ENDORSEMENT
In order to comply with the requirements of Section 403(b) of the Internal
Revenue Code, the following endorsements are made on this contract. Any
provisions of this contract other that are not consistent with these
endorsements are hereby modified or nullified so as to be consistent.
(1) This contract is not transferable by the owner (who will be the
annuitant) and is established for the exclusive benefit of the owner or
his/her beneficiaries. The owner may not transfer, sell, assign,
discount, or pledge this Contract for a loan or a security for the
performance of an obligation or any other purpose to any person other
than to us at our Annuity Service Office.
(2) Except as provided under (3) below, the annual sum of purchase payments
under this contract will not exceed $2,000.
(3) The annual purchase payment limitations for this contract when issued in
connection with a simplified employee pension plan will be governed by a
written formula and will not exceed $30,000.
(4) The entire interest of the owner will be distributed to him/her not later
than the April 1 after the year in which he/she attains age 70 1/2, or
will be distributed, commencing not later than such date, in accordance
with regulations prescribed by the Secretary of his/her delegate,
(A) over the life of such owner or the lives of such owner and
his/her designated beneficiary, in equivalent installments under
the terms of this contract,
(B) over a period not extending beyond the life expectancy of such
owner or the life expectancy of such owner and his/her designated
beneficiary, in equivalent installments under the terms of this
contract.
All such required distributions will be made in accordance with the
provisions of Section 401 (a)(9) of the Internal Revenue Code, including
the incidental death benefit requirements, and the regulations issued
thereunder, including the minimum distribution incidental benefit
requirement of the regulations. Life expectancy is computed by use of the
expected return multiples in Tables V and VI of Section 1.72-9 of the
Internal Revenue Code regulations and the method of life expectancy
calculation elected. The methods are (1) reduced by one for each calendar
year which has elapsed since the date life expectancy was determined, or
(2) annual recalculation. If a method of calculation is not elected, then
the annual recalculation method will be used to determine life expectancy
for minimum distribution.
(5) Distribution After Death
(A) If an owner dies after distribution has begun but before his/her
entire interest is distributed, the remaining portion will be
distributed at least as rapidly as under the method being used at
his/her death.
(B) If an owner dies before distribution has begun, the entire
interest must be distributed within five years after the owner's
death except to the extent that any portion of his/her interest
(i) is payable to (or for the benefit of) a designated
beneficiary,
(ii) payment is made over the life (or the life expectancy) of
such designated beneficiary,
(iii) and payment begins within one year after the date of the
owner's death.
(C) If the owner's surviving spouse is a designated beneficiary,
distribution of such surviving spouse's interest must begin not
later than the later of
(i) the date which is one year after the owner's death or
(ii) the date that the owner would have attained age 70 1/2.
If such surviving spouse dies before his/her distribution was
to begin, the rules will apply as if the surviving spouse were
the owner.
(D) Distributions are considered to have begun if distributions were
made on account of the owner's having attained age 70 1/2, or if
prior to April 1 of the year after the year in which the owner
would have attained age 70 1/2, distributions irrevocably commenced
over a period permitted and in an annuity form acceptable under the
Internal Revenue Code regulations.
(E) Life expectancy is computed by use of the expected return
multiples in Tables V and VI of Section 1.72-9 of the Internal
Revenue Code regulations and the method of life expectancy
calculation elected. The methods are (1) reduced by one for each
calendar year which has elapsed since the date life expectancy
was determined, or (2) annual recalculation. If a method of
calculation is not elected, then the annual recalculation method
will be used to determine life expectancy for minimum
distribution.
(6) The entire interest of the owner is nonforfeitable.
(7) Any dividends will be held by the insurer and applied toward the purchase
of additional annuity benefits under the contract following the year the
dividend became payable.
(8) The Company will furnish annual calendar year reports concerning the
status of this contract.
(9) This contract may be amended by the Company at any time for the purpose
of complying with changes in the Internal Revenue Code, regulations
issued thereunder or published revenue rulings; provided that no such
amendment will become effective until thirty days after the Company has
given the policyholder written notice of such amendment by ordinary mail
forwarded to the policyholder's last known address as shown on the
Company's records, unless an earlier effective date is prescribed by such
Code, regulations or rulings, in which case such earlier effective date
will control.
SECURITY EQUITY LIFE INSURANCE COMPANY
ARMONK, NEW YORK 10504
