apply for the duration of such
affected Participant Accounts. The administrative charge set out in Section 6.3
shall be limited to a maximum of $15 per Contract Quarter until the year 2001.
Any increase in the administrative charge made by AUL for any Contract Quarter
beginning after December 31, 2000 shall be limited to an amount which is
designed to reimburse AUL for the expenses associated with the administration of
the contract and the operation of the Variable Account. Any such increase shall
not be anticipated to be a source of profit for AUL.
7.4 Amendment of Contract to Conform with Law: AUL reserves the right to
amend this contract at any time, without the consent of the Contractholder,
Participants, or any other person or entity, to make any change to any
provisions of the contract to comply with, or give the Contractholder or
Participants the benefit of, any provisions of federal or state laws,
regulations, or rulings. Any such amendment shall be stated in a written
instrument and delivered to the Contractholder.
P-12511.19
ARTICLE 8 - MISCELLANEOUS
8.1 Ownership: The Contractholder is the owner of the contract and may
agree with AUL to any change or amendment of it without the consent of any other
person or entity, except that no such change or amendment shall adversely affect
the benefits to be provided by Contributions made prior to the effective date of
such change or amendment unless the consent of all Participants is obtained.
AUL shall have no obligation to make any payment or distribution except as
specified in this contract.
8.2 AUL's Annual Statement: No provision or condition of this contract
shall be deemed to control, determine, or modify any annual statement of AUL
made to any insurance department, contractholder, regulatory body, or other
person, nor shall anything in such annual statement be deemed to control,
determine, or modify the valuation provided for in this contract, nor the values
determined, nor the market, book, or other value of any asset in any Investment
Account or Portfolio, nor any of the other provisions and conditions of this
contract.
8.3 Tax Status: AUL does not make any guarantee regarding the federal,
state, or local tax status of this contract, any Participant Account established
hereunder, or any transaction involving this contract.
8.4 Essential Data: The Participant shall furnish to AUL whatever
information is necessary to establish the eligibility and amount of annuity or
other benefit in each instance.
8.5 Reliance: AUL shall be fully protected in relying on any information
furnished by the Contractholder, by any person or persons certified to AUL by
the Contractholder as acting on its behalf, or by a Participant. AUL need not
inquire as to the accuracy or completeness thereof.
8.6 Misstatement of Essential Data: If it has been found that any essential
data pertaining to any person has been omitted or misstated, including, but not
limited to, a misstatement as to the age of an annuitant, there shall be an
equitable adjustment so as to provide the annuity to which that person is
entitled.
8.7 Annuity Certificates: AUL shall issue to each person for whom an
annuity is purchased from AUL a certificate setting forth the amount and terms
of payment of the annuity.
8.8 Election, Notice, or Direction Requirements: Wherever in this contract
reference is made to the Contractholder or Participant making a request or
giving notice or direction, such request, notice, or direction must be in
writing and must be submitted to and received by AUL at its Home Office before
becoming effective.
8.9 Quarterly Statement of Account Value: As soon as reasonably possible
after the end of each Contract Quarter, AUL shall prepare a statement of the
Account Value of each Participant Account existing under this contract.
8.10 Conformity with State Laws: Any benefit payable under this contract
shall not be less than the minimum benefit required by any statute of the state
in which the contract is delivered.
8.11 Reference to Federal Laws: Language in this contract referring to
federal tax, securities, or other statutes or rules shall not be deemed to
incorporate within the contract such statutes or rules. This language is
informational and instructional in nature, and is not subject to approval or
disapproval by the state in which the contract is issued.
8.12 Sex and Number: Whenever the context so requires, the plural includes
the singular, the singular the plural, and the masculine the feminine.
8.13 Facility of Payment: If any Participant, contingent annuitant, or
beneficiary is legally incapable of giving a valid receipt for any payment due
him, and no guardian has been appointed, AUL may make such payment to the person
or persons who have assumed the care and principal support of such Participant,
contingent annuitant, or beneficiary. Also, AUL may make payment directly to any
person or entity when directed to do so in writing by the Participant. Any
payment made by AUL will fully discharge AUL to the extent of such payment.
8.14 Insulation from Liability: The assets of the Variable Account are not
chargeable with liabilities arising out of any other business AUL may conduct.
8.15 Voting:
(a) AUL is the legal owner of the shares of the Mutual Fund held by the
Investment Accounts of the Variable Account. AUL shall exercise voting
rights attributable to the shares of each Portfolio held in the
Investment Accounts at any regular and special meetings of the
shareholders of the Mutual Fund on matters requiring shareholder
voting under The Investment Company Act of l940 or other applicable
laws. AUL shall exercise these voting rights based on instructions
received from persons having the voting interest in corresponding
Investment Accounts of the Variable Account. However, if The
Investment Company Act of l940 or any regulations thereunder should be
amended, or if the present interpretation thereof should change, and
as a result AUL determines that it is permitted to vote the shares of
the Mutual Fund in its own right, it may elect to do so.
(b) The persons having the voting interest under this contract are the
Participants. Unless otherwise required by applicable law, the number
of Mutual Fund shares of a particular Portfolio as to which voting
instructions may be given to AUL is determined by dividing the value
of all of the Accumulation Units of the corresponding Investment
Account attributable to this contract on a particular date by the net
asset value per share of that Portfolio as of the same date.
Fractional votes will be counted. The number of votes as to which
voting instructions may be given will be determined as of the date
coincident with the date established by the Mutual Fund for
determining shareholders eligible to vote at the meeting of the Mutual
Fund. If required by the Securities and Exchange Commission, AUL
reserves the right to determine in a different fashion the voting
rights attributable to the shares of the Mutual Fund.
(c) Voting rights attributable to this contract for which no timely voting
instructions are received will be voted by AUL in the same proportion
as the voting instructions which are received in a timely manner for
all contracts and Participant Accounts participating in that
Investment Account.
(d) Neither the Variable Account nor AUL is under any duty to inquire as
to the instructions received or the authority of Contractholders,
Participants, or others to instruct the voting of Mutual Fund shares.
(e) Every person or entity having such voting rights shall receive such
reports or prospectuses concerning the Variable Account or the Mutual
Fund as may be required by applicable federal law.
8.16 Acceptance of New Participants or Contributions. AUL reserves the
right to refuse to accept new Participants or new Contributions to this contract
at any time.
8.17 Nonforfeitability and Nontransferability: The entire Withdrawal Value
of a Participant Account under this contract shall be nonforfeitable at all
times. No sum payable under this contract with respect to a Participant may be
sold, assigned, discounted, or pledged as collateral for a loan or as security
for the performance of an obligation or for any other purpose to any person or
entity other than AUL. In addition, to the extent permitted by law, no such sum
shall in any way be subject to legal process requiring the payment of any claim
against the payee.
8.18 Termination: This contract shall automatically terminate as of the
date that there are no Participant Accounts maintained hereunder. However, upon
written notice to AUL, the Contractholder shall have the right to stop making
Contributions to the contract at any time. AUL shall have the right to refuse to
accept Contributions as of the last day of the second month following the date
that written notice to this effect is delivered to the Contractholder.
8.19 Notice of Annual Meeting of Members: The regular annual meeting of the
members of AUL shall be held at its principal place of business on the third
Thursday in February of each year at the hour of ten o'clock A.M. Elections for
directors shall be held at such annual meeting.
P-12511.20
TABLE OF IMMEDIATE ANNUITIES
MONTHLY INCOME PER $1,000 OF ACCOUNT VALUE
ADJUSTED LIFE 10 YEAR CERTAIN
AGE ANNUITY AND LIFE ANNUITY
-------- ------- ----------------
45 2.9690 2.9632
46 3.0190 3.0124
47 3.0715 3.0641
48 3.1269 3.1185
49 3.1852 3.1756
50 3.2466 3.2357
51 3.3115 3.2988
52 3.3800 3.3653
53 3.4525 3.4352
54 3.5291 3.5088
55 3.6104 3.5863
56 3.6966 3.6678
57 3.7881 3.7536
58 3.8850 3.8437
59 3.9877 3.9382
60 4.0964 4.0374
61 4.2115 4.1414
62 4.3334 4.2505
63 4.4626 4.3650
64 4.5994 4.4850
65 4.7442 4.6108
66 4.8977 4.7425
67 5.0608 4.8804
68 5.2347 5.0250
69 5.4213 5.1766
70 5.6229 5.3356
71 5.8412 5.5020
72 6.0778 5.6755
73 6.3336 5.8552
74 6.6097 6.0404
75 6.9084 6.2302
94GARF2-4
Adjusted Age = Actual Age at Settlement (in years and completed months) less the
following number of months: [.6 multiplied by (Birth Year - 1915)] rounded to
the nearest integer.
P-12511.21
The following are the guaranteed annuity rates for the options offered by AUL.
They are based on the following assumptions-
Retirement value - $1000.00 Interest rate - 4% Load - 4%
Participant - Female Commission - 0% Age Adjustment - 0
Contingent - Male (same age as participant)
INSTALLMENT
AGE 5 YR C&L 15 YR C&L 20 YR C&L J&S(FULL) J&2/3S J&1/2S REFUND
--- -------- --------- --------- --------- ------ ----------- ------
45 4.0004 3.9807 3.9616 3.7883 3.8571 3.8924 3.7984
46 4.0413 4.0192 3.9979 3.8194 3.8914 3.9284 3.8336
47 4.0844 4.0597 4.0358 3.8523 3.9275 3.9662 3.8706
48 4.1299 4.1020 4.0753 3.8869 3.9656 4.0062 3.9094
49 4.1777 4.1465 4.1176 3.9235 4.0058 4.0482 3.9501
50 4.2281 4.1931 4.1595 3.9620 4.0481 4.0926 3.9929
51 4.2813 4.2420 4.2044 4.0028 4.0928 4.1394 4.0377
52 4.3375 4.2933 4.2511 4.0458 4.1401 4.1889 4.0849
53 4.3969 4.3471 4.2997 4.0913 4.1900 4.2412 4.1345
54 4.4596 4.4035 4.3503 4.1395 4.2429 4.2965 4.1867
55 4.5259 4.4627 4.4029 4.1905 4.2988 4.3551 4.2416
56 4.5962 4.5248 4.4574 4.2446 4.3581 4.4172 4.2993
57 4.6707 4.5899 4.5139 4.3020 4.4210 4.4830 4.3602
58 4.7498 4.6582 4.5722 4.3630 4.4878 4.5529 4.4244
59 4.8338 4.7299 4.6323 4.4278 4.5588 4.6273 4.4921
60 4.9231 4.8049 4.6940 4.4968 4.6345 4.7065 4.5633
61 5.0181 4.8834 4.7572 4.5704 4.7150 4.7908 4.6387
62 5.1191 4.9654 4.8215 4.6488 4.8009 4.8808 4.7183
63 5.2267 5.0508 4.8868 4.7325 4.8925 4.9767 4.8020
64 5.3413 5.1395 4.9526 4.8218 4.9903 5.0790 4.8906
65 5.4635 5.2315 5.0186 4.9172 5.0947 5.1883 4.9844
66 5.5940 5.3266 5.0843 5.0193 5.2063 5.3052 5.0830
67 5.7334 5.4244 5.1492 5.1284 5.3258 5.4303 5.1875
68 5.8829 5.5249 5.2127 5.2454 5.4539 5.5646 5.2985
69 6.0434 5.6275 5.2744 5.3708 5.5916 5.7089 5.4156
70 6.2158 5.7317 5.3336 5.5055 5.7396 5.8643 5.5396
71 6.4011 5.8369 5.3897 5.6502 5.8991 6.0319 5.6720
72 6.6002 5.9422 5.4421 5.8058 6.0709 6.2127 5.8244
73 6.8139 6.0467 5.9404 5.9731 6.2561 6.4078 5.9594
74 7.0425 6.1493 5.5342 6.1532 6.4557 6.6183 6.1174
75 7.2868 6.2489 5.5735 6.3471 6.6707 6.8453 6.2830
Table-PA
P-12511.22
CONTRACT NUMBER VXX,XXX
CONTRACTHOLDER ABC COMPANY
PARTICIPANT'S NAME XXXX XXX
SOCIAL SECURITY NUMBER ###-##-####
American United Life Insurance Company (AUL) hereby certifies that the
Contractholder and AUL have entered into a Multiple-Fund Group Variable Annuity
Contract (the Contract) in connection with the Contractholder's tax deferred
annuity plan, and that AUL has created an account in your name to receive
Contributions from the Contractholder for your benefit pursuant to the Contract.
The only parties to the Contract are the Contractholder and AUL. All rights and
benefits are determined in accordance with the provisions of the Contract.
Benefits under the Contract will be paid at the Participant's direction.
Any amendments to or changes in the Contract will be binding and conclusive on
each Participant and beneficiary.
AMERICAN UNITED LIFE INSURANCE COMPANY
By: /s/ Xxxxxxx X. Xxxxx
Secretary
TDA MULTIPLE-FUND
GROUP VARIABLE ANNUITY CERTIFICATE
THE ASSETS HELD IN ANY INVESTMENT ACCOUNT FOR WHICH THE CONTRACT MAKES PROVISION
MAY INCREASE OR DECREASE IN DOLLAR VALUE ACCORDING TO THE INVESTMENT PERFORMANCE
OF THE CORRESPONDING PORTFOLIO OF THE MUTUAL FUND IN WHICH THE INVESTMENT
ACCOUNT INVESTS. THE VALUE OF SUCH ASSETS IS NOT GUARANTEED. ARTICLE 5 OF THE
CONTRACT EXPLAINS THE VALUATION OF SUCH ASSETS.
P-12512
SUMMARY OF CERTAIN CONTRACT PROVISIONS
WHICH AFFECT YOU
DEFINITIONS
"Account Value" for any Participant Account on any given date means:
(a) the balance of the Participant Account's share of the Fixed Interest
Account on that date; plus
(b) the value of the Participant Account's share of each Investment
Account on that date.
"Accumulation Period" means the period of time commencing on the date on which a
Participant's initial Contribution is credited to the Participant Account and
terminating on the date when such Participant Account is closed.
"Accumulation Unit" means a statistical device used to measure amounts of
increases to, decreases from, and accumulations in any Investment Account during
the Accumulation Period.
"Annuity Commencement Date" means the first day of any month upon which an
annuity begins under the Contract. However, for any Participant, this date shall
not be later than the required beginning date as defined in the applicable
sections of the Code and Regulations issued thereunder.
"Code" means the Internal Revenue Code of l986, as amended.
"Contributions" means amounts paid to AUL by the Contractholder and credited to
a Participant Account.
"Current Rates of Interest" means each of the annual effective rates of interest
as determined and declared by AUL from time-to-time and as credited to each
interest pocket maintained within the Fixed Interest Account. The Current Rates
of Interest shall always be equal to or greater than the Guaranteed Rate of
Interest.
"Elective Deferrals" means, with respect to any taxable year, any Contribution
made under a salary reduction agreement. A Contribution made under a salary
reduction agreement shall not be treated as an Elective Deferral if, under the
salary reduction agreement, such Contribution is made pursuant to a one-time
irrevocable election made by the Participant at the time of initial eligibility
to participate in the agreement, or is made pursuant to a similar arrangement
involving a one-time irrevocable election specified in Regulations issued under
the Code.
"Excess Contributions" means those Contributions made on behalf of a Participant
which exceed the limitations in effect under applicable provisions of the Code
and Regulations issued thereunder.
"Fixed Interest Account" means that fund of AUL's general asset account in which
all or a portion of a Participant's Account Value may be held for accumulation
at the Current Rates of Interest.
P-12512.rpl-1
(a) Contributions allocated, or amounts transferred, to the Fixed Interest
Account shall be credited to the open interest pocket and shall earn
interest at the Current Rate of Interest in effect for that interest
pocket. Such Contributions or transferred amounts, during the time
that the Current Rate of Interest exceeds the Guaranteed Rate of
Interest, shall earn interest at such credited Current Rate of
Interest for at least 1 year. After such 1-year period, AUL reserves
the right to declare, at any time, a new Current Rate of Interest to
be applied to funds held within that interest pocket. Any such new
Current Rate of Interest must remain in effect for that interest
pocket for at least 1 year.
(b) If AUL changes the Current Rate of Interest for new Contributions or
new amounts transferred to the Fixed Interest Account, the previous
open interest pocket shall close, and any Contributions or amounts
transferred on or after the effective date of such change shall be
credited to a new open interest pocket and shall earn interest at the
new Current Rate of Interest in effect for such new open interest
pocket. Therefore, at any given time, various funds credited to a
Participant Account and allocated to the Fixed Interest Account may be
earning interest at different Current Rates of Interest for different
periods of time.
"Guaranteed Rate of Interest" means interest at an annual effective rate of
4.00%.
"Home Office" means the principal office of AUL. The mailing address is P. O.
Xxx 0000, Xxxxxxxxxxxx, Xxxxxxx 00000-0000.
"Investment Account" means each subaccount of the Variable Account, which
subaccounts include the Equity Investment Account, the Bond Investment Account,
the Money Market Investment Account, and the Managed Investment Account, as the
case may be, where:
(a) Amounts allocated to the Equity Investment Account shall be invested
in shares of the AUL American Equity Portfolio of the Mutual Fund.
(b) Amounts allocated to the Bond Investment Account shall be invested in
shares of the AUL American Bond Portfolio of the Mutual Fund.
(c) Amounts allocated to the Money Market Investment Account shall be
invested in shares of the AUL American Money Market Portfolio of the
Mutual Fund.
(d) Amounts allocated to the Managed Investment Account shall be invested
in shares of the AUL American Managed Portfolio of the Mutual Fund.
The AUL American Managed Portfolio of the Mutual Fund is a managed
Portfolio which invests in the same types of investments as the other
Portfolios listed in (a), (b), and (c) above.
"Investment Option" means the Fixed Interest Account or any of the Investment
Accounts of the Variable Account. AUL reserves the right to provide other
Investment Options under the Contract at any time.
"Mutual Fund" means the AUL American Series Fund, Inc., a diversified, open-end
management investment company registered under The Investment Company Act of
l940.
P-12512.2
"Participant" means any person reported to AUL by the Contractholder as eligible
for, and as participating in, the Contract, and for whom a Participant Account
is established.
"Participant Account" means an account established under the Contract for a
Participant. Contributions received by AUL shall be credited to Participant
Accounts as AUL is directed in writing.
"Portfolio" means a series of the Mutual Fund as described in the prospectus for
the Mutual Fund as such prospectus may be amended or supplemented from time to
time.
"Valuation Date" means any day when the Home Office of AUL and the New York
Stock Exchange are open and operational.
"Valuation Period" means the period beginning at the close of business on a
Valuation Date and ending at the close of business on the next succeeding
Valuation Date.
"Variable Account" means a separate account established by AUL called the AUL
American Unit Trust, which is registered under The Investment Company Act of
l940 as a unit investment trust.
"Withdrawal Charge" means a charge taken by AUL equal to a percentage of the
Account Value withdrawn under the Contract, where the percentage varies by the
number of full years measured from the date a Participant Account is established
to the date the Withdrawal Charge is determined. Such percentage is as follows:
During
Account Years Percentage
1-5 8
6-10 4
Thereafter 0
In no event will the cumulative total of all Withdrawal Charges, including those
previously assessed against any amount withdrawn from a Participant Account,
exceed 9% of total Contributions allocated to that Participant Account.
"Withdrawal Value" means a Participant's Account Value minus the applicable
Withdrawal Charge, and minus the Participant's outstanding loan balance, if any,
and any expense charges due on such loans.
P-12512.3
CONTRIBUTIONS, INVESTMENTS, AND TRANSFERS
Contributions:
(a) Contributions may vary in amount and frequency; however, they must be
at least equal to a minimum annual Contribution of $200 per
Participant in any full contract year.
(b) Excess Contributions (plus gains or minus losses thereon) shall be
withdrawn from a Participant Account and returned to the Participant
upon receipt by AUL at its Home Office of complete written
instructions from the Contractholder or the Participant. Such written
instructions must include the amount to be withdrawn and returned, and
a certification that such Contributions constitute Excess
Contributions and that such returns are permitted by applicable
provisions of the Code and Regulations issued thereunder. It shall not
be the responsibility of AUL to determine the existence or amount of
Excess Contributions or gains or losses thereon, or that returns of
Excess Contributions are permitted by applicable provisions of the
Code and Regulations. In withdrawing and returning the identified
amount, AUL may rely solely on such written instructions and
certification. Such a withdrawal and return of Excess Contributions
shall not be subject to the withdrawal benefits provisions of the
Contract.
(c) When a Contribution is received at AUL's Home Office, it shall be
credited to Participant Accounts as directed in written allocation
instructions.
(d) The initial Contribution for a Participant shall be credited and
allocated to the Participant Account no later than the close of
business on the second business day of AUL after the later of (1) the
business day that AUL receives the initial Contribution at its Home
Office, or (2) the business day that AUL receives, at its Home Office,
the data required to establish the Participant Account and allocation
instructions regarding the initial Contribution.
(e) All Contributions subsequent to the initial Contribution shall be
credited and allocated as of the close of business on the Valuation
Period in which AUL receives the Contribution at its Home Office,
provided that the Contribution is received by 4:00 p.m. E.S.T. If the
Contribution is received after 4:00 p.m. E.S.T., such Contribution
shall be deemed to be received, and shall be credited and allocated as
of the close of business, on the next succeeding Valuation Period.
(f) Within any one Participant Account, the amount so credited shall be
allocated to an Investment Option in increments of 10%, 25%, or
33-1/3%, as elected by the Participant in writing. If no allocation
instruction is made with respect to any Participant Account, AUL shall
process such credits in accordance with the allocation instruction
applicable to the immediately preceding Contribution. If there should
be no allocation instruction applicable to a portion of a
Contribution, that amount shall be credited to the Fixed Interest
Account until such time as an appropriate allocation instruction is
received, except as provided in (d)
P-12512.rpl-4
above for the initial Contribution. The Participant may change an
allocation instruction with respect to future allocations to his
Participant Account by giving new written allocation instructions to
AUL.
Addition, Deletion, or Substitution of Investments:
(a) AUL reserves the right, subject to compliance with applicable law, to
make additions to, deletions from, substitution for, or combinations
of, the securities that are held by the Variable Account or any
Investment Account or that the Variable Account or any Investment
Account may purchase. AUL reserves the right to eliminate the shares
of any of the eligible Portfolios and to substitute shares of, or
interests in, another Portfolio of the Mutual Fund, of another
open-end, registered investment company, or other investment vehicle,
for shares already purchased or to be purchased in the future under
the Contract.
(b) AUL reserves the right to establish additional Investment Accounts,
each of which would invest in a new Portfolio of the Mutual Fund, or
in other securities, investment vehicles, or shares of another
diversified open-end management investment company or series thereof.
AUL reserves the right to eliminate existing Investment Accounts if,
in its sole discretion, marketing, tax, or investment conditions so
warrant. AUL also reserves the right to provide other Investment
Options under the Contract at any time.
(c) If deemed by AUL to be in the best interests of persons or entities
having voting rights under the Contract, the Variable Account may be
operated as a management investment company or any other form
permitted by law, it may be deregistered in the event such
registration is no longer required, or it may be combined with other
separate accounts of AUL or an affiliate thereof.
Transfers:
(a) Subject to the limitations of (d) through (g) below, the Participant
may direct AUL in writing to transfer the amounts credited to an
Investment Option to any other Investment Option during the
Accumulation Period. Any transfer from an Investment Account shall be
effective as of the close of business on the Valuation Date that AUL
receives the Participant's direction, provided that AUL receives such
direction by 4:00 p.m. E.S.T. on that Valuation Date. If such
direction is received after 4:00 p.m. E.S.T., such transfer shall be
effective as of the close of business on the next succeeding Valuation
Date.
(b) AUL shall make the transfer as requested by the Participant within 7
days from the date a proper request is received by AUL at its Home
Office, except as AUL may be permitted to defer such payment of
amounts withdrawn from the Variable Account in accordance with
appropriate provisions of the federal securities laws. AUL reserves
the right to defer a transfer of amounts from the Fixed Interest
Account for a period of 6 months after AUL receives the transfer
request at its Home Office.
(c) All transfers from the Fixed Interest Account to any Investment
Account shall be made on a first-in/first-out accounting basis.
P-12512.5
(d) The Participant may not direct a transfer with regard to his
Participant Account's share of any Investment Option in an amount less
than $500 or the Participant Account's entire share, if less than
$500. If such a transfer reduces the Participant Account's remaining
share of an Investment Option to less than $500, the entire remaining
share shall also be transferred.
(e) Amounts transferred from the Fixed Interest Account on behalf of a
Participant during any contract year shall not exceed 20% of the
Participant Account's share of the Fixed Interest Account determined
as of the last contract anniversary preceding the request for
transfer, or the Participant Account's entire share of the Fixed
Interest Account if such share would be less than $500 after the
transfer.
(f) AUL reserves the right to change the limitation on the minimum
transfer, to change the limit on remaining balances, to limit the
number and frequency of transfers, to suspend the transfer privilege,
and to impose a charge on a transfer.
(g) Where a Participant has outstanding loans under the Contract, a
transfer from the Fixed Interest Account to the Variable Account shall
be permitted only to the extent that the remaining Withdrawal Value of
the Participant held in the Fixed Interest Account equals twice the
total of the Participant's outstanding loans under the Contract.
BENEFITS AND LOANS
Annuity Options:
At the written request of the Participant, AUL shall apply all or a portion of
the Account Value (subject to any appropriate premium tax charge, and minus any
outstanding loan balance of the Participant and any unpaid expense charges on
such loans) of the Participant Account for the purpose of providing a fixed
payment annuity. Upon receipt of such request, AUL is hereby authorized by such
Participant to value and transfer the Participant Account's share of the
Variable Account to the Fixed Interest Account as of the date that AUL receives
such written request at its Home Office. Such transferred amounts shall be held
in the Fixed Interest Account until the Participant's Annuity Commencement Date.
The Participant request shall include certification as to the purpose for the
annuity and the election of one of the following annuity options:
(a) Life Annuity. The monthly annuity shall be payable to the annuitant
for as long as the annuitant lives, and shall end with the last
monthly payment before the death of the annuitant.
(b) Certain and Life Annuity. The monthly annuity shall be payable to the
annuitant for as long as the annuitant lives. If the annuitant dies
before receiving payments for the certain period (5, 10, 15, or 20
years, as specified in the election), any remaining payments for the
balance of the certain period shall be paid to the annuitant's
beneficiary.
P-12512.6
(c) Survivorship Annuity. The monthly annuity shall be payable to the
annuitant for as long as the annuitant lives. After the death of the
annuitant, a portion (all, 2/3, or 1/2, as specified in the election)
of the monthly annuity shall be paid to the contingent annuitant named
in the election for as long as the contingent annuitant lives. An
election of this option is automatically cancelled if either the
Participant or the contingent annuitant dies before the Annuity
Commencement Date.
(d) Unit Refund Life Annuity. The monthly annuity shall be payable to the
annuitant for as long as the annuitant lives, and shall end with the
last monthly payment before the death of the annuitant. If, at the
death of the annuitant, the sum of the monthly payments previously
received is less than the amount applied to provide the annuity,
monthly payments of the same amount shall continue to the annuitant's
beneficiary until the total of the monthly payments received equals
such amount.
(e) Fixed Period. The monthly annuity shall be payable to the annuitant
for a fixed period of time (not less than 5 years nor more than 30
years, as specified in the election). If, at the death of the
annuitant, payments have been made for less than the selected fixed
period, monthly annuity payments to the annuitant's beneficiary shall
be continued during the remainder of such fixed period.
(f) Lump Sum Payment. A lump sum payment shall be payable to the
annuitant. If the total Account Value is less than $2,000, such value
shall not be annuitized under options (a), (b), (c), (d), (e), or (g),
but shall be paid in a lump sum.
(g) Any other options mutually agreed upon between the Contractholder and
AUL shall be made available.
If no annuity option election for a Participant has been received by AUL at its
Home Office at least 30 days prior to the Annuity Commencement Date, the Account
Value (subject to any appropriate premium tax charge, and minus any outstanding
loan balance of the Participant and any unpaid expense charges on such loans) of
his Participant Account shall be applied under (b) above as a 10 Year Certain
and Life Annuity. AUL must receive written notification of such Annuity
Commencement Date, written designation of the contingent annuitant or
beneficiary, and any election forms needed in connection with any annuity option
provided.
In no event shall any option elected provide annuity benefits to the Participant
or to the Participant and the contingent annuitant which would extend for a
certain period beyond the life expectancy of such Participant or the joint life
expectancy of such Participant and such contingent annuitant as determined on
the Annuity Commencement Date.
If the monthly annuity is less than AUL's then current established minimum, AUL
reserves the right to make payments on a less frequent basis or to pay the
appropriate amount in a single sum.
P-12512.7
(d) The Participant may not direct a transfer with regard to his
Participant Account's share of any Investment Option in an amount less
than $500 or the Participant Account's entire share, if less than
$500. If such a transfer reduces the Participant Account's remaining
share of an Investment Option to less than $500, the entire remaining
share shall also be transferred.
(e) Amounts transferred from the Fixed Interest Account on behalf of a
Participant during any contract year shall not exceed 20% of the
Participant Account's share of the Fixed Interest Account determined
as of the last contract anniversary preceding the request for
transfer, or the Participant Account's entire share of the Fixed
Interest Account if such share would be less than $500 after the
transfer.
(f) AUL reserves the right to change the limitation on the minimum
transfer, to change the limit on remaining balances, to limit the
number and frequency of transfers, to suspend the transfer privilege,
and to impose a charge of not more than $25 on a transfer. AUL
reserves the right to change the maximum limit on such transfer charge
upon delivery of written notice to the Contractholder. Any such change
shall apply only to transfers by an individual who becomes a
Participant on or after the effective date of such change, and shall
apply as long as that individual remains a Participant.
(g) Where a Participant has outstanding loans under the Contract, a
transfer from the Fixed Interest Account to the Variable Account shall
be permitted only to the extent that the remaining Withdrawal Value of
the Participant held in the Fixed Interest Account equals twice the
total of the Participant's outstanding loans under the Contract.
BENEFITS AND LOANS
Annuity Options:
At the written request of the Participant, AUL shall apply all or a portion of
the Account Value (subject to any appropriate premium tax charge, and minus any
outstanding loan balance of the Participant and any unpaid expense charges on
such loans) of the Participant Account for the purpose of providing a fixed
payment annuity. Upon receipt of such request, AUL is hereby authorized by such
Participant to value and transfer the Participant Account's share of the
Variable Account to the Fixed Interest Account as of the date that AUL receives
such written request at its Home Office. Such transferred amounts shall be held
in the Fixed Interest Account until the Participant's Annuity Commencement Date.
The Participant request shall include certification as to the purpose for the
annuity and the election of one of the following annuity options:
(a) Life Annuity. The monthly annuity shall be payable to the annuitant
for as long as the annuitant lives, and shall end with the last
monthly payment before the death of the annuitant.
(b) Certain and Life Annuity. The monthly annuity shall be payable to the
annuitant for as long as the annuitant lives. If the annuitant dies
before receiving payments for the certain period (5, 10, 15, or 20
years, as specified in the election), any remaining payments for the
balance of the certain period shall be paid to the annuitant's
beneficiary.
P-12512.PA-6
Death Benefits:
(a) Upon receipt of written instructions from the Participant's
beneficiary (or, if applicable, the secondary beneficiary of the
Participant) and of due proof of the Participant's (and, if
applicable, the beneficiary's) death during the Accumulation Period at
its Home Office, AUL shall apply the Account Value (minus the
Participant's outstanding loan balance, if any, under the Contract and
any unpaid expense charges due on such loans) of the Participant
Account for the purpose of providing a death benefit. The death
benefit shall be paid to the beneficiary last properly designated in
writing to AUL at its Home Office by the Participant, or, if there is
no designated beneficiary living on the date of the Participant's
death, to the Participant's estate. If any beneficiary dies while
receiving payments and no beneficiary is designated to receive any
remaining payments, such remaining payments shall be made to the
deceased beneficiary's estate.
(b) The Account Value to be applied pursuant to (a) above shall be
determined as of the close of business on the later of (1) the
Valuation Date that AUL receives such written instructions at its Home
Office, or (2) the Valuation Date that AUL receives such due proof of
death at its Home Office, provided that such written instructions or
due proof of death received on the later of (1) or (2) above are(is)
received by 4:00 p.m. E.S.T. If the written instructions or due proof
of death received on the later of (1) or (2) above are(is) received
after 4:00 p.m. E.S.T., such valuation shall be made as of the close
of business on the next succeeding Valuation Date.
(c) (1) The benefit shall be payable in accordance with one of the
following provisions as elected by the Participant or the beneficiary
if the Participant did not make an election:
(i) The entire Account Value to be applied shall be paid to the
beneficiary in a single sum or by another elected method on
or before December 31 of the calendar year which contains
the fifth anniversary of the date of the Participant's
death; or
(ii) The benefit shall be paid as an annuity in accordance with
the Annuity Options shown above over the life or life
expectancy of the beneficiary. If the beneficiary is not the
Participant's surviving spouse, the annuity must begin on or
before December 31 of the calendar year immediately
following the calendar year in which the Participant died.
If the beneficiary is the Participant's surviving spouse,
the annuity need not begin before December 31 of the
calendar year in which the Participant would have attained
age 70 1/2.
(2) If a Participant dies on or after his Annuity Commencement Date,
any interest remaining under the Annuity Option selected shall be
paid at least as rapidly as prior to the Participant's death.
P-12512.8
(3) If payment is to be made in a cash lump sum, payment shall be
made within 7 days of the date of valuation, as determined in (b)
above, except as AUL may be permitted to defer such payment of
amounts derived from the Variable Account in accordance with the
provisions of federal securities laws. Also, AUL reserves the
right to defer the payment of amounts withdrawn from the Fixed
Interest Account for a period of 6 months after AUL receives
written instructions at its Home Office.
Withdrawal Benefits:
(a) Except as stated below, a Participant, upon submitting a proper
written request to AUL at its Home Office, may direct AUL to withdraw
all or a portion of the Account Value (subject to the Withdrawal
Charge) of his Participant Account, provided:
(l) the Participant has:
(i) attained age 59 1/2; or
(ii) terminated employment; or
(iii) become totally disabled (as defined by the Internal Revenue
Service); or
(iv) experienced a hardship (as defined by the Internal Revenue
Service); or
(2) the amount being withdrawn is attributable to Contributions made
other than pursuant to a salary reduction agreement (within the
meaning of Code Section 402(g)(3)(C)); or
(3) the amount being withdrawn is attributable to amounts held as of
December 31, l988 under another Code Section 403(b) annuity
contract.
(4) In the case of a hardship withdrawal referred to in (1)(iv)
above, any gain credited to Contributions made pursuant to a
salary reduction agreement may not be withdrawn.
(5) AUL shall not be responsible for determining a Participant's
compliance with the requirements above, and it may rely upon the
representations of the Participant made in the withdrawal
request.
(b) Withdrawals from a Participant Account's share of an Investment Option
may not be made in an amount less than the smaller of $500 or the
Participant Account's entire share of the Investment Option. If a
withdrawal reduces the Participant Account's share of an Investment
Option to less than $500, such remaining share shall also be withdrawn
(except for amounts prohibited from being distributed because
provision (a)(1) above is not met).
P-12512.9
(c) A withdrawal request shall be effective as of the close of business on
the Valuation Date that AUL receives a proper written withdrawal
request at its Home Office, provided that AUL receives such request by
4:00 p.m. E.S.T. on that Valuation Date. If such request is received
after 4:00 p.m. E.S.T., such request shall be effective as of the
close of business on the next succeeding Valuation Date.
(d) The Account Value to be applied shall be determined as of the
applicable Valuation Date determined in (c) above. If the entire
Account Value of a Participant Account is withdrawn, the Participant
shall be paid the Withdrawal Value. If the Participant requests that a
specified percentage or dollar amount be paid to the Participant, AUL
shall withdraw from the Participant Account an amount equal to the
dollar amount to be paid divided by the difference between 1 and the
decimal equivalent of the applicable Withdrawal Charge.
Notwithstanding the previous sentence, in any contract year the
Participant may withdraw up to 10% of the Account Value of his
Participant Account determined as of the last contract anniversary
preceding the request for the withdrawal without application of any
Withdrawal Charge, provided that 12 months have elapsed from the date
that the Participant's first Contribution is credited to his
Participant Account by AUL to the date of such withdrawal. Also, where
a Participant has outstanding loans under the Contract, a partial
withdrawal by a Participant from the Fixed Interest Account shall be
permitted only to the extent that the remaining Withdrawal Value of
the Participant held in the Fixed Interest Account equals twice the
total of the Participant's outstanding loans under the Contract.
(e) AUL shall pay such amount in a cash lump sum to the Participant. Such
cash lump sum will be paid within 7 days from the date that AUL
receives the withdrawal request at its Home Office, except as AUL may
be permitted to defer such payment of amounts withdrawn from the
Variable Account in accordance with appropriate provisions of the
federal securities laws. AUL reserves the right to defer the payment
of amounts withdrawn from the Fixed Interest Account for a period of
up to 6 months after AUL receives the withdrawal request at its Home
Office.
(f) Withdrawals from a Participant Account's share of the Fixed Interest
Account shall be made on a first-in/first-out basis so that all or a
portion of the amounts credited to the Participant Account's share of
the Fixed Interest Account (other than amounts which are prohibited
from being distributed because provision (a)(1) above is not met)
which have been on deposit for the longest period of time, as well as
the interest credited thereon, shall be withdrawn first.
Loans from the Fixed Interest Account:
(a) A Participant who has all or a portion of his Account Value held in
the Fixed Interest Account may borrow money from AUL, using such
Account Value held in the Fixed Interest Account as the only security
for the loan, by submitting a proper written request to AUL at its
Home Office. The minimum amount of any single loan is $2,000. The
maximum amount that may be borrowed at any time is an amount which,
when combined with the largest loan balance during the prior 12
months, does not exceed the lesser of (l) 50% of the Withdrawal Value
of the Participant Account
P-12512.10
held in the Fixed Interest Account, or (2) $50,000. The Withdrawal
Value of the Participant Account held in the Fixed Interest Account,
which must be at least twice the amount of the outstanding loan
balance, shall serve as security for the loan, and shall continue to
earn interest. Payment by AUL of the loan amount may be delayed for
up to 6 months.
(b) Interest will be charged for the loan, and will accrue on the loan
balance from the effective date of such loan. The interest rate shall
be declared by AUL at the beginning of each calendar quarter. The loan
balance shall also be subject to a loan expense charge equal to 2% of
each loan repayment.
(c) Loans to Participants must be repaid to AUL within a term of 5 years,
unless the Participant certifies to AUL that the loan is to be used to
acquire a principal residence for the Participant, in which case the
term may be longer. Loan repayments must be made at least quarterly.
Upon receipt of a repayment, AUL shall deduct the 2% expense charge
from the repayment, and shall apply the balance of such repayment
first to any accrued interest and then to the outstanding loan
principal.
(d) If a loan either remains unpaid at the end of its term, or if, at any
time, l02% of the total of all the Participant's loan balances equals
the Participant's Withdrawal Value allocated to the Fixed Interest
Account, then AUL shall deduct these balances plus an expense charge
equal to 2% of the outstanding loan balances from the Participant
Account's share of the Fixed Interest Account. If a Participant has
outstanding loans, then withdrawals or transfers to the Variable
Account shall be permitted only to the extent that the Participant's
remaining Withdrawal Value in the Fixed Interest Account equals twice
the total of any outstanding loans of the Participant under the
Contract. All loan balances plus the 2% expense charge shall be paid
or satisfied in full before any amount from the Participant Account's
share of the Fixed Interest Account is paid as a full withdrawal, as a
death benefit, upon annuitization, or as another permitted
distribution.
(e) AUL may modify the loan restrictions or limitations stated above, or
may add new restrictions and limitations, to the extent necessary to
comply with Code Section 72(p) or other applicable law, as determined
solely by AUL.
P-12512.11
held in the Fixed Interest Account, or (2) $50,000. The Withdrawal
Value of the Participant Account held in the Fixed Interest Account,
which must be at least twice the amount of the outstanding loan
balance, shall serve as security for the loan, and shall continue to
earn interest. Payment by AUL of the loan amount may be delayed for
up to 6 months.
(b) Interest will be charged for the loan, and will accrue on the loan
balance from the effective date of such loan. The interest rate shall
be declared by AUL at the beginning of each calendar year. The
interest rate charged during a particular calendar year shall be equal
to the Moody's Corporate Bond Yield Average - Monthly Average
Corporates as published by Xxxxx'x Investors Service for October of
the previous calendar year. However, no change from a previously
established rate may be made in an amount less than .50% in any
periodic adjustment. If the Moody's rate for any October decreases by
at least .50% from the Moody's rate for the immediately preceding
October, AUL shall declare such reduced interest rate to be in effect
during the next succeeding calendar year. The loan balance shall also
be subject to a loan expense charge equal to 2% of each loan
repayment.
(c) Loans to Participants must be repaid to AUL within a term of 5 years,
unless the Participant certifies to AUL that the loan is to be used to
acquire a principal residence for the Participant, in which case the
term may be longer. Loan repayments must be made at least quarterly.
Upon receipt of a repayment, AUL shall deduct the 2% expense charge
from the repayment, and shall apply the balance of such repayment
first to any accrued interest and then to the outstanding loan
principal.
(d) If a loan either remains unpaid at the end of its term, or if, at any
time, l02% of the total of all the Participant's loan balances equals
the Participant's Withdrawal Value allocated to the Fixed Interest
Account, then AUL shall deduct these balances plus an expense charge
equal to 2% of the outstanding loan balances from the Participant
Account's share of the Fixed Interest Account. If a Participant has
outstanding loans, then withdrawals or transfers to the Variable
Account shall be permitted only to the extent that the Participant's
remaining Withdrawal Value in the Fixed Interest Account equals twice
the total of any outstanding loans of the Participant under the
Contract. All loan balances plus the 2% expense charge shall be paid
or satisfied in full before any amount from the Participant Account's
share of the Fixed Interest Account is paid as a full withdrawal, as a
death benefit, upon annuitization, or as another permitted
distribution.
(e) AUL may modify the loan restrictions or limitations stated above, or
may add new restrictions and limitations, to the extent necessary to
comply with Code Section 72(p) or other applicable law, as determined
solely by AUL.
P-12512.SC-11
VALUATIONS
All assets of each Portfolio shall be valued as provided in the prospectus for
the Mutual Fund as such prospectus may be amended or supplemented from time to
time.
Any amounts that are allocated to any Investment Account on behalf of a
Participant shall be credited to his Participant Account in the form of
Accumulation Units on the basis of the value of such units in that Investment
Account as of the end of the Valuation Period on which such amounts are received
by AUL at its Home Office. Such crediting shall be made separately for amounts
allocated to each Investment Account.
The value of each Participant Account's share of any Investment Account as of
any Valuation Date shall be determined by multiplying the Participant Account's
aggregate Accumulation Units in that Investment Account as of such Valuation
Date by the dollar value of one Accumulation Unit in that Investment Account as
of such Valuation Date. The value of the Participant Account's share of any
Investment Account as of any date other than a Valuation Date is equal to the
value of its share of that Investment Account as of the immediately preceding
Valuation Date.
OTHER CHARGES
AUL shall deduct a daily mortality risk charge and a daily expense risk charge
equal to the daily equivalent of an annual charge of .85% and .40%,
respectively, against the average daily net assets of each Investment Account.
The Mutual Fund shall pay an investment advisory fee and certain other expenses,
which may include its operational and organizational expenses, as described in
the current prospectus as it may be amended or supplemented from time to time.
These expenses may vary from year to year. The net asset value of each Portfolio
reflects such investment advisory fee and other expenses which are deducted from
the assets of such Portfolio.
AUL shall deduct an administrative charge per Contract year quarter equal to the
lesser of $7.50 or 0.5% of the Account Value on the last day of each such
quarter from each Participant Account in existence on such day for so long as
the Participant Account is in effect during the Accumulation Period. This charge
is to be prorated among each subaccount of the Participant Account which
corresponds to each Investment Option utilized under the Contract by that
Participant Account.
AUL reserves the right to deduct a charge for each transfer transaction, to
deduct the appropriate premium tax charge, or to deduct the appropriate charges
for federal, state, or local income taxes incurred by AUL that are attributable
to the Variable Account and its Investment Accounts.
RIGHT OF AUL TO CHANGE CERTAIN PROVISIONS
AUL reserves the right to amend the Contract at any time, without the consent of
the Contractholder, Participants, or any other person or entity, to make any
change to any provisions of the Contract to comply with, or give the
Contractholder or Participants the benefit of, any provisions of federal or
state laws, regulations, or rulings.
P-12512.12
VALUATIONS
All assets of each Portfolio shall be valued as provided in the prospectus for
the Mutual Fund as such prospectus may be amended or supplemented from time to
time.
Any amounts that are allocated to any Investment Account on behalf of a
Participant shall be credited to his Participant Account in the form of
Accumulation Units on the basis of the value of such units in that Investment
Account as of the end of the Valuation Period on which such amounts are received
by AUL at its Home Office. Such crediting shall be made separately for amounts
allocated to each Investment Account. The number of Accumulation Units in each
Investment Account credited to each Participant Account as of any Valuation
Period shall be determined by dividing the amounts allocated to that Investment
Account for that Participant Account as of such Valuation Period by the dollar
value of one Accumulation Unit in that Investment Account as of the close of
business on the applicable Valuation Period. The number of Accumulation Units
thus determined shall not be changed by any subsequent change in the dollar
value of the Accumulation Units.
The value of an Accumulation Unit in each Investment Account was established at
$1.00 as of April 12, 1990. The value of an Accumulation Unit in each Investment
Account as of any Valuation Period thereafter is equal to the dollar value of
one Accumulation Unit in that Investment Account as of the immediately preceding
Valuation period multiplied by the Net Investment Factor, as defined below, for
that Investment Account for the current Valuation Period. The value of an
Accumulation Unit for each Investment Account shall be determined for each
Valuation Period before giving effect to any additions, withdrawals, or
transfers. After such determination, the additions, withdrawals, or transfers
which are effective as of that day shall then be made.
The Net Investment Factor for each Investment Account for any Valuation Period
is determined by dividing (a) by (b), and then subtracting (c) from that result,
where:
(a) is equal to:
(1) the net asset value of a Portfolio share held in the Investment
Account determined as of the end of the current Valuation Period,
plus
(2) the per share amount of any dividend or other distribution, if
any, paid by the Portfolio during the current Valuation Period,
plus or minus
(3) any credit or charge for any taxes paid or reserved for by AUL
during the current Valuation Period which are determined by AUL
to be attributable to operation of the Investment Account;
P-12512.NJ-12
(b) is the net asset value of a Portfolio share held in the Investment
Account determined as of the end of the immediately preceding
Valuation Period; and
(c) is a daily charge factor determined by AUL to reflect the charges
assessed against the assets of the Investment Account for mortality
and expense risks.
The value of each Participant Account's share of any Investment Account as of
any Valuation Date shall be determined by multiplying the Participant Account's
aggregate Accumulation Units in that Investment Account as of such Valuation
Date by the dollar value of one Accumulation Unit in that Investment Account as
of such Valuation Date. The value of the Participant Account's share of any
Investment Account as of any date other than a Valuation Date is equal to the
value of its share of that Investment Account as of the immediately preceding
Valuation Date.
OTHER CHARGES
AUL shall deduct a daily mortality risk charge and a daily expense risk charge
equal to the daily equivalent of an annual charge of .85% and .40%,
respectively, against the average daily net assets of each Investment Account.
The Mutual Fund shall pay an investment advisory fee and certain other expenses,
which may include its operational and organizational expenses, as described in
the current prospectus as it may be amended or supplemented from time to time.
These expenses may vary from year to year. The net asset value of each Portfolio
reflects such investment advisory fee and other expenses which are deducted from
the assets of such Portfolio.
AUL shall deduct an administrative charge per Contract year quarter equal to the
lesser of $7.50 or 0.5% of the Account Value on the last day of each such
quarter from each Participant Account in existence on such day for so long as
the Participant Account is in effect during the Accumulation Period. This charge
is to be prorated among each subaccount of the Participant Account which
corresponds to each Investment Option utilized under the Contract by that
Participant Account.
AUL reserves the right to deduct a charge for each transfer transaction, to
deduct the appropriate premium tax charge, or to deduct the appropriate charges
for federal, state, or local income taxes incurred by AUL that are attributable
to the Variable Account and its Investment Accounts.
RIGHT OF AUL TO CHANGE CERTAIN PROVISIONS
AUL reserves the right to amend the Contract at any time, without the consent of
the Contractholder, Participants, or any other person or entity, to make any
change to any provisions of the Contract to comply with, or give the
Contractholder or Participants the benefit of, any provisions of federal or
state laws, regulations, or rulings.
P-12512.NJ-13
MISCELLANEOUS
Ownership: The Contractholder is the owner of the Contract and may agree with
AUL to any change or amendment of it without the consent of any other person or
entity, except that no such change or amendment shall adversely affect the
benefits to be provided by Contributions made prior to the effective date of
such change or amendment unless the consent of all Participants is obtained.
AUL shall have no obligation to make any payment or distribution except as
specified in the Contract.
Tax Status: AUL does not make any guarantee regarding the federal, state, or
local tax status of the Contract, any Participant Account established
thereunder, or any transaction involving the Contract.
Essential Data: The Participant shall furnish to AUL whatever information is
necessary to establish the eligibility and amount of annuity or other benefit in
each instance.
Reliance: AUL shall be fully protected in relying on any information furnished
by the Contractholder, by any person or persons certified to AUL by the
Contractholder as acting on its behalf, or by a Participant. AUL need not
inquire as to the accuracy or completeness thereof.
Misstatement of Essential Data: If it has been found that any essential data
pertaining to any person has been omitted or misstated, including, but not
limited to, a misstatement as to the age of an annuitant, there shall be an
equitable adjustment so as to provide the annuity to which that person is
entitled.
Annuity Certificates: AUL shall issue to each person for whom an annuity is
purchased from AUL a certificate setting forth the amount and terms of payment
of the annuity.
Election, Notice, or Direction Requirements: Wherever in the Contract reference
is made to the Contractholder or Participant making a request or giving notice
or direction, such request, notice, or direction must be in writing and must be
submitted to and received by AUL at its Home Office before becoming effective.
Quarterly Statement of Account Value: As soon as reasonably possible after the
end of each contract year quarter, AUL shall prepare a statement of the Account
Value of each Participant Account existing under the Contract.
Sex and Number: Whenever the context of this Certificate so requires, the plural
includes the singular, the singular the plural, and the masculine the feminine.
Facility of Payment: If any Participant, contingent annuitant, or beneficiary is
legally incapable of giving a valid receipt for any payment due him, and no
guardian has been appointed, AUL may make such payment to the person or persons
who have assumed the care and principal support of such Participant, contingent
annuitant, or beneficiary. Also, AUL may make payment directly to any person or
entity when directed to do so in writing by the Participant. Any payment made by
AUL will fully discharge AUL to the extent of such payment.
P-12512.13
Insulation from Liability: The assets of the Variable Account are not chargeable
with liabilities arising out of any other business AUL may conduct.
Voting:
(a) AUL is the legal owner of the shares of the Mutual Fund held by the
Investment Accounts of the Variable Account. AUL shall exercise voting
rights attributable to the shares of each Portfolio held in the
Investment Accounts at any regular and special meetings of the
shareholders of the Mutual Fund on matters requiring shareholder
voting under The Investment Company Act of l940 or other applicable
laws. AUL shall exercise these voting rights based on instructions
received from persons having the voting interest in corresponding
Investment Accounts of the Variable Account. However, if The
Investment Company Act of l940 or any regulations thereunder should be
amended, or if the present interpretation thereof should change, and
as a result AUL determines that it is permitted to vote the shares of
the Mutual Fund in its own right, it may elect to do so.
(b) The persons having the voting interest under the Contract are the
Participants.
(c) Voting rights attributable to the Contract for which no timely voting
instructions are received will be voted by AUL in the same proportion
as the voting instructions which are received in a timely manner for
all contracts and Participant Accounts participating in that
Investment Account.
(d) Neither the Variable Account nor AUL is under any duty to inquire as
to the instructions received or the authority of Contractholders,
Participants, or others to instruct the voting of Mutual Fund shares.
(e) Every person or entity having such voting rights shall receive such
reports or prospectuses concerning the Variable Account or the Mutual
Fund as may be required by applicable federal law.
Nonforfeitability and Nontransferability: The entire Withdrawal Value of a
Participant Account under the Contract shall be nonforfeitable at all times. No
sum payable under the Contract with respect to a Participant may be sold,
assigned, discounted, or pledged as collateral for a loan or as security for the
performance of an obligation or for any other purpose to any person or entity
other than AUL. In addition, to the extent permitted by law, no such sum shall
in any way be subject to legal process requiring the payment of any claim
against the payee.
P-12512.14
TABLE OF IMMEDIATE ANNUITIES
MONTHLY INCOME PER $1,000 OF ACCOUNT VALUE
EXACT LIFE 10 YEAR CERTAIN
AGE ANNUITY AND LIFE ANNUITY
45 4.0025 3.9934
46 4.0438 4.0335
47 4.0872 4.0756
48 4.1330 4.1199
49 4.1813 4.1665
50 4.2322 4.2156
51 4.2859 4.2672
52 4.3426 4.3216
53 4.4026 4.3789
54 4.4661 4.4394
55 4.5333 4.5032
56 4.6045 4.5705
57 4.6801 4.6416
58 4.7604 4.7167
59 4.8458 4.7961
60 4.9368 4.8801
61 5.0338 4.9689
62 5.1373 5.0629
63 5.2477 5.1624
64 5.3655 5.2677
65 5.4913 5.3789
66 5.6260 5.4965
67 5.7703 5.6207
68 5.9255 5.7518
69 6.0929 5.8901
70 6.2737 6.0357
71 6.4695 6.1887
72 6.6816 6.3489
73 6.9116 6.5160
74 7.1603 6.6894
75 7.4293 6.8682
83IAMF4-4
10YRPROJ
P-12512.OR-15
ADDENDUM
TO THE
CERTIFICATE
ISSUED TO THE PARTICIPANT IN THE
AUL AMERICAN SERIES
MULTIPLE-FUND GROUP VARIABLE ANNUITY CONTRACT (THE CONTRACT)
ISSUED BY
AMERICAN UNITED LIFE INSURANCE COMPANY (AUL)
The Effective Date of this Addendum is the effective date of the corresponding
Amendment to the Contract.
Pursuant to this Addendum, the Participant's Certificate under the Contract is
hereby amended as follows:
By deleting the first paragraph of "Other Charges" and by substituting the
following first paragraph in lieu thereof:
OTHER CHARGES
AUL shall deduct a daily mortality risk charge and a daily expense risk charge
equal to the daily equivalent of an annual combined charge of 1.25% against the
average daily net assets of each Investment Account. Additionally, AUL shall
multiply the portions (as delineated in the table below) of the total month-end
Account Value in the Variable Account of all Participants in the contract by the
monthly equivalent of the corresponding Annual Variable Investment Plus Factors
appearing in the table below. These products shall be added together, and the
sum shall be divided by the total month-end Account Value in the Variable
Account of all Participants in the contract. This percentage shall be multiplied
by the month-end Account Value of each Participant in each Investment Account.
The resulting amount for each Investment Account shall be added to the
Participant's Account Value for that Investment Account.
Contract's Month-End Account Value in Annual Variable Investment Plus Factor
Variable Account
First $500,000 0.00%
Next $500,000 0.25%
Next $2 million 0.35%
Next $2 million 0.40%
Next $1 million 0.50%
Over $6 million 0.75%
AUL
By /s/ Xxxxxxx X. Xxxxx
Secretary
AUL XXXXXXXX.XXX.XXX
ADDENDUM
TO THE
CERTIFICATE
ISSUED TO THE PARTICIPANT IN THE
TAX DEFERRED ANNUITY MULTIPLE-FUND
GROUP VARIABLE ANNUITY CONTRACT
(THE CONTRACT)
ISSUED BY
AMERICAN UNITED LIFE INSURANCE COMPANY
(AUL)
The Effective Date of this Addendum is the effective date of the corresponding
Amendment to the Contract.
Pursuant to this Addendum, the final paragraph of the face page of the
Certificate is deleted, and the following paragraph is substituted in lieu
thereof:
ACCUMULATION UNITS IN ANY INVESTMENT ACCOUNT FOR WHICH THE CONTRACT MAKES
PROVISION MAY INCREASE OR DECREASE IN DOLLAR VALUE ACCORDING TO THE INVESTMENT
PERFORMANCE OF THE UNDERLYING ASSETS IN THE CORRESPONDING MUTUAL FUND OR MUTUAL
FUND PORTFOLIO IN WHICH THE INVESTMENT ACCOUNT INVESTS. THE VALUE OF SUCH ASSETS
AND ACCUMULATION UNITS IS NOT GUARANTEED. ARTICLE 5 OF THE CONTRACT EXPLAINS THE
VALUATION OF SUCH ASSETS AND ACCUMULATION UNITS.
Pursuant to this Addendum, the corresponding provisions of the Participant's
Certificate under the Contract are deleted and the following provisions are
substituted in lieu thereof:
DEFINITIONS
"Contributions" means amounts paid to AUL, including amounts transferred to the
Contract from another AUL group annuity contract, which are credited to a
Participant Account.
"Investment Account" means each subaccount of the Variable Account which is
maintained by AUL and made available to the Contractholder by AUL and identified
in Schedule A of the Contract. Schedule A of the Contract may be amended by AUL
from time to time as described in Addition, Deletion, or Substitution of
Investments below. Amounts allocated to any Investment Account identified in
Schedule A of the Contract shall be invested in the shares of the corresponding
Mutual Fund or Mutual Fund Portfolio listed in the current prospectus for the
Variable Account.
"Mutual Fund" means the AUL American Series Fund, Inc., a diversified, open-end
management investment company registered under The Investment Company Act of
1940, and any other such open-end management investment company made available
by AUL, as listed in Schedule A.
"Portfolio" (also known as a "Mutual Fund Portfolio") means a portfolio
established within a particular Mutual Fund as described in that prospectus for
that Mutual Fund, as such prospectus may be amended or supplemented from time to
time.
"Withdrawal Charge" means a charge taken by AUL equal to a percentage of the
Account Value withdrawn pursuant to Withdrawal Benefits below, where the
percentage varies by the Participant Account Year in which the withdrawal is
made. The first Participant Account Year begins on the date when AUL establishes
a Participant Account and credits the initial Contribution for the Participant,
and ends on the day immediately preceding the next anniversary of such date.
Each Participant Account Year thereafter begins on such an anniversary date and
ends on the day immediately preceding the next succeeding anniversary date. The
Withdrawal Charge percentage is as follows:
During Withdrawal Charge
Participant Account Years Percentage
1 - 5 8%
6 - 10 4%
Thereafter 0%
In no event will the cumulative total of all Withdrawal Charges, including those
previously assessed against any amount withdrawn from a Participant Account,
exceed 9% of total Contributions allocated to that Participant Account.
CONTRIBUTIONS, INVESTMENTS, AND TRANSFERS
Contributions:
(d) (1) The initial Contribution for a Participant shall be credited and
allocated to the Participant Account no later than the close of
business on the second business day of AUL after the later of (1) the
business day that AUL receives the initial Contribution at its Home
Office, or (2) the business day that AUL receives, at its Home Office,
the data required to establish the Participant Account, instructions
regarding the amount of the initial Contribution for the Participant,
and Investment Option election instructions regarding the initial
Contribution.
(2) If the data required to establish a Participant Account and
instructions regarding the amount of a Contribution for the
Participant are not received by AUL at its Home Office within 5
business days after AUL first receives that Contribution, AUL
shall return that Contribution to the Contractholder unless the
Contractholder consents to AUL retaining that Contribution until
the earlier of (i) the date AUL receives such data and
instructions and, therefore, can properly allocate that
Contribution to the Participant Account or (ii) 25 days from the
date that Contribution is received by AUL.
(3) If the data required to establish a Participant Account,
including any annuity enrollment form required by AUL, and
instructions regarding the amount of a Contribution for the
Participant are received, but an Investment Option election for
that Participant is not received, by AUL at its Home Office as of
the date AUL receives that Contribution, AUL shall allocate that
Contribution to the Investment Option election identified in the
Participant's annuity enrollment form, which is generally the AUL
American Money Market Investment Account. If AUL subsequently
receives the data required to establish the Participant Account,
instructions regarding the amount of the Contribution for the
Participant, and an Investment Option election, AUL shall then
transfer such amounts credited to the AUL American Money Market
Investment Account or other Investment Option identified in the
Participant's annuity enrollment form, plus gains or minus losses
thereon, to another Investment Option, if such election so
directs.
(e) Contributions for a Participant subsequent to the initial Contribution
shall be credited and allocated to the Participant Account as of the
close of business on the later of (1) the Valuation Period in which
AUL receives that Contribution at its Home Office, or (2) the
Valuation Period in which AUL receives, at its Home Office, the data
required to establish the Participant Account, instructions regarding
the amount of that Contribution for the Participant, and Investment
Option election instructions.
(f) Within any one Participant Account, the amount so credited shall be
allocated to an Investment Option in increments elected by the
Participant in a form acceptable to AUL. If no investment allocation
instruction is made with respect to any Participant Account, AUL shall
process such credits in accordance with the investment allocation
instruction applicable to the immediately preceding Contribution. The
Participant may
change an investment allocation instruction with respect to future
allocations to the applicable Participant Account by giving new
investment allocation instructions to AUL at its Home Office in a form
acceptable to AUL.
Addition, Deletion, or Substitution of Investments:
(a) AUL reserves the right, subject to compliance with applicable law, to
make additions to, deletions from, substitutions for, or combinations
of, the securities that are held by the Variable Account or any
Investment Account or that the Variable Account or any Investment
Account may purchase. AUL reserves the right to eliminate the shares
of any of the eligible Mutual Funds or Mutual Fund Portfolios and to
substitute shares of, or interests in, another Portfolio of the AUL
American Series Fund, Inc., another open-end, registered investment
company, or another investment vehicle, for shares already purchased
or to be purchased in the future under the Contract.
(b) AUL reserves the right to establish additional Investment Accounts,
each of which would invest in the corresponding Mutual Fund or Mutual
Fund Portfolio listed in the current prospectus for the Variable
Account, or in other securities or investment vehicles. AUL reserves
the right to eliminate or combine existing Investment Accounts if
marketing, tax, or investment conditions so warrant. AUL also reserves
the right to provide other Investment Options under the Contract at
any time. Subject to any required regulatory approvals, AUL reserves
the right to transfer assets from any Investment Account to another
separate account of AUL or Investment Account.
(c) If deemed by AUL to be in the best interests of persons or entities
having voting rights under the Contract, the Variable Account may be
operated as a management investment company under The Investment
Company Act of 1940 or any other form permitted by law, it may be
deregistered in the event such registration is no longer required
under The Investment Company Act of 1940, or it may be combined with
other separate accounts of AUL or an affiliate thereof.
Transfers:
(a) Subject to the limitations of (d) through (g) below, the Participant
may direct AUL, in a form acceptable to AUL, to transfer the amounts
credited to an Investment Option to any other Investment Option during
the Accumulation Period. Any transfer from an Investment Account shall
be effective as of the close of business on the Valuation Date that
AUL receives the Participant's direction.
(d) The minimum transfer from the Participant Account's share of any
Investment Option is the lesser of $500 or the Participant Account's
entire share of that Investment Option. However, if that transfer
reduces the Participant Account's remaining share of that Investment
Option to less than $500, the entire remaining share shall also be
transferred.
(e) Amounts transferred from the Fixed Interest Account on behalf of a
Participant during any contract year shall not exceed 20% of the
Participant Account's share of the Fixed Interest Account determined
as of the later of the contract date or the contract anniversary
immediately preceding the request for transfer. Notwithstanding the
previous sentence, if the Participant Account's share of the Fixed
Interest Account is less than $2,500 determined as of the later of the
contract date or the contract anniversary immediately preceding the
request for transfer, the amount transferrable from the Fixed Interest
Account for that contract year is the lesser of $500 or the
Participant Account's entire share of the Fixed Interest Account. And
if that transfer reduces the Participant Account's remaining share of
the Fixed Interest Account to less than $500, the entire remaining
share shall also be transferred.
BENEFITS AND LOANS
Death Benefits:
(a) Upon receipt of written instructions from the Participant's
beneficiary (or, if applicable, the secondary beneficiary of the
Participant) and of due proof of the Participant's (and, if
applicable, the beneficiary's) death during the Accumulation Period at
its Home Office, AUL shall apply the Account Value (subject to any
appropriate premium tax charge and minus the Participant's outstanding
loan balance, if any, under the Contract and any unpaid expense
charges due on such loans) of the Participant Account for the purpose
of providing a death benefit. The death benefit shall be paid to the
beneficiary last properly designated in writing to AUL at its Home
Office by the Participant, or, if there is no designated beneficiary
living on the date of the Participant's death, to the Participant's
estate. The Participant's beneficiary may also designate a
beneficiary. If any beneficiary dies while receiving payments and no
beneficiary is designated to receive any remaining payments, such
remaining payments shall be made to the deceased beneficiary's estate.
(b) The Account Value to be applied pursuant to (a) above shall be
determined as of the close of business on the Valuation Date that AUL
receives a proper withdrawal request (or due proof of death, if
received later), in a form acceptable to AUL at its Home Office.
(c) (1) The benefit shall be payable in accordance with one of the
following provisions as elected by the Participant or the beneficiary
if the Participant did not make an election:
(i) The entire Account Value to be applied shall be paid to the
beneficiary in a single sum or other method not provided in (ii)
below on or before December 31 of the calendar year which
contains the fifth anniversary of the date of the Participant's
death; or
(ii) The benefit shall be paid as an annuity in accordance with the
Annuity Options shown above over a period not to exceed the life
or life expectancy of the beneficiary. If the beneficiary is not
the Participant's surviving spouse, the annuity must begin on or
before December 31 of the calendar year immediately following the
calendar year in which the Participant died. If the beneficiary
is the Participant's surviving spouse, the annuity need not begin
before December 31 of the calendar year in which the Participant
would have attained age 70 1/2.
Withdrawal Benefits:
A Participant may direct AUL at its Home Office, in a form acceptable to AUL, to
withdraw all or a portion of the Withdrawal Value of his Participant Account,
subject to the following provisions:
(a) Amounts attributable to amounts held as of December 31, 1988 under
another Code Section 403(b) annuity contract may be withdrawn.
(b) Amounts attributable to Contributions made other than pursuant to a
salary reduction agreement (within the meaning of Code Section
402(g)(3)(C)) may be withdrawn.
(c) Amounts attributable to Contributions made pursuant to a salary
reduction agreement (within the meaning of Code Section 402(g)(3)(C))
may be withdrawn, provided that any distribution of such amounts shall
not occur until the Participant has either attained age 59 1/2,
separated from service, become totally disabled (as defined by the
Internal Revenue Service), or experienced a hardship (as defined by
the Internal Revenue Service). However, in the case of a hardship
withdrawal, any gain credited to such Contributions may not be
withdrawn.
change an investment allocation instruction with respect to future
allocations to the applicable Participant Account by giving new
investment allocation instructions to AUL at its Home Office in a form
acceptable to AUL.
Addition, Deletion, or Substitution of Investments:
(a) AUL reserves the right, subject to compliance with applicable law, to
make additions to, deletions from, substitutions for, or combinations
of, the securities that are held by the Variable Account or any
Investment Account or that the Variable Account or any Investment
Account may purchase. AUL reserves the right to eliminate the shares
of any of the eligible Mutual Funds or Mutual Fund Portfolios and to
substitute shares of, or interests in, another Portfolio of the AUL
American Series Fund, Inc., another open-end, registered investment
company, or another investment vehicle, for shares already purchased
or to be purchased in the future under the Contract.
(b) AUL reserves the right to establish additional Investment Accounts,
each of which would invest in the corresponding Mutual Fund or Mutual
Fund Portfolio listed in the current prospectus for the Variable
Account, or in other securities or investment vehicles. AUL reserves
the right to eliminate or combine existing Investment Accounts if
marketing, tax, or investment conditions so warrant. AUL also reserves
the right to provide other Investment Options under the Contract at
any time. Subject to any required regulatory approvals, AUL reserves
the right to transfer assets from any Investment Account to another
separate account of AUL or Investment Account.
(c) If deemed by AUL to be in the best interests of persons or entities
having voting rights under the Contract, the Variable Account may be
operated as a management investment company under The Investment
Company Act of 1940 or any other form permitted by law, it may be
deregistered in the event such registration is no longer required
under The Investment Company Act of 1940, or it may be combined with
other separate accounts of AUL or an affiliate thereof.
Transfers:
(a) Subject to the limitations of (d) through (g) below, the Participant
may direct AUL, in a form acceptable to AUL, to transfer the amounts
credited to an Investment Option to any other Investment Option during
the Accumulation Period. Any transfer from an Investment Account shall
be effective as of the close of business on the Valuation Date that
AUL receives the Participant's direction.
(d) The minimum transfer from the Participant Account's share of any
Investment Option is the lesser of $500 or the Participant Account's
entire share of that Investment Option. However, if that transfer
reduces the Participant Account's remaining share of that Investment
Option to less than $500, the entire remaining share shall also be
transferred.
(e) Amounts transferred from the Fixed Interest Account on behalf of a
Participant during any contract year shall not exceed 20% of the
Participant Account's share of the Fixed Interest Account determined
as of the later of the contract date or the contract anniversary
immediately preceding the request for transfer. Notwithstanding the
previous sentence, if the Participant Account's share of the Fixed
Interest Account is less than $2,500 determined as of the later of the
contract date or the contract anniversary immediately preceding the
request for transfer, the amount transferrable from the Fixed Interest
Account for that contract year is the lesser of $500 or the
Participant Account's entire share of the Fixed Interest Account. And
if that transfer reduces the Participant Account's remaining share of
the Fixed Interest Account to less than $500, the entire remaining
share shall also be transferred.
(f) AUL reserves the right to change the limitation on the minimum
transfer, to change the limit on remaining balances, to limit the
number and frequency of transfers, to suspend the transfer privilege,
and to impose a charge of not more than $25 on a transfer. AUL
reserves the right to change the maximum limit on such transfer charge
upon delivery of written notice to the Contractholder. Any such change
in the maximum limit shall apply only to transfers by an individual
who becomes a Participant on or after the effective date of such
change, and shall apply as long as that individual remains a
Participant.
(PA)
BENEFITS AND LOANS
Death Benefits:
(a) Upon receipt of written instructions from the Participant's
beneficiary (or, if applicable, the secondary beneficiary of the
Participant) and of due proof of the Participant's (and, if
applicable, the beneficiary's) death during the Accumulation Period at
its Home Office, AUL shall apply the Account Value (subject to any
appropriate premium tax charge and minus the Participant's outstanding
loan balance, if any, under the Contract and any unpaid expense
charges due on such loans) of the Participant Account for the purpose
of providing a death benefit. The death benefit shall be paid to the
beneficiary last properly designated in writing to AUL at its Home
Office by the Participant, or, if there is no designated beneficiary
living on the date of the Participant's death, to the Participant's
estate. The Participant's beneficiary may also designate a
beneficiary. If any beneficiary dies while receiving payments and no
beneficiary is designated to receive any remaining payments, such
remaining payments shall be made to the deceased beneficiary's estate.
(b) The Account Value to be applied pursuant to (a) above shall be
determined as of the close of business on the Valuation Date that AUL
receives a proper withdrawal request (or due proof of death, if
received later), in a form acceptable to AUL at its Home Office.
(c) (1) The benefit shall be payable in accordance with one of the
following provisions as elected by the Participant or the beneficiary
if the Participant did not make an election:
(i) The entire Account Value to be applied shall be paid to the
beneficiary in a single sum or other method not provided in (ii)
below on or before December 31 of the calendar year which
contains the fifth anniversary of the date of the Participant's
death; or
(ii) The benefit shall be paid as an annuity in accordance with the
Annuity Options shown above over a period not to exceed the life
or life expectancy of the beneficiary. If the beneficiary is not
the Participant's surviving spouse, the annuity must begin on or
before December 31 of the calendar year immediately following the
calendar year in which the Participant died. If the beneficiary
is the Participant's surviving spouse, the annuity need not begin
before December 31 of the calendar year in which the Participant
would have attained age 70 1/2.
Withdrawal Benefits:
A Participant may direct AUL at its Home Office, in a form acceptable to AUL, to
withdraw all or a portion of the Withdrawal Value of his Participant Account,
subject to the following provisions:
(a) Amounts attributable to amounts held as of December 31, 1988 under
another Code Section 403(b) annuity contract may be withdrawn.
(b) Amounts attributable to Contributions made other than pursuant to a
salary reduction agreement (within the meaning of Code Section
402(g)(3)(C)) may be withdrawn.
(c) Amounts attributable to Contributions made pursuant to a salary
reduction agreement (within the meaning of Code Section 402(g)(3)(C))
may be withdrawn, provided that any distribution of such amounts shall
not occur until the Participant has either attained age 59 1/2,
separated from service, become totally disabled (as defined by the
Internal Revenue Service), or experienced a hardship (as defined by
the Internal Revenue Service). However, in the case of a hardship
withdrawal, any gain credited to such Contributions may not be
withdrawn.
(PA)
(d) Withdrawal of any amount from the Contract which is transferred
directly by AUL pursuant to Participant instructions to another
tax-deferred annuity funding vehicle under applicable Internal Revenue
Service rules and regulations shall be subject to application of the
Withdrawal Charge.
(e) If, as provided in Internal Revenue Code Regulation Section
1.403(b)-2T Q&A-2, the distributee of any eligible rollover
distribution elects to have the distribution paid directly to an
eligible retirement plan (as defined in Q&A-1 of that Section) and
specified the eligible retirement plan to which the distribution is to
be paid, then the distribution shall be paid to that eligible
retirement plan in a direct rollover.
(f) AUL shall not be responsible for determining a Participant's
compliance with the requirements above, and it may rely upon the
representations of the Participant made in the withdrawal request.
(g) Withdrawals from a Participant Account's share of any Investment
Option may not be made in an amount less than the smaller of $500 or
the Participant Account's entire share of the Investment Option. If a
withdrawal reduces the Participant Account's share of an Investment
Option to less than $500, such remaining share shall also be withdrawn
(except for amounts prohibited from being distributed because (c)
above is not met).
(h) A withdrawal request shall be effective, and the Account Value to be
applied pursuant to this Section shall be determined, as of the close
of business on the Valuation Date that AUL receives a proper
withdrawal request, in a form acceptable to AUL, at its Home Office.
If it is necessary to withdraw the entire Account Value of a
Participant Account to make a lump-sum cash payment, the amount paid
shall equal the Withdrawal Value, minus any appropriate premium tax
charge. If it is not necessary to withdraw the entire Account Value to
make such payment, AUL shall reduce the Account Value of the
Participant Account by an amount sufficient to make the cash payment
requested and to cover the Withdrawal Charge and any appropriate
premium tax charge. Notwithstanding the previous sentence, in the
first contract year in which a Participant Account is established, the
Participant may withdraw from that Participant Account up to 10% of
the sum of the Account Value of that Participant Account (determined
as of the later of the contract date or the contract anniversary
immediately preceding the request for the withdrawal) plus
Contributions made during that contract year, without application of
the Withdrawal Charge. In the next succeeding contract year, the
Participant may also withdraw from that Participant Account up to 10%
of the sum of the Account Value of that Participant Account
(determined as of the as of the contract anniversary immediately
preceding the request for the withdrawal) plus Contributions made
during that contract year, without application of the Withdrawal
Charge. In any subsequent contract year, the Participant may withdraw
from that Participant Account up to 10% of the Account Value of that
Participant Account (determined as of the contract anniversary
immediately preceding the request for the withdrawal) without
application of the Withdrawal Charge. Also, where a Participant has
outstanding loans under the Contract, a partial withdrawal by a
Participant from the Fixed Interest Account shall be permitted only to
the extent that the remaining Withdrawal Value of the Participant held
in the Fixed Interest Account equals twice the total of the
Participant's outstanding loans under the Contract.
(i) AUL shall pay any cash lump sum to the Participant within 7 days from
the appropriate Valuation Date as determined in (h) above, except as
AUL may be permitted to defer such payment of amounts withdrawn from
the Variable Account in accordance with appropriate provisions of the
federal securities laws. AUL reserves the right to defer the payment
of amounts withdrawn from the Fixed Interest Account for a period of
up to 6 months after AUL receives the withdrawal request at its Home
Office.
(j) Withdrawals from a Participant Account's share of the Fixed Interest
Account shall be made on a first-in/first-out basis so that all or a
portion of the amounts credited to the Participant Account's share of
the Fixed Interest Account (other than amounts which are prohibited
from being distributed because (c) above is not met) which have been
on deposit for the longest period of time, as well as the interest
credited thereon, shall be withdrawn first.
VALUATIONS
All assets of each Mutual Fund or Mutual Fund Portfolio shall be valued as
provided in the prospectus for the applicable Mutual Fund or Mutual Fund
Portfolio as such prospectus may be amended or supplemented from time to time.
Any amounts that are allocated to any Investment Account on behalf of a
Participant shall be credited to his Participant Account in the form of
Accumulation Units on the basis of the value of such units in that Investment
Account as of the later of (1) the end of the Valuation Period on which such
amounts are received by AUL at its Home Office, or (2) the end of the Valuation
Period on which the data required to establish the Participant Account and
allocate such amounts to the Participant Account and to Investment Options are
received by AUL at its Home Office. However, if the initial Contribution for a
Participant is allocated pursuant to (d)(1) of Contributions above on the next
succeeding Valuation Period, the unit value as of the end of that Valuation
Period shall be used. Such crediting shall be made separately for amounts
allocated to each Investment Account. The number of Accumulation Units in each
Investment Account credited to each Participant Account as of any Valuation
Period shall be determined by dividing the amounts allocated to that Investment
Account for that Participant Account as of such Valuation Period by the dollar
value of one Accumulation Unit in that Investment Account as of the close of
business on the applicable Valuation Period. The number of Accumulation Units
thus determined shall not be changed by any subsequent change in the dollar
value of the Accumulation Units.
The value of an Accumulation Unit in the AUL American Equity, Bond, Money
Market, and Managed Investment Accounts was established at $1.00 as of April 12,
1990. The value of an Accumulation Unit in any other Investment Account
available under the Contract shall be established at $1.00 as of the date of the
first deposit to such Investment Account. The value of an Accumulation Unit in
each Investment Account as of any Valuation Period thereafter is equal to the
dollar value of one Accumulation Unit in that Investment Account as of the
immediately preceding Valuation Period multiplied by the Net Investment Factor,
as defined below, for that Investment Account for the current Valuation Period.
The value of an Accumulation Unit for each Investment Account shall be
determined for each Valuation Period before giving effect to any additions,
withdrawals, or transfers. After such determination, the additions, withdrawals,
or transfers which are effective as of that day shall then be made.
The Net Investment Factor for each Investment Account for any Valuation Period
is determined by dividing (a) by (b), and then subtracting (c) from that result,
where:
(a) is equal to:
(1) the net asset value of a Mutual Fund or Mutual Fund Portfolio
share held in the Investment Account determined as of the end of
the current Valuation Period, plus
(2) the per share amount of any dividend or other distribution, if
any, paid by the Mutual Fund or Mutual Fund Portfolio during the
current Valuation Period, plus or minus
(3) any credit or charge for any taxes paid or reserved for by AUL
during the current Valuation Period which are determined by AUL
to be attributable to operation of the Investment Account;
(b) is the net asset value of a Mutual Fund or Mutual Fund Portfolio share
held in the Investment Account determined as of the end of the
immediately preceding Valuation Period; and
(c) is a daily charge factor determined by AUL to reflect the charges
assessed against the assets of the Investment Account for mortality
and expense risks.
The value of each Participant Account's share of any Investment Account as of
any Valuation Date shall be determined by multiplying the Participant Account's
aggregate Accumulation Units in that Investment Account as of such Valuation
Date by the dollar value of one Accumulation Unit in that Investment Account as
of such Valuation Date. The value of the Participant Account's share of any
Investment Account as of any date other than a Valuation Date is equal to the
value of its share of that Investment Account as of the immediately preceding
Valuation Date.
OTHER CHARGES
AUL shall deduct a daily mortality risk charge and a daily expense risk charge
equal to the daily equivalent of an annual combined charge of 1.25% against the
average daily net assets of each Investment Account. These charges shall be
reflected in the Net Investment Factor as provided above.
The Mutual Fund or Mutual Fund Portfolio shall pay an investment advisory fee
and certain other expenses, which may include its ordinary operational and
organizational expenses, or any extraordinary expenses, as described in the
current prospectus for that Mutual Fund or Mutual Fund Portfolio as it may be
amended or supplemented from time to time. These expenses may vary from year to
year. The net asset value of each Mutual Fund or Mutual Fund Portfolio share
reflects such investment advisory fee and other expenses which are deducted from
the assets of such Mutual Fund or Mutual Fund Portfolio.
AUL shall deduct an administrative charge per contract year quarter equal to the
lesser of $7.50 or 0.5% of the Account Value on the last day of each such
quarter from each Participant Account in existence on such day for so long as
the Participant Account is in effect during the Accumulation Period. This charge
is to be prorated among each subaccount of the Participant Account which
corresponds to each Investment Option utilized under the Contract by that
Participant Account.
AUL reserves the right to deduct a charge for each transfer transaction, to
deduct the appropriate premium tax charge, or to deduct the appropriate charges
for federal, state, or local income taxes incurred by AUL that are attributable
to the Variable Account and its Investment Accounts.
MISCELLANEOUS
Election, Notice, or Direction Requirements: Whenever in the Contract reference
is made to the Contractholder or Participant making a request or giving notice
or direction, such request, notice, or direction must be in writing, or in a
form otherwise acceptable to AUL, and must be submitted to and received by AUL
at its Home Office before becoming effective.
Voting:
(a) AUL is the legal owner of the shares of a Mutual Fund or Mutual Fund
Portfolio held by the Investment Accounts of the Variable Account. AUL
shall exercise voting rights attributable to the shares of each Mutual
Fund or Mutual Fund Portfolio held in the Investment Accounts at any
regular and special meetings of the shareholders of a Mutual Fund on
matters requiring shareholder voting under The Investment Company Act
of 1940 or other applicable laws. AUL shall exercise these voting
rights based on instructions received from persons having the voting
interest in corresponding Investment Accounts of the Variable Account.
However, if The Investment Company Act of 1940 or any regulations
thereunder should be amended, or if the present interpretation thereof
should change, and as a result AUL determines that it is permitted to
vote the shares of a Mutual Fund or Mutual Fund Portfolio in its own
right, it may elect to do so. AUL will vote shares of any Investment
Account, if any, that it owns beneficially in its own discretion,
except that if a Mutual Fund or Mutual Fund Portfolio offers its
shares to any insurance company separate account that funds variable
life insurance contracts or if otherwise required by applicable law,
AUL will vote its own shares in the same proportion as the voting
instructions that are received in a timely manner for contracts and
Participant Accounts participating in the Investment Account.
(d) Neither the Variable Account nor AUL is under any duty to inquire as
to the instructions received or the authority of Contractholder,
Participants, or others to instruct the voting of Mutual Fund or
Mutual Fund Portfolio shares.
(e) Every person or entity having such voting rights shall receive such
reports or prospectuses concerning the Variable Account or a Mutual
Fund or Mutual Fund Portfolio as may be required by applicable federal
law.
AMERICAN UNITED LIFE INSURANCE COMPANY
By: /s/ Xxxxxxx X. Xxxxx
Secretary
The value of each Participant Account's share of any Investment Account as of
any Valuation Date shall be determined by multiplying the Participant Account's
aggregate Accumulation Units in that Investment Account as of such Valuation
Date by the dollar value of one Accumulation Unit in that Investment Account as
of such Valuation Date. The value of the Participant Account's share of any
Investment Account as of any date other than a Valuation Date is equal to the
value of its share of that Investment Account as of the immediately preceding
Valuation Date.
OTHER CHARGES
AUL shall deduct a daily mortality risk charge and a daily expense risk charge
equal to the daily equivalent of an annual combined charge of 1.25% against the
average daily net assets of each Investment Account. These charges shall be
reflected in the Net Investment Factor as provided above.
The Mutual Fund or Mutual Fund Portfolio shall pay an investment advisory fee
and certain other expenses, which may include its ordinary operational and
organizational expenses, or any extraordinary expenses, as described in the
current prospectus for that Mutual Fund or Mutual Fund Portfolio as it may be
amended or supplemented from time to time. These expenses may vary from year to
year. The net asset value of each Mutual Fund or Mutual Fund Portfolio share
reflects such investment advisory fee and other expenses which are deducted from
the assets of such Mutual Fund or Mutual Fund Portfolio.
AUL shall deduct an administrative charge per contract year quarter equal to the
lesser of $3.00 or 0.5% of the Account Value on the last day of each such
quarter from each Participant Account in existence on such day for so long as
the Participant Account is in effect during the Accumulation Period. This charge
is to be prorated among each subaccount of the Participant Account which
corresponds to each Investment Option utilized under the Contract by that
Participant Account.
AUL reserves the right to deduct a charge for each transfer transaction, to
deduct the appropriate premium tax charge, or to deduct the appropriate charges
for federal, state, or local income taxes incurred by AUL that are attributable
to the Variable Account and its Investment Accounts.
MISCELLANEOUS
Election, Notice, or Direction Requirements: Whenever in the Contract reference
is made to the Contractholder or Participant making a request or giving notice
or direction, such request, notice, or direction must be in writing, or in a
form otherwise acceptable to AUL, and must be submitted to and received by AUL
at its Home Office before becoming effective.
Voting:
(a) AUL is the legal owner of the shares of a Mutual Fund or Mutual Fund
Portfolio held by the Investment Accounts of the Variable Account. AUL
shall exercise voting rights attributable to the shares of each Mutual
Fund or Mutual Fund Portfolio held in the Investment Accounts at any
regular and special meetings of the shareholders of a Mutual Fund on
matters requiring shareholder voting under The Investment Company Act
of 1940 or other applicable laws. AUL shall exercise these voting
rights based on instructions received from persons having the voting
interest in corresponding Investment Accounts of the Variable Account.
However, if The Investment Company Act of 1940 or any regulations
thereunder should be amended, or if the present interpretation thereof
should change, and as a result AUL determines that it is permitted to
vote the shares of a Mutual Fund or Mutual Fund Portfolio in its own
right, it may elect to do so. AUL will vote shares of any Investment
Account, if any, that it owns beneficially in its own discretion,
except that if a Mutual Fund or Mutual Fund Portfolio offers its
shares to any insurance company separate account that funds variable
life insurance contracts or if otherwise required by applicable law,
AUL will vote its own shares in the same proportion as the voting
instructions that are received in a timely manner for contracts and
Participant Accounts participating in the Investment Account.
(G&W)
(d) Neither the Variable Account nor AUL is under any duty to inquire as
to the instructions received or the authority of Contractholder,
Participants, or others to instruct the voting of Mutual Fund or
Mutual Fund Portfolio shares.
(e) Every person or entity having such voting rights shall receive such
reports or prospectuses concerning the Variable Account or a Mutual
Fund or Mutual Fund Portfolio as may be required by applicable federal
law.
AMERICAN UNITED LIFE INSURANCE COMPANY
By: /s/ Xxxxxxx X. Xxxxx
Secretary
(G&W)
AMENDMENT
TO THE
MULTIPLE-FUND GROUP VARIABLE ANNUITY
CONTRACT NUMBER GA XX,XXX (THE CONTRACT)
ISSUED BY
AMERICAN UNITED LIFE INSURANCE COMPANY (AUL)
TO
ABC COMPANY
(THE CONTRACTHOLDER)
The Effective Date of this Amendment is .
AUL and the Contractholder hereby agree, by signing below, that the Contract is
hereby amended by deleting Section 6.1 and by substituting the following Section
6.1 in lieu thereof:
6.1 Mortality Risk and Expense Risk Charges; Annual Variable Investment
Plus Factors: AUL shall deduct a daily mortality risk charge and a daily expense
risk charge equal to the daily equivalent of an annual combined charge of 1.25%
against the average daily net assets of each Investment Account. These charges
shall be reflected in the Net Investment Factor as provided in Section 5.4(c).
AUL shall multiply the portions (as delineated in the table below) of the total
month-end Account Value in the Variable Account of all Participants in the
contract by the monthly equivalent of the corresponding Annual Variable
Investment Plus Factors appearing in the table below. These products shall be
added together, and the sum shall be divided by the total month-end Account
Value in the Variable Account of all Participants in the contract. This
percentage shall be multiplied by the month-end Account Value of each
Participant in each Investment Account. The resulting amount for each Investment
Account shall be added to the Participant's Account Value for that Investment
Account.
Contract's Month-End Account Value in Annual Variable Investment Plus Factor
Variable Account
First $500,000 0.00%
Next $500,000 0.25%
Next $2 million 0.35%
Next $2 million 0.40%
Next $1 million 0.50%
Over $6 million 0.75%
CONTRACTHOLDER AUL
By________________________________ By: /s/ Xxxxx X. Xxxxxx
Chairman of the Board,
Title ____________________________ President, & Chief Executive Officer
Date _____________________________
Attest
By: /s/ Xxxxxxx X. Xxxxx
Secretary
P-XXXXX.AMD.DAC
AMENDMENT
TO THE
GROUP ANNUITY
CONTRACT NUMBER GA XX,XXX (THE CONTRACT)
ISSUED BY
AMERICAN UNITED LIFE INSURANCE COMPANY (AUL)
TO
ABC COMPANY
(THE CONTRACTHOLDER)
Notwithstanding any other provisions of the Contract, AUL and the Contractholder
agree that the Contract is hereby amended as follows:
By adding the following provision, effective January 1, 1993:
If, as provided in Internal Revenue Code Regulation Section 1.403(b)-2T Q&A-2,
the distributee of any eligible rollover distribution elects to have the
distribution paid directly to an eligible retirement plan (as defined in Q&A-1
of that Section) and specifies the eligible retirement plan to which the
distribution is to be paid, then the distribution shall be paid to that eligible
retirement plan in a direct rollover.
And by adding the following provision, effective January 1, 1996:
No Participant shall be permitted to have elective deferral contributions
(within the meaning of Internal Revenue Code Section 402(g)(3)) made during a
calendar year under this contract, or under any other plans, contracts, or
arrangements maintained by his employer, in excess of the dollar limitation in
effect under Internal Revenue Code Section 402(g)(1) and any Regulations issued
thereunder for taxable years beginning in such calendar year.
AMERICAN UNITED LIFE INSURANCE COMPANY
By: /s/ Xxxxx X. Xxxxxx
Chairman of the Board,
President, & Chief Executive Officer
Attest
By: /s/ Xxxxxxx X. Xxxxx
Secretary
P-12511.AMD.SBJPA
AMENDMENT
TO THE
AUL AMERICAN SERIES
TDA MULTIPLE-FUND GROUP VARIABLE ANNUITY
CONTRACT NUMBER GA XX,XXX (THE CONTRACT)
ISSUED BY
AMERICAN UNITED LIFE INSURANCE COMPANY (AUL)
TO
ABC COMPANY (THE CONTRACTHOLDER)
The Effective Date of this Amendment is.
AUL and the Contractholder hereby agree, by signing below, that the Contract is
hereby amended as follows:
By deleting the last paragraph of the face page and by substituting the
following last paragraph in lieu thereof:
ACCUMULATION UNITS IN ANY INVESTMENT ACCOUNT FOR WHICH THIS CONTRACT MAKES
PROVISION MAY INCREASE OR DECREASE IN DOLLAR VALUE ACCORDING TO THE INVESTMENT
PERFORMANCE OF THE UNDERLYING ASSETS IN THE CORRESPONDING MUTUAL FUND OR MUTUAL
FUND PORTFOLIO IN WHICH THE INVESTMENT ACCOUNT INVESTS. THE VALUE OF SUCH ASSETS
AND ACCUMULATION UNITS IS NOT GUARANTEED. ARTICLE 5 OF THIS CONTRACT EXPLAINS
THE VALUATION OF SUCH ASSETS AND ACCUMULATION UNITS.
By deleting the corresponding Sections or Subsections of the Contract and by
substituting the following Sections or Subsections in lieu thereof, and by
making any required corresponding changes in the Table of Contents of the
Contract:
1.6 "Contract Anniversary" means the first day of the second Contract Year
and each subsequent Contract Year. Each Contract Anniversary after the First
Contract Anniversary shall be the same day of the same month as the day and
month which is stated on the face page of this contract for the First Contract
Anniversary.
1.9 "Contributions" means amounts paid to AUL, including amounts
transferred to this contract from another AUL group annuity contract, which are
credited to a Participant Account maintained hereunder.
1.16 "Investment Account" means each subaccount of the Variable Account
which is maintained by AUL and made available to the Contractholder by AUL and
identified in Schedule A of the contract. Schedule A of the contract may be
amended by AUL from time to time as described in Section 3.3. Amounts allocated
to any Investment Account identified in Schedule A of the contract shall be
invested in the shares of the corresponding Mutual Fund or Mutual Fund Portfolio
listed in the current prospectus for the Variable Account.
1.18 "Mutual Fund" means the AUL American Series Fund, Inc., a diversified,
open-end management investment company registered under The Investment Company
Act of l940, and any other such open-end management investment company made
available by AUL, as listed in Schedule A.
1.21 "Portfolio" (also known as a "Mutual Fund Portfolio") means a
portfolio established within a particular Mutual Fund as described in that
prospectus for that Mutual Fund, as such prospectus may be amended or
supplemented from time to time.
1.25 "Withdrawal Charge" means a charge taken by AUL equal to a percentage
of the Account Value withdrawn pursuant to Section 4.8, where the percentage
varies by the Participant Account Year in which the withdrawal is made. The
first Participant Account Year begins on the date when AUL establishes a
Participant Account and credits the initial Contribution for the Participant,
and ends on the day immediately preceding the next anniversary of such date.
Each Participant Account Year thereafter begins on such an anniversary date and
ends on the day immediately preceding the next succeeding anniversary date. The
Withdrawal Charge percentage is as follows:
During Withdrawal Charge
Participant Account Years Percentage
1-5 8%
6-10 4%
Thereafter 0%
In no event will the cumulative total of all Withdrawal Charges, including those
previously assessed against any amount withdrawn from a Participant Account,
exceed 9% of total Contributions allocated to that Participant Account.
3.2 How Contributions Are Handled:
(b) (1) The initial Contribution for a Participant shall be credited and
allocated to the Participant Account no later than the close of
business on the second business day of AUL after the later of (1) the
business day that AUL receives the initial Contribution at its Home
Office, or (2) the business day that AUL receives, at its Home Office,
the data required to establish the Participant Account, instructions
regarding the amount of the initial Contribution for the Participant,
and Investment Option election instructions regarding the initial
Contribution.
(2) If the data required to establish a Participant Account and
instructions regarding the amount of a Contribution for the
Participant are not received by AUL at its Home Office within 5
business days after AUL first receives that Contribution, AUL
shall return that Contribution to the Contractholder unless the
Contractholder consents to AUL retaining that Contribution until
the earlier of (i) the date AUL receives such data and
instructions and, therefore, can properly allocate that
Contribution to the Participant Account or (ii) 25 days from the
date that Contribution is received by AUL.
(3) If the data required to establish a Participant Account,
including any annuity enrollment form required by AUL, and
instructions regarding the amount of a Contribution for the
Participant are received, but an Investment Option election for
that Participant is not received, by AUL at its Home Office as of
the date AUL receives that Contribution, AUL shall allocate that
Contribution to the Investment Option election identified in the
Participant's annuity enrollment form, which is generally the AUL
American Money Market Investment Account. If AUL subsequently
receives the data required to establish the Participant Account,
instructions regarding the amount of the Contribution for the
Participant, and an
Investment Option election, AUL shall then transfer such amounts
credited to the AUL American Money Market Investment Account or
other Investment Option identified in the Participant's annuity
enrollment form, plus gains or minus losses thereon, to another
Investment Option, if such election so directs.
(c) Contributions for a Participant subsequent to the initial Contribution
shall be credited and allocated to the Participant Account as of the
close of business on the later of (1) the Valuation Period in which
AUL receives that Contribution at its Home Office or (2) the Valuation
Period in which AUL receives, at its Home Office, the data required to
establish the Participant Account, instructions regarding the amount
of that Contribution for the Participant, and Investment Option
election instructions.
(d) Within any one Participant Account, the amount so credited shall be
allocated to an Investment Option in increments elected by the
Participant in a form acceptable to AUL. If no investment allocation
instruction is made with respect to any Participant Account, AUL shall
process such credits in accordance with the investment allocation
instruction applicable to the immediately preceding Contribution. The
Participant may change an investment allocation instruction with
respect to future allocations to the applicable Participant Account by
giving new investment allocation instructions to AUL at its Home
Office in a form acceptable to AUL.
3.3 Addition, Deletion, or Substitution of Investments:
(a) AUL reserves the right, subject to compliance with applicable law, to
make additions to, deletions from, substitution for, or combinations
of, the securities that are held by the Variable Account or any
Investment Account or that the Variable Account or any Investment
Account may purchase. AUL reserves the right to eliminate the shares
of any of the eligible Mutual Funds or Mutual Fund Portfolios and to
substitute shares of, or interests in, another Portfolio of the AUL
American Series Fund, Inc., another open-end, registered investment
company, or another investment vehicle, for shares already purchased
or to be purchased in the future under the contract, if the shares of
any or all eligible Mutual Funds or Mutual Fund Portfolios are no
longer available for investment, or if further investment in any or
all eligible Mutual Funds or Mutual Fund Portfolios becomes
inappropriate in view of the purposes of the Variable Account or the
contract. Where required under applicable law, AUL will not substitute
any shares in the Variable Account or any Investment Account without
notice, Participant approval, or prior approval of the Securities and
Exchange Commission or a state insurance commissioner, and without
following the filing or other procedures established by applicable
state insurance regulators. Nothing contained herein shall prevent the
Variable Account from purchasing other securities for other series or
classes of contracts, or from effecting a conversion between series or
classes of contracts on the basis of requests made by a majority of
other contractholders or as permitted by federal law.
(b) AUL reserves the right to establish additional Investment Accounts,
each of which would invest in the corresponding Mutual Fund or Mutual
Fund Portfolio listed in the current prospectus for the Variable
Account, or in other securities or investment vehicles. AUL reserves
the right to eliminate or combine existing Investment Accounts if
marketing, tax, or investment conditions so warrant. AUL also reserves
the right to provide other Investment Options under this contract at
any time. Subject to any required regulatory
approvals, AUL reserves the right to transfer assets from any
Investment Account to another separate account of AUL or Investment
Account.
(c) In the event of any such substitution or change, AUL may, by
appropriate amendment, make such changes in this contract as may be
necessary or appropriate to reflect such substitution or change. If
deemed by AUL to be in the best interests of persons or entities
having voting rights under this contract, the Variable Account may be
operated as a management investment company under The Investment
Company Act of 1940 or any other form permitted by law, it may be
deregistered in the event such registration is no longer required
under The Investment Company Act of 1940, or it may be combined with
other separate accounts of AUL or an affiliate thereof. AUL may take
such action as is necessary to comply with, or to obtain, exemptions
from the Securities and Exchange Commission with regard to the
Variable Account. Subject to compliance with applicable law, AUL also
may combine one or more Investment Accounts and may establish a
committee, board, or other group to manage one or more aspects of the
operation of the Variable Account.
3.4 Transfers:
(a) Subject to the limitations of Section 3.5, the Participant may direct
AUL, in a form acceptable to AUL, to transfer the amounts credited to
an Investment Option to any other Investment Option during the
Accumulation Period. Any transfer from an Investment Account shall be
effective as of the close of business on the Valuation Date that AUL
receives the Participant's direction.
3.5 Limitations on Transfers:
(a) The minimum transfer from the Participant Account's share of any
Investment Option is the lesser of $500 or the Participant Account's
entire share of that Investment Option. However, if that transfer
reduces the Participant Account's remaining share of that Investment
Option to less than $500, the entire remaining share shall also be
transferred.
(b) Amounts transferred from the Fixed Interest Account on behalf of a
Participant during any Contract Year shall not exceed 20% of the
Participant Account's share of the Fixed Interest Account determined
as of the later of the Contract Date or the Contract Anniversary
immediately preceding the request for transfer. Notwithstanding the
previous sentence, if the Participant Account's share of the Fixed
Interest Account is less than $2,500 determined as of the later of the
Contract Date or the Contract Anniversary immediately preceding the
request for transfer, the amount transferrable from the Fixed Interest
Account for that Contract Year is the lesser of $500 or the
Participant Account's entire share of the Fixed Interest Account. And
if that transfer reduces the Participant Account's remaining share of
the Fixed Interest Account to less than $500, the entire remaining
share shall also be transferred.
4.7 Death Benefits:
(a) Upon receipt of written instructions from the Participant's
beneficiary (or, if applicable, the secondary beneficiary of the
Participant) and of due proof of the Participant's (and, if
applicable, the beneficiary's) death during the Accumulation Period at
its Home Office, AUL shall apply the Account Value (subject to Section
6.5, and minus the Participant's outstanding loan balance, if any,
under this contract and any unpaid expense charges due on such loans)
of the Participant Account for the purpose of providing a death
benefit. The death benefit shall be paid to the beneficiary last
properly designated in writing to AUL at its Home Office by the
Participant, or, if there is no designated beneficiary living on the
date of the Participant's death, to the Participant's estate. The
Participant's beneficiary may also designate a beneficiary. If any
beneficiary dies while receiving payments and no beneficiary is
designated to receive any remaining payments, such remaining payments
shall be made to the deceased beneficiary's estate.
(b) The Account Value to be applied pursuant to (a) above shall be
determined as of the close of business on the Valuation Date that AUL
receives a proper withdrawal request (or due proof of death, if
received later), in a form acceptable to AUL, at its Home Office.
(c) (1) The benefit shall be payable in accordance with one of the
following provisions as elected by the Participant or the beneficiary
if the Participant did not make an election:
(i) The entire Account Value to be applied shall be paid to the
beneficiary in a single sum or other method not provided in
(ii) below on or before December 31 of the calendar year
which contains the fifth anniversary of the date of the
Participant's death; or
(ii) The benefit shall be paid as an annuity in accordance with
the Annuity Options shown in Section 4.2 over a period not
to exceed the life or life expectancy of the beneficiary. If
the beneficiary is not the Participant's surviving spouse,
the annuity must begin on or before December 31 of the
calendar year immediately following the calendar year in
which the Participant died. If the beneficiary is the
Participant's surviving spouse, the annuity need not begin
before December 31 of the calendar year in which the
Participant would have attained age 70 1/2.
(2) If a Participant dies on or after his Annuity Commencement Date,
any interest remaining under the Annuity Option selected shall be
paid at least as rapidly as prior to the Participant's death.
(3) If payment is to be made in a cash lump sum, payment shall be
made within 7 days of the date of valuation, as determined above
in this Section, except as AUL may be permitted to defer such
payment of amounts derived from the Variable Account in
accordance with the provisions of federal securities laws. Also,
AUL reserves the right to defer the payment of amounts withdrawn
from the Fixed Interest Account for a period of up to 6 months
after AUL receives proper instructions at its Home Office.
4.8 Withdrawal Benefits: A Participant may direct AUL at its Home Office,
in a form acceptable to AUL, to withdraw all or a portion of the Withdrawal
Value of his Participant Account, subject to the following provisions:
(a) Amounts attributable to amounts held as of December 31, 1988 under
another Code Section 403(b) annuity contract may be withdrawn.
(b) Amounts attributable to Contributions made other than pursuant to a
salary reduction agreement (within the meaning of Code Section
402(g)(3)(C)) may be withdrawn.
(c) Amounts attributable to Contributions made pursuant to a salary
reduction agreement (within the meaning of Code Section 402(g)(3)(C))
may be withdrawn, provided that any distribution of such amounts shall
not occur until the Participant has either attained age 59 1/2,
separated from service, become totally disabled (as defined by the
Internal Revenue Service), or experienced a hardship (as defined by
the Internal Revenue Service). However, in the case of a hardship
withdrawal, any gain credited to such Contributions may not be
withdrawn.
(d) Withdrawal of any amount from this contract which is transferred
directly by AUL pursuant to Participant instructions to another
tax-deferred annuity funding vehicle under applicable Internal Revenue
Service rules and regulations shall be subject to application of the
Withdrawal Charge.
(e) If, as provided in Internal Revenue Code Regulation Section
1.403(b)-2T Q&A-2, the distributee of any eligible rollover
distribution elects to have the distribution paid directly to an
eligible retirement plan (as defined in Q&A-1 of that Section) and
specifies the eligible retirement plan to which the distribution is to
be paid, then the distribution shall be paid to that eligible
retirement plan in a direct rollover.
(f) AUL shall not be responsible for determining a Participant's
compliance with the requirements above, and it may rely upon the
representations of the Participant made in the withdrawal request.
(g) Withdrawals from a Participant Account's share of any Investment
Option may not be made in an amount less than the smaller of $500 or
the Participant Account's entire share of the Investment Option. If a
withdrawal reduces the Participant Account's share of an Investment
Option to less than $500, such remaining share shall also be withdrawn
(except for amounts prohibited from being distributed because
Subsection (c) above is not met).
(h) A withdrawal request shall be effective, and the Account Value to be
applied pursuant to this Section shall be determined, as of the close
of business on the Valuation Date that AUL receives a proper
withdrawal request, in a form acceptable to AUL, at its Home Office.
If it is necessary to withdraw the entire Account Value of a
Participant Account to make a lump-sum cash payment, the amount paid
shall equal the Withdrawal Value, minus any Section 6.5 charges. If it
is not necessary to withdraw the entire Account Value to make such
payment, AUL shall reduce the Account Value of the Participant Account
by an amount sufficient to make the cash payment requested and to
cover the Withdrawal Charge and any Section 6.5 charges.
Notwithstanding the previous sentence, in the first Contract Year in
which a Participant Account is established, the Participant may
withdraw from that Participant Account up to 10% of the sum of the
Account Value of that Participant Account (determined as of the later
of the Contract Date or the Contract Anniversary immediately preceding
the request for the withdrawal) plus Contributions made during that
Contract Year, without application of the Withdrawal Charge. In the
next succeeding Contract Year, the Participant may also withdraw from
that Participant Account up to 10% of the sum of the Account Value of
that Participant Account (determined as of the Contract Anniversary
immediately preceding the request for the withdrawal) plus
Contributions made during that Contract Year, without application of
the Withdrawal Charge. In any subsequent Contract Year, the
Participant may withdraw from that Participant Account up to 10% of
the Account Value of that Participant Account (determined as of the
Contract Anniversary immediately preceding the request for the
withdrawal) without application of the Withdrawal Charge. Also, where
a Participant has outstanding loans under this contract, a partial
withdrawal by a Participant from the Fixed Interest Account shall be
permitted only to the extent that the remaining Withdrawal Value of
the Participant held in the Fixed Interest Account equals twice the
total of the Participant's outstanding loans under this contract.
(i) AUL shall pay any cash lump sum to the Participant within 7 days from
the appropriate Valuation Date as determined in Subsection (h) above,
except as AUL may be permitted to defer such payment of amounts
withdrawn from the Variable Account in accordance with appropriate
provisions of the federal securities laws. AUL reserves the right to
defer the payment of amounts withdrawn from the Fixed Interest Account
for a period of up to 6 months after AUL receives the withdrawal
request at its Home Office.
(j) Withdrawals from a Participant Account's share of the Fixed Interest
Account shall be made on a first-in/first-out basis so that all or a
portion of the amounts credited to the Participant Account's share of
the Fixed Interest Account (other than amounts which are prohibited
from being distributed because Subsection (c) above is not met) which
have been on deposit for the longest period of time, as well as the
interest credited thereon, shall be withdrawn first.
5.1 Valuation of Mutual Fund or Mutual Fund Portfolio Assets: All assets of
each Mutual Fund or Mutual Fund Portfolio shall be valued as provided in the
prospectus for the applicable Mutual Fund or Mutual Fund Portfolio as such
prospectus may be amended or supplemented from time to time.
5.2 Accumulation Units: Any amounts that are allocated to any Investment
Account on behalf of a Participant shall be credited to his Participant Account
in the form of Accumulation Units on the basis of the value of such units in
that Investment Account as of the later of (1) the end of the Valuation Period
on which such amounts are received by AUL at its Home Office or (2) the end of
the Valuation Period on which the data required to establish the Participant
Account and allocate such amounts to the Participant Account and to Investment
Options are received by AUL at its Home Office. However, if the initial
Contribution for a Participant is allocated pursuant to Section 3.2(b)(1) on the
next succeeding Valuation Period, the unit value as of the end of that Valuation
Period shall be used. Such crediting shall be made separately for amounts
allocated to each Investment Account. The number of Accumulation Units in each
Investment Account credited to each Participant Account as of any Valuation
Period shall be determined by dividing the amounts allocated to that Investment
Account for that Participant Account as of such Valuation Period by the dollar
value of one Accumulation Unit in that Investment Account as of the close of
business on the applicable Valuation Period. The number of Accumulation Units
thus determined shall not be changed by any subsequent change in the dollar
value of the Accumulation Units.
5.3 Value of Accumulation Units: The value of an Accumulation Unit in the
AUL American Equity, Bond, Money Market, and Managed Investment Accounts was
established at $1.00 as of April 12, 1990. The value of an Accumulation Unit in
any other Investment Account available under this contract shall be established
at $1.00 as of the date of the first deposit to such Investment Account. The
value of an Accumulation Unit in each Investment Account as of any Valuation
Period thereafter is equal to the dollar value of one Accumulation Unit in that
Investment
Account as of the immediately preceding Valuation Period multiplied by the Net
Investment Factor, as defined in Section 5.4, for that Investment Account for
the current Valuation Period. The value of an Accumulation Unit for each
Investment Account shall be determined for each Valuation Period before giving
effect to any additions, withdrawals, or transfers. After such determination,
the additions, withdrawals, or transfers which are effective as of that day
shall then be made.
5.4 Determining the Net Investment Factor: The Net Investment Factor for
each Investment Account for any Valuation Period is determined by dividing (a)
by (b), and then subtracting (c) from that result, where:
(a) is equal to:
(1) the net asset value of a Mutual Fund or Mutual Fund Portfolio
share held in the Investment Account determined as of the end of
the current Valuation Period, plus
(2) the per share amount of any dividend or other distribution, if
any, paid by the Mutual Fund or Mutual Fund Portfolio during the
current Valuation Period, plus or minus
(3) any credit or charge for any taxes paid or reserved for by AUL
during the current Valuation Period which are determined by AUL
to be attributable to operation of the Investment Account;
(b) is the net asset value of a Mutual Fund or Mutual Fund Portfolio share
held in the Investment Account determined as of the end of the
immediately preceding Valuation Period; and
(c) is a daily charge factor determined by AUL to reflect the charges
assessed against the assets of the Investment Account for mortality
and expense risks, as authorized by Section 6.1.
6.1 Mortality Risk and Expense Risk Charges: AUL shall deduct a daily
mortality risk charge and a daily expense risk charge equal to the daily
equivalent of an annual combined charge of 1.25% against the average daily net
assets of each Investment Account. These charges shall be reflected in the Net
Investment Factor as provided in Section 5.4(c).
6.2 Mutual Fund or Mutual Fund Portfolio Expenses: A Mutual Fund or Mutual
Fund Portfolio shall pay any investment advisory fee and certain other expenses,
which may include its ordinary operational and organizational expenses, or any
extraordinary expenses, as described in the current prospectus for that Mutual
Fund or Mutual Fund Portfolio as it may be amended or supplemented from time to
time. These expenses may vary from year to year. The net asset value of each
Mutual Fund or Mutual Fund Portfolio share reflects such investment advisory fee
and other expenses which are deducted from the assets of such Mutual Fund or
Mutual Fund Portfolio.
6.6 Reduction or Waiver of Certain Charges: AUL may reduce or waive the
amount of the Withdrawal Charge or the administrative charge discussed in
Section 6.3 where the expenses associated with the sale of this contract or the
administrative costs associated with this contract are reduced, or where this
contract is sold to the directors or employees of AUL or any of its affiliates,
or to directors or any employees of the AUL American Series Fund, Inc.
8.2 AUL's Annual Statement: No provision or condition of this contract
shall be deemed to control, determine, or modify any annual statement of AUL
made to any insurance department, contractholder, regulatory body, or other
person, nor shall anything in such annual statement be deemed to control,
determine, or modify the valuation provided for in this contract, nor the values
determined, nor the market, book, or other value of any asset in any Investment
Account or Mutual Fund or Mutual Fund Portfolio, nor any of the other provisions
and conditions of this contract.
8.8 Election, Notice, or Direction Requirements: Wherever in this contract
reference is made to the Contractholder or Participant making a request or
giving notice or direction, such request, notice, or direction must be in
writing, or in a form otherwise acceptable to AUL, and must be submitted to and
received by AUL at its Home Office before becoming effective.
8.15 Voting:
(a) AUL is the legal owner of the shares of a Mutual Fund or Mutual Fund
Portfolio held by the Investment Accounts of the Variable Account. AUL
shall exercise voting rights attributable to the shares of each Mutual
Fund or Mutual Fund Portfolio held in the Investment Accounts at any
regular and special meetings of the shareholders of a Mutual Fund on
matters requiring shareholder voting under The Investment Company Act
of l940 or other applicable laws. AUL shall exercise these voting
rights based on instructions received from persons having the voting
interest in corresponding Investment Accounts of the Variable Account.
However, if The Investment Company Act of l940 or any regulations
thereunder should be amended, or if the present interpretation thereof
should change, and as a result AUL determines that it is permitted to
vote the shares of a Mutual Fund or Mutual Fund Portfolio in its own
right, it may elect to do so. AUL will vote shares of any Investment
Account, if any, that it owns beneficially in its own discretion,
except that if a Mutual Fund or Mutual Fund Portfolio offers its
shares to any insurance company separate account that funds variable
life insurance contracts or if otherwise required by applicable law,
AUL will vote its own shares in the same proportion as the voting
instructions that are received in a timely manner for contracts and
Participant Accounts participating in the Investment Account.
(b) The persons having the voting interest under this contract are the
Participants. Unless otherwise required by applicable law, the number
of Mutual Fund or Mutual Fund Portfolio shares as to which voting
instructions may be given to AUL is determined by dividing the value
of all of the Accumulation Units of the corresponding Investment
Account attributable to this contract on a particular date by the net
asset value per share of that Mutual Fund or Mutual Fund Portfolio as
of the same date. Fractional votes will be counted. The number of
votes as to which voting instructions may be given will be determined
as of the date coincident with the date established by the applicable
Mutual Fund or Mutual Fund Portfolio for determining shareholders
eligible to vote at the meeting of that Mutual Fund. If required by
the Securities and Exchange Commission, AUL reserves the right to
determine in a different fashion the voting rights attributable to the
shares of a Mutual Fund or Mutual Fund Portfolio.
(c) Voting rights attributable to this contract for which no timely voting
instructions are received will be voted by AUL in the same proportion
as the voting instructions which are received in a timely manner for
all contracts and Participant Accounts participating in that
Investment Account.
(d) Neither the Variable Account nor AUL is under any duty to inquire as
to the instructions received or the authority of Contractholders,
Participants, or others to instruct the voting
of Mutual Fund or Mutual Fund Portfolio shares.
(e) Every person or entity having such voting rights shall receive such
reports or prospectuses concerning the Variable Account or a Mutual
Fund or Mutual Fund Portfolio as may be required by applicable federal
law.
CONTRACTHOLDER AUL
By ______________________________ By ________________________________
Title______________________________ Title _____________________________
Date ______________________________ Date _____________________________
(existing business)
(b) The persons having the voting interest under this contract are the
Participants. Unless otherwise required by applicable law, the number
of Mutual Fund or Mutual Fund Portfolio shares as to which voting
instructions may be given to AUL is determined by dividing the value
of all of the Accumulation Units of the corresponding Investment
Account attributable to this contract on a particular date by the net
asset value per share of that Mutual Fund or Mutual Fund Portfolio as
of the same date. Fractional votes will be counted. The number of
votes as to which voting instructions may be given will be determined
as of the date coincident with the date established by the applicable
Mutual Fund or Mutual Fund Portfolio for determining shareholders
eligible to vote at the meeting of that Mutual Fund. If required by
the Securities and Exchange Commission, AUL reserves the right to
determine in a different fashion the voting rights attributable to the
shares of a Mutual Fund or Mutual Fund Portfolio.
(c) Voting rights attributable to this contract for which no timely voting
instructions are received will be voted by AUL in the same proportion
as the voting instructions which are received in a timely manner for
all contracts and Participant Accounts participating in that
Investment Account.
(d) Neither the Variable Account nor AUL is under any duty to inquire as
to the instructions received or the authority of Contractholders,
Participants, or others to instruct the voting of Mutual Fund or
Mutual Fund Portfolio shares.
(e) Every person or entity having such voting rights shall receive such
reports or prospectuses concerning the Variable Account or a Mutual
Fund or Mutual Fund Portfolio as may be required by applicable federal
law.
AMERICAN UNITED LIFE INSURANCE COMPANY
By: /s/ Xxxxx X. Xxxxxx
Chairman of the Board,
President, & Chief Executive Officer
Attest
By: /s/ Xxxxxxx X. Xxxxx
Secretary
CONTRACTHOLDER
By___________________________________
Title _______________________________
Date ________________________________
SCHEDULE A
The following Investment Accounts are made available to the Contractholder by
AUL. Amounts allocated to any Investment Account identified below shall be
invested in the shares of the corresponding Mutual Fund or Mutual Fund Portfolio
listed below.
Investment Account Mutual Fund or Mutual Fund Portfolio
----------------- ---------------------------------------------
AUL American Bond AUL American Bond
AUL American Equity AUL American Equity
AUL American Managed AUL American Managed
AUL American Money Market AUL American Money Market
AUL American Tactical Asset Allocation Portfolio AUL American Tactical Asset Allocation Portfolio
Xxxxx American Growth Xxxxx American Growth
American Century VP Capital Appreciation American Century VP Capital Appreciation
Xxxxxxx Social Mid-Cap Growth Xxxxxxx Social Mid-Cap Growth
Fidelity VIP Equity-Income Fidelity VIP Equity-Income
Fidelity VIP Growth Fidelity VIP Growth
Fidelity VIP High Income Fidelity VIP High Income
Fidelity VIP Overseas Fidelity VIP Overseas
Fidelity VIP II Asset Manager Fidelity VIP II Asset Manager
Fidelity VIP II Contrafund Fidelity VIP II Contrafund
Fidelity VIP II Index 500 Fidelity VIP II Index 500
Janus Aspen Series Flexible Income Portfolio Janus Aspen Series Flexible Income Portfolio
Janus Aspen Series Worldwide Growth Portfolio Janus Aspen Series Worldwide Growth Portfolio
PBHG Insurance Series Growth II PBHG Insurance Series Growth II
PBHG Insurance Series Technology PBHG Insurance Series Technology
and Communication and Communication
SAFECO Resource Series Trust Equity Portfolio SAFECO Resource Series Trust Equity Portfolio
SAFECO Resource Series Trust Growth Portfolio SAFECO Resource Series Trust Growth Portfolio
X. Xxxx Price Equity-Income Portfolio X. Xxxx Price Equity-Income Portfolio
AMENDMENT
TO THE
AUL AMERICAN SERIES
TDA MULTIPLE-FUND GROUP VARIABLE ANNUITY
CONTRACT NUMBER GA 73,467 (THE CONTRACT)
ISSUED BY
AMERICAN UNITED LIFE INSURANCE COMPANY (AUL)
TO
__________________________________
(THE CONTRACTHOLDER)
The Effective Date of this Amendment is the date that it is signed by AUL.
AUL and the Contractholder hereby agree, by signing below, that the Contract is
hereby amended as of the above Effective Date by deleting the former Schedule A,
if any, and by substituting the following Schedule A in lieu thereof:
SCHEDULE A
The following Investment Accounts are made available to the Contractholder by
AUL. Amounts allocated to any Investment Account identified below shall be
invested in the shares of the corresponding Mutual Fund or Mutual Fund Portfolio
listed below.
Investment Account Mutual Fund or Mutual Fund Portfolio
------------------ ------------------------------------
AUL American Bond AUL American Bond
AUL American Equity AUL American Equity
AUL American Managed AUL American Managed
AUL American Money Market AUL American Money Market
AUL American Tactical Asset Allocation Portfolio AUL American Tactical Asset Allocation Portfolio
Xxxxx American Growth Xxxxx American Growth
American Century VP Capital Appreciation American Century VP Capital Appreciation
Xxxxxxx Social Mid-Cap Growth Xxxxxxx Social Mid-Cap Growth
Fidelity VIP Equity-Income Fidelity VIP Equity-Income
Fidelity VIP Growth Fidelity VIP Growth
Fidelity VIP High Income Fidelity VIP High Income
Fidelity VIP Overseas Fidelity VIP Overseas
Fidelity VIP II Asset Manager Fidelity VIP II Asset Manager
Fidelity VIP II Contrafund Fidelity VIP II Contrafund
Fidelity VIP II Index 500 Fidelity VIP II Index 500
Janus Aspen Series Flexible Income Portfolio Janus Aspen Series Flexible Income Portfolio
Janus Aspen Series Worldwide Growth Portfolio Janus Aspen Series Worldwide Growth Portfolio
PBHG Insurance Series Growth II PBHG Insurance Series Growth II
PBHG Insurance Series Technology PBHG Insurance Series Technology
and Communication and Communication
SAFECO Resource Series Trust Equity Portfolio SAFECO Resource Series Trust Equity Portfolio
SAFECO Resource Series Trust Growth Portfolio SAFECO Resource Series Trust Growth Portfolio
X. Xxxx Price Equity-Income Portfolio X. Xxxx Price Equity-Income Portfolio
CONTRACTHOLDER AUL
By __________________________________ By _________________________________________
Title _______________________________ Title ______________________________________
Date ________________________________ Date _______________________________________
P-12511.A
