1
Exhibit B(4)(a)
The Northwestern Mutual Life Insurance Company agrees to pay the benefits
provided in this contract, subject to its terms and conditions.
Signed at Milwaukee, Wisconsin on the Issue Date.
(signed)
President and CEO Secretary
FLEXIBLE PAYMENT VARIABLE ANNUITY - ACCOUNT B
Net Purchase Payments accumulated in a Separate Account,
assets of which are invested
in shares of one or more mutual funds, or Guaranteed Interest Fund.
Contract benefits payable in one sum or as variable or
guaranteed monthly income. Variable Payment Plan
benefits described in Section 11.
Participating.
AMOUNTS ALLOCATED TO THE SEPARATE ACCOUNT DIVISIONS AND VARIABLE PAYMENTS
PROVIDED BY THIS CONTRACT ARE NOT GUARANTEED AS TO FIXED DOLLAR AMOUNT BUT ARE
VARIABLE AND MAY INCREASE OR DECREASE TO REFLECT THE INVESTMENT EXPERIENCE OF
THE SEPARATE ACCOUNT.
RIGHT TO RETURN CONTRACT. Please read this contract carefully. The Owner may
return the contract for any reason within ten days after receiving it. Return of
the contract is effective on the date written notice of the return is delivered,
mailed or sent by telegram to either The Northwestern Mutual Life Insurance
Company, 000 Xxxx Xxxxxxxxx Xxxxxx, Xxxxxxxxx, Xxxxxxxxx 00000 or the agent who
sold the contract. If returned, the contract will be cancelled and the Company
will refund the sum of (a) the difference between the Purchase Payments paid and
the amounts, if any, allocated to the Separate Account plus (b) the value of the
Accumulation Units of the Separate Account on the effective date of return.
RR.V.B.(032000)
CONTRACT NUMBER 12 345 678
PRIMARY ANNUITANT Xxxx X. Xxx
ISSUE DATE July 31, 2001 Sex Neutral
XX.X.X.XX.(032000)
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TABLE OF CONTENTS
CONTRACT INFORMATION, INVESTMENT ACCOUNTS
CHARGES AND FEES
MINIMUM PURCHASE PAYMENTS, ACCUMULATION VALUE, PAYMENT PLANS
SECTION 1. GENERAL TERMS AND DEFINITIONS
SECTION 2. SEPARATE ACCOUNT
- Separate Account
- Accumulation Units
- Net Investment Factor
- Substitution and Change
SECTION 3. GUARANTEED INTEREST FUND
- Guaranteed Interest Fund
- Accumulation Value
- Transfer Restrictions
- Maximum Guaranteed Interest Fund Accumulation Value
- Table of Guaranteed Values
SECTION 4. PURCHASE PAYMENTS, TRANSFERS AND WITHDRAWALS
- Payment of Purchase Payments
- Application of Purchase Payments
- Selection of Investment Account for Purchase Payments
- Transfer of Accumulation Value
- Withdrawals and Full Surrender
- Effective Date
SECTION 5. BENEFITS
- Maturity Benefit
- Death Benefit If Annuitant is an Owner
- Death Benefit if Annuitant is not an Owner
SECTION 6. BENEFICIARIES AND CONTINGENT ANNUITANTS
- Naming and Changing of Beneficiaries
- Succession in Interest of Beneficiaries
- Trustee as Beneficiary
- General
- Naming and Changing a Contingent Annuitant
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SECTION 7. CHARGES AND FEES
- Sales Load and Premium Taxes
- Contract Fee
SECTION 8. OWNERSHIP
- The Owner
- Transfer of Ownership
- Naming and Changing a Successor Owner
- Collateral Assignment
- Voting Rights and Reports to Owners
SECTION 9. THE CONTRACT
- Guarantees
- Valuation of Separate Account Assets
- Determination of Separate Account Values
- Deferment of Benefit Payments
- Dividends
- Incontestability
- Misstatements
- Entire contract; Changes
- Termination of Contract.
SECTION 10. PAYMENT OF CONTRACT BENEFITS
- Payment of Benefits
- Death Benefit
- Effective Date for Payment Plan
- Payment Plan Elections
SECTION 11. PAYMENT PLANS
- Description of Payment Plans
- Allocation of Benefits
- Annuity Units under Variable Payment Plans
- Payments under Variable Payment Plans
- Transfers Involving Variable Payment Plans
- Withdrawal under Payment Plans
- Naming and Changing of Beneficiaries under Payment Plans
- Succession in Interest of Beneficiaries under Payment Plans
- Payment Plan Rates
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ADDITIONAL BENEFITS (IF ANY)
APPLICATION
ENDORSEMENTS
to be made only by the Company at the Home Office
XX.X.X.XX(032000)
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CONTRACT INFORMATION
CONTRACT NUMBER 12 345 678
PLAN Flexible Payment Variable Annuity
ADDITIONAL BENEFITS Enhanced Death Benefit
TAX REPORTING CATEGORY Personal Annuity
PRIMARY ANNUITANT Xxxx X. Xxx
AGE AND SEX 35 Male
OWNER Xxxx X. Xxx, the Annuitant
ISSUE DATE July 31, 2001
CONTRACT ANNIVERSARY July 31, 2002 and each July 31
thereafter
MATURITY DATE July 31, 2051
DIRECT BENEFICIARY Xxxx X. Xxx, Wife of the Annuitant
INVESTMENT ACCOUNTS
On the Issue Date, Purchase Payments and contract values may be
allocated among the following Investment Accounts. Available Separate
Account Divisions are subject to change. See Section 2.1.
Divisions of Separate Account B:
Select Bond Division
Xxxxxxxxx International Equity Division
Money Market Division
Balanced Division
Index 500 Stock Division
Aggressive Growth Stock Division
High Yield Bond Division
Growth Stock Division
XX Xxxxxx Select Growth and Income Division
Index 400 Stock Division
Small Cap Growth Stock Division
Xxxxxxx Multi-Style Equity Division
Xxxxxxx Aggressive Equity Division
Xxxxxxx Non-US Division
Xxxxxxx Real Estate Securities Division
Xxxxxxx Core Bond Division
Asset Allocation Division
International Growth Stock Division
X. Xxxx Price Small Cap Value Division
Capital Guardian Domestic Equity Division
Guaranteed Accounts:
Guaranteed Interest Fund
XX.X.X.XX.(032000) Page 3
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CONTRACT NUMBER 12 345 678
CHARGES AND FEES
DEDUCTION FROM PURCHASE PAYMENTS:
SALES LOAD (See Section 7.1)
Total Purchase Payments Amount Deducted
Paid Under the Contract From Purchase Payment
First $100,000 4.5%
Next $400,000 2.0%
Next $500,000 1.0%
Balance over $1,000,000 0.5%
PREMIUM TAX(See Section 7.1):
For the first Contract Year, Premium Taxes are not deducted from
Purchase Payments. After the first Contract Year, the Company may
deduct Premium Taxes from Purchase Payments received or benefits paid.
ANNUAL MORTALITY AND EXPENSE RISK CHARGE (See Section 2.3):
0.50% at Issue; 0.75% Maximum
ANNUAL CONTRACT FEE (See Section 7.2):
$30 charged on the contract anniversary. The contract fee will
be waived if the Accumulation Value of the contract equals or
exceeds $25,000 on the contract anniversary.
ENHANCED DEATH BENEFIT CHARGE
0.10% of the Enhanced Death Benefit on each contract anniversary.
TRANSFER FEE (See Sections 4.4 and 11.5):
$25 beginning with the thirteenth transfer in any Contract Year.
MINIMUM PURCHASE PAYMENTS, ACCUMULATION VALUE, PAYMENT PLANS
MINIMUM PURCHASE PAYMENT (See Section 4.1): $25
MINIMUM ACCUMULATION VALUE (See Sections 5.2 and 9.9): $2,000
MINIMUM PAYMENT UNDER PAYMENT PLAN (See Sections 9.9 and 10.1): $50 Monthly
Income.
XX.X.X.XX.(032000) Page 4
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CONTRACT NUMBER 12 345 678
GUARANTEED INTEREST FUND - TABLE OF GUARANTEED VALUES
The table shows minimum guaranteed values and assumes a $10,000 Purchase Payment
made at the time of issue followed by subsequent $1,000 Purchase Payments made
annually thereafter on each contract anniversary. The values are based on the
assumption that 100% of all net Purchase Payments are allocated to, and remain
in, the Guaranteed Interest Fund.
End of
Contract Accumulation Cash
Year March 31 Value Value
1 2001 $ 9,836 $ 9,836
2 2002 11,084 11,084
3 2003 12,369 12,369
4 2004 13,693 13,693
5 2005 15,057 15,057
6 2006 16,461 16,461
7 2007 17,908 17,908
8 2008 19,398 19,398
Age 70 2035 82,877 82,877
This table is based on the guaranteed annual effective interest rate of 3%.
Higher declared rates of interest will increase values. Values shown at the end
of contract years do not reflect any Purchase Payments paid on that contract
anniversary. The actual guaranteed values may differ from those shown above,
depending on the amount and frequency of Purchase Payments.
XX.X.X.XX.(032000) Page 4A
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SECTION 1. GENERAL TERMS AND DEFINITIONS
ACCUMULATION UNIT A unit of measure used to determine the value of the
interest of this contract in the Separate Account prior
to the date on which amounts are placed under a payment
plan.
ACCUMULATION VALUE The Accumulation Value of a Separate Account Division
is the total value of all Accumulation Units in that
Division. The Accumulation Value of the Guaranteed
Interest Fund is the sum of amounts applied to the
fund, plus credited interest, less amounts withdrawn or
transferred from the fund. The Accumulation Value of
the contract is the sum of the Accumulation Values of
all Investment Accounts.
ANNUITANT The Primary Annuitant and, upon the death of the
Primary Annuitant, the Contingent Annuitant.
ANNUITY UNIT A unit of measure used to determine the amount of
variable payments under a variable payment plan and the
value of the interest of a variable payment plan in the
Separate Account.
BENEFICIARIES The term "Beneficiaries" as used in this contract
includes direct beneficiaries, contingent beneficiaries
and further payees.
COMPANY The Northwestern Mutual Life Insurance Company.
CONTINGENT ANNUITANT The person who becomes the Annuitant upon the death of
an Annuitant.
CONTRACT FEE An annual charge for administration expenses made on
each contract anniversary prior to the Maturity Date.
CONTRACT YEAR The first Contract Year is the period of time ending on
the first contract anniversary. Subsequent Contract
Years are the annual periods between contract
anniversaries.
DIVISION A component of the Separate Account to which the Owner
may allocate Net Purchase Payments and contract values.
GUARANTEED INTEREST FUND The portion of the contract that is credited with a
guaranteed interest rate and which is held as part of
the general assets of the Company.
HOME OFFICE The office of The Northwestern Mutual Life Insurance
Company located at 000 Xxxx Xxxxxxxxx Xxxxxx,
Xxxxxxxxx, XX 00000.
INVESTMENT ACCOUNT The Guaranteed Interest Fund and Separate Account
Divisions available for allocation of Net Purchase
Payments and contract values. The available Investment
Accounts are listed on page 3.
ISSUE DATE The date this contract is issued and becomes effective.
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MATURITY DATE The date upon which contract benefits will become
payable. If the contract is continued in force under
the Optional Maturity Date provision, the Optional
Maturity Date will become the Maturity Date.
NET PURCHASE PAYMENT A Purchase Payment less all applicable deductions.
Deductions may include the Sales Load and a Premium
Tax.
OPTIONAL MATURITY DATE The contract anniversary nearest the Annuitant's 90th
birthday. Upon reaching the Maturity Date shown on page
3, the Owner may elect to continue the contract in
force until this Optional Maturity Date.
OWNER The person possessing the ownership rights stated in
this contract.
PORTFOLIOS Mutual funds or portfolios of mutual funds in which the
assets of the Separate Account are invested.
PREMIUM TAX A tax imposed by a governmental entity when Purchase
Payments are received or benefits are paid.
PRIMARY ANNUITANT The person upon whose life this contract is initially
issued.
PURCHASE PAYMENT A payment made by or on behalf of the Owner with
respect to this contract.
SALES LOAD A deduction made from Purchase Payments received.
SEPARATE ACCOUNT NML Variable Annuity Account B. The Separate Account
consists of assets set aside by the Company, the
investment performance of which is kept separate from
that of the general assets and all other separate
account assets of the Company.
SUCCESSOR OWNER The person designated to become the Owner upon the
death of the Owner, provided the Owner was not the
Annuitant at the time of the Owner's death.
TRANSFER FEE A deduction that is made from the amount transferred
between Investment Accounts.
VALUATION DATE Any day on which the assets of the Separate Account are
valued. Assets are valued as of the close of trading on
the New York Stock Exchange for each day the Exchange
is open.
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SECTION 2. SEPARATE ACCOUNT
2.1 SEPARATE ACCOUNT
The Separate Account (NML Variable Annuity Account B) has been established by
the Company and is registered as a unit investment trust under the Investment
Company Act of 1940. The Separate Account consists of assets set aside by the
Company, the investment performance of which is kept separate from that of the
general assets and all other separate account assets of the Company. The assets
of the Separate Account will not be charged with liabilities arising out of any
other business the Company may conduct. Interests in the Separate Account are
represented by Accumulation Units and Annuity Units, described in Sections 2.2
and 11.3, respectively.
The Separate Account is comprised of the Divisions listed on page 3. The assets
allocated to these Divisions are invested in shares of the corresponding
Portfolios. Shares of the Portfolios are purchased for the Separate Account at
their net asset value.
The Company reserves the right to eliminate or add additional Divisions and
Portfolios.
2.2 ACCUMULATION UNITS
The interest of this contract in the Separate Account, prior to the date on
which amounts become payable under a payment plan, is represented by
Accumulation Units. The dollar value of Accumulation Units for each Division
will increase or decrease to reflect the investment experience of the Division.
The value of an Accumulation Unit on any Valuation Date is the product of:
- the value on the immediately preceding Valuation Date; and
- the Net Investment Factor for the period from the immediately preceding
Valuation Date up to and including the current Valuation Date (the
current period).
2.3 NET INVESTMENT FACTOR
For each Division of the Separate Account the Net Investment Factor for the
current period is one plus the net investment rate for that Division. The net
investment rate for the current period is equal to the gross investment rate for
the Division reduced on each Valuation Date by a Mortality and Expense Risk
Charge. The charge for these risks on the Issue Date is shown on page 4. The
Company may increase or decrease the charge after the Issue Date, but the
Company may not increase the charge to exceed the maximum charge shown on page
4.
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The gross investment rate for the current period for each Division is equal to
a. divided by b. where:
a. is:
- the investment income of the Division for the current period; plus
- capital gains for the period, whether realized or unrealized, on the
assets of the Division; less
- capital losses for the period, whether realized or unrealized, on
the assets of the Division; less
- deduction for any tax liability paid or reserved for by the Company
resulting from the maintenance or operation of the Division; and
less
- any reasonable expenses paid or reserved for by the Company which
result from a substitution of other securities for shares of the
Portfolio(s) as set forth in Section 2.4; and
b. is the value of the assets in the Division on the immediately preceding
Valuation Date.
The gross investment rate may be positive or negative. The deduction for any tax
liability may be charged proportionately against those contracts to which the
liability is attributable by a reduction in the gross investment rate for those
contracts.
2.4 SUBSTITUTION AND CHANGE
Pursuant to a vote of the Owners of variable annuity contracts having an
interest in a Division or as otherwise permitted by applicable insurance and
securities law, a substitution or change may be made as follows:
- the assets of the Division may be invested in securities other than
shares of the Portfolio(s) as a substitute for those shares already
purchased or as the securities to be purchased in the future;
- the Separate Account, or a Division, may be operated as a management
company under the Investment Company Act of 1940, or in any other form
permitted by law, if deemed by the Company to be in the best interests
of the contract Owners;
- the Separate Account may be deregistered under the Investment Company
Act of 1940 in the event registration is no longer required; or
- the provisions of the contracts may be modified to comply with any
other applicable federal or state laws.
In the event of a substitution or change, the Company may make appropriate
endorsement on this and other contracts having an interest in the Separate
Account and take other actions as may be necessary to effect the substitution or
change. Any such substitution or change will be subject to any required approval
of the Securities and Exchange Commission (SEC) and the Commissioner of
Insurance for the state of Wisconsin, and filing with the state in which this
contract is issued.
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SECTION 3. GUARANTEED INTEREST FUND
3.1 GUARANTEED INTEREST FUND
Net Purchase Payments (see Section 4.2) and amounts transferred from other
Investment Accounts under this contract (see Section 4.4) may be applied to the
Guaranteed Interest Fund. Contract benefits placed under a variable payment plan
may not be applied to the Guaranteed Interest Fund. Amounts applied to the
Guaranteed Interest Fund become part of the general assets of the Company.
3.2 ACCUMULATION VALUE
The Accumulation Value of the Guaranteed Interest Fund is the sum of the amounts
applied to it, plus credited interest, less any amounts withdrawn or transferred
from the fund. Interest begins to accrue on the effective date of the Purchase
Payment or transfer (see Section 4.6).
Interest will be credited at an annual effective interest rate of not less than
3%. A higher rate may be declared by the Company from time to time for a period
set by the Company.
3.3 TRANSFER RESTRICTIONS
Transfers of Accumulation Value from the Guaranteed Interest Fund will not be
allowed for a period of 365 days following the most recent transfer of
Accumulation Value from the Guaranteed Interest Fund.
The maximum amount of the Accumulation Value that may be transferred from the
Guaranteed Interest Fund in one transfer is limited to the greater of:
- 25% of the Accumulation Value of the Guaranteed Interest Fund on the last
contract anniversary preceding the transfer; and
- the amount of the most recent transfer from the Guaranteed Interest Fund.
However, in no event will this maximum transfer amount be less than $1,000 or
greater than $50,000.
Transfers of Accumulation Value into the Guaranteed Interest Fund will not be
allowed for a period of 90 days following the most recent transfer of
Accumulation Value from the Guaranteed Interest Fund.
3.4 MAXIMUM GUARANTEED INTEREST FUND ACCUMULATION VALUE
The Accumulation Value of the Guaranteed Interest Fund may not exceed $1,000,000
without prior consent of the Company, except when the maximum is exceeded
because of interest accruing to the Guaranteed Interest Fund.
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3.5 TABLE OF GUARANTEED VALUES
Accumulation and cash values are shown on page 4A. The values are based on the
assumptions stated on page 4A and are for the end of the contract years shown.
Values for contract years not shown are calculated on the same basis as those
shown on page 4A. Guaranteed values are at least as great as those required by
the state in which this contract is delivered.
SECTION 4. PURCHASE PAYMENTS, TRANSFERS, WITHDRAWALS
4.1 PAYMENT OF PURCHASE PAYMENTS
All Purchase Payments are payable at the Home Office or to an authorized agent.
A receipt signed by an officer of the Company will be furnished on request.
Purchase Payments may be made at any time prior to the death of an Owner and
prior to the Maturity Date. Purchase Payments may be made after the death of an
Owner only if the new Owner of the contract is the surviving spouse of the
deceased Owner. The Owner may vary the amount of Purchase Payments, but no
Purchase Payment may be less than the Minimum Purchase Payment shown on page 4.
Total Purchase Payments may not exceed $5,000,000 without the consent of the
Company.
4.2 APPLICATION OF PURCHASE PAYMENTS
Each Purchase Payment, net of the Sales Load and Premium Taxes, will be applied
to one or more Investment Accounts. Net Purchase Payments applied to the
Guaranteed Interest Fund will accrue interest from the effective date of the
Purchase Payment. Net Purchase Payments applied to the Separate Account will
provide Accumulation Units in one or more Divisions. Accumulation Units are
credited as of the effective date of the Net Purchase Payment.
The number of Accumulation Units will be determined by dividing the Net Purchase
Payment by the value of an Accumulation Unit on the effective date. This number
of Accumulation Units will not be changed by any subsequent change in the dollar
value of Accumulation Units.
4.3 SELECTION OF INVESTMENT ACCOUNT FOR PURCHASE PAYMENTS
The Owner may change the allocation of Net Purchase Payments among the
Investment Accounts by written notice to the Company. Net Purchase Payments
received at the Home Office on or after the date on which notice is received
will be applied to the designated Investment Accounts on the basis of the new
allocation.
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4.4 TRANSFER OF ACCUMULATION VALUE
Before the Maturity Date the Owner may, on request satisfactory to the Company,
transfer amounts from one Investment Account to another, subject to the transfer
restrictions described in Section 3.3.
For transfers among the Separate Account Divisions, the number of Accumulation
Units to be applied or deducted will be adjusted to reflect the respective value
of the Accumulation Units in each of the Divisions on the date the transfer is
effective.
For transfers from the Guaranteed Interest Fund, amounts closest to expiration
of an interest rate guarantee will be removed first. In the event that two
amounts are equally close to expiration, the one which was applied to the
Guaranteed Interest Fund earlier will be removed first.
A Transfer Fee may be deducted from the amount transferred. The maximum amount
of the Transfer Fee is shown on page 4. The minimum amount which may be
transferred is the lesser of $100 or the entire Accumulation Value of the
Investment Account from which the transfer is being made.
4.5 WITHDRAWALS AND FULL SURRENDER
Before the Maturity Date the Owner may, on request satisfactory to the Company,
withdraw all or a portion of the Accumulation Value of the contract. The Company
may require that the Minimum Accumulation Value shown on page 4 remain after a
partial withdrawal. Withdrawal of the entire value of the contract constitutes a
full surrender, and receipt of the contract at the Home Office will terminate
this contract. Receipt of the contract may be waived by the Company.
The cash value of the amount withdrawn will be the Accumulation Value withdrawn
determined as of the date the withdrawal is effective.
The term "withdrawal amounts" as used in this contract includes amounts paid as
full surrenders and withdrawals of a portion of the Accumulation Value of the
contract.
For withdrawals from the Guaranteed Interest Fund, amounts closest to expiration
of an interest rate guarantee will be removed first. In the event that two
amounts are equally close to expiration, the one which was applied to the
Guaranteed Interest Fund earlier will be removed first.
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4.6 EFFECTIVE DATE
The effective date of a Purchase Payment, transfer, or withdrawal is the
Valuation Date on which the Purchase Payment or the request for transfer or
withdrawal is received at the Home Office. However, the Purchase Payment,
transfer, or withdrawal will be effective on the following Valuation Date if the
Purchase Payment, request for transfer or withdrawal is received at the Home
Office either:
- on a Valuation Date after the close of trading on the New York Stock
Exchange; or
- on a day on which the New York Stock Exchange is closed.
SECTION 5. BENEFITS
5.1 MATURITY BENEFIT
MATURITY OPTIONS. If the Annuitant is living on the Maturity Date shown on page
3, and that Maturity Date is earlier than the contract anniversary nearest the
Annuitant's 90th birthday, the Owner may elect between the following maturity
options:
- payment of a monthly income under a payment plan chosen by the Owner; or
- deferral of the maturity benefit and continuation of this contract to
the Optional Maturity Date. The contract will continue under this
option if a written election for this purpose is received by the
Company or if on the Maturity Date shown on page 3, the Owner has not
chosen a payment plan.
If the Annuitant is living on the Maturity Date and that Maturity Date is on or
after the contract anniversary nearest the Annuitant's 90th birthday, the
Company will pay a monthly income under a payment form chosen by the Owner.
PAYMENT OF MATURITY BENEFIT. The amount of the monthly income paid as the
maturity benefit will depend on the payment plan chosen (see Section 11) and the
maturity value. The maturity value of this contract will be the Accumulation
Value of the contract on the effective date of the maturity benefit. The
maturity benefit will be effective on the Maturity Date. However, if the New
York Stock Exchange is closed on the Maturity Date, the effective date will be
the Valuation Date next preceding the Maturity Date.
If no payment form is chosen at the time a monthly income becomes payable,
payments will be made under the variable payment form of Life Income Plan
(Option C), with installments certain for ten years, as described in Section
11.1.
OPTIONAL MATURITY DATE. The Optional Maturity Date is the contract anniversary
nearest the Annuitant's 90th birthday. If the contract is continued to the
Optional Maturity Date, all contract rights of the Owner will continue in effect
to the Optional Maturity Date. The Optional Maturity Date will become the
Maturity Date for all other purposes of this contract.
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5.2 DEATH BENEFIT IF ANNUITANT IS AN OWNER
If the Annuitant is an Owner, the beneficiary becomes entitled to the Death
Benefit upon receipt at the Home Office of satisfactory proof of the death of
the Annuitant before the Maturity Date. The Death Benefit will be the
Accumulation Value of the contract determined on the effective date. The
effective date is the date on which proof of death is received at the Home
Office. However, the effective date will be the next following Valuation Date if
the proof of death is received at the Home Office either:
- on a Valuation Date after the close of trading on the New York Stock
Exchange; or
- on a day on which the New York Stock Exchange is closed.
If the beneficiary becomes entitled to the Death Benefit due to the death of the
Primary Annuitant prior to the Primary Annuitant's 75th birthday, the Death
Benefit will not be less than:
- total Net Purchase Payments paid under the contract; less
- any amounts withdrawn under Section 4.5.
As of the effective date, the Accumulation Value of the contract will be set at
an amount equal to the Death Benefit. Unless a payment plan was elected by the
Owner, the beneficiary automatically becomes the Owner and Annuitant of the
contract. However, if the beneficiary is not a natural person and no payment
plan was elected by the Owner, the beneficiary may select a natural person to be
the Annuitant. If a natural person is not selected to be the Annuitant within 60
days of the date on which proof of death of the Annuitant is received at the
Home Office, the Accumulation Value will be distributed to the beneficiary.
If a beneficiary becomes entitled to the Death Benefit in an amount less than
the Minimum Accumulation Value shown on page 4, the Accumulation Value will be
distributed to the beneficiary.
The cash value of any amount distributed will be the Accumulation Value
withdrawn as of the date of withdrawal as determined in Section 4.6.
5.3 DEATH BENEFIT IF ANNUITANT IS NOT AN OWNER
If the Annuitant is not an Owner, upon the death of the Annuitant the contract
continues with the Contingent Annuitant (Section 6.5) as the new Annuitant. The
Death Benefit will be the Accumulation Value of the contract determined on the
effective date. The effective date is the date on which proof of death is
received at the Home Office. However, the effective date will be the next
following Valuation Date if the proof of death is received at the Home Office
either:
- on a Valuation Date after the close of trading on the New York Stock
Exchange; or
- on a day on which the New York Stock Exchange is closed.
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If the Primary Annuitant dies prior to the Primary Annuitant's 75th birthday,
the Death Benefit will not be less than:
- total Net Purchase Payments paid under the contract; less
- any amounts withdrawn under Section 4.5.
As of the effective date the Accumulation Value of the contract will be set at
an amount equal to the Death Benefit.
SECTION 6. BENEFICIARIES AND CONTINGENT ANNUITANTS
6.1 NAMING AND CHANGING OF BENEFICIARIES
FOR MATURITY BENEFITS OR WITHDRAWALS BY OWNER. The Owner may name and change the
beneficiaries of maturity benefits or withdrawal amounts before the Maturity
Date. If no beneficiary is named by the Owner, the Owner will be the direct
beneficiary.
FOR DEATH BENEFITS BY OWNER. The Owner may name and change the beneficiaries of
the Death Benefits while the Annuitant is living. If no such beneficiary is
named by the Owner, the Owner or the Owner's estate will be the direct
beneficiary.
FOR MATURITY OR DEATH BENEFITS OR WITHDRAWAL AMOUNTS BY SPOUSE (MARITAL
DEDUCTION PROVISION).
- POWER TO APPOINT. The spouse of the Annuitant will have the power alone
and in all events to appoint all amounts payable to the spouse under
the contract if:
a. just before the Annuitant's death, the Annuitant was the Owner; and
b. the spouse is a direct beneficiary; and
c. the spouse survives the Annuitant.
- TO WHOM SPOUSE CAN APPOINT. Under this power, the spouse can appoint:
a. to the estate of the spouse; or
b. to any other person.
- EFFECT OF EXERCISE. As to the amounts appointed, the exercise of this
power will:
a. revoke any other designation of beneficiaries;
b. revoke any election of payment plan as it applies to them; and
c. cause any provision to the contrary in Section 6 or 10 of this
contract to be of no effect.
EFFECTIVE DATE. A naming or changing of a beneficiary will be effective on
receipt at the Home Office of a written request that is acceptable to the
Company. The request will then take effect as of the date that it was signed.
The Company is not responsible for any payment or other action that is taken by
it before the receipt of the request. The Company may require that the contract
be sent to it to be endorsed to show the naming or change.
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6.2 SUCCESSION IN INTEREST OF BENEFICIARIES
The rights and benefits that a beneficiary becomes entitled to under the
contract are shared equally among all surviving direct beneficiaries, if any,
otherwise equally among all surviving contingent beneficiaries, if any,
otherwise to the Owner or the Owner's Estate.
6.3 TRUSTEE AS BENEFICIARY
If a trustee is named as a beneficiary and no qualified trustee makes claim to
the proceeds, or to the present value of any unpaid payments under a payment
plan, within one year after payment becomes due to the trustee, or if
satisfactory evidence is furnished to the Company within that year showing that
no trustee can qualify to receive payment, payment will be made as though the
trustee had not been named.
The Company will be fully discharged of liability for any action taken by the
trustee and for all amounts paid to, or at the direction of, the trustee and
will have no obligation as to the use of the amounts. In all dealings with the
trustee the Company will be fully protected against the claims of every other
person. The Company will not be charged with notice of a change of trustee
unless written evidence of the change is received at the Home Office.
6.4 GENERAL
TRANSFER OF OWNERSHIP. A transfer of ownership of itself will not change the
interest of a beneficiary.
CLAIMS OF CREDITORS. So far as allowed by law, no amount payable under this
contract will be subject to the claims of creditors of a beneficiary.
6.5 NAMING AND CHANGING A CONTINGENT ANNUITANT
The Owner may name and change a Contingent Annuitant while the Annuitant is
living.
If the Annuitant was not the Owner immediately prior to the Annuitant's death,
the Owner may name and change a Contingent Annuitant during the first 60 days
after the date on which proof of death of the Annuitant is received at the Home
Office. A change made during this 60 days cannot be revoked. If no one is named
as Contingent Annuitant by the end of the 60 day time period, the Company will
pay the Accumulation Value to the Owner. The cash value of any amount
distributed will be the Accumulation Value withdrawn as of the date of
withdrawal as determined in Section 4.6.
A naming or changing of a Contingent Annuitant will be effective on receipt at
the Home Office of a written request that is acceptable to the Company.
19
SECTION 7. CHARGES AND FEES
7.1 SALES LOAD AND PREMIUM TAXES
The Company will deduct the Sales Load shown on page 4 from Purchase Payments
received. The Company may also deduct Premium Taxes incurred from Purchase
Payments received.
7.2 CONTRACT FEE
On each contract anniversary prior to the Maturity Date, a Contract Fee will be
charged for administrative expenses. The amount of the Contract Fee is shown on
page 4. The Contract Fee will be deducted from the Investment Accounts in
proportion to the Accumulation Value of the Investment Accounts.
The Contract Fee deducted from the Guaranteed Interest Fund will not exceed the
sum of:
- 10% of the gross purchase payments applied to the Guaranteed Interest Fund
during the contract year; and
- interest in excess of an annual effective interest rate of 3% credited to the
Guaranteed Interest Fund during the contract year.
The effective date of the Contract Fee will be the contract anniversary.
However, if the New York Stock Exchange is closed on the contract anniversary,
the effective date will be the next following Valuation Date.
SECTION 8. OWNERSHIP
8.1 THE OWNER
The Owner is named on page 3. All contract rights may be exercised by the Owner,
the Owner's successor, or the Owner's transferee without the consent of any
beneficiary.
If the contract has more than one Owner, contract rights may be exercised only
by authorization of all Owners. Upon the death of an Owner, ownership rights of
all Owners terminate if the deceased Owner was the Annuitant.
8.2 TRANSFER OF OWNERSHIP
The Owner may transfer the ownership of this contract. Written proof of transfer
satisfactory to the Company must be received at its Home Office. The transfer
will then take effect as of the date it was signed. The Company may require that
the contract be sent to it for endorsement to show the transfer. The Company
will not be responsible to a transferee Owner for any payment or other action
taken by the Company before receipt of the proof of transfer at its Home Office.
20
8.3 NAMING AND CHANGING A SUCCESSOR OWNER
An Owner may name and change a Successor Owner. Naming or changing a Successor
Owner will be effective on receipt at the Home Office of a written request for
such change that is acceptable to the Company. A Successor Owner succeeds to the
interests of an Owner only if the Owner was not the Annuitant at the time of the
Owner's death.
8.4 COLLATERAL ASSIGNMENT
The Owner may assign this contract as collateral security. The Company is not
responsible for the validity or effect of a collateral assignment. The Company
will not be responsible to an assignee for any payment or other action taken by
the Company before receipt of the assignment in writing at its Home Office.
The interest of any beneficiary will be subject to any collateral assignment
made either before or after the beneficiary is named.
A collateral assignee is not an Owner. A collateral assignment is not a transfer
of ownership. Ownership can be transferred only by complying with Section 8.2.
8.5 VOTING RIGHTS AND REPORTS TO OWNERS
As long as the Separate Account continues to be registered as a unit investment
trust under the Investment Company Act of 1940 and the assets of the Separate
Account are invested in shares of a Portfolio, the Company will vote shares held
by the Separate Account in accordance with the instructions received from the
Owners of Accumulation Units or, after payments have commenced under a variable
payment plan, from the beneficiaries receiving payments under those payment
plans. Each Owner or beneficiary will receive:
- periodic reports relating to the Portfolio;
- proxy material;
- a form with which to give voting instructions; and
- information regarding the proportion of shares of each Portfolio held
in the Separate Account corresponding either to the Accumulation Units
credited to this contract or the number of shares held in the Separate
Account representing the Company's actuarial liability under the
variable payment plan.
At least once each Contract Year, the Company will also send to the Owner or
beneficiary a statement of the Accumulation Values of the Investment Accounts,
the number of units credited to the contract, the dollar value of a unit as of a
date not more than two months previous to the date of mailing, and a statement
of the investments held by the Separate Account.
SECTION 9. THE CONTRACT
9.1 GUARANTEES
The Company guarantees that mortality and expense results will not adversely
affect the amount of variable payments.
9.2 VALUATION OF SEPARATE ACCOUNT ASSETS
21
The value of the shares of each Portfolio held in the Separate Account on each
Valuation Date will be the redemption value of the shares on that date. If the
right to redeem shares of a Portfolio has been suspended, or payment of the
redemption value has been postponed, the shares held in the Separate Account
(and Annuity Units) may be valued at fair value as determined in good faith by
the Board of Trustees of the Company for the sole purpose of computing annuity
payments.
9.3 DETERMINATION OF SEPARATE ACCOUNT VALUES
The method of determination by the Company of the Net Investment Factor, and the
number and value of Accumulation Units and Annuity Units, will be conclusive
upon the Owner, any assignee, the Annuitant, and any beneficiary.
9.4 DEFERMENT OF BENEFIT PAYMENTS
SEPARATE ACCOUNT DIVISIONS. The Company reserves the right to defer
determination of the contract values of the Separate Account portion of this
contract, or the payment of benefits under a variable payment plan, until after
the end of any period during which the right to redeem shares of a Portfolio is
suspended, or payment of the redemption value is postponed. Any deferment would
be in accordance with the provisions of the Investment Company Act of 1940 by
reason of closing of, or restriction of trading on, the New York Stock Exchange,
or other emergency, or as otherwise permitted by the Act. In addition, the
Company reserves the right to defer payment of contract values until seven days
after the end of any deferment in the determination of contract values.
GUARANTEED INTEREST FUND. The Company may defer paying contract values of the
Guaranteed Interest Fund for up to six months from the effective date of the
withdrawal or full surrender. If payment is deferred for 30 days or more,
interest will be paid on the withdrawal amounts at an annual effective rate of
3% from the effective date of the withdrawal or surrender to the date of the
payment.
9.5 DIVIDENDS
This contract will share in the divisible surplus of the Company, except while
payments are being made under a variable payment plan. This surplus will be
determined each year, and the dividend, if any, will be credited on the contract
anniversary. Any dividend credited prior to the Maturity Date will be applied on
the effective date as a Net Purchase Payment unless the Owner elects to have the
dividend paid in cash. The effective date of the dividend will be the contract
anniversary. However, if the New York Stock Exchange is closed on the contract
anniversary, the effective date will be the next following Valuation Date.
Since this policy is not expected to contribute to divisible surplus, it is not
expected that any dividends will be paid.
22
9.6 INCONTESTABILITY
The Company will not contest this contract after it has been in force during the
lifetime of the Annuitant for two years from the Issue Date. This Issue Date is
shown on page 3.
9.7 MISSTATEMENTS
If the age or sex of the Annuitant has been misstated, the amount payable will
be the amount which the Purchase Payments paid would have purchased at the
correct age and sex. If any amounts have been overpaid by the Company due to a
misstatement of age or sex, the amount of the overpayment may be deducted from
payments to be made by the Company. If any amounts have been underpaid by the
Company due to a misstatement of age or sex, the amount of the underpayment will
be paid.
9.8 ENTIRE CONTRACT; CHANGES
This contract with any amendments and additional benefits and the attached
application is the entire contract. Statements in the application are
representations and not warranties. A change in the contract is valid only if it
is approved by an officer of the Company. The Company may require that the
contract be sent to it for endorsement to show a change. No agent has the
authority to change the contract or to waive any of its terms.
All payments by the Company under this contract are payable at its Home Office.
Assets of the Separate Account are owned by the Company and the Company is not a
trustee with respect thereto. The company may from time to time adjust the
amount of assets contained in the Separate Account, by periodic withdrawals or
additions, to reflect the contract deductions and the Company's reserves for
this and other similar contracts.
This contract is subject to the laws of the state in which it is delivered. All
benefits are at least as great as those required by that state.
9.9 TERMINATION OF CONTRACT
The Company may terminate the contract and pay the Owner the Accumulation Value
of the contract and be released of any further obligation if:
- prior to the Maturity Date no Purchase Payments have been received
under the contract for a period of two full years and each of the
following is less than the Minimum Accumulation Value shown on page 4:
a. the Accumulation Value of the contract; and
b. total Purchase Payments paid under the contract, less any
amounts withdrawn under Section 4.5; or
- on the Maturity Date the Accumulation Value of the contract is less
than the Minimum Accumulation Value shown on page 4 or would provide an
initial monthly income which is less than the minimum payment amount
shown on page 4.
SECTION 10. PAYMENT OF CONTRACT BENEFITS
10.1 PAYMENT OF BENEFITS
23
All or part of the contract benefits may be paid under one or more of the
following:
- a variable payment plan;
- a fixed payment plan; or
- in cash.
The provisions and rates for variable and fixed payment plans are described in
Section 11. Contract benefits may not be placed under a payment plan unless the
plan would provide to each beneficiary an initial monthly income of at least the
minimum payment amount shown on page 4.
10.2 DEATH BENEFIT
A beneficiary entitled to the Death Benefit upon the death of an Annuitant may
elect to receive the Accumulation Value under a payment plan or in cash provided
no payment plan was elected by the Owner. The cash value of any amount
distributed will be the Accumulation Value withdrawn as of the date of
withdrawal as determined in Section 4.6.
10.3 EFFECTIVE DATE FOR PAYMENT PLAN
A payment plan that is elected for maturity benefits will take effect on the
Maturity Date.
If the Annuitant is an Owner , a payment plan that is elected by the Owner for
the Death Benefit will take effect on the date proof of death of the Annuitant
is received at the Home Office.
In all other cases, a payment plan that is elected will take effect:
- on the date the election is received at the Home Office; or
- on a later date, if requested.
10.4 PAYMENT PLAN ELECTIONS
FOR DEATH BENEFITS BY OWNER. The Owner may elect payment plans for death
benefits while the Annuitant is living.
FOR MATURITY BENEFITS OR WITHDRAWAL AMOUNTS. The Owner may elect payment plans
for maturity benefits or withdrawal amounts.
TRANSFER BETWEEN PAYMENT PLANS. A beneficiary who is receiving payment under a
payment plan which includes the right to withdraw may transfer the amount
withdrawable to any other payment plan that is available.
SECTION 11. PAYMENT PLANS
11.1 DESCRIPTION OF PAYMENT PLANS
INSTALLMENT INCOME FOR SPECIFIED PERIOD (OPTION B)
The Company will make monthly installment income payments providing for payment
of benefits over a specified period of 10 to 30 years during the first five
contract years and over a specified period of 5 to 30 years beginning with the
sixth contract year.
24
LIFE INCOME PLANS
- SINGLE LIFE INCOME (OPTION C). The Company will make monthly payments
for the selected certain period, if any, and thereafter during the
remaining lifetime of the individual upon whose life income payments
depend. The selections available are: (a) no certain period; or (b) a
certain period of 10 or 20 years.
- JOINT AND SURVIVOR LIFE INCOME (OPTION E). The Company will make
monthly payments for a 10-year certain period and thereafter during the
joint lifetime of the two individuals upon whose lives income payments
depend and continuing during the remaining lifetime of the survivor.
- OTHER SELECTIONS. The Company may offer other selections under the
Life Income Plans.
- LIMITATIONS. A direct or contingent beneficiary who is a natural person
may be paid under a Life Income Plan only if the payments depend on
that beneficiary's life. A corporation may be paid under a Life Income
Plan only if the payments depend on the life of the Annuitant or, after
the death of the Annuitant, on the life of the Annuitant's spouse or
dependent.
These payment plans are available on either a fixed or variable basis. Under a
fixed payment plan the payment remains level. Under a variable payment plan the
payment will increase or decrease as described in Section 11.4.
11.2 ALLOCATION OF BENEFITS
Upon election of a variable payment plan, the Owner or direct or contingent
beneficiary may select the allocation of variable benefits among the Divisions.
If no selection is made, the allocation of benefits will be as follows:
- for amounts in the Separate Account Divisions, benefits will be
allocated in proportion to the Accumulation Value of each Division on
the effective date of the variable payment plan; and
- for amounts in the Guaranteed Interest Fund, benefits will be allocated
100% to the Money Market Division.
11.3 ANNUITY UNITS UNDER VARIABLE PAYMENT PLANS
The interest of this contract in the Separate Account after the effective date
of a variable payment plan is represented by Annuity Units.
The dollar value of Annuity Units for each Division will increase or decrease to
reflect the investment experience of the Division. The value of an Annuity Unit
on any Valuation Date is the product of:
- the Annuity Unit value on the immediately preceding Valuation Date;
- the Net Investment Factor for the period from the immediately preceding
Valuation Date up to and including the current Valuation Date (the
current period); and
- the Daily Adjustment Factor of .99990575 raised to a power equal to the
number of days in the current period to reflect the Assumed Investment
Rate of 3 1/2% used in calculating the monthly payment rate.
11.4 PAYMENTS UNDER VARIABLE PAYMENT PLANS
FIRST PAYMENT. The first payment under a variable payment plan will be due as
of the effective date of the payment plan.
25
The amount of the first payment is the sum of payments from each Division, each
determined by multiplying the benefits allocated to the Division under the
variable payment plan by the applicable monthly variable payment rate per $1,000
of benefits.
NUMBER OF ANNUITY UNITS. The number of Annuity Units in each Division under a
variable payment plan is determined by dividing the amount of the first payment
payable from the Division by the Annuity Unit value for the Division at the
close of business on the effective date of the variable payment plan. The number
of Annuity Units will not be changed by any subsequent change in the dollar
value of Annuity Units.
SUBSEQUENT VARIABLE PAYMENTS. The amount of each subsequent payment from each
Division under a variable payment plan will increase or decrease in accord with
the increase or decrease in the value of an Annuity Unit which reflects the
investment experience of that Division of the Separate Account.
The amount of subsequent variable payments is the sum of payments from each
Division, each determined by multiplying the fixed number of Annuity Units for
the Division by the value of an Annuity Unit for the Division on:
- the fifth Valuation Date prior to the payment due date if the payment due
date is a Valuation Date; or
- the sixth Valuation Date prior to the payment due date if the payment due
date is not a Valuation Date.
11.5 TRANSFERS INVOLVING VARIABLE PAYMENT PLANS
A beneficiary receiving payments under a variable payment plan may transfer
Annuity Units from one Division to another. The number of Annuity Units in each
Division will be adjusted to reflect the respective value of the Annuity Units
in the Divisions on the date the transfer is effective.
A Transfer Fee may be deducted from the amount transferred. The amount of the
Transfer Fee is shown on page 4. Transfers from the Money Market Division may be
made at any time. No transfer from the other Divisions may be made within 90
days of the effective date of a variable payment plan or within 90 days from the
effective date of the last transfer.
A payee or joint payees receiving payments under a variable payment plan may
transfer from an Installment Income Plan (Option B) to either form of the Life
Income Plan (Option C or E). Other transfers may be permitted subject to
conditions set by the Company.
A transfer will be effective on the Valuation Date on which a satisfactory
transfer request is received in the Home Office, or a later date if requested.
However, the transfer will be effective on the following Valuation Date if the
request is received at the Home Office either:
- on a Valuation Date after the close of trading on the New York Stock
Exchange; or
- on a day on which the New York Stock Exchange is closed.
11.6 WITHDRAWAL UNDER PAYMENT PLANS
Withdrawal of the present value of any unpaid income payments may be elected at
any time by the beneficiary, except that withdrawal may not be elected under a
Life Income Plan (Option C or E) until the death of all individuals upon whose
lives income payments depend.
The withdrawal value under the Installment Income Plan (Option B) will be the
present value of any unpaid payments. The withdrawal value under a Life Income
Plan (Option C or E) will be the present value of any unpaid payments for the
certain period.
26
For a fixed payment plan, the present value of any unpaid income payments will
be based on the rate of interest used to determine the amount of the payments.
For a variable payment plan, the present value of any unpaid income payments
will be based on interest at the Assumed Investment Rate used in calculating the
amount of the variable payments. The amount of variable payments used in
calculating the present value of unpaid payments will be determined by
multiplying the number of Annuity Units by the value of an Annuity Unit on the
effective date of withdrawal.
A withdrawal will be effective on the Valuation Date on which the request is
received in the Home Office. However, the withdrawal will be effective on the
following Valuation Date if the request is received at the Home Office either:
- on a Valuation Date after the close of trading on the New York Stock
Exchange; or
- on a day on which the New York Stock Exchange is closed.
11.7 NAMING AND CHANGING OF BENEFICIARIES UNDER PAYMENT PLANS
FOR PAYMENT PLANS ELECTED BY OWNER. If the Owner of the contract elected a
payment plan, a direct beneficiary may name and change the contingent
beneficiaries and further payees of the direct beneficiary's share of the
benefits only if:
- the direct beneficiary was the Owner of the contract; or
- no contingent beneficiary or further payee of that share is living.
FOR PAYMENT PLANS ELECTED BY DIRECT BENEFICIARY. If the direct beneficiary
elected the payment plan, the direct beneficiary may name and change the
contingent beneficiaries and further payees of the direct beneficiary's share of
the benefits.
27
11.8 SUCCESSION IN INTEREST OF BENEFICIARIES UNDER PAYMENT PLANS
DIRECT BENEFICIARY. Amounts payable under a payment plan will be payable to the
direct beneficiary.
CONTINGENT BENEFICIARIES. At the death of the direct beneficiary, the present
value of any unpaid payments under a payment plan, will be payable in equal
shares to the contingent beneficiaries who survive and receive payment. If a
contingent beneficiary dies before receiving all or part of the contingent
beneficiary's full share, the unpaid portion will be payable in equal shares to
the other contingent beneficiaries who survive and receive payment.
FURTHER PAYEES. At the death of all direct and contingent beneficiaries, the
present value of any unpaid payments under a payment plan, will be paid in one
sum:
- In equal shares to the further payees who survive and receive payment; or
- If no further payees survive and receive payment, to the estate of the last
to die of all beneficiaries.
11.9 PAYMENT PLAN RATES
PAYMENT RATE TABLES. The guaranteed monthly payment rates for both a fixed
payment plan and the first payment under a variable payment plan are shown in
the Payment Rate Tables. The tables show rates for the Installment Income Plan
for a Specified Period (Option B) and Life Income Plans (Options C and E). Life
Income Plan (Option C or E) rates are based on the sex and adjusted age of any
individual upon whose life payments depend. The adjusted age is:
- the age on the birthday that is nearest to the date on which the payment
plan takes effect; plus
- the age adjustment shown below for the number of Contract Years that
have elapsed from the Issue Date to the date that the payment plan takes
effect. A part of a Contract Year is counted as a full year.
CONTRACT YEARS CONTRACT YEARS
ELAPSED AGE ADJUSTMENT ELAPSED AGE ADJUSTMENT
1 to 8 0 33 to 40 -4
9 to 16 -1 41 to 48 -5
17 to 24 -2 49 or more -6
25 to 32 -3
CURRENT FIXED PAYMENT PLAN RATES
- INSTALLMENT INCOME FOR SPECIFIED PERIOD (OPTION B). The Company may
offer fixed payment plan rates higher than those guaranteed in this
contract with conditions on withdrawal.
- LIFE INCOME PLANS (OPTION C OR E). Payments will be based on rates
declared by the Company that will not be less than the rates guaranteed
in this contract. The declared rates will provide at least as much
income as would the Company's rates, on the date that the payment plan
takes effect, for a single premium immediate annuity contract.
ALTERNATE VARIABLE RATE BASIS. The Company may from time to time publish higher
initial rates for variable payment plans under this contract. These higher rates
will not be available to increase payments under payment plans already in
effect.
28
When a variable payment plan is effective on an alternate rate basis, the Daily
Adjustment Factor described in Section 11.3 will be determined based on the
Assumed Investment Rate used in calculating the alternate payment rate.
29
PAYMENT RATE TABLES
MONTHLY INCOME PAYMENTS PER $1,000 BENEFITS
FIRST PAYMENT UNDER VARIABLE PAYMENT PLAN
INSTALLMENT INCOME PLANS (OPTION B)
------------------- ----------------- ----------------- ----------------- ----------------- -----------------
PERIOD MONTHLY PERIOD MONTHLY PERIOD MONTHLY
(YEARS) PAYMENT (YEARS) PAYMENT (YEARS) PAYMENT
------------------- ----------------- ----------------- ----------------- ----------------- -----------------
Years 1-4 11 $ 9.09 21 $ 5.56
Not Available 12 8.46 22 5.39
13 7.94 23 5.24
14 7.49 24 5.09
5 18.12 15 7.10 25 4.96
6 15.35 16 6.76 26 4.84
7 13.38 17 6.47 27 4.73
8 11.90 18 6.20 28 4.63
9 10.75 19 5.97 29 4.53
10 9.83 20 5.75 30 4.45
------------------- ----------------- ----------------- ----------------- ----------------- -----------------
GUARANTEED FIXED PAYMENT PLANS
INSTALLMENT INCOME PLANS (OPTION B)
------------------- ----------------- ----------------- ----------------- ----------------- -----------------
PERIOD MONTHLY PERIOD MONTHLY PERIOD MONTHLY
(YEARS) PAYMENT (YEARS) PAYMENT (YEARS) PAYMENT
------------------- ----------------- ----------------- ----------------- ----------------- -----------------
Years 1-4 11 $ 8.42 21 $ 4.85
Not Available 12 7.80 22 4.67
13 7.26 23 4.51
14 6.81 24 4.36
5 17.49 15 6.42 25 4.22
6 14.72 16 6.07 26 4.10
7 12.74 17 5.77 27 3.98
8 11.25 18 5.50 28 3.87
9 10.10 19 5.26 29 3.77
10 9.18 20 5.04 30 3.68
------------------- ----------------- ----------------- ----------------- ----------------- -----------------
30
PAYMENT RATE TABLES
MONTHLY INCOME PAYMENTS PER $1,000 BENEFITS
GUARANTEED FIXED PAYMENT OR FIRST PAYMENT UNDER VARIABLE PAYMENT PLAN
LIFE INCOME PLAN (OPTION C)
----------------------------------------------------------------------------------
SINGLE LIFE MONTHLY PAYMENTS
----------------------------------------------------------------------------------
ADJUSTED CHOSEN PERIOD (YEARS)
AGE* -------------------- ------------------- --------------------
ZERO 10 20
-------------------- -------------------- ------------------- --------------------
55 $ 4.11 $ 4.09 $ 4.01
56 4.18 4.15 4.07
57 4.25 4.22 4.13
58 4.33 4.29 4.18
59 4.40 4.36 4.24
60 4.49 4.45 4.30
61 4.58 4.53 4.37
62 4.68 4.61 4.43
63 4.77 4.71 4.50
64 4.89 4.81 4.57
65 5.01 4.92 4.64
66 5.13 5.03 4.72
67 5.26 5.15 4.78
68 5.41 5.27 4.85
69 5.57 5.40 4.93
70 5.74 5.55 5.00
71 5.92 5.69 5.07
72 6.12 5.84 5.13
73 6.33 6.00 5.20
74 6.55 6.17 5.26
75 6.79 6.35 5.32
76 7.06 6.53 5.37
77 7.34 6.72 5.41
78 7.65 6.90 5.46
79 7.98 7.10 5.50
80 8.34 7.30 5.53
81 8.73 7.49 5.56
82 9.15 7.68 5.59
83 9.60 7.88 5.61
84 10.09 8.07 5.62
85 and over 10.61 8.24 5.63
-------------------- -------------------- ------------------- --------------------
LIFE INCOME PLAN (OPTION E)
------------------ ----------------------------------------------------------------------------------------------
JOINT AND SURVIVOR MONTHLY PAYMENTS (with 10 years certain)
------------------ ----------------------------------------------------------------------------------------------
YOUNGER LIFE ADJUSTED AGE*
OLDER LIFE ------------ ------------- ------------ ------------ ------------- ------------ --------------
ADJUSTED AGE* 55 60 65 70 75 80 85 and over
------------------ ------------ ------------- ------------ ------------ ------------- ------------ --------------
55 $ 3.75
60 3.83 $ 4.02
65 3.90 4.13 $ 4.39
70 3.94 4.22 4.54 $ 4.89
75 3.98 4.28 4.65 5.10 $ 5.59
80 4.00 4.32 4.73 5.24 5.86 $ 6.51
85 and over 4.01 4.34 4.77 5.34 6.04 6.84 $ 7.58
------------------ ------------ ------------- ------------ ------------ ------------- ------------ --------------
*See Section 11.7
The amount of the payment for any other combination of ages will be furnished by
the Company on request. The maximum initial monthly income per $1,000 will be
$7.75.
Monthly payment rates are based on an Assumed Investment Rate of 3 1/2%
and the 1983 Table a with Projection Scale G.
31
AMENDMENT OF CONTRACT TO QUALIFY AS ANNUITY
AS OF THE ISSUE DATE, THIS AMENDMENT IS MADE A PART OF THIS ANNUITY
CONTRACT ISSUED BY THE NORTHWESTERN MUTUAL LIFE INSURANCE COMPANY.
NOTWITHSTANDING ANY OTHER SPECIFIC PROVISIONS IN THIS CONTRACT TO THE CONTRARY
AND SUBJECT TO THE TAX QUALIFICATION PROVISIONS HEREIN, THIS CONTRACT IS AMENDED
TO RESTRICT THE EXERCISE OF THE RIGHTS OF THE OWNER OR ANNUITANT AND ANY
BENEFICIARY AS FOLLOWS:
1. Required Distributions.
a If any Owner dies on or after the annuity starting date and before
entire interest in this contract has been distributed, the
remaining portion of such interest shall be distributed at least
as rapidly as under the method of distribution being used as of
the date of the Owner's death.
b. If any Owner dies before the annuity starting date, the entire
interest in this contract shall be distributed within five years
after the Owner's death.
c. For purposes of paragraphs a and b, if any portion of the Owner's
interest in this contract is payable to or for the benefit of a
designated beneficiary and such designated beneficiary timely
elects to have such portion distributed over a period not
exceeding the life or life expectancy of such designated
beneficiary in distributions that begin within one year of the
Owner's death, such portion shall be treated as distributed
entirely on the date such distributions begin.
d. For purposes of paragraphs a and b, if any portion of the Owner's
interest in the contract is payable to or for the benefit of a
designated beneficiary who is the Owner's surviving spouse, such
spouse shall be treated as the Owner and, absent a contrary
designation by such spouse, as a contingent annuitant with respect
to such portion.
e. For purposes of paragraphs a. and b., if the Owner is not an
individual, the primary annuitant under the contract shall be
treated as the Owner, any change in the primary annuitant shall be
treated as the death of the Owner and any designation of a
beneficiary by the Owner shall be deemed to be a designation of
the same beneficiary by the primary annuitant. The primary
annuitant is the individual, the events in the life of whom are of
primary importance in affecting the timing or amount of the payout
under the contract.
32
f. For purposes of this section, a "designated beneficiary" is any
individual designated by the Owner as a beneficiary, including
a co-owner or successor owner who succeeds to any portion of a
deceased owner's interest upon death.
g. For purposes of this section, "annuity starting date" is the
first day of the first period for which periodic annuity payments
are made under the contract.
2. Tax Qualification.
This contract is intended to qualify as an annuity contract for federal
income tax purposes. To that end, the provisions of this contract,
including any amendment, endorsement or rider, are to be interpreted to
ensure or maintain any such tax qualification, despite any other
provision to the contrary (including the provisions of any amendment,
endorsement or rider that do not expressly override these tax
qualification provisions). The Company reserves the right to amend this
contract at any time to reflect any clarification that may be needed or
may be appropriate to maintain any such tax qualification or to conform
the contract to any applicable changes in the tax qualification
requirements.
(signed)
SECRETARY
THE NORTHWESTERN MUTUAL LIFE
INSURANCE COMPANY
33
IT IS RECOMMENDED THAT YOU...
read your contract.
notify your Northwestern Mutual agent or the Company at 000 Xxxx Xxxxxxxxx
Xxxxxx, Xxxxxxxxx, XX 00000, of an address change.
call your Northwestern Mutual agent for information--particularly on a
suggestion to terminate or exchange this contract for another contract or plan.
ELECTION OF TRUSTEES
The members of The Northwestern Mutual Life Insurance Company are its
policyholders of insurance policies and deferred annuity contracts. The members
exercise control through a Board of Trustees. Elections to the Board are held
each year at the annual meeting of members. Members are entitled to vote in
person or by proxy.
FLEXIBLE PAYMENT VARIABLE ANNUITY - ACCOUNT B
AMOUNTS ALLOCATED TO THE SEPARATE ACCOUNT DIVISIONS AND VARIABLE PAYMENTS
PROVIDED BY THIS CONTRACT ARE NOT GUARANTEED AS TO FIXED DOLLAR AMOUNT BUT ARE
VARIABLE AND MAY INCREASE OR DECREASE TO REFLECT THE INVESTMENT EXPERIENCE OF
THE SEPARATE ACCOUNT.
34
Exhibit B(4)(b)
PAYMENT RATE TABLES
MONTHLY INCOME PAYMENTS PER $1,000 BENEFITS
GUARANTEED FIXED PAYMENT OR FIRST PAYMENT UNDER VARIABLE PAYMENT PLAN
LIFE INCOME PLAN (OPTION C)
----------------------------------------------------------------------------------------------------------------------
SINGLE LIFE MONTHLY PAYMENTS
----------------------------------------------------------------------------------------------------------------------
CHOSEN PERIOD (YEARS) FEMALE CHOSEN PERIOD (YEARS)
ADJUSTED AGE*
MALE ADUSTED -------------- ------------- -------------- ------------- -------------- -------------- -------------
AGE* ZERO 10 20 ZERO 10 20
---------------- -------------- ------------- -------------- ------------- -------------- -------------- -------------
55 $ 4.41 $ 4.36 $ 4.23 55 $ 4.04 $ 4.02 $ 3.96
56 4.49 4.44 4.29 56 4.10 4.08 4.01
57 4.58 4.52 4.35 57 4.17 4.14 4.07
58 4.67 4.60 4.41 58 4.24 4.21 4.12
59 4.77 4.69 4.47 59 4.31 4.28 4.18
60 4.87 4.79 4.54 60 4.39 4.36 4.24
61 4.98 4.89 4.60 61 4.48 4.44 4.31
62 5.10 4.99 4.67 62 4.57 4.52 4.37
63 5.23 5.11 4.74 63 4.66 4.61 4.44
64 5.36 5.22 4.81 64 4.77 4.71 4.51
65 5.51 5.35 4.87 65 4.88 4.81 4.58
66 5.67 5.47 4.94 66 5.00 4.92 4.66
67 5.84 5.61 5.00 67 5.12 5.03 4.73
68 6.02 5.75 5.07 68 5.26 5.15 4.80
69 6.21 5.89 5.13 69 5.41 5.28 4.88
70 6.41 6.05 5.19 70 5.57 5.42 4.95
71 6.63 6.20 5.25 71 5.74 5.56 5.02
72 6.86 6.36 5.30 72 5.93 5.71 5.09
73 7.11 6.53 5.35 73 6.13 5.87 5.16
74 7.37 6.70 5.39 74 6.34 6.04 5.23
75 7.65 6.87 5.44 75 6.58 6.22 5.29
76 7.96 7.05 5.47 76 6.83 6.40 5.34
77 8.28 7.23 5.51 77 7.11 6.59 5.39
78 8.63 7.40 5.54 78 7.40 6.78 5.44
79 9.01 7.58 5.56 79 7.72 6.98 5.48
80 9.41 7.76 5.59 80 8.07 7.18 5.52
81 9.84 7.93 5.61 81 8.45 7.38 5.55
82 10.30 8.10 5.62 82 8.86 7.58 5.58
83 10.79 8.27 5.63 83 9.30 7.78 5.60
84 11.31 8.42 5.64 84 9.78 7.98 5.62
85 and over 11.87 8.57 5.65 85 and over 10.30 8.16 5.63
---------------- -------------- ------------- -------------- ------------- -------------- -------------- -------------
LIFE INCOME PLAN (OPTION E)
------------------ ----------------------------------------------------------------------------------------------
JOINT AND SURVIVOR MONTHLY PAYMENTS (with 10 years certain)
------------------ ----------------------------------------------------------------------------------------------
MALE
ADJUSTED AGE* FEMALE ADJUSTED AGE*
------------------ ----------------------------------------------------------------------------------------------
55 60 65 70 75 80 85 and over
------------------ ------------ ------------- ------------ ------------ ------------- ------------ --------------
55 $ 3.75 $ 3.89 $ 4.02 $ 4.14 $ 4.23 $ 4.29 $4.33
60 3.83 4.02 4.21 4.39 4.54 4.65 4.73
65 3.90 4.13 4.39 4.65 4.89 5.09 5.22
70 3.94 4.22 4.54 4.89 5.26 5.58 5.81
75 3.98 4.28 4.65 5.10 5.59 6.07 6.45
80 4.00 4.32 4.73 5.24 5.86 6.51 7.07
85 and over 4.01 4.34 4.77 5.34 6.04 6.84 7.58
------------------ ------------ ------------- ------------ ------------ ------------- ------------ --------------
*See Section 11.7
The amount of the payment for any other combination of ages will be furnished by
the Company on request. The maximum initial monthly income per $1,000 will be
$7.75.
Monthly payment rates are based on an Assumed Investment Rate of 3 1/2%
and the 1983 Table a with Projection Scale G.
35
Exhibit B(4)(C)
ENHANCED DEATH BENEFIT
AS OF THE ISSUE DATE, THIS AMENDMENT IS MADE PART OF THIS ANNUITY CONTRACT
ISSUED BY THE NORTHWESTERN MUTUAL LIFE INSURANCE COMPANY. IN THE CASE OF A
CONFLICT WITH ANY PROVISIONS IN THE CONTRACT, THE PROVISIONS OF THIS AMENDMENT
WILL CONTROL.
SECTION 5.2 AND SECTION 5.3 ARE AMENDED IN THEIR ENTIRETY TO READ AS FOLLOWS:
SECTION 5.2 DEATH BENEFIT IF PRIMARY ANNUITANT IS AN OWNER
IF THE PRIMARY ANNUITANT IS AN OWNER, THE BENEFICIARY BECOMES ENTITLED TO THE
DEATH BENEFIT UPON RECEIPT AT THE HOME OFFICE OF SATISFACTORY PROOF OF THE DEATH
OF THE PRIMARY ANNUITANT BEFORE THE MATURITY DATE. THE DEATH BENEFIT WILL BE THE
GREATER OF:
- THE ACCUMULATION VALUE OF THE CONTRACT ON THE EFFECTIVE DATE; OR
- THE ENHANCED DEATH BENEFIT.
AS OF THE EFFECTIVE DATE, THE ACCUMULATION VALUE OF THE CONTRACT WILL BE SET AT
AN AMOUNT EQUAL TO THE DEATH BENEFIT. UNLESS A PAYMENT PLAN WAS ELECTED BY THE
OWNER, THE BENEFICIARY BECOMES THE OWNER AND ANNUITANT OF THE CONTRACT. HOWEVER,
IF THE BENEFICIARY IS NOT A NATURAL PERSON AND NO PAYMENT PLAN WAS ELECTED BY
THE OWNER, THE BENEFICIARY MAY SELECT A NATURAL PERSON TO BE THE ANNUITANT. IF A
NATURAL PERSON IS NOT SELECTED TO BE THE ANNUITANT WITHIN 60 DAYS OF THE DATE ON
WHICH PROOF OF DEATH OF THE ANNUITANT IS RECEIVED AT THE HOME OFFICE, THE
ACCUMULATION VALUE WILL BE DISTRIBUTED TO THE BENEFICIARY.
IF A BENEFICIARY BECOMES ENTITLED TO THE DEATH BENEFIT IN AN AMOUNT LESS THAN
THE MINIMUM ACCUMULATION VALUE SHOWN ON PAGE 4, THE ACCUMULATION VALUE WILL BE
DISTRIBUTED TO THE BENEFICIARY.
THE CASH VALUE OF ANY AMOUNT DISTRIBUTED WILL BE THE ACCUMULATION VALUE
WITHDRAWN AS OF THE DATE OF WITHDRAWAL AS DETERMINED IN SECTION 4.6.
ENHANCED DEATH BENEFIT. PRIOR TO THE FIRST CONTRACT ANNIVERSARY, THE ENHANCED
DEATH BENEFIT WILL EQUAL THE TOTAL PURCHASE PAYMENTS PAID UNDER THE CONTRACT
LESS ANY AMOUNTS WITHDRAWN UNDER SECTION 4.5.
ON THE FIRST CONTRACT ANNIVERSARY AND ON EACH SUBSEQUENT CONTRACT ANNIVERSARY
PRIOR TO THE PRIMARY ANNUITANT'S 80TH BIRTHDAY, THE ENHANCED DEATH BENEFIT WILL
EQUAL THE GREATER OF:
- THE ACCUMULATION VALUE OF THE CONTRACT ON THAT CONTRACT ANNIVERSARY; OR
- THE ENHANCED DEATH BENEFIT ON THE MOST RECENT VALUATION DATE PRIOR TO
THAT CONTRACT ANNIVERSARY.
On any other Valuation Date prior to the Primary Annuitant's 80th birthday,
the Enhanced Death Benefit will be equal to the Enhanced Death Benefit on
the most recent contract anniversary, increased by any Purchase Payments
paid since that contract anniversary and decreased by any amounts withdrawn
under Section 4.5 since that contract anniversary.
36
On any Valuation Date on or after the Primary Annuitant's 80th birthday, the
Enhanced Death Benefit will equal the Enhanced Death Benefit on the contract
anniversary immediately prior to the Primary Annuitant's 80th birthday
increased by any Purchase Payments paid since that contract anniversary and
decreased by any amounts withdrawn under Section 4.5 since that contract
anniversary.
ENHANCED DEATH BENEFIT CHARGE. ON EACH CONTRACT ANNIVERSARY WHILE THIS AMENDMENT
IS IN EFFECT, A CHARGE FOR THE ENHANCED DEATH BENEFIT WILL BE DEDUCTED FROM THE
INVESTMENT ACCOUNTS IN PROPORTION TO THE ACCUMULATION VALUE OF THE INVESTMENT
ACCOUNTS. THE CHARGE IS SHOWN ON PAGE 4.
EFFECTIVE DATE. THE EFFECTIVE DATE IS THE DATE ON WHICH PROOF OF DEATH IS
RECEIVED AT THE HOME OFFICE. HOWEVER, THE EFFECTIVE DATE WILL BE THE NEXT
FOLLOWING VALUATION DATE IF THE PROOF OF DEATH IS RECEIVED AT THE HOME OFFICE
EITHER:
- ON A VALUATION DATE AFTER THE CLOSE OF TRADING ON THE NEW YORK STOCK
EXCHANGE; OR
- ON A DAY ON WHICH THE NEW YORK STOCK EXCHANGE IS CLOSED.
TERMINATION OF ENHANCED DEATH BENEFIT. THIS AMENDMENT WILL REMAIN IN EFFECT
UNTIL MATURITY UNLESS THE OWNER REQUESTS THAT IT BE REMOVED, THE CONTRACT
TERMINATES, OR THE PRIMARY ANNUITANT DIES. ONCE THE AMENDMENT IS REMOVED, IT
CANNOT BE ADDED AGAIN. THE PROVISIONS OF SECTION 5.2 IN THE CONTRACT ARE
APPLICABLE IF THIS AMENDMENT TERMINATES.
SECTION 5.3 DEATH BENEFIT IF PRIMARY ANNUITANT IS NOT AN OWNER
IF THE PRIMARY ANNUITANT IS NOT AN OWNER, UPON THE DEATH OF THE PRIMARY
ANNUITANT, THE CONTRACT CONTINUES WITH THE CONTINGENT ANNUITANT (SECTION 6.5) AS
THE NEW ANNUITANT. THE DEATH BENEFIT WILL BE THE GREATER OF:
- THE ACCUMULATION VALUE OF THE CONTRACT ON THE EFFECTIVE DATE; OR
- THE ENHANCED DEATH BENEFIT.
AS OF THE EFFECTIVE DATE, THE ACCUMULATION VALUE OF THE CONTRACT WILL BE SET AT
AN AMOUNT EQUAL TO THE DEATH BENEFIT.
ENHANCED DEATH BENEFIT. PRIOR TO THE FIRST CONTRACT ANNIVERSARY, THE ENHANCED
DEATH BENEFIT WILL EQUAL THE TOTAL PURCHASE PAYMENTS PAID UNDER THE CONTRACT
LESS ANY AMOUNTS WITHDRAWN UNDER SECTION 4.5.
ON THE FIRST CONTRACT ANNIVERSARY AND ON EACH SUBSEQUENT CONTRACT ANNIVERSARY
PRIOR TO THE PRIMARY ANNUITANT'S 80TH BIRTHDAY, THE ENHANCED DEATH BENEFIT WILL
EQUAL THE GREATER OF:
- THE ACCUMULATION VALUE OF THE CONTRACT ON THAT CONTRACT ANNIVERSARY; OR
- THE ENHANCED DEATH BENEFIT ON THE MOST RECENT VALUATION DATE PRIOR TO THAT
CONTRACT ANNIVERSARY.
On any other Valuation Date prior to the Primary Annuitant's 80th birthday,
the Enhanced Death Benefit will be equal to the Enhanced Death Benefit on
the most recent contract anniversary, increased by any Purchase Payments
paid since that contract anniversary and
37
decreased by any amounts withdrawn under Section 4.5 since that contract
anniversary.
On any Valuation Date on or after the Primary Annuitant's 80th birthday, the
Enhanced Death Benefit will equal the Enhanced Death Benefit on the contract
anniversary immediately prior to the Primary Annuitant's 80th birthday
increased by any Purchase Payments paid since that contract anniversary and
decreased by any amounts withdrawn under Section 4.5 since that contract
anniversary.
ENHANCED DEATH BENEFIT CHARGE. ON EACH CONTRACT ANNIVERSARY WHILE THIS AMENDMENT
IS IN EFFECT, A CHARGE FOR THE ENHANCED DEATH BENEFIT WILL BE DEDUCTED FROM THE
INVESTMENT ACCOUNTS IN PROPORTION TO THE ACCUMULATION VALUE OF THE INVESTMENT
ACCOUNTS. THE CHARGE IS SHOWN ON PAGE 4.
EFFECTIVE DATE. THE EFFECTIVE DATE IS THE DATE ON WHICH PROOF OF DEATH IS
RECEIVED AT THE HOME OFFICE. HOWEVER, THE EFFECTIVE DATE WILL BE THE NEXT
FOLLOWING VALUATION DATE IF THE PROOF OF DEATH IS RECEIVED AT THE HOME OFFICE
EITHER:
- ON A VALUATION DATE AFTER THE CLOSE OF TRADING ON THE NEW YORK STOCK
EXCHANGE; OR
- ON A DAY ON WHICH THE NEW YORK STOCK EXCHANGE IS CLOSED.
TERMINATION OF ENHANCED DEATH BENEFIT. THIS AMENDMENT WILL REMAIN IN EFFECT
UNTIL MATURITY UNLESS THE OWNER REQUESTS THAT IT BE REMOVED, THE CONTRACT
TERMINATES, OR THE PRIMARY ANNUITANT DIES. ONCE THE AMENDMENT IS REMOVED IT
CANNOT BE ADDED AGAIN. THE PROVISIONS OF SECTION 5.3 IN THE CONTRACT ARE
APPLICABLE IF THIS AMENDMENT TERMINATES.
(SIGNED)
SECRETARY
THE NORTHWESTERN MUTUAL LIFE
INSURANCE COMPANY
38
Exhibit B(4)(a)(1)
The Northwestern Mutual Life Insurance Company
agrees to pay the benefits provided in this
contract,
subject to its terms and conditions.
Signed at Milwaukee, Wisconsin on the Issue Date.
(signed)
President and CEO Secretary
FLEXIBLE PAYMENT VARIABLE ANNUITY - ACCOUNT B
Net Purchase Payments accumulated in a Separate Account,
assets of which are invested
in shares of one or more mutual funds, or Guaranteed Interest Fund.
Contract benefits payable in one sum or as
variable or guaranteed monthly income.
Variable Payment Plan benefits described in Section 11.
Participating.
AMOUNTS ALLOCATED TO THE SEPARATE ACCOUNT DIVISIONS AND VARIABLE PAYMENTS
PROVIDED BY THIS CONTRACT ARE NOT GUARANTEED AS TO FIXED DOLLAR AMOUNT BUT ARE
VARIABLE AND MAY INCREASE OR DECREASE TO REFLECT THE INVESTMENT EXPERIENCE OF
THE SEPARATE ACCOUNT.
RIGHT TO RETURN CONTRACT. Please read this contract carefully. The Owner may
return the contract for any reason within ten days after receiving it. Return of
the contract is effective on the date written notice of the return is delivered,
mailed or sent by telegram to either The Northwestern Mutual Life Insurance
Company, 000 Xxxx Xxxxxxxxx Xxxxxx, Xxxxxxxxx, Xxxxxxxxx 00000 or the agent who
sold the contract. If returned, the contract will be cancelled and the Company
will refund the sum of (a) the difference between the Purchase Payments paid and
the amounts, if any, allocated to the Separate Account plus (b) the value of the
Accumulation Units of the Separate Account on the effective date of return.
RR.V.B.(032000)
CONTRACT NUMBER 12 345 678
PRIMARY ANNUITANT Xxxx X. Xxx
ISSUE DATE March 31, 2000 Sex Neutral
RR.V.B.BK.(032000)
39
TABLE OF CONTENTS
CONTRACT INFORMATION, INVESTMENT ACCOUNTS
CHARGES AND FEES
MINIMUM PURCHASE PAYMENTS, ACCUMULATION VALUE, PAYMENT PLANS
SECTION 1. GENERAL TERMS AND DEFINITIONS
SECTION 2. SEPARATE ACCOUNT
- Separate Account
- Accumulation Units
- Net Investment Factor
- Substitution and Change
SECTION 3. GUARANTEED INTEREST FUND
- Guaranteed Interest Fund
- Accumulation Value
- Transfer Restrictions
- Maximum Guaranteed Interest Fund Accumulation Value
- Table of Guaranteed Values
SECTION 4. PURCHASE PAYMENTS, TRANSFERS AND WITHDRAWALS
- Payment of Purchase Payments
- Application of Purchase Payments
- Selection of Investment Account for Purchase Payments
- Transfer of Accumulation Value
- Withdrawals and Full Surrender
- Effective Date
SECTION 5. BENEFITS
- Maturity Benefit
- Death Benefit if Annuitant is an Owner
- Death Benefit if Annuitant is not an Owner
SECTION 6. BENEFICIARIES AND CONTINGENT ANNUITANTS
- Naming and Changing of Beneficiaries
- Succession in Interest of Beneficiaries
- Trustee as Beneficiary
- General
- Naming and Changing a Contingent Annuitant
40
SECTION 7. CHARGES, FEES AND CONVERSION
- Premium Taxes
- Contract Fee
- Conversion of Investment Accounts
- Withdrawal Charge
SECTION 8. OWNERSHIP
- The Owner
- Transfer of Ownership
- Naming and Changing a Successor Owner
- Collateral Assignment
- Voting Rights and Reports to Owners
SECTION 9. THE CONTRACT
- Guarantees
- Valuation of Separate Account Assets
- Determination of Separate Account Values
- Deferment of Benefit Payments
- Dividends
- Incontestability
- Misstatements
- Entire contract; Changes
- Termination of Contract.
SECTION 10. PAYMENT OF CONTRACT BENEFITS
- Payment of Benefits
- Death Benefit
- Effective Date for Payment Plan
- Payment Plan Elections
SECTION 11. PAYMENT PLANS
- Description of Payment Plans
- Allocation of Benefits
- Annuity Units under Variable Payment Plans
- Payments under Variable Payment Plans
- Transfers Involving Variable Payment Plans
- Withdrawal under Payment Plans
- Naming and Changing of Beneficiaries under Payment Plans
- Succession in Interest of Beneficiaries under Payment Plans
- Payment Plan Rates
41
ADDITIONAL BENEFITS (IF ANY)
APPLICATION
ENDORSEMENTS
to be made only by the Company at the Home Office
RR.V.B.BK.(032000)
42
CONTRACT INFORMATION
CONTRACT NUMBER 12 345 678
PLAN Flexible Payment Variable Annuity
ADDITIONAL BENEFITS Enhanced Death Benefit
TAX REPORTING CATEGORY Personal Annuity
PRIMARY ANNUITANT Xxxx X. Xxx
AGE AND SEX 35 Male
OWNER Xxxx X. Xxx, the Annuitant
ISSUE DATE March 31,2000
CONTRACT ANNIVERSARY March 31, 2001 and each March 31
thereafter
MATURITY DATE March 31, 2050
DIRECT BENEFICIARY Xxxx X. Xxx, Wife of the Annuitant
INVESTMENT ACCOUNTS
On the Issue Date, Net Purchase Payments and contract values may be allocated
among the following Investment Accounts. Available Separate Account Divisions
are subject to change. See Section 2.1.
Divisions of Separate Account B:
Select Bond Division
International Equity Division
Money Market Division
Balanced Division
Index 500 Stock Division
Aggressive Growth Stock Division
High Yield Bond Division
Growth Stock Division
Growth and Income Stock Division
Index 400 Stock Division
Small Cap Growth Stock Division
Xxxxxxx Multi-Style Equity Division
Xxxxxxx Aggressive Equity Division
Xxxxxxx Non-US Division
Xxxxxxx Core Bond Division
Xxxxxxx Real Estate Securities Division
Guaranteed Accounts:
Guaranteed Interest Fund
RR.V.B.BK.(032000) Page 3
43
CONTRACT NUMBER 12 345 678
CHARGES AND FEES
DEDUCTION FROM PURCHASE PAYMENTS:
PREMIUM TAX(See Section 7.1):
For the first Contract Year, Premium Taxes are not deducted
from Purchase Payments. After the first Contract Year, the
Company may deduct Premium Taxes from Purchase Payments
received or benefits paid.
ANNUAL MORTALITY AND EXPENSE RISK CHARGE (See Section 2.3):
Class A Annuity and Accumulation Units:
0.50% at Issue; 0.75% Maximum
Class B Annuity and Accumulation Units:
1.25% at Issue; 1.50% Maximum
ANNUAL CONTRACT FEE (See Section 7.2):
$30 charged on the contract anniversary. The contract fee will
be waived if the Accumulation Value of the contract equals or
exceeds $25,000 on the contract anniversary.
ENHANCED DEATH BENEFIT CHARGE
0.10% of the Enhanced Death Benefit on each contract
anniversary.
TRANSFER FEE (See Sections 4.4 and 11.5):
$25 beginning with the thirteenth transfer in any Contract Year.
CONTINUED ON PAGE 4-1
RR.V.B.BK.(032000) Page 4
44
CONTINUED FROM PAGE 4
CHARGES AND FEES
WITHDRAWAL CHARGE: (See Section 7.4)
The first $100,000 of Net Purchase Payments paid under the contract start in
Category Eight. The next $400,000 start in Category Four. All additional Net
Purchase Payments start in Category Two. On each contract anniversary, any
amount in a category moves to the next lower category until that amount reaches
Category Zero. On the date on which proof of death of the Primary Annuitant is
received at the Home Office, Net Purchase Payments paid prior to the date of
death move to Category Zero.
Withdrawal Withdrawal
Charge Charge
Category Percentage
Eight 6%
Seven 6%
Six 6%
Five 5%
Four 4%
Three 3%
Two 2%
One 1%
Zero 0%
MINIMUM PURCHASE PAYMENTS, ACCUMULATION VALUE, PAYMENT PLANS
MINIMUM PURCHASE PAYMENT (See Section 4.1): $25
MINIMUM ACCUMULATION VALUE (See Sections 5.2 and 9.9): $2,000
MINIMUM PAYMENT UNDER PAYMENT PLAN (See Sections 9.9 and 10.1): $50 Monthly
Income.
RR.V.B.BK.(032000) Page 4-1
45
CONTRACT NUMBER 12 345 678
GUARANTEED INTEREST FUND - TABLE OF GUARANTEED VALUES
The table shows minimum guaranteed values and assumes a $5,000 Purchase Payment
made at the time of issue followed by subsequent $1,000 Purchase Payments made
annually thereafter on each contract anniversary. The values are based on the
assumption that 100% of all net Purchase Payments are allocated to, and remain
in, the Guaranteed Interest Fund.
End of
Contract Accumulation Cash
Year March 31 Value Value
1 2001 $ 5,150 $ 4,850
2 2002 6,303 5,943
3 2003 7,491 7,121
4 2004 8,715 8,345
5 2005 9,976 9,616
6 2006 11,274 10,934
7 2007 12,611 12,301
8 2008 13,989 13,719
Age 70 2035 72,523 72,253
This table is based on the guaranteed annual effective interest rate of 3%.
Higher declared rates of interest will increase values. Values shown at the end
of contract years do not reflect any Purchase Payments paid on that contract
anniversary. The actual guaranteed values may differ from those shown above,
depending on the amount and frequency of Purchase Payments.
RR.V.B.BK.(032000) Page 4A
46
SECTION 1. GENERAL TERMS AND DEFINITIONS
ACCUMULATION UNIT A unit of measure used to determine the value of the
interest of this contract in the Separate Account prior to
the date on which amounts are placed under a payment plan.
Accumulation Units may be Class A Accumulation Units or
Class B Accumulation Units.
ACCUMULATION VALUE The Accumulation Value of a Separate Account Division is
the total value of all Accumulation Units in that
Division. The Accumulation Value of the Guaranteed
Interest Fund is the sum of amounts applied to the fund,
plus credited interest, less amounts withdrawn or
transferred from the fund. The Accumulation Value of the
contract is the sum of the Accumulation Values of all
Investment Accounts.
ANNUITANT The Primary Annuitant and, upon the death of the Primary
Annuitant, the Contingent Annuitant.
ANNUITY UNIT A unit of measure used to determine the amount of variable
payments under a variable payment plan and the value of
the interest of a variable payment plan in the Separate
Account. Annuity Units may be Class A Annuity Units or
Class B Annuity Units.
BENEFICIARIES The term "Beneficiaries" as used in this contract includes
direct beneficiaries, contingent beneficiaries and further
payees.
COMPANY The Northwestern Mutual Life Insurance Company.
CONTINGENT ANNUITANT The person who becomes the Annuitant upon the death of an
Annuitant.
CONTRACT FEE An annual charge for administration expenses made on each
contract anniversary prior to the Maturity Date.
CONTRACT YEAR The first Contract Year is the period of time ending on
the first contract anniversary. Subsequent Contract Years
are the annual periods between contract anniversaries.
DIVISION A component of the Separate Account to which the Owner may
allocate Net Purchase Payments and contract values.
GUARANTEED INTEREST The portion of the contract that is credited with a
FUND guaranteed interest rate and which is held as part of
the general assets of the Company. The Guaranteed Interest
Fund may consist of a Class A Guaranteed Interest Fund and
a Class B Guaranteed Interest Fund.
HOME OFFICE The office of The Northwestern Mutual Life Insurance
Company located at 000 Xxxx Xxxxxxxxx Xxxxxx, Xxxxxxxxx,
XX 00000.
INVESTMENT ACCOUNT The Guaranteed Interest Fund and Separate Account
Divisions available for allocation of Net Purchase
Payments and contract values. The available Investment
Accounts are listed on page 3.
47
ISSUE DATE The date this contract is issued and becomes effective.
MATURITY DATE The date upon which contract benefits will become payable.
If the contract is continued in force under the Optional
Maturity Date provision, the Optional Maturity Date will
become the Maturity Date.
NET PURCHASE PAYMENT A Purchase Payment less all applicable deductions.
Deductions may include a Premium Tax.
OPTIONAL MATURITY The contract anniversary nearest the Annuitant's 90th
DATE birthday. Upon reaching the Maturity Date shown on page
3, the Owner may elect to continue the contract in force
until this Optional Maturity Date.
OWNER The person possessing the ownership rights stated in this
contract
PORTFOLIOS Mutual funds or portfolios of mutual funds in which the
assets of the Separate Account are invested.
PREMIUM TAX A tax imposed by a governmental entity when Purchase
Payments are received or benefits are paid.
PRIMARY ANNUITANT The person upon whose life this contract is initially
issued.
PURCHASE PAYMENT A payment made by or on behalf of the Owner with respect
to this contract.
SEPARATE ACCOUNT NML Variable Annuity Account B. The Separate Account
consists of assets set aside by the Company, the
investment performance of which is kept separate from that
of the general assets and all other separate account
assets of the Company.
SUCCESSOR OWNER The person designated to become the Owner upon the death
of the Owner, provided the Owner was not the Annuitant at
the time of the Owner's death.
TRANSFER FEE A deduction that is made from the amount transferred
between Investment Accounts.
VALUATION DATE Any day on which the assets of the Separate Account are
valued. Assets are valued as of the close of trading on
the New York Stock Exchange for each day the Exchange is
open
WITHDRAWAL CHARGE A deduction that is made from maturity benefits and
withdrawal amounts.
WITHDRAWAL CHARGE For a withdrawal, the amount that can be withdrawn without
FREE AMOUNT a Withdrawal Charge prior to the withdrawal of Net
Purchase Payments.
48
SECTION 2. SEPARATE ACCOUNT
2.1 SEPARATE ACCOUNT
The Separate Account (NML Variable Annuity Account B) has been established by
the Company and is registered as a unit investment trust under the Investment
Company Act of 1940. The Separate Account consists of assets set aside by the
Company, the investment performance of which is kept separate from that of the
general assets and all other separate account assets of the Company. The assets
of the Separate Account will not be charged with liabilities arising out of any
other business the Company may conduct. Interests in the Separate Account are
represented by Accumulation Units and Annuity Units, described in Sections 2.2
and 11.3, respectively.
The Separate Account is comprised of the Divisions listed on page 3. The assets
allocated to these Divisions are invested in shares of the corresponding
Portfolios. Shares of the Portfolios are purchased for the Separate Account at
their net asset value.
The Company reserves the right to eliminate or add additional Divisions and
Portfolios.
2.2 ACCUMULATION UNITS
The interest of this contract in the Separate Account, prior to the date on
which amounts become payable under a payment plan, is represented by
Accumulation Units. The dollar value of Accumulation Units for each Division
will increase or decrease to reflect the investment experience of the Division.
The value of an Accumulation Unit on any Valuation Date is the product of:
- the value on the immediately preceding Valuation Date; and
- the Net Investment Factor for the period from the immediately preceding
Valuation Date up to and including the current Valuation Date (the
current period).
There may be Class A and Class B Accumulation Units. The Mortality and Expense
Risk Charge for each class is shown on page 4. Net Purchase Payments applied to
the Separate Account and transfers from the Class B Guaranteed Interest Fund
purchase Class B Accumulation Units until conversion takes place as described in
Section 7.3.
2.3 NET INVESTMENT FACTOR
For each Division of the Separate Account the Net Investment Factor for the
current period is one plus the net investment rate for that Division. The net
investment rate for the current period is equal to the gross investment rate for
the Division reduced on each Valuation Date by a Mortality and Expense Risk
Charge. The charge for these risks on the Issue Date is shown on page 4. The
Company may increase or decrease the charge after the Issue Date, but the
Company may not increase the charge to exceed the maximum charge shown on page
4.
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The gross investment rate for the current period for each Division is equal to
a. divided by b. where:
a. is:
- the investment income of the Division for the current period; plus
- capital gains for the period, whether realized or unrealized, on
the assets of the Division; less
- capital losses for the period, whether
realized or unrealized, on the assets of the Division; less
- deduction for any tax liability paid or reserved for by the
Company resulting from the maintenance or operation of the
Division; and less
- any reasonable expenses paid or reserved for by the Company which
result from a substitution of other securities for shares of the
Portfolio(s) as set forth in Section 2.4 and
b. is the value of the assets in the Division on the immediately preceding
Valuation Date.
The gross investment rate may be positive or negative. The deduction for any tax
liability may be charged proportionately against those contracts to which the
liability is attributable by a reduction in the gross investment rate for those
contracts.
2.4 SUBSTITUTION AND CHANGE
Pursuant to a vote of the Owners of variable annuity contracts having an
interest in a Division or as otherwise permitted by applicable insurance and
securities law, a substitution or change may be made as follows:
- the assets of the Division may be invested in securities other than
shares of the Portfolio(s) as a substitute for those shares already
purchased or as the securities to be purchased in the future;
- the Separate Account, or a Division, may be operated as a management
company under the Investment Company Act of 1940, or in any other form
permitted by law, if deemed by the Company to be in the best interests
of the contract Owners;
- the Separate Account may be deregistered under the Investment Company
Act of 1940 in the event registration is no longer required; or
- the provisions of the contracts may be modified to comply with any
other applicable federal or state laws.
In the event of a substitution or change, the Company may make appropriate
endorsement on this and other contracts having an interest in the Separate
Account and take other actions as may be necessary to effect the substitution or
change. Any such substitution or change will be subject to any required approval
of the Securities and Exchange Commission (SEC) and the Commissioner of
Insurance for the state of Wisconsin, and filing with the state in which this
contract is issued.
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SECTION 3. GUARANTEED INTEREST FUND
3.1 GUARANTEED INTEREST FUND
Net Purchase Payments (see Section 4.2) and amounts transferred from other
Investment Accounts under this contract (see Section 4.4) may be applied to the
Guaranteed Interest Fund. Contract benefits placed under a variable payment plan
may not be applied to the Guaranteed Interest Fund. Amounts applied to the
Guaranteed Interest Fund become part of the general assets of the Company
3.2 ACCUMULATION VALUE
The Accumulation Value of the Guaranteed Interest Fund is the sum of the amounts
applied to it, plus credited interest, less any amounts withdrawn or transferred
from the fund. Interest begins to accrue on the effective date of the Purchase
Payment or transfer (see Section 4.6).
There may be Class A and Class B Guaranteed Interest Funds. Net Purchase
Payments applied to the Guaranteed Interest Fund and amounts transferred from
Class B Accumulation Units into the Guaranteed Interest Fund are applied to the
Class B Guaranteed Interest Fund until conversion takes place as described in
Section 7.3. Amounts transferred from Class A Accumulation Units into the
Guaranteed Interest Fund are applied to the Class A Guaranteed Interest Fund.
Interest will be credited at an annual effective interest rate of not less than
3%. A higher rate may be declared by the Company from time to time for a period
set by the Company. The declared rate for the Class A Guaranteed Interest Fund
will always equal or exceed the declared rate for the Class B Guaranteed
Interest Fund.
3.3 TRANSFER RESTRICTIONS
Transfers of Accumulation Value from the Guaranteed Interest Fund will not be
allowed for a period of 365 days following the most recent transfer of
Accumulation Value from the Guaranteed Interest Fund.
The maximum amount of the Accumulation Value that may be transferred from the
Guaranteed Interest Fund in one transfer is limited to the greater of:
- 25% of the Accumulation Value of the Guaranteed Interest Fund on the
last contract anniversary preceding the transfer; and
- the amount of the most recent transfer from the Guaranteed Interest
Fund.
However, in no event will this maximum transfer amount be less than $1,000 or
greater than $50,000.
Transfers of Accumulation Value into the Guaranteed Interest Fund will not be
allowed for a period of 90 days following the most recent transfer of
Accumulation Value from the Guaranteed Interest Fund.
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3.4 MAXIMUM GUARANTEED INTEREST FUND ACCUMULATION VALUE
The Accumulation Value of the Guaranteed Interest Fund may not exceed $1,000,000
without prior consent of the Company, except when the maximum is exceeded
because of interest accruing to the Guaranteed Interest Fund.
3.5 TABLE OF GUARANTEED VALUES
Accumulation and cash values are shown on page 4A. The values are based on the
assumptions stated on page 4A and are for the end of the contract years shown.
Values for contract years not shown are calculated on the same basis as those
shown on page 4A. Guaranteed values are at least as great as those required by
the state in which this contract is delivered.
SECTION 4. PURCHASE PAYMENTS, TRANSFERS, WITHDRAWALS
4.1 PAYMENT OF PURCHASE PAYMENTS
All Purchase Payments are payable at the Home Office or to an authorized agent.
A receipt signed by an officer of the Company will be furnished on request.
Purchase Payments may be made at any time prior to the death of an Owner and
prior to the Maturity Date. Purchase Payments may be made after the death of an
Owner only if the new Owner of the contract is the surviving spouse of the
deceased Owner. The Owner may vary the amount of Purchase Payments, but no
Purchase Payment may be less than the Minimum Purchase Payment shown on page 4.
Total Purchase Payments may not exceed $5,000,000 without the consent of the
Company.
4.2 APPLICATION OF PURCHASE PAYMENTS
Each Purchase Payment, net of Premium Taxes, will be applied to one or more
Investment Accounts. Net Purchase Payments applied to the Guaranteed Interest
Fund will accrue interest from the effective date of the Purchase Payment. Net
Purchase Payments purchase Class B Accumulation Units or are applied to the
Class B Guaranteed Interest Fund. Accumulation Units are credited as of the
effective date of the Net Purchase Payment.
The number of Accumulation Units will be determined by dividing the Net Purchase
Payment by the value of an Accumulation Unit on the effective date. This number
of Accumulation Units will not be changed by any subsequent change in the dollar
value of Accumulation Units.
4.3 SELECTION OF INVESTMENT ACCOUNT FOR PURCHASE PAYMENTS
The Owner may change the allocation of Net Purchase Payments among the
Investment Accounts by written notice to the Company. Net Purchase Payments
received at the Home Office on or after the date on which notice is received
will be applied to the designated Investment Accounts on the basis of the new
allocation.
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4.4 TRANSFER OF ACCUMULATION VALUE
Before the Maturity Date the Owner may, on request satisfactory to the Company,
transfer amounts from one Investment Account to another, subject to the transfer
restrictions described in Section 3.3.
For transfers among the Separate Account Divisions, the number of Accumulation
Units to be applied or deducted will be adjusted to reflect the respective value
of the Accumulation Units in each of the Divisions on the date the transfer is
effective.
For transfers from the Guaranteed Interest Fund, amounts closest to expiration
of an interest rate guarantee will be removed first. In the event that two
amounts are equally close to expiration, the one which was applied to the
Guaranteed Interest Fund earlier will be removed first.
Any transfers of Class A Accumulation Value purchase Class A Accumulation Units
or are applied to the Class A Guaranteed Interest Fund. Any transfers of Class B
Accumulation Value purchase Class B Accumulation Units or are applied to the
Class B Guaranteed Interest Fund.
A Transfer Fee may be deducted from the amount transferred. The maximum amount
of the Transfer Fee is shown on page 4. The minimum amount that may be
transferred is the lesser of $100 or the entire Accumulation Value of the
Investment Account from which the transfer is being made.
4.5 WITHDRAWALS AND FULL SURRENDER
Before the Maturity Date the Owner may, on request satisfactory to the Company,
withdraw all or a portion of the Accumulation Value of the contract. The Company
may require that the Minimum Accumulation Value shown on page 4 remain after a
partial withdrawal. Withdrawal of the entire value of the contract constitutes a
full surrender, and receipt of the contract at the Home Office will terminate
this contract. Receipt of the contract may be waived by the Company.
The cash value of the amount withdrawn will be the Accumulation Value withdrawn
determined as of the date the withdrawal is effective, less any applicable
Withdrawal Charge. The Withdrawal Charge is described in Section 7.4
The term "withdrawal amounts" as used in this contract includes amounts paid as
full surrenders and withdrawals of a portion of the Accumulation Value of the
contract.
Withdrawals from the Guaranteed Interest Fund will be withdrawn in accordance
with the Order of Withdrawal provisions of Section 7.4. Subject to that order of
withdrawal, the first amounts withdrawn from the Class A Guaranteed Interest
Fund or the Class B Guaranteed Interest Fund, whichever are applicable, will be
those amounts closest to the expiration of an interest rate guarantee. In the
event two amounts are equally close to expiration, the one which was applied to
the Guaranteed Interest Fund earlier will be removed first.
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4.6 EFFECTIVE DATE
The effective date of a Purchase Payment, transfer, or withdrawal is the
Valuation Date on which the Purchase Payment or the request for transfer or
withdrawal is received at the Home Office. However, the Purchase Payment,
transfer, or withdrawal will be effective on the following Valuation Date if the
Purchase Payment, request for transfer or withdrawal is received at the Home
Office either:
- on a Valuation Date after the close of trading on the New York Stock
Exchange; or
- on a day on which the New York Stock Exchange is closed.
SECTION 5. BENEFITS
5.1 MATURITY BENEFIT
MATURITY OPTIONS. If the Annuitant is living on the Maturity Date shown on page
3, and that Maturity Date is earlier than the contract anniversary nearest the
Annuitant's 90th birthday, the Owner may elect between the following maturity
options:
- payment of a monthly income under a payment plan chosen by the Owner; or
- deferral of the maturity benefit and continuation of this contract to
the Optional Maturity Date. The contract will continue under this option
if a written election for this purpose is received by the Company or if
on the Maturity Date shown on page 3, the Owner has not chosen a payment
plan.
If the Annuitant is living on the Maturity Date and that Maturity Date is on or
after the contract anniversary nearest the Annuitant's 90th birthday, the
Company will pay a monthly income under a payment form chosen by the Owner.
PAYMENT OF MATURITY BENEFIT. The amount of the monthly income paid as the
maturity benefit will depend on the payment plan chosen (see Section 11) and the
maturity value. The maturity value of this contract will be the Accumulation
Value of the contract on the effective date of the maturity benefit, less any
applicable Withdrawal Charge (see Section 7.4). The maturity benefit will be
effective on the Maturity Date. However, if the New York Stock Exchange is
closed on the Maturity Date, the effective date will be the Valuation Date next
preceding the Maturity Date.
If no payment form is chosen at the time a monthly income becomes payable,
payments will be made under the variable payment form of Life Income Plan
(Option C), with installments certain for ten years, as described in Section
11.1.
OPTIONAL MATURITY DATE. The Optional Maturity Date is the contract anniversary
nearest the Annuitant's 90th birthday. If the contract is continued to the
Optional Maturity Date, all contract rights of the Owner will continue in effect
to the Optional Maturity Date. The Optional Maturity Date will become the
Maturity Date for all other purposes of this contract.
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5.2 DEATH BENEFIT IF ANNUITANT IS AN OWNER
If the Annuitant is an Owner, the beneficiary becomes entitled to the Death
Benefit upon receipt at the Home Office of satisfactory proof of the death of
the Annuitant before the Maturity Date. The Death Benefit will be the
Accumulation Value of the contract determined on the effective date. The
effective date is the date on which proof of death is received at the Home
Office. However, the effective date will be the next following Valuation Date if
the proof of death is received at the Home Office either:
- on a Valuation Date after the close of trading on the New York Stock
Exchange; or
- on a day on which the New York Stock Exchange is closed.
If the beneficiary becomes entitled to the Death Benefit due to the death of the
Primary Annuitant prior to the Primary Annuitant's 75th birthday, the Death
Benefit will not be less than:
- total Net Purchase Payments paid under the contract; less
- any amounts withdrawn under Section 4.5.
As of the effective date, the Accumulation Value of the contract will be set at
an amount equal to the Death Benefit. Unless a payment plan was elected by the
Owner, the beneficiary automatically becomes the Owner and Annuitant of the
contract. However, if the beneficiary is not a natural person and no payment
plan was elected by the Owner, the beneficiary may select a natural person to be
the Annuitant. If a natural person is not selected to be the Annuitant within 60
days of the date on which proof of death of the Annuitant is received at the
Home Office, the Accumulation Value will be distributed to the beneficiary.
If a beneficiary becomes entitled to the Death Benefit in an amount less than
the Minimum Accumulation Value shown on page 4, the Accumulation Value will be
distributed to the beneficiary.
The cash value of any amount distributed will be the Accumulation Value
withdrawn as of the date of withdrawal as determined in Section 4.6.
5.3 DEATH BENEFIT IF ANNUITANT IS NOT AN OWNER
If the Annuitant is not an Owner, upon the death of the Annuitant the contract
continues with the Contingent Annuitant (Section 6.5) as the new Annuitant. The
Death Benefit will be the Accumulation Value of the contract determined on the
effective date. The effective date is the date on which proof of death is
received at the Home Office. However, the effective date will be the next
following Valuation Date if the proof of death is received at the Home Office
either:
- on a Valuation Date after the close of trading on the New York Stock
Exchange; or
- on a day on which the New York Stock Exchange is closed.
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If the Primary Annuitant dies prior to the Primary Annuitant's 75th birthday,
the Death Benefit will not be less than:
- total Net Purchase Payments paid under the contract; less
- any amounts withdrawn under Section 4.5.
As of the effective date the Accumulation Value of the contract will be set at
an amount equal to the Death Benefit.
SECTION 6. BENEFICIARIES AND CONTINGENT ANNUITANTS
6.1 NAMING AND CHANGING OF BENEFICIARIES
FOR MATURITY BENEFITS OR WITHDRAWALS BY OWNER. The Owner may name and change the
beneficiaries of maturity benefits or withdrawal amounts before the Maturity
Date. If no beneficiary is named by the Owner, the Owner will be the direct
beneficiary.
FOR DEATH BENEFITS BY OWNER. The Owner may name and change the beneficiaries of
the Death Benefits while the Annuitant is living. If no such beneficiary is
named by the Owner, the Owner or the Owner's estate will be the direct
beneficiary.
FOR MATURITY OR DEATH BENEFITS OR WITHDRAWAL AMOUNTS BY SPOUSE (MARITAL
DEDUCTION PROVISION).
- POWER TO APPOINT. The spouse of the Annuitant will have the power
alone and in all events to appoint all amounts payable to the spouse
under the contract if:
a. just before the Annuitant's death, the Annuitant was the Owner; and
b. the spouse is a direct beneficiary; and
c. the spouse survives the Annuitant.
- TO WHOM SPOUSE CAN APPOINT. Under this power, the spouse can appoint:
a. to the estate of the spouse; or
b. to any other person.
- EFFECT OF EXERCISE. As to the amounts appointed, the exercise of this
power will:
a. revoke any other designation of beneficiaries;
b. revoke any election of payment plan as it applies to them; and
c. cause any provision to the contrary in Section 6 or 10 of this
contract to be of no effect.
EFFECTIVE DATE. A naming or changing of a beneficiary will be effective on
receipt at the Home Office of a written request that is acceptable to the
Company. The request will then take effect as of the date that it was signed.
The Company is not responsible for any payment or other action that is taken by
it before the receipt of the request. The Company may require that the contract
be sent to it to be endorsed to show the naming or change.
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6.2 SUCCESSION IN INTEREST OF BENEFICIARIES
The rights and benefits that a beneficiary becomes entitled to under the
contract are shared equally among all surviving direct beneficiaries, if any,
otherwise equally among all surviving contingent beneficiaries, if any,
otherwise to the Owner or the Owner's Estate.
6.3 TRUSTEE AS BENEFICIARY
If a trustee is named as a beneficiary and no qualified trustee makes claim to
the proceeds, or to the present value of any unpaid payments under a payment
plan, within one year after payment becomes due to the trustee, or if
satisfactory evidence is furnished to the Company within that year showing that
no trustee can qualify to receive payment, payment will be made as though the
trustee had not been named.
The Company will be fully discharged of liability for any action taken by the
trustee and for all amounts paid to, or at the direction of, the trustee and
will have no obligation as to the use of the amounts. In all dealings with the
trustee the Company will be fully protected against the claims of every other
person. The Company will not be charged with notice of a change of trustee
unless written evidence of the change is received at the Home Office.
6.4 GENERAL
TRANSFER OF OWNERSHIP. A transfer of ownership of itself will not change the
interest of a beneficiary.
CLAIMS OF CREDITORS. So far as allowed by law, no amount payable under this
contract will be subject to the claims of creditors of a beneficiary.
6.5 NAMING AND CHANGING A CONTINGENT ANNUITANT
The Owner may name and change a Contingent Annuitant while the Annuitant is
living.
If the Annuitant was not the Owner immediately prior to the Annuitants' death,
the Owner may name and change a Contingent Annuitant during the first 60 days
after the date on which proof of death of the Annuitant is received at the Home
Office. A change made during this 60 days cannot be revoked. If no one is named
as Contingent Annuitant by the end of the 60 day time period, the Company will
pay the Accumulation Value to the Owner. The cash value of any amount
distributed will be the Accumulation Value withdrawn as of the date of
withdrawal as determined in Section 4.6.
A naming or changing of a Contingent Annuitant will be effective on receipt at
the Home Office of a written request that is acceptable to the Company.
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SECTION 7. CHARGES, FEES AND CONVERSION
7.1 PREMIUM TAXES
The Company may deduct Premium Taxes incurred from Purchase Payments received.
7.2 CONTRACT FEE
On each contract anniversary prior to the Maturity Date, a Contract Fee will be
charged for administrative expenses. The amount of the Contract Fee is shown on
page 4. The Contract Fee will be deducted from the Investment Accounts in
proportion to the Accumulation Value of the Investment Accounts.
The Contract Fee deducted from the Guaranteed Interest Fund will not exceed the
sum of:
- 10% of the gross purchase payments applied to the Guaranteed Interest Fund
during the contract year; and
- interest in excess of an annual effective interest rate of 3% credited to the
Guaranteed Interest Fund during the contract year.
The effective date of the Contract Fee will be the contract anniversary.
However, if the New York Stock Exchange is closed on the contract anniversary,
the effective date will be the next following Valuation Date.
7.3 CONVERSION OF INVESTMENT ACCOUNTS
On a policy anniversary some Class B Accumulation Units may convert to Class A
Accumulation Units and a portion of the Class B Guaranteed Interest Fund may
convert to the Class A Guaranteed Interest Fund. The amounts that will be
converted are dependent on the conversion of Net Purchase Payments.
On a policy anniversary, a Net Purchase Payment converts if:
- the total Accumulation Value of the contract exceeds $25,000,
- the Net Purchase Payment has not previously converted; and
- the Net Purchase Payment is in the zero Withdrawal Charge category.
If a Net Purchase Payment converts, a conversion percentage is calculated. The
conversion percentage equals the greater of:
- the Net Purchase Payments converting divided by all Net Purchase Payments not
already converted; and
- the Net Purchase Payments converting divided by the value of all Class B
Accumulation Units and the Class B Guaranteed Interest Fund, but in no event
more than 100%.
A percentage of Class B Accumulation Units in each Division(s), equal to the
conversion percentage, will convert to Class A Accumulation Units in the same
Division(s). The number of Accumulation Units will be adjusted to reflect the
respective value of the Accumulation Units on the date of the conversion.
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A percentage of the Class B Guaranteed Interest Fund, equal to the conversion
percentage, will convert to the Class A Guaranteed Interest Fund beginning with
the amounts closest to expiration of an interest rate declaration period. For
the remainder of the declared interest rate period, such amounts will be
credited with interest at the rates applicable to amounts in the Class A
Guaranteed Interest Fund as of the date the interest rate was declared.
7.4 WITHDRAWAL CHARGE
CONDITIONS. Maturity benefits and withdrawals are subject to a Withdrawal Charge
described on page 4. There is no Withdrawal Charge on benefits that are paid
under a variable Installment Income or variable Life Income Payment Plan.
However, the withdrawal of the present value of any unpaid installments under a
variable Installment Income Plan (Option B) will be subject to a withdrawal
charge if the withdrawal is made less than five years after the date that the
payment plan takes effect.
CALCULATIONS. The amount of the Withdrawal Charge on the contract is equal to
the sum of the Withdrawal Charges on all Net Purchase Payments. The Withdrawal
Charge on a Net Purchase Payment is equal to the Withdrawal Charge percentage on
the date the Withdrawal Charge is determined, multiplied by the amount of the
Net Purchase Payment. The Withdrawal Charge percentages are shown on page 4. The
excess of the Accumulation Value of the contract over the total of Net Purchase
Payments paid is not subject to a Withdrawal Charge.
Withdrawal Charges are determined:
- for maturity benefits, as of the Maturity Date.
- for withdrawals under Section 4.5, as of the effective date of the
withdrawal.
- for withdrawals from payment plans, as of the effective date
of the withdrawal.
WITHDRAWAL CHARGE FREE AMOUNT. If the Accumulation Value of the contract is at
least $10,000 on the most recent contract anniversary preceding a withdrawal
under Section 4.5, then the amount withdrawn will be taken first from the
withdrawal charge free amount. For each Contract Year, the amount eligible for
the Withdrawal Charge Free Amount is 10% of the Class B Accumulation Value of
the contract on the most recent contract anniversary preceding the withdrawal.
ORDER OF WITHDRAWAL. A withdrawal will be taken from the contract in the
following order:
- first, from the Withdrawal Charge Free Amount, if any;
- next, from the Class A Accumulation Value of the contract;
- next, from the Net Purchase Payments which have not been converted
under Section 7.3, in the order that produces the lowest Withdrawal
Charge; and
- last, from any remaining Accumulation Value of the contract.
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SECTION 8. OWNERSHIP
8.1 THE OWNER
The Owner is named on page 3. All contract rights may be exercised by the Owner,
the Owner's successor, or the Owner's transferee without the consent of any
beneficiary.
If the contract has more than one Owner, contract rights may be exercised only
by authorization of all Owners. Upon the death of an Owner, ownership rights of
all Owners terminate if the deceased Owner was the Annuitant.
8.2 TRANSFER OF OWNERSHIP
The Owner may transfer the ownership of this contract. Written proof of transfer
satisfactory to the Company must be received at its Home Office. The transfer
will then take effect as of the date it was signed. The Company may require that
the contract be sent to it for endorsement to show the transfer. The Company
will not be responsible to a transferee Owner for any payment or other action
taken by the Company before receipt of the proof of transfer at its Home Office.
8.3 NAMING AND CHANGING A SUCCESSOR OWNER
An Owner may name and change a Successor Owner. Naming or changing a Successor
Owner will be effective on receipt at the Home Office of a written request for
such change that is acceptable to the Company. A Successor Owner succeeds to the
interests of an Owner only if the Owner was not the Annuitant at the time of the
Owner's death.
8.4 COLLATERAL ASSIGNMENT
The Owner may assign this contract as collateral security. The Company is not
responsible for the validity or effect of a collateral assignment. The Company
will not be responsible to an assignee for any payment or other action taken by
the Company before receipt of the assignment in writing at its Home Office.
The interest of any beneficiary will be subject to any collateral assignment
made either before or after the beneficiary is named.
A collateral assignee is not an Owner. A collateral assignment is not a transfer
of ownership. Ownership can be transferred only by complying with Section 8.2.
8.5 VOTING RIGHTS AND REPORTS TO OWNERS
As long as the Separate Account continues to be registered as a unit investment
trust under the Investment Company Act of 1940 and the assets of the Separate
Account are invested in shares of a Portfolio, the Company will vote shares held
by the Separate Account in accordance with the instructions received from the
Owners of Accumulation Units or, after payments have commenced under a variable
payment plan, from the beneficiaries receiving payments under those payment
plans. Each Owner or beneficiary will receive:
- periodic reports relating to the Portfolio;
- proxy material;
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- a form with which to give voting instructions; and
- information regarding the proportion of shares of each Portfolio held
in the Separate Account corresponding either to the Accumulation Units
credited to this contract or the number of shares held in the Separate
Account representing the Company's actuarial liability under the
variable payment plan.
At least once each Contract Year, the Company will also send to the Owner or
beneficiary a statement of the Accumulation Values of the Investment Accounts,
the number of units credited to the contract, the dollar value of a unit as of a
date not more than two months previous to the date of mailing, and a statement
of the investments held by the Separate Account.
SECTION 9. THE CONTRACT
9.1 GUARANTEES
The Company guarantees that mortality and expense results will not adversely
affect the amount of variable payments.
9.2 VALUATION OF SEPARATE ACCOUNT ASSETS
The value of the shares of each Portfolio held in the Separate Account on each
Valuation Date will be the redemption value of the shares on that date. If the
right to redeem shares of a Portfolio has been suspended, or payment of the
redemption value has been postponed, the shares held in the Separate Account
(and Annuity Units) may be valued at fair value as determined in good faith by
the Board of Trustees of the Company for the sole purpose of computing annuity
payments.
9.3 DETERMINATION OF SEPARATE ACCOUNT VALUES
The method of determination by the Company of the Net Investment Factor, and the
number and value of Accumulation Units and Annuity Units, will be conclusive
upon the Owner, any assignee, the Annuitant, and any beneficiary.
9.4 DEFERMENT OF BENEFIT PAYMENTS
SEPARATE ACCOUNT DIVISIONS. The Company reserves the right to defer
determination of the contract values of the Separate Account portion of this
contract, or the payment of benefits under a variable payment plan, until after
the end of any period during which the right to redeem shares of a Portfolio is
suspended, or payment of the redemption value is postponed. Any deferment would
be in accordance with the provisions of the Investment Company Act of 1940 by
reason of closing of, or restriction of trading on, the New York Stock Exchange,
or other emergency, or as otherwise permitted by the Act. In addition, the
Company reserves the right to defer payment of contract values until seven days
after the end of any deferment in the determination of contract values.
GUARANTEED INTEREST FUND. The Company may defer paying contract values of the
Guaranteed Interest Fund for up to six months from the effective date of the
withdrawal or full surrender. If payment is deferred for 30 days or more,
interest will be paid on the withdrawal amounts at an annual effective rate of
3% from the effective date of the withdrawal or surrender to the date of the
payment.
9.5 DIVIDENDS
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This contract will share in the divisible surplus of the Company, except while
payments are being made under a variable payment plan. This surplus will be
determined each year, and the dividend, if any, will be credited on the contract
anniversary. Any dividend credited prior to the Maturity Date will be applied on
the effective date as a Net Purchase Payment unless the Owner elects to have the
dividend paid in cash. The effective date of the dividend will be the contract
anniversary. However, if the New York Stock Exchange is closed on the contract
anniversary, the effective date will be the next following Valuation Date.
Since this policy is not expected to contribute to divisible surplus, it is not
expected that any dividends will be paid.
9.6 INCONTESTABILITY
The Company will not contest this contract after it has been in force during the
lifetime of the Annuitant for two years from the Issue Date. This Issue Date is
shown on page 3.
9.7 MISSTATEMENTS
If the age or sex of the Annuitant has been misstated, the amount payable will
be the amount which the Purchase Payments paid would have purchased at the
correct age and sex. If any amounts have been overpaid by the Company due to a
misstatement of age or sex, the amount of the overpayment may be deducted from
payments to be made by the Company. If any amounts have been underpaid by the
Company due to a misstatement of age or sex, the amount of the underpayment will
be paid.
9.8 ENTIRE CONTRACT; CHANGES
This contract with any amendments and additional benefits and the attached
application is the entire contract. Statements in the application are
representations and not warranties. A change in the contract is valid only if it
is approved by an officer of the Company. The Company may require that the
contract be sent to it for endorsement to show a change. No agent has the
authority to change the contract or to waive any of its terms.
All payments by the Company under this contract are payable at its Home Office.
Assets of the Separate Account are owned by the Company and the Company is not a
trustee with respect thereto. The company may from time to time adjust the
amount of assets contained in the Separate Account, by periodic withdrawals or
additions, to reflect the contract deductions and the Company's reserves for
this and other similar contracts.
This contract is subject to the laws of the state in which it is delivered. All
benefits are at least as great as those required by that state.
9.9 TERMINATION OF CONTRACT
The Company may terminate the contract and pay the Owner the Accumulation Value
of the contract and be released of any further obligation if:
- prior to the Maturity Date no Purchase Payments have been received
under the contract for a period of two full years and each of the
following is less than the Minimum Accumulation Value shown on page 4:
a. the Accumulation Value of the contract; and
62
b. total Purchase Payments paid under the contract, less any
amounts withdrawn under Section 4.5; or
- on the Maturity Date the Accumulation Value of the contract is less
than the Minimum Accumulation Value shown on page 4 or would provide an
initial monthly income which is less than the minimum payment amount
shown on page 4.
SECTION 10. PAYMENT OF CONTRACT BENEFITS
10.1 PAYMENT OF BENEFITS
All or part of the contract benefits may be paid under one or more of the
following:
- a variable payment plan;
- a fixed payment plan; or
- in cash.
The provisions and rates for variable and fixed payment plans are described in
Section 11. Contract benefits may not be placed under a payment plan unless the
plan would provide to each beneficiary an initial monthly income of at least the
minimum payment amount shown on page 4. A Withdrawal Charge will be deducted
from contract benefits before their payment under certain conditions described
in Section 7.4.
10.2 DEATH BENEFIT
A beneficiary entitled to the Death Benefit upon the death of an Annuitant may
elect to receive the Accumulation Value under a payment plan or in cash provided
no payment plan was elected by the Owner. The cash value of any amount
distributed will be the Accumulation Value withdrawn as of the date of
withdrawal as determined in Section 4.6.
10.3 EFFECTIVE DATE FOR PAYMENT PLAN
A payment plan that is elected for maturity benefits will take effect on the
Maturity Date.
If the Annuitant is an Owner, a payment plan that is elected by the Owner for
the Death Benefit will take effect on the date proof of death of the Annuitant
is received at the Home Office.
In all other cases, a payment plan that is elected will take effect:
- on the date the election is received at the Home Office; or
- on a later date, if requested.
10.4 PAYMENT PLAN ELECTIONS
FOR DEATH BENEFITS BY OWNER. The Owner may elect payment plans for death
benefits while the Annuitant is living.
FOR MATURITY BENEFITS OR WITHDRAWAL AMOUNTS. The Owner may elect payment plans
for maturity benefits or withdrawal amounts.
63
TRANSFER BETWEEN PAYMENT PLANS. A beneficiary who is receiving payment under a
payment plan which includes the right to withdraw may transfer the amount
withdrawable to any other payment plan that is available.
SECTION 11. PAYMENT PLANS
11.1 DESCRIPTION OF PAYMENT PLANS
INSTALLMENT INCOME FOR SPECIFIED PERIOD (OPTION B)
The Company will make monthly installment income payments providing for payment
of benefits over a specified period of 10 to 30 years during the first five
contract years and over a specified period of 5 to 30 years beginning with the
sixth contract year.
LIFE INCOME PLANS
- SINGLE LIFE INCOME (OPTION C). The Company will make monthly payments
for the selected certain period, if any, and thereafter during the
remaining lifetime of the individual upon whose life income payments
depend. The selections available are: (a) no certain period; or (b) a
certain period of 10 or 20 years.
- JOINT AND SURVIVOR LIFE INCOME (OPTION E). The Company will make
monthly payments for a 10-year certain period and thereafter during the
joint lifetime of the two individuals upon whose lives income payments
depend and continuing during the remaining lifetime of the survivor.
- OTHER SELECTIONS. The Company may offer other selections under the
Life Income Plans.
- LIMITATIONS. A direct or contingent beneficiary who is a natural
person may be paid under a Life Income Plan only if the payments depend
on that beneficiary's life. A corporation may be paid under a Life
Income Plan only if the payments depend on the life of the Annuitant
or, after the death of the Annuitant, on the life of the Annuitant's
spouse or dependent.
These payment plans are available on either a fixed or variable basis. Under a
fixed payment plan the payment remains level. Under a variable payment plan the
payment will increase or decrease as described in Section 11.4.
11.2 ALLOCATION OF BENEFITS
Upon election of a variable payment plan, the Owner or direct or contingent
beneficiary may select the allocation of variable benefits among the Divisions.
If no selection is made, the allocation of benefits will be as follows:
- for amounts in the Separate Account Divisions, benefits will be
allocated in proportion to the Accumulation Value of each Division on
the effective date of the variable payment plan; and
- for amounts in the Guaranteed Interest Fund, benefits will be allocated
100% to the Money Market Division.
11.3 ANNUITY UNITS UNDER VARIABLE PAYMENT PLANS
The interest of this contract in the Separate Account after the effective date
of a variable payment plan is represented by Annuity Units. There may be Class A
Annuity Units and Class B Annuity Units. The Mortality and Expense Risk Charge
used to calculate the Net Investment Factor for each class is shown on page 4.
64
The dollar value of Annuity Units for each Division will increase or decrease to
reflect the investment experience of the Division. The value of an Annuity Unit
on any Valuation Date is the product of:
- the Annuity Unit value on the immediately preceding Valuation Date;
- the Net Investment Factor for the period from the immediately preceding
Valuation Date up to and including the current Valuation Date (the
current period); and
- the Daily Adjustment Factor of .99990575 raised to a power equal to the
number of days in the current period to reflect the Assumed Investment
Rate of 3 1/2% used in calculating the monthly payment rate.
11.4 PAYMENTS UNDER VARIABLE PAYMENT PLANS
FIRST PAYMENT. The first payment under a variable payment plan will be due as
of the effective date of the payment plan.
The amount of the first payment is the sum of payments from each Division, each
determined by multiplying the benefits allocated to the Division under the
variable payment plan by the applicable monthly variable payment rate per $1,000
of benefits.
NUMBER OF ANNUITY UNITS. The number of Annuity Units in each Division under a
variable payment plan is determined by dividing the amount of the first payment
payable from the Division by the Annuity Unit value for the Division at the
close of business on the effective date of the variable payment plan. Class A
Accumulation Value purchases Class A Annuity Units and Class B Accumulation
Value purchases Class B Annuity Units. The number of Annuity Units will not be
changed by any subsequent change in the dollar value of Annuity Units.
SUBSEQUENT VARIABLE PAYMENTS. The amount of each subsequent payment from each
Division under a variable payment plan will increase or decrease in accord with
the increase or decrease in the value of an Annuity Unit which reflects the
investment experience of that Division of the Separate Account.
The amount of subsequent variable payments is the sum of payments from each
Division, each determined by multiplying the fixed number of Annuity Units for
the Division by the value of an Annuity Unit for the Division on:
- the fifth Valuation Date prior to the payment due date if the payment
due date is a Valuation Date; or
- the sixth Valuation Date prior to the payment due date if the payment
due date is not a Valuation Date.
11.5 TRANSFERS INVOLVING VARIABLE PAYMENT PLANS
A beneficiary receiving payments under a variable payment plan may transfer
Annuity Units from one Division to another. Any transfers of Class A Annuity
Units purchase Class A Annuity Units. Any transfers of Class B Annuity Units
purchase Class B Annuity Units. The number of Annuity Units in each Division
will be adjusted to reflect the respective value of the Annuity Units in the
Divisions on the date the transfer is effective.
A Transfer Fee may be deducted from the amount transferred. The amount of the
Transfer Fee is shown on page 4. Transfers from the Money Market Division may be
made at any time. No transfer from the other Divisions may be made within 90
days of the effective date of a variable payment plan or within 90 days from the
effective date of the last transfer.
65
A beneficiary receiving payments under a variable payment plan may transfer from
an Installment Income Plan (Option B) to either form of the Life Income Plan
(Option C or E). Other transfers may be permitted subject to conditions set by
the Company.
A transfer will be effective on the Valuation Date on which a satisfactory
transfer request is received in the Home Office, or a later date if requested.
However, the transfer will be effective on the following Valuation Date if the
request is received at the Home Office either:
- on a Valuation Date after the close of trading on the New York Stock
Exchange; or
- on a day on which the New York Stock Exchange is closed.
11.6 WITHDRAWAL UNDER PAYMENT PLANS
Withdrawal of the present value of any unpaid income payments may be elected at
any time by the beneficiary, except that withdrawal may not be elected under a
Life Income Plan (Option C or E) until the death of all individuals upon whose
lives income payments depend.
The withdrawal value under the Installment Income Plan (Option B) will be the
present value of any unpaid payments, less any applicable Withdrawal Charge
under Section 7.4. The withdrawal value under a Life Income Plan (Option C or E)
will be the present value of any unpaid payments for the certain period with no
Withdrawal Charge.
For a fixed payment plan, the present value of any unpaid income payments will
be based on the rate of interest used to determine the amount of the payments.
For a variable payment plan, the present value of any unpaid income payments
will be based on interest at the Assumed Investment Rate used in calculating the
amount of the variable payments. The amount of variable payments used in
calculating the present value of unpaid payments will be determined by
multiplying the number of Annuity Units by the value of an Annuity Unit on the
effective date of withdrawal.
A withdrawal will be effective on the Valuation Date on which the request is
received in the Home Office. However, the withdrawal will be effective on the
following Valuation Date if the request is received at the Home Office either:
- on a Valuation Date after the close of trading on the New York Stock
Exchange; or
- on a day on which the New York Stock Exchange is closed.
11.7 NAMING AND CHANGING OF BENEFICIARIES UNDER PAYMENT PLANS
FOR PAYMENT PLANS ELECTED BY OWNER. If the Owner of the contract elected a
payment plan, a direct beneficiary may name and change the contingent
beneficiaries and further payees of the direct beneficiary's share of the
benefits only if:
- the direct beneficiary was the Owner of the contract; or
- no contingent beneficiary or further payee of that share is living.
FOR PAYMENT PLANS ELECTED BY DIRECT BENEFICIARY. If the direct beneficiary
elected the payment plan, the direct beneficiary may name and change the
contingent beneficiaries and further payees of the direct beneficiary's share of
the benefits.
11.8 SUCCESSION IN INTEREST OF BENEFICIARIES UNDER PAYMENT PLANS
66
DIRECT BENEFICIARY. Amounts payable under a payment plan will be payable to the
direct beneficiary.
CONTINGENT BENEFICIARIES. At the death of the direct beneficiary, the present
value of any unpaid payments under a payment plan, will be payable in equal
shares to the contingent beneficiaries who survive and receive payment. If a
contingent beneficiary dies before receiving all or part of the contingent
beneficiary's full share, the unpaid portion will be payable in equal shares to
the other contingent beneficiaries who survive and receive payment.
FURTHER PAYEES. At the death of all direct and contingent beneficiaries, the
present value of any unpaid payments under a payment plan, will be paid in one
sum:
- In equal shares to the further payees who survive and receive payment;
or
- If no further payees survive and receive payment, to the estate of the
last to die of all beneficiaries.
67
11.9 PAYMENT PLAN RATES
PAYMENT RATE TABLES. The guaranteed monthly payment rates for both a fixed
payment plan and the first payment under a variable payment plan are shown in
the Payment Rate Tables. The tables show rates for the Installment Income Plan
for a Specified Period (Option B) and Life Income Plans (Options C and E). Life
Income Plan (Option C or E) rates are based on the sex and adjusted age of any
individual upon whose life payments depend. The adjusted age is:
- the age on the birthday that is nearest to the date on which the
payment plan takes effect; plus
- the age adjustment shown below for the number of Contract Years that
have elapsed from the Issue Date to the date that the payment plan
takes effect. A part of a Contract Year is counted as a full year.
CONTRACT YEARS CONTRACT YEARS
ELAPSED AGE ADJUSTMENT ELAPSED AGE ADJUSTMENT
1 to 8 0 33 to 40 -4
9 to 16 -1 41 to 48 -5
17 to 24 -2 49 or more -6
25 to 32 -3
CURRENT FIXED PAYMENT PLAN RATES
- INSTALLMENT INCOME FOR SPECIFIED PERIOD (OPTION B). The Company may
offer fixed payment plan rates higher than those guaranteed in this
contract with conditions on withdrawal.
- LIFE INCOME PLANS (OPTION C OR E). Payments will be based on rates
declared by the Company that will not be less than the rates guaranteed
in this contract. The declared rates will provide at least as much
income as would the Company's rates, on the date that the payment plan
takes effect, for a single premium immediate annuity contract.
ALTERNATE VARIABLE RATE BASIS. The Company may from time to time publish higher
initial rates for variable payment plans under this contract. These higher rates
will not be available to increase payments under payment plans already in
effect.
When a variable payment plan is effective on an alternate rate basis, the Daily
Adjustment Factor described in Section 11.3 will be determined based on the
Assumed Investment Rate used in calculating the alternate payment rate.
68
PAYMENT RATE TABLES
MONTHLY INCOME PAYMENTS PER $1,000 BENEFITS
FIRST PAYMENT UNDER VARIABLE PAYMENT PLAN
INSTALLMENT INCOME PLANS (OPTION B)
------------------- ----------------- ----------------- ----------------- ----------------- -----------------
PERIOD MONTHLY PERIOD MONTHLY PERIOD MONTHLY
(YEARS) PAYMENT (YEARS) PAYMENT (YEARS) PAYMENT
------------------- ----------------- ----------------- ----------------- ----------------- -----------------
Years 1-4 11 $ 9.09 21 $ 5.56
Not Available 12 8.46 22 5.39
13 7.94 23 5.24
14 7.49 24 5.09
5 18.12 15 7.10 25 4.96
6 15.35 16 6.76 26 4.84
7 13.38 17 6.47 27 4.73
8 11.90 18 6.20 28 4.63
9 10.75 19 5.97 29 4.53
10 9.83 20 5.75 30 4.45
------------------- ----------------- ----------------- ----------------- ----------------- -----------------
GUARANTEED FIXED PAYMENT PLANS
INSTALLMENT INCOME PLANS (OPTION B)
------------------- ----------------- ----------------- ----------------- ----------------- -----------------
PERIOD MONTHLY PERIOD MONTHLY PERIOD MONTHLY
(YEARS) PAYMENT (YEARS) PAYMENT (YEARS) PAYMENT
------------------- ----------------- ----------------- ----------------- ----------------- -----------------
Years 1-4 11 $ 8.42 21 $ 4.85
Not Available 12 7.80 22 4.67
13 7.26 23 4.51
14 6.81 24 4.36
5 17.49 15 6.42 25 4.22
6 14.72 16 6.07 26 4.10
7 12.74 17 5.77 27 3.98
8 11.25 18 5.50 28 3.87
9 10.10 19 5.26 29 3.77
10 9.18 20 5.04 30 3.68
------------------- ----------------- ----------------- ----------------- ----------------- -----------------
XX.X.X.XX. (032000)
69
PAYMENT RATE TABLES
MONTHLY INCOME PAYMENTS PER $1,000 BENEFITS
GUARANTEED FIXED PAYMENT OR FIRST PAYMENT UNDER VARIABLE PAYMENT PLAN
LIFE INCOME PLAN (OPTION C)
----------------------------------------------------------------------------------
SINGLE LIFE MONTHLY PAYMENTS
----------------------------------------------------------------------------------
CHOSEN PERIOD (YEARS)
ADJUSTED -------------------- ------------------- --------------------
AGE* ZERO 10 20
-------------------- -------------------- ------------------- --------------------
55 $ 4.11 $ 4.09 $ 4.01
56 4.18 4.15 4.07
57 4.25 4.22 4.13
58 4.33 4.29 4.18
59 4.40 4.36 4.24
60 4.49 4.45 4.30
61 4.58 4.53 4.37
62 4.68 4.61 4.43
63 4.77 4.71 4.50
64 4.89 4.81 4.57
65 5.01 4.92 4.64
66 5.13 5.03 4.72
67 5.26 5.15 4.78
68 5.41 5.27 4.85
69 5.57 5.40 4.93
70 5.74 5.55 5.00
71 5.92 5.69 5.07
72 6.12 5.84 5.13
73 6.33 6.00 5.20
74 6.55 6.17 5.26
75 6.79 6.35 5.32
76 7.06 6.53 5.37
77 7.34 6.72 5.41
78 7.65 6.90 5.46
79 7.98 7.10 5.50
80 8.34 7.30 5.53
81 8.73 7.49 5.56
82 9.15 7.68 5.59
83 9.60 7.88 5.61
84 10.09 8.07 5.62
85 and over 10.61 8.24 5.63
-------------------- -------------------- ------------------- --------------------
LIFE INCOME PLAN (OPTION E)
------------------ ----------------------------------------------------------------------------------------------
JOINT AND SURVIVOR MONTHLY PAYMENTS (with 10 years certain)
------------------ ----------------------------------------------------------------------------------------------
YOUNGER LIFE ADJUSTED AGE*
OLDER LIFE ----------------------------------------------------------------------------------------------
ADJUSTED AGE* 55 60 65 70 75 80 85 and over
------------------ ------------ ------------- ------------ ------------ ------------- ------------ --------------
55 $ 3.75
60 3.83 $ 4.02
65 3.90 4.13 $ 4.39
70 3.94 4.22 4.54 $ 4.89
75 3.98 4.28 4.65 5.10 $ 5.59
80 4.00 4.32 4.73 5.24 5.86 $ 6.51
85 and over 4.01 4.34 4.77 5.34 6.04 6.84 $ 7.58
------------------ ------------ ------------- ------------ ------------ ------------- ------------ --------------
*See Section 11.7
The amount of the payment for any other combination of ages will be furnished by
the Company on request. The maximum initial monthly income per $1,000 will be
$7.75.
Monthly payment rates are based on an Assumed Investment Rate of 3 1/2%
and the 1983 Table a with Projection Scale G.
70
AMENDMENT OF CONTRACT TO QUALIFY AS ANNUITY
AS OF THE ISSUE DATE, THIS AMENDMENT IS MADE A PART OF THIS ANNUITY
CONTRACT ISSUED BY THE NORTHWESTERN MUTUAL LIFE INSURANCE COMPANY.
NOTWITHSTANDING ANY OTHER SPECIFIC PROVISIONS IN THIS CONTRACT TO THE CONTRARY
AND SUBJECT TO THE TAX QUALIFICATION PROVISIONS HEREIN, THIS CONTRACT IS AMENDED
TO RESTRICT THE EXERCISE OF THE RIGHTS OF THE OWNER OR ANNUITANT AND ANY
BENEFICIARY AS FOLLOWS:
1. Required Distributions.
a. If any Owner dies on or after the annuity starting date and
before entire interest in this contract has been distributed,
the remaining portion of such interest shall be distributed at
least as rapidly as under the method of distribution being
used as of the date of the Owner's death.
b. If any Owner dies before the annuity starting date, the
entire interest in this contract shall be distributed within
five years after the Owner's death.
c. For purposes of paragraphs a and b, if any portion of the
Owner's interest in this contract is payable to or for the
benefit of a designated beneficiary and such designated
beneficiary timely elects to have such portion distributed
over a period not exceeding the life or life expectancy of
such designated beneficiary in distributions that begin within
one year of the Owner's death, such portion shall be treated
as distributed entirely on the date such distributions begin.
d. For purposes of paragraphs a and b, if any portion of the
Owner's interest in the contract is payable to or for the
benefit of a designated beneficiary who is the Owner's
surviving spouse, such spouse shall be treated as the Owner
and, absent a contrary designation by such spouse, as a
contingent annuitant with respect to such portion.
e. For purposes of paragraphs a. and b., if the Owner is not an
individual, the primary annuitant under the contract shall be
treated as the Owner, any change in the primary annuitant
shall be treated as the death of the Owner and any designation
of a beneficiary by the Owner shall be deemed to be a
designation of the same beneficiary by the primary annuitant.
The primary annuitant is the individual, the events in the
life of whom are of primary importance in affecting the timing
or amount of the payout under the contract.
71
f. For purposes of this section, a "designated beneficiary" is
any individual designated by the Owner as a beneficiary,
including a co-owner or successor owner who succeeds to any
portion of a deceased owner's interest upon death.
g. For purposes of this section, "annuity starting date" is the
first day of the first period for which periodic annuity
payments are made under the contract.
2. Tax Qualification.
This contract is intended to qualify as an annuity contract for federal
income tax purposes. To that end, the provisions of this contract,
including any amendment, endorsement or rider, are to be interpreted to
ensure or maintain any such tax qualification, despite any other
provision to the contrary (including the provisions of any amendment,
endorsement or rider that do not expressly override these tax
qualification provisions). The Company reserves the right to amend this
contract at any time to reflect any clarification that may be needed or
may be appropriate to maintain any such tax qualification or to conform
the contract to any applicable changes in the tax qualification
requirements.
(signed)
SECRETARY
THE NORTHWESTERN MUTUAL LIFE
INSURANCE COMPANY
72
IT IS RECOMMENDED THAT YOU...
read your contract.
notify your Northwestern Mutual agent or the Company at 000 Xxxx Xxxxxxxxx
Xxxxxx, Xxxxxxxxx, XX 00000, of an address change.
call your Northwestern Mutual agent for information--particularly on a
suggestion to terminate or exchange this contract for another contract or plan.
ELECTION OF TRUSTEES
The members of The Northwestern Mutual Life Insurance Company are its
policyholders of insurance policies and deferred annuity contracts. The members
exercise control through a Board of Trustees. Elections to the Board are held
each year at the annual meeting of members. Members are entitled to vote in
person or by proxy.
FLEXIBLE PAYMENT VARIABLE ANNUITY - ACCOUNT B
AMOUNTS ALLOCATED TO THE SEPARATE ACCOUNT DIVISIONS AND VARIABLE PAYMENTS
PROVIDED BY THIS CONTRACT ARE NOT GUARANTEED AS TO FIXED DOLLAR AMOUNT BUT ARE
VARIABLE AND MAY INCREASE OR DECREASE TO REFLECT THE INVESTMENT EXPERIENCE OF
THE SEPARATE ACCOUNT.
73
Exhibit B(4)(b)
PAYMENT RATE TABLES
MONTHLY INCOME PAYMENTS PER $1,000 BENEFITS
GUARANTEED FIXED PAYMENT OR FIRST PAYMENT UNDER VARIABLE PAYMENT PLAN
LIFE INCOME PLAN (OPTION C)
----------------------------------------------------------------------------------------------------------------------
SINGLE LIFE MONTHLY PAYMENTS
----------------------------------------------------------------------------------------------------------------------
MALE ADJUSTED FEMALE
AGE* CHOSEN PERIOD (YEARS) ADJUSTED AGE* CHOSEN PERIOD (YEARS)
---------------- ------------------------------------------- ------------- -------------------------------------------
ZERO 10 20 ZERO 10 20
---------------- -------------- ------------- -------------- ------------- -------------- -------------- -------------
55 $ 4.41 $ 4.36 $ 4.23 55 $ 4.04 $ 4.02 $ 3.96
56 4.49 4.44 4.29 56 4.10 4.08 4.01
57 4.58 4.52 4.35 57 4.17 4.14 4.07
58 4.67 4.60 4.41 58 4.24 4.21 4.12
59 4.77 4.69 4.47 59 4.31 4.28 4.18
60 4.87 4.79 4.54 60 4.39 4.36 4.24
61 4.98 4.89 4.60 61 4.48 4.44 4.31
62 5.10 4.99 4.67 62 4.57 4.52 4.37
63 5.23 5.11 4.74 63 4.66 4.61 4.44
64 5.36 5.22 4.81 64 4.77 4.71 4.51
65 5.51 5.35 4.87 65 4.88 4.81 4.58
66 5.67 5.47 4.94 66 5.00 4.92 4.66
67 5.84 5.61 5.00 67 5.12 5.03 4.73
68 6.02 5.75 5.07 68 5.26 5.15 4.80
69 6.21 5.89 5.13 69 5.41 5.28 4.88
70 6.41 6.05 5.19 70 5.57 5.42 4.95
71 6.63 6.20 5.25 71 5.74 5.56 5.02
72 6.86 6.36 5.30 72 5.93 5.71 5.09
73 7.11 6.53 5.35 73 6.13 5.87 5.16
74 7.37 6.70 5.39 74 6.34 6.04 5.23
75 7.65 6.87 5.44 75 6.58 6.22 5.29
76 7.96 7.05 5.47 76 6.83 6.40 5.34
77 8.28 7.23 5.51 77 7.11 6.59 5.39
78 8.63 7.40 5.54 78 7.40 6.78 5.44
79 9.01 7.58 5.56 79 7.72 6.98 5.48
80 9.41 7.76 5.59 80 8.07 7.18 5.52
81 9.84 7.93 5.61 81 8.45 7.38 5.55
82 10.30 8.10 5.62 82 8.86 7.58 5.58
83 10.79 8.27 5.63 83 9.30 7.78 5.60
84 11.31 8.42 5.64 84 9.78 7.98 5.62
85 and over 11.87 8.57 5.65 85 and over 10.30 8.16 5.63
---------------- -------------- ------------- -------------- ------------- -------------- -------------- -------------
LIFE INCOME PLAN (OPTION E)
------------------ ----------------------------------------------------------------------------------------------
JOINT AND SURVIVOR MONTHLY PAYMENTS (with 10 years certain)
------------------ ----------------------------------------------------------------------------------------------
FEMALE ADJUSTED AGE*
MALE -------------------------------------------------------------------------------
ADJUSTED AGE* 55 60 65 70 75 80 85 and over
------------------ ------------ ------------- ------------ ------------ ------------- ------------ --------------
55 $ 3.75 $ 3.89 $ 4.02 $ 4.14 $ 4.23 $ 4.29 $4.33
60 3.83 4.02 4.21 4.39 4.54 4.65 4.73
65 3.90 4.13 4.39 4.65 4.89 5.09 5.22
70 3.94 4.22 4.54 4.89 5.26 5.58 5.81
75 3.98 4.28 4.65 5.10 5.59 6.07 6.45
80 4.00 4.32 4.73 5.24 5.86 6.51 7.07
85 and over 4.01 4.34 4.77 5.34 6.04 6.84 7.58
------------------ ------------ ------------- ------------ ------------ ------------- ------------ --------------
*See Section 11.7
The amount of the payment for any other combination of ages will be furnished by
the Company on request. The maximum initial monthly income per $1,000 will be
$7.75.
Monthly payment rates are based on an Assumed Investment Rate of 3 1/2% and the
1983 Table a with Projection Scale G.
74
Exhibit B(4)(C)
ENHANCED DEATH BENEFIT
AS OF THE ISSUE DATE, THIS AMENDMENT IS MADE PART OF THIS ANNUITY CONTRACT
ISSUED BY THE NORTHWESTERN MUTUAL LIFE INSURANCE COMPANY. IN THE CASE OF A
CONFLICT WITH ANY PROVISIONS IN THE CONTRACT, THE PROVISIONS OF THIS AMENDMENT
WILL CONTROL.
SECTION 5.2 AND SECTION 5.3 ARE AMENDED IN THEIR ENTIRETY TO READ AS FOLLOWS:
SECTION 5.2 DEATH BENEFIT IF PRIMARY ANNUITANT IS AN OWNER
IF THE PRIMARY ANNUITANT IS AN OWNER, THE BENEFICIARY BECOMES ENTITLED TO THE
DEATH BENEFIT UPON RECEIPT AT THE HOME OFFICE OF SATISFACTORY PROOF OF THE DEATH
OF THE PRIMARY ANNUITANT BEFORE THE MATURITY DATE. THE DEATH BENEFIT WILL BE THE
GREATER OF:
- THE ACCUMULATION VALUE OF THE CONTRACT ON THE EFFECTIVE DATE; OR
- THE ENHANCED DEATH BENEFIT.
AS OF THE EFFECTIVE DATE, THE ACCUMULATION VALUE OF THE CONTRACT WILL BE SET AT
AN AMOUNT EQUAL TO THE DEATH BENEFIT. UNLESS A PAYMENT PLAN WAS ELECTED BY THE
OWNER, THE BENEFICIARY BECOMES THE OWNER AND ANNUITANT OF THE CONTRACT. HOWEVER,
IF THE BENEFICIARY IS NOT A NATURAL PERSON AND NO PAYMENT PLAN WAS ELECTED BY
THE OWNER, THE BENEFICIARY MAY SELECT A NATURAL PERSON TO BE THE ANNUITANT. IF A
NATURAL PERSON IS NOT SELECTED TO BE THE ANNUITANT WITHIN 60 DAYS OF THE DATE ON
WHICH PROOF OF DEATH OF THE ANNUITANT IS RECEIVED AT THE HOME OFFICE, THE
ACCUMULATION VALUE WILL BE DISTRIBUTED TO THE BENEFICIARY.
IF A BENEFICIARY BECOMES ENTITLED TO THE DEATH BENEFIT IN AN AMOUNT LESS THAN
THE MINIMUM ACCUMULATION VALUE SHOWN ON PAGE 4, THE ACCUMULATION VALUE WILL BE
DISTRIBUTED TO THE BENEFICIARY.
THE CASH VALUE OF ANY AMOUNT DISTRIBUTED WILL BE THE ACCUMULATION VALUE
WITHDRAWN AS OF THE DATE OF WITHDRAWAL AS DETERMINED IN SECTION 4.6.
ENHANCED DEATH BENEFIT. PRIOR TO THE FIRST CONTRACT ANNIVERSARY, THE ENHANCED
DEATH BENEFIT WILL EQUAL THE TOTAL PURCHASE PAYMENTS PAID UNDER THE CONTRACT
LESS ANY AMOUNTS WITHDRAWN UNDER SECTION 4.5.
ON THE FIRST CONTRACT ANNIVERSARY AND ON EACH SUBSEQUENT CONTRACT ANNIVERSARY
PRIOR TO THE PRIMARY ANNUITANT'S 80TH BIRTHDAY, THE ENHANCED DEATH BENEFIT WILL
EQUAL THE GREATER OF:
- THE ACCUMULATION VALUE OF THE CONTRACT ON THAT CONTRACT ANNIVERSARY;
OR
- THE ENHANCED DEATH BENEFIT ON THE MOST RECENT VALUATION DATE PRIOR TO
THAT CONTRACT ANNIVERSARY.
On any other Valuation Date prior to the Primary Annuitant's 80th
birthday, the Enhanced Death Benefit will be equal to the Enhanced
Death Benefit on the most recent contract anniversary, increased by any
Purchase Payments paid since that contract anniversary and
75
decreased by any amounts withdrawn under Section 4.5 since that
contract anniversary.
On any Valuation Date on or after the Primary Annuitant's 80th
birthday, the Enhanced Death Benefit will equal the Enhanced Death
Benefit on the contract anniversary immediately prior to the Primary
Annuitant's 80th birthday increased by any Purchase Payments paid since
that contract anniversary and decreased by any amounts withdrawn under
Section 4.5 since that contract anniversary.
ENHANCED DEATH BENEFIT CHARGE. ON EACH CONTRACT ANNIVERSARY WHILE THIS AMENDMENT
IS IN EFFECT, A CHARGE FOR THE ENHANCED DEATH BENEFIT WILL BE DEDUCTED FROM THE
INVESTMENT ACCOUNTS IN PROPORTION TO THE ACCUMULATION VALUE OF THE INVESTMENT
ACCOUNTS. THE CHARGE IS SHOWN ON PAGE 4.
EFFECTIVE DATE. THE EFFECTIVE DATE IS THE DATE ON WHICH PROOF OF DEATH IS
RECEIVED AT THE HOME OFFICE. HOWEVER, THE EFFECTIVE DATE WILL BE THE NEXT
FOLLOWING VALUATION DATE IF THE PROOF OF DEATH IS RECEIVED AT THE HOME OFFICE
EITHER:
- ON A VALUATION DATE AFTER THE CLOSE OF TRADING ON THE NEW YORK STOCK
EXCHANGE; OR
- ON A DAY ON WHICH THE NEW YORK STOCK EXCHANGE IS CLOSED.
TERMINATION OF ENHANCED DEATH BENEFIT. THIS AMENDMENT WILL REMAIN IN EFFECT
UNTIL MATURITY UNLESS THE OWNER REQUESTS THAT IT BE REMOVED, THE CONTRACT
TERMINATES, OR THE PRIMARY ANNUITANT DIES. ONCE THE AMENDMENT IS REMOVED, IT
CANNOT BE ADDED AGAIN. THE PROVISIONS OF SECTION 5.2 IN THE CONTRACT ARE
APPLICABLE IF THIS AMENDMENT TERMINATES.
SECTION 5.3 DEATH BENEFIT IF PRIMARY ANNUITANT IS NOT AN OWNER
IF THE PRIMARY ANNUITANT IS NOT AN OWNER, UPON THE DEATH OF THE PRIMARY
ANNUITANT, THE CONTRACT CONTINUES WITH THE CONTINGENT ANNUITANT (SECTION 6.5) AS
THE NEW ANNUITANT. THE DEATH BENEFIT WILL BE THE GREATER OF:
- THE ACCUMULATION VALUE OF THE CONTRACT ON THE EFFECTIVE DATE; OR
- THE ENHANCED DEATH BENEFIT.
AS OF THE EFFECTIVE DATE, THE ACCUMULATION VALUE OF THE CONTRACT WILL BE SET AT
AN AMOUNT EQUAL TO THE DEATH BENEFIT.
ENHANCED DEATH BENEFIT. PRIOR TO THE FIRST CONTRACT ANNIVERSARY, THE ENHANCED
DEATH BENEFIT WILL EQUAL THE TOTAL PURCHASE PAYMENTS PAID UNDER THE CONTRACT
LESS ANY AMOUNTS WITHDRAWN UNDER SECTION 4.5.
ON THE FIRST CONTRACT ANNIVERSARY AND ON EACH SUBSEQUENT CONTRACT ANNIVERSARY
PRIOR TO THE PRIMARY ANNUITANT'S 80TH BIRTHDAY, THE ENHANCED DEATH BENEFIT WILL
EQUAL THE GREATER OF:
- THE ACCUMULATION VALUE OF THE CONTRACT ON THAT CONTRACT ANNIVERSARY;
OR
- THE ENHANCED DEATH BENEFIT ON THE MOST RECENT VALUATION DATE PRIOR TO
THAT CONTRACT ANNIVERSARY.
76
On any other Valuation Date prior to the Primary Annuitant's 80th
birthday, the Enhanced Death Benefit will be equal to the Enhanced
Death Benefit on the most recent contract anniversary, increased by any
Purchase Payments paid since that contract anniversary and decreased by
any amounts withdrawn under Section 4.5 since that contract
anniversary.
On any Valuation Date on or after the Primary Annuitant's 80th
birthday, the Enhanced Death Benefit will equal the Enhanced Death
Benefit on the contract anniversary immediately prior to the Primary
Annuitant's 80th birthday increased by any Purchase Payments paid since
that contract anniversary and decreased by any amounts withdrawn under
Section 4.5 since that contract anniversary.
ENHANCED DEATH BENEFIT CHARGE. ON EACH CONTRACT ANNIVERSARY WHILE THIS AMENDMENT
IS IN EFFECT, A CHARGE FOR THE ENHANCED DEATH BENEFIT WILL BE DEDUCTED FROM THE
INVESTMENT ACCOUNTS IN PROPORTION TO THE ACCUMULATION VALUE OF THE INVESTMENT
ACCOUNTS. THE CHARGE IS SHOWN ON PAGE 4.
EFFECTIVE DATE. THE EFFECTIVE DATE IS THE DATE ON WHICH PROOF OF DEATH IS
RECEIVED AT THE HOME OFFICE. HOWEVER, THE EFFECTIVE DATE WILL BE THE NEXT
FOLLOWING VALUATION DATE IF THE PROOF OF DEATH IS RECEIVED AT THE HOME OFFICE
EITHER:
- ON A VALUATION DATE AFTER THE CLOSE OF TRADING ON THE NEW YORK STOCK
EXCHANGE; OR
- ON A DAY ON WHICH THE NEW YORK STOCK EXCHANGE IS CLOSED.
TERMINATION OF ENHANCED DEATH BENEFIT. THIS AMENDMENT WILL REMAIN IN EFFECT
UNTIL MATURITY UNLESS THE OWNER REQUESTS THAT IT BE REMOVED, THE CONTRACT
TERMINATES, OR THE PRIMARY ANNUITANT DIES. ONCE THE AMENDMENT IS REMOVED IT
CANNOT BE ADDED AGAIN. THE PROVISIONS OF SECTION 5.3 IN THE CONTRACT ARE
APPLICABLE IF THIS AMENDMENT TERMINATES.
(SIGNED)
SECRETARY
THE NORTHWESTERN MUTUAL LIFE
INSURANCE COMPANY
77
Exhibit B(4)(d)
WAIVER OF WITHDRAWAL CHARGE
AS OF THE ISSUE DATE, THIS AMENDMENT IS MADE PART OF THIS ANNUITY CONTRACT
ISSUED BY THE NORTHWESTERN MUTUAL LIFE INSURANCE COMPANY. IN THE CASE OF A
CONFLICT WITH ANY PROVISIONS IN THE CONTRACT, THE PROVISIONS OF THIS AMENDMENT
WILL CONTROL. THE FOLLOWING PROVISIONS ARE HEREBY ADDED TO THE CONTRACT:
1. TERMINAL ILLNESS BENEFIT
WITHDRAWAL CHARGES WILL BE WAIVED IF THE PRIMARY ANNUITANT HAS A TERMINAL
ILLNESS.
A TERMINAL ILLNESS IS AN ILLNESS THAT IS EXPECTED TO RESULT IN THE DEATH OF
THE PRIMARY ANNUITANT IN 12 MONTHS OR LESS. AN OWNER REQUESTING WAIVER OF
WITHDRAWAL CHARGES IS REQUIRED TO PROVIDE PROOF, SATISFACTORY TO THE
COMPANY, OF THE PRIMARY ANNUITANT'S TERMINAL ILLNESS. THE PROOF MUST
INCLUDE A CERTIFICATION FROM A LICENSED PHYSICIAN STATING THAT THE PRIMARY
ANNUITANT'S LIFE EXPECTANCY IS 12 MONTHS OR LESS. NO WITHDRAWAL CHARGES
WILL BE WAIVED IF THE DETERMINATION THAT THE PRIMARY ANNUITANT'S LIFE
EXPECTANCY IS 12 MONTHS OR LESS WAS FIRST MADE PRIOR TO THE ISSUE DATE.
No Purchase Payments can be made to the contract once proof of terminal
illness is provided to the Company.
2. NURSING HOME BENEFIT
Withdrawal charges will be waived after the first Contract Year if:
- the Primary Annuitant is confined, on a 24 hour per day basis, to a
Nursing Home or Hospital for a period of at least 90 consecutive
days; and
- such confinement is medically necessary.
A Nursing Home is a facility that is licensed by the jurisdiction in which
it is located to provide nursing care (skilled, intermediate or custodial).
A Hospital is a facility that is licensed as a hospital by the jurisdiction
in which it is located, and operates primarily for the diagnosis and
treatment of and medical or surgical care of sick or injured persons.
78
An Owner requesting waiver of withdrawal charges is required to provide
proof, satisfactory to the Company, of the Primary Annuitant's confinement.
The proof must include a certification from a licensed physician that the
confinement is medically necessary. No withdrawal charges will be waived if
the confinement began before the Issue Date. A request for waiver of
withdrawal charges must be made no later than 90 days following the date
the Primary Annuitant's confinement ended.
No Purchase Payments can be made to the contract once proof of confinement
is provided to the Company.
(signed)
Secretary
The Northwestern Mutual Life
Insurance Company
79
EXHIBIT B(5)
A APPLICATION FOR DEFERRED ANNUITY
THE NORTHWESTERN MUTUAL LIFE INSURANCE COMPANY
000 X. Xxxxxxxxx Xxxxxx Xxxxxxxxx, Xxxxxxxxx 00000
Contract Number
|
|
--------------------------------------------------------------------------------
1. OTHER POLICIES
--------------------------------------------------------------------------------
Has a Northwestern Mutual Policy ever been issued on the annuitant's life?
[ ] YES, THE LAST POLICY NUMBER IS: __________________ [ ] NO
--------------------------------------------------------------------------------
2. ANNUITANT
--------------------------------------------------------------------------------
Name: First, MI, Last Sex Birthdate: mm-dd-yyyy
| | |
|____________________________________________|_______|_____________________
Street Address City, State, Zip
| |
|____________________________________________|_____________________________
Country, if other than US Taxpayer ID Number E-mail Address
| | |
|_________________________________|____________________|___________________
--------------------------------------------------------------------------------
3. MARKET
--------------------------------------------------------------------------------
Select one:
[ ] NON-TAX QUALIFIED } Owner must be indicated.
[ ] 457 DEFERRED COMPENSATION PLAN } Go to section 4.
[ ] TRADITIONAL IRA
[ ] XXXX XXX } If the annuitant is a minor, go to section 4;
[ ] SIMPLE IRA } otherwise the annuitant is the
[ ] SIMPLIFIED EMPLOYEE PENSION PLAN IRA (SEP) } owner, go to section 5.
[ ] 403(b) TDA - EMPLOYEE SALARY REDUCTION ONLY
[ ] 403(b) TDA - EMPLOYER MATCHING OR NON-ELECTIVE CONTRIBUTIONS INCLUDED } The annuitant is the owner.
[ ] 401(g) NON-TRANSFERABLE ANNUITY } Go to section 5.
[ ] PENSION & PROFIT SHARING:
Trust Number Taxpayer ID Number
| |
|________________|________________________________ } The owner and beneficiary
} are the trustees of the plan.
Name of Owner - Trustees of } Go to section 6.
| |
|________________|________________________________
80
--------------------------------------------------------------------------------
4. OWNER
--------------------------------------------------------------------------------
A minor owner limits future contract actions.
Select one:
[ ] ANNUITANT } Go to section 5.
[ ] SEE ATTACHMENT
[ ] UGMA/UTMA - custodian is owner for the benefit of minor
[ ] CORPORATION OR TRUST } Enter information below.
[ ] OTHER
Name: First, MI, Last/Corporation/Trust Sex Birthdate: mm-dd-yyyy
| | |
|____________________________________________|______|_____________________
Street Address City, State, Zip
| |
|____________________________________________|____________________________
Relationship to Annuitant Taxpayer ID Number E-mail Address
| | |
|____________________________|______________________|_____________________
Date of Trust Name of Trustees
| |
|__________________|______________________________________________________
--------------------------------------------------------------------------------
5. BENEFICIARY
--------------------------------------------------------------------------------
Cannot be annuitant unless "Estate of Annuitant" named.
[ ] SEE ATTACHMENT - Go to section 6.
DIRECT BENEFICIARY: [ ] OWNER [ ] OTHER - Enter information below:
Name Taxpayer ID Number (Optional) Relationship %
| | | |
|________________|_______________________________|_________________|______
Name Taxpayer ID Number (Optional) Relationship %
| | | |
|________________|_______________________________|_________________|______
CONTINGENT BENEFICIARY:
Name Taxpayer ID Number (Optional) Relationship %
| | | |
|________________|_______________________________|_________________|______
Name Taxpayer ID Number (Optional) Relationship %
| | | |
|________________|_______________________________|_________________|______
[ ] And all (other) children of the Annuitant.
--------------------------------------------------------------------------------
6. REPLACEMENT
--------------------------------------------------------------------------------
As a result of this purchase, will the values or benefits of any other life
insurance policy or annuity contract, on any life, be affected in any way?
[ ] YES [ ] NO
Note to Agent: Values or benefits are affected if any question on the
Definition of Replacement Supplement could be answered "yes."
Will this annuity:
A. Replace Northwestern Mutual Life? [ ] YES [ ] NO
B. Replace other companies? [ ] YES [ ] NO
C. Result in 1035 exchange? [ ] YES [ ] NO
--------------------------------------------------------------------------------
7. PLAN
--------------------------------------------------------------------------------
Select one:
[ ] VARIABLE ANNUITY - Go to section V1.
[ ] FIXED ANNUITY - SINGLE PREMIUM RETIREMENT ANNUITY - Go to section F1.
81
VARIABLE ANNUITY SECTION
--------------------------------------------------------------------------------
V1. TYPE
--------------------------------------------------------------------------------
[ ] BACK-END DESIGN - Minimum initial purchase payment for non-tax qualified
market $5,000.
[ ] FRONT-END DESIGN - Minimum initial purchase payment $10,000.
The front-end design may provide better long term financial value than the back
end design. Factors to consider in making a decision include the expected
holding period of the annuity as well as anticipated liquidity needs.
--------------------------------------------------------------------------------
V2. OPTIONAL ENHANCED DEATH BENEFIT
--------------------------------------------------------------------------------
[ ] I ELECT THE ENHANCED DEATH BENEFIT RIDER.
There is an additional charge. Available to age 65. If this rider is not
elected, the standard death benefit will apply.
See prospectus for more information.
--------------------------------------------------------------------------------
V3. PAYMENT ALLOCATION AND OPTIONS
--------------------------------------------------------------------------------
A. PAYMENT ALLOCATION
You must indicate payment allocations. Use whole percentages. Total must
equal 100%.
FUNDS
%
|______ Select Bond
|______ Xxxxxxxxx International Equity
|______ Money Market
|______ Balanced
|______ Index 500 Stock
|______ Aggressive Growth Stock
|______ High Yield Bond
|______ Growth Stock
|______ XX Xxxxxx Select Growth & Income
|______ Index 400 Stock
|______ Small Cap Growth Stock
|______ Xxxxxx Multi-Style Equity
|______ Xxxxxxx Aggressive Equity
|______ Xxxxxxx Non-US
|______ Xxxxxxx Real Estate Securities
|______ Xxxxxxx Core Bond
|______ Asset Allocation
|______ International Growth Stock
|______ X Xxxx Price Small Cap Value
|______ Cap Guardian Domestic Equity
FIXED FUND
%
|______ Guaranteed Interest
Fund availability subject to state approval.
B. OPTIONS
You may select one of the following options:
[ ] AUTOMATIC DOLLAR-COST AVERAGING
Amount
|
I authorize |$ ________________________ to be transferred from the
Money Market Fund:
[ ] MONTHLY [ ] QUARTERLY
to the following funds:
% Fund Name
| |
|______ |_________________________________________________
| |
|______ |_________________________________________________
| |
|______ |_________________________________________________
| |
|______ |_________________________________________________
| |
|______ |_________________________________________________
| |
|______ |_________________________________________________
[ ] PORTFOLIO RE-BALANCING
Minimum contract value $10,000. Re-balancing transfers are not
made to or from the Guaranteed Interest Fund.
I authorize re-balancing transfers to be made according to the
elected Payment Allocations:
[ ] MONTHLY [ ] QUARTERLY
[ ] SEMI-ANNUALLY [ ] ANNUALLY
82
--------------------------------------------------------------------------------
V4. INITIAL PAYMENT
--------------------------------------------------------------------------------
METHOD OF PAYMENT
Select one: Amount
|$
[ ] CHECK ATTACHED |___________________ Estimated Amount
|$
[ ] CHECK COMING FROM ANOTHER INSTITUTION |___________________
[ ] ELECTRONIC FUNDS TRANSFER (ISA/EFT) - Complete section V5.
[ ] MULTIPLE CONTRACT BILL (MCB) - Required for Simple IRAs. Complete
section V5.
IRA INFORMATION
This section must be completed if an IRA market was selected in Section 3.
CAUTION: ACCURATE SELECTION IS NEEDED TO ASSURE CORRECT TAX REPORTING. For
advice, consult your tax professional. Select all that apply:
[ ] NEW CONTRIBUTIONS - Specify tax year:
Current Tax Year | Amount
____________________________|$__________________________
Prior Tax Year | Amount
____________________________|$__________________________
[ ] DIRECT TRANSFER - Check Payable to Northwestern Mutual Life for the
benefit of the contract owner.
Indicate the market the money is coming from. Select one:
[ ] TDA
[ ] PENSION/PROFIT SHARING/401K/DEFINED BENEFIT
[ ] TRADITIONAL IRA
[ ] XXXX XXX
[ ] SEP
[ ] SIMPLE IRA - THE OWNER HAS BEEN A PARTICIPANT IN THE
EMPLOYER'S SIMPLE plan for: [ ] TWO YEARS OR LESS
[ ] MORE THAN TWO YEARS
[ ] 60-DAY ROLLOVER - Personal check from owner or check endorsed to
Northwestern Mutual Life.
Only if applicable, also select one:
[ ] TRADITIONAL IRA TO XXXX XXX
[ ] SIMPLE IRA TO TRADITIONAL IRA- THE OWNER HAS BEEN A PARTICIPANT
IN THE EMPLOYER'S SIMPLE plan for: [ ] TWO YEARS OR LESS
[ ] MORE THAN TWO YEARS
83
| |
| |
Attach Voided Check
--------------------------------------------------------------------------------
V5. SCHEDULED PAYMENTS
--------------------------------------------------------------------------------
You may select either ISA/EFT or MCB.
ISA Number
[ ]
[ ]
[ ]
[ ] ELECTRONIC FUNDS TRANSFER (ISA/EFT)
You must attach a voided check.
Select one:
[ ] MONTHLY [ ] QUARTERLY
[ ] SEMI-ANNUALLY [ ] ANNUALLY
Amount Date of First Draft
| |
|$ |
__________________________________________________________________
Bank Transit Number Checking/Savings Account Number
| |
| |
__________________________________________________________________
Bank Name
[ ] CHECKING |
[ ] SAVINGS |
_____________________________________________
BANK ACCOUNT OWNER - Select one:
[ ] ANNUITANT [ ] OTHER- Enter information below:
Name: First, MI, Last Sex Birthdate: mm-dd-yyyy
| | |
| | |
______________________________________________________________________________
Street Address City, State, Zip
| |
| |
______________________________________________________________________________
Taxpayer ID Number Daytime Telephone Number
| |
| |
______________________________________________________________________________
Signature below is authorization to the depository institution specified above
to pay and charge named account with electronic funds transfers, or other form
of pre-authorized check or withdrawal order transfers, initiated by the
Northwestern Mutual Life Insurance Company to its own order. This authorization
will remain in effect until revoked in writing.
X
__________________________________________________________
Signature of Bank Account Owner
[ ] MULTIPLE CONTRACT BILL (MCB)
Amount MCB Number MCB Payer Name
| | |
|$ | |
______________________________________________________________________________
84
--------------------------------------------------------------------------------
SIGNATURES - VARIABLE ANNUITY
--------------------------------------------------------------------------------
THE ANNUITANT CONSENTS TO THIS APPLICATION.
EACH PERSON SIGNING THIS APPLICATION DECLARES THAT THE ANSWERS AND STATEMENTS
MADE IN THIS APPLICATION ARE CORRECTLY RECORDED, COMPLETE AND TRUE TO THE BEST
OF HIS OR HER KNOWLEDGE AND BELIEF.
IT IS UNDERSTOOD AND AGREED THAT:
If the Owner is a Trustee or successor Trustee under a tax qualified plan or the
employer under a tax qualified non-trusteed plan, Northwestern Mutual Life will
be fully discharged of liability for any action taken by the Owner in the
exercise of any contract right and for all amounts paid to, or at the direction
of, the Owner and will have no obligation as to the use of the amounts. In all
dealings with the Owner, Northwestern Mutual Life will be fully protected
against the claims of every other person.
The first purchase payment will be credited the valuation date coincident with
or next following the date both the application and the purchase payment are
received at the Home Office.
Receipt of purchase payments at a payment facility designated by Northwestern
Mutual Life will be considered the same as receipt at the Home Office.
If a Tax Qualified Employee Plan, an IRA or TDA is applied for, the Applicant
and/or Annuitant have received and reviewed the appropriate ERISA, IRA or TDA
disclosure statements.
BACK-END DESIGN VARIABLE ANNUITY CONTRACTS HAVE PROVISIONS FOR THE ASSESSMENT OF
SURRENDER CHARGES ON CASH WITHDRAWAL.
No agent is authorized to make or alter contracts or to waive the rights or
requirements of Northwestern Mutual Life.
I acknowledge receipt of the Prospectus or Offering Circular and Report and I
understand that all payments and values provided by this contract, when based on
the investment experience of a separate account, are variable and are not
guaranteed as to amount.
x x
_________________________________________________________________ ________________________________________________
Signature of Applicant (Indicate relationship below if applicable) Signature of Annuitant (if other than Applicant)
[ ] Trustee [ ] Employer
x
________________________________________________
Signature of Licensed Agent
Date Signed at: City County State
| | | |
| | | |
____________ _______________________________________ __________________________ ________
85
FIXED ANNUITY - SINGLE PREMIUM RETIREMENT ANNUITY SECTION
--------------------------------------------------------------------------------
F1. GUARANTEED PERIOD
--------------------------------------------------------------------------------
[ ]ONE YEAR [ ]THREE YEAR
--------------------------------------------------------------------------------
F2. PAYMENT
--------------------------------------------------------------------------------
METHOD OF PAYMENT
Select all that apply:
Amount
|
[ ]CHECK ATTACHED |$ ________________
Estimated Amount
|
[ ]CHECK COMING FROM ANOTHER INSTITUTION |$ __________________
IRA INFORMATION
This section must be completed if an IRA market was selected in Section 3.
CAUTION: ACCURATE SELECTION IS NEEDED TO ASSURE CORRECT TAX REPORTING. For
advice, consult your tax professional. Select one:
[ ] DIRECT TRANSFER - Check Payable to Northwestern Mutual Life for the
benefit of the contract owner.
Indicate the market the money is coming from. Select one:
[ ] TDA
[ ] PENSION/PROFIT SHARING/401K/DEFINED BENEFIT
[ ] TRADITIONAL IRA
[ ] XXXX XXX
[ ] SEP
[ ] SIMPLE IRA - The owner has been a participant in the employer's
SIMPLE plan for: [ ]TWO YEARS OR LESS
[ ]MORE THAN TWO YEARS
[ ]60-DAY ROLLOVER - Personal check from owner or check endorsed to
Northwestern Mutual Life.
Only if applicable, also select one:
[ ] TRADITIONAL IRA TO XXXX XXX
[ ] SIMPLE IRA TO TRADITIONAL IRA - The owner has been a participant
in the employer's SIMPLE plan for: [ ] TWO YEARS OR LESS
[ ] MORE THAN TWO YEARS
86
--------------------------------------------------------------------------------
SIGNATURES - FIXED ANNUITY - SINGLE PREMIUM RETIREMENT ANNUITY
--------------------------------------------------------------------------------
THE ANNUITANT CONSENTS TO THIS APPLICATION.
EACH PERSON SIGNING THIS APPLICATION DECLARES THAT THE ANSWERS AND STATEMENTS
MADE IN THIS APPLICATION ARE CORRECTLY RECORDED, COMPLETE AND TRUE TO THE BEST
OF HIS OR HER KNOWLEDGE AND BELIEF.
IT IS UNDERSTOOD AND AGREED THAT:
If the Owner is a Trustee or successor Trustee under a tax qualified plan or the
employer under a tax qualified non-trusteed plan, Northwestern Mutual Life will
be fully discharged of liability for any action taken by the Owner in the
exercise of any contract right and for all amounts paid to, or at the direction
of, the Owner and will have no obligation as to the use of the amounts. In all
dealings with the Owner, Northwestern Mutual Life will be fully protected
against the claims of every other person.
The premium will be credited the date both the entire premium and the
application are received at the Home Office.
Receipt of the premium at a payment facility designated by Northwestern Mutual
Life will be considered the same as receipt at the Home Office.
If a Tax Qualified Employee Plan, an IRA or TDA is applied for, the Applicant
and/or Annuitant have received and reviewed the appropriate ERISA, IRA or TDA
disclosure statements.
FIXED ANNUITY - SINGLE PREMIUM RETIREMENT ANNUITY POLICIES HAVE PROVISIONS FOR
THE ASSESSMENT OF SURRENDER CHARGES ON CASH WITHDRAWAL.
No agent is authorized to make or alter contracts or to waive the rights or
requirements of Northwestern Mutual Life.
X__________________________________________________________________ X_______________________________________________
Signature of Applicant (Indicate relationship below if applicable) Signature of Annuitant (if other than Applicant)
[ ] Trustee [ ] Employer
X_______________________________________________
Signature of Licensed Agent
Date Signed at: City County State
| | | |
| | | |
___________________________________________________________________________________________________________________________
87
--------------------------------------------------------------------------------
AGENT'S CERTIFICATE
--------------------------------------------------------------------------------
Annuitant Name: First, MI, Last A
|
|_____________________________________________________________________
1. To the best of your knowledge will the annuity applied for replace any
life insurance or annuity contract in this company or elsewhere?
[ ] YES [ ] NO
Date of Delivery
|
2. On |__________ the following Prospectus or Offering Circular and Report
was delivered:
[ ] ACCOUNT A OFFERING CIRCULAR DATED______________AND REPORT DATED
_____________(CORPORATE PENSION PLANS)
[ ] ACCOUNT A PROSPECTUS DATED______________(PARTNERSHIP OR SOLE
PROPRIETORSHIP PENSION PLANS)
[ ] ACCOUNT B PROSPECTUS DATED______________(ALL OTHERS)
3. Was any part of this application translated?
[ ] YES, PLEASE EXPLAIN: [ ] NO
--------------------------------------------------------------------------------
CERTIFICATION
--------------------------------------------------------------------------------
I certify that to the best of my knowledge I have presented to the Company all
pertinent facts, have asked all questions and have completely and correctly
recorded the Applicant's and Xxxxxxxxx's answers in accordance with the
instructions. I know nothing unfavorable about the Annuitant that is not stated
in the application or accompanying letter. I further certify that I have
reasonable grounds for believing the purchase of the annuity applied for is
suitable as an investment for the Annuitant based on the information furnished
by the Applicant and Annuitant and contained herein.
If this application is for a Variable Annuity, I certify that a current
Prospectus or Offering Circular and Report was delivered and that no written
sales materials other than those furnished by the Home Office were used.
Agent Phone Number
|
x_____________________________________________________|________________________
Signature of Agent
General Agent's approval for VARIABLE ANNUITIES only (signature of GENERAL AGENT
or APPOINTED REGISTERED REPRESENTATIVE)
x________________________________ __________________________________________
Signature Print Name
or use stamp
|
|
|
|_________________________________________
88
--------------------------------------------------------------------------------
DEMOGRAPHICS
--------------------------------------------------------------------------------
ANNUITANT'S EDUCATION
[ ] Some Education [ ] High School [ ] Associate Degree [ ] Some College
[ ] Bachelors [ ] Masters [ ] Attorney at Law [ ] Doctorate
NUMBER OF CHILDREN
Number
| [ ] None
|
|_________
OCCUPATION INDUSTRY SOURCE OF APPLICANT
[ ] Business Owner [ ] Agriculture, Forestry &Fishing [ ] Agent's Own Policyowner
[ ] Clerical [ ] Construction [ ] Orphan Policyowner
[ ] Consultant [ ] Finance, Insurance &Real Estate [ ] Referred Lead
[ ] Craftsman [ ] Manufacturing [ ] Acquaintance
[ ] Homemaker [ ] Mining [ ] Newcomer Service
[ ] Legal [ ] Nonclassifiable Establishments [ ] Cold Canvass
[ ] Managerial/Executive [ ] Public Administration [ ] Lead Letter Reply
[ ] Medical [ ] Retail Trade [ ] Published Sources
[ ] Professional [ ] Services [ ] Walk-in
[ ] Sales [ ] Transportation, Communication [ ] Family member or yourself
& Utilities
[ ] Service Worker Other
[ ] Technical [ ] Wholesale Trade |
|______________________________
--------------------------------------------------------------------------------
CONTRACT DELIVERY INSTRUCTIONS
--------------------------------------------------------------------------------
Deliver contract package to the servicing agent at the: [ ] GA office
[ ] DA office
[ ] Agent's own office
--------------------------------------------------------------------------------
PRODUCTION AND COMMISSION CREDITS
--------------------------------------------------------------------------------
Primary or Secondary If secondary contract,
Agent Number Agents Full Name*: Last, First % Interest Contract (P or S) secondary Appt. Agt. No.
| | | | |
|__________________|__________________________________|___________________|________________________|_________________________
| | | | |
|__________________|__________________________________|___________________|________________________|_________________________
| | | | |
|__________________|__________________________________|___________________|________________________|_________________________
| | | | |
|__________________|__________________________________|___________________|________________________|_________________________
| | | | |
|__________________|__________________________________|___________________|________________________|_________________________
*Commissions are payable only to Registered Representatives of Northwestern
Mutual Investment Services, LLC.
General Agent's Number General Agent's Stamp
| |
|_______________________ |
|
|_________________
89
-----------------------------------------------------------------------------------------------------------------
A Annuitant Amount Plan
| | |
|_________________________________|$_________|_________________________________
RECEIPT
If the premium or purchase Received of___________________________________________________________________
payment is paid at the time
of application, this receipt the sum of $__________________________________________________________________
must be completed and given for the Annuity applied for in the application to The Northwestern Mutual LIfe
to the Applicant. No other Insurance Company, 000 Xxxx Xxxxxxxxx Xxx., Xxxxxxxxx, XX 00000.
receipt will be recognized by
the Company. Place and Date Agent
| |
|_________________________________|____________________________________________
ALL CHECKS SHOULD BE PAYABLE TO NORTHWESTERN MUTUAL LIFE. DO NOT MAKE THE CHECK
PAYABLE TO THE AGENT OR LEAVE THE PAYEE BLANK.
EFFECTIVE DATE: The Annuity will be effective on the date the application and
initial purchase payment are received at the Home Office. Receipt of purchase
payments at a payment facility designated by Northwestern Mutual Life will be
considered the same as receipt at the Home Office.
REFUND: If delivery of a Fixed Annuity-Single Premium Retirement Annuity is not
accepted, the Company will refund any premium paid. If delivery of a Variable
Annuity is not accepted, the Company will refund the sum of the difference
between the purchase payments paid and the amounts, if any, allocated to the
Separate Account plus the value of the Accumulation Units of the Separate
Account on the effective date of return, except where otherwise required by law.
No agent is authorized to make or alter contracts or to waive any of the
Company's rights or requirements.
