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THE MANUFACTURERS LIFE INSURANCE
COMPANY OF NEW YORK
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HOME OFFICE:
International Corporate Center at Rye
555 Xxxxxxxx Xxxxx Avenue
Rye, N.Y. 10580
THIS IS A LEGAL CONTRACT - READ IT CAREFULLY.
WE AGREE to pay the benefits of this Contract in accordance with its terms.
THIS CONTRACT is issued in consideration of the Application
and the Purchase Payments.
SIGNED FOR THE COMPANY at its Executive Office, Rye, New York,
on the Contract Date.
DETAILS OF VARIABLE ACCOUNT PROVISIONS ON PAGE 9
DETAILS OF FIXED ACCOUNT PROVISIONS ON PAGE 10
DETAILS OF MARKET VALUE CHARGE PROVISIONS ON PAGE 10
President Secretary
Flexible Purchase Payment Deferred Combination Fixed and Variable Annuity
Non-Participating
ANNUITY PAYMENTS AND OTHER VALUES PROVIDED BY THIS CONTRACT WHEN BASED ON
THE INVESTMENT EXPERIENCE OF A SEPARATE ACCOUNT ARE VARIABLE AND
NOT GUARANTEED AS TO FIXED DOLLAR AMOUNT.
TEN DAY RIGHT TO REVIEW
The Contract Owner may cancel the Contract by returning it to our Annuity
Service Office or agent at any time within 10 days after receipt of the
Contract. Within 7 days of receipt of the Contract by us, we will pay the
Contract Value, computed at the end of the Valuation Period, on the date of
surrender, to the Contract Owner.
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INTRODUCTION
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This is a flexible purchase payment deferred combination fixed and variable
annuity. This Contract provides that prior to the Maturity Date, the Contract
Value will accumulate on either a fixed or variable basis or a combination of
both. After the Maturity Date, annuity payments may be either fixed or variable,
or a combination of fixed and variable.
The variable portion of the Contract will vary with the investment performance
of the Variable Account. The fixed portion of the Contract will accumulate based
on interest rates guaranteed by the Company for the period selected.
If you select annuity payments on a variable basis, the payment amount will vary
with the investment performance of the Variable Account.
You must allocate Purchase Payments among one or more Investment Options. The
Investment Options are identified in the Application and on the Contract
Specifications Page.
TABLE OF CONTENTS
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Contract Specifications Page Page
PART 1 - DEFINITIONS .................................................... 1
PART 2 - GENERAL PROVISIONS.............................................. 3
PART 3 - OWNERSHIP....................................................... 5
PART 4 - BENEFITS ....................................................... 6
PART 5 - PURCHASE PAYMENTS .............................................. 8
PART 6 - VARIABLE ACCOUNT PROVISIONS .................................... 9
PART 7 - FIXED ACCOUNT PROVISIONS ....................................... 10
PART 8 - ANNUITY PROVISIONS ............................................. 11
PART 9 - TRANSFERS ...................................................... 12
PART 10 - WITHDRAWAL PROVISIONS .......................................... 13
PART 11 - CHARGES AND DEDUCTIONS ......................................... 16
PART 12 - PAYMENT OF CONTRACT BENEFITS ................................... 16
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PART 1 DEFINITIONS
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ACCUMULATION UNIT A unit of measure that is used to calculate the
value of the variable portion of the Contract
before the Maturity Date.
ANNUITANT Any natural person or persons whose life is used
to determine the duration of annuity payments
involving life contingencies. If you name more
than one person as an "Annuitant", the second
person named shall be referred to as "Co-
Annuitant". All provisions based on the date of
death of the "Annuitant" will be based on the date
of death of the last to survive of the "Annuitant"
or "Co-Annuitant". In the event of the death of
the "Annuitant" or "Co-Annuitant" who is also a
Contract Owner, a death benefit is payable under
the Death of Owner Provision. The "Annuitant" and
"Co-Annuitant" will be collectively referred to as
"Annuitant" in this Contract. The Annuitant is as
specified in the Application, unless changed.
ANNUITY OPTION The method selected by you for annuity payments
made by us. Unless you indicate otherwise, we will
provide either variable or fixed, or a combination
variable and fixed annuity payments in proportion
to the Investment Account Value of each Investment
Option at the Maturity Date. Annuity payments will
continue for 10 years or the life of the
Annuitant, if longer.
ANNUITY SERVICE OFFICE Any office designated by us for the receipt of
Purchase Payments and processing of Contract
Owner requests.
ANNUITY UNIT A unit of measure that is used after the Maturity
Date to calculate Variable Annuity payments.
BENEFICIARY The person or persons, or entity entitled to the
death benefit under this Contract upon the death
of the Annuitant. The Beneficiary is as specified
in the Application, unless changed. (See also
"Successor Owner")
CONTINGENT BENEFICIARY The person or persons, or entity to become the
Beneficiary if the Beneficiary is not alive. The
Contingent Beneficiary is as specified in the
Application, unless changed.
CONTRACT ANNIVERSARY The anniversary of the Contract Date.
CONTRACT DATE The date of issue of the Contract.
CONTRACT VALUE The total of the Investment Account Values and, if
applicable, any amount in the Loan Account
attributable to the Contract.
CONTRACT YEAR The period of twelve consecutive months beginning
on the Contract Date or any anniversary
thereafter.
DEBT Any amounts in the Loan Account attributable to
the Contract plus any accrued loan interest. The
loan provision is applicable to Qualified
Contracts only.
DESIGNATED BENEFICIARY For purposes of section 72(s) of the Internal
Revenue Code of 1986, the "designated beneficiary"
under the contract shall be the individual who is
entitled to receive the amounts payable on death,
or if any Owner is not an individual, on any
change in (or death of) the Annuitant or
Co-Annuitant.
FIXED ANNUITY An Annuity Option with payments which are
predetermined and guaranteed as to dollar amount.
GENERAL ACCOUNT All the assets of The Manufacturers Life Insurance
Company of New York other than assets in separate
accounts.
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INVESTMENT ACCOUNT An account established by us which represents your
interest in an Investment Option prior to the
Maturity Date.
INVESTMENT ACCOUNT VALUE The value of your investment in an Investment
Account.
INVESTMENT OPTIONS The Investment Options can be either fixed or
variable. The Investment Options available under
this Contract are shown on the Contract
Specifications Page.
LOAN ACCOUNT The portion of the General Account that is used
for collateral when a loan is taken.
MARKET VALUE CHARGE A charge that may be assessed if amounts are
withdrawn or transferred from the 3-year or 6-year
Investment Options prior to the end of the
interest rate guarantee period.
MATURITY DATE The date on which annuity benefits commence. It is
the date specified on the Contract Specifications
Page, unless changed.
NET PURCHASE PAYMENT The Purchase Payment less the amount of premium
tax, if any, deducted from the Purchase Payment.
NON-QUALIFIED CONTRACTS Contracts which are not issued under Qualified
Plans.
OWNER OR CONTRACT OWNER The person, persons, or entity entitled to the
ownership rights under this Contract. The Owner
is as specified in the Application, unless
changed.
PORTFOLIO OR TRUST A separate portfolio of Manufacturers Investment
PORTFOLIO Trust, a mutual fund in which PORTFOLIO the
Variable Account invests, or any successor mutual
fund.
PURCHASE PAYMENT An amount paid to us by you as consideration for
the benefits provided by the Contract.
QUALIFIED CONTRACTS Contracts issued under Qualified Plans.
QUALIFIED PLANS Retirement Plans which receive favorable tax
treatment under section 401, 403, 408 or 457, of
the Internal Revenue Code of 1986, as amended.
SEPARATE ACCOUNT A segregated account of The Manufacturers Life
Insurance Company of New York that is not
commingled with our general assets and
obligations.
SUB-ACCOUNT(S) One or more of the Sub-Accounts of the Variable
Account. Each Sub-Account is invested in shares of
a different Trust Portfolio.
SUCCESSOR OWNER The person, persons, or entity to become the Owner
if the Owner dies prior to the Maturity Date. The
Successor Owner is as specified in the
Application, unless changed. If no Successor
Owner is designated, or the Successor Owner dies
before the Owner, the Owner's estate is the
Successor Owner. (See also "Beneficiary")
VALUATION DATE Any date on which the New York Stock Exchange is
open for business and the net asset value of a
Trust Portfolio is determined.
VALUATION PERIOD Any period from one Valuation Date to the next,
measured from the time on each such date that the
net asset value of each Portfolio is determined.
VARIABLE ACCOUNT The Manufacturers Life Insurance Company of New
York Separate Account A, which is a separate
account of The Manufacturers Life Insurance
Company of New York.
VARIABLE ANNUITY An Annuity Option with payments which: (1) are not
predetermined or guaranteed as to dollar amount,
and (2) vary in relation to the investment ex
perience of one or more specified variable
Sub-Accounts.
WE AND YOU "We", "us" and "our" means The Manufacturers Life
Insurance Company of
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New York. "You" or "your" means the Owner of this
Contract.
PART 2 GENERAL PROVISIONS
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ENTIRE CONTRACT This Contract and any Contract endorsements and
attached copy of the Application are the entire
Contract. Only our President, Vice-President or
Secretary may agree to change or waive any
provisions of the Contract. The change or waiver
must be in writing.
We will not change or modify this Contract without
your consent except as may be required to make it
conform to any applicable law or regulation or any
ruling issued by a government agency.
The benefits and values available under this
Contract are not less than the minimum required
by the state of New York. We have filed a detailed
statement of the method used to calculate the
benefits and values with the New York Department
of Insurance.
BENEFICIARY The Beneficiary is the person or persons to whom
benefits will be paid upon death of the Annuitant.
Unless otherwise indicated, the Beneficiary will
be revocable. A revocable Beneficiary may be
changed by you. If changed, the Beneficiary is as
shown in the latest change. Prior to the Maturity
Date, if no Beneficiary survives the Annuitant,
you or your estate will be the Beneficiary. The
interest of any revocable Beneficiary is subject
to that of any assignee. If more than one
Beneficiary is designated, the interest of a
Beneficiary who dies before any other Beneficiary
will pass to the surviving Beneficiaries in
proportion to their share in the benefits unless
otherwise provided.
CHANGE IN MATURITY DATE Prior to the Maturity Date, you may change the
Maturity Date by written request at least one
month before both the previously specified
Maturity Date and the new Maturity Date. After the
election, the new Maturity Date will become the
Maturity Date. The maximum Maturity Date will be
the first of the month following the Annuitant's
eighty-fifth birthday. Any extension of the
maximum Maturity Date will be allowed only with
our prior approval.
ASSIGNMENT You may assign this Contract at any time during
the lifetime of the Annuitant and prior to the
Maturity Date. No assignment will be binding on us
unless it is written in a form acceptable to us
and received at our Annuity Service Office. We
will not be liable for any payments made or
actions we take before the assignment is accepted
by us. An absolute assignment will revoke the
interest of any revocable Beneficiary. We will not
be responsible for the validity of any as
signment. A Qualified Contract may not be assigned
to any person other than the employer.
CLAIMS OF CREDITORS To the extent permitted by law, no payments under
this Contract will be subject to the claims of
your, the Beneficiary's or the Annuitant's
creditors.
MISSTATEMENT AND PROOF We may require proof of age, sex or survival of
OF AGE, SEX OR SURVIVAL any person upon whose age, sex or survival any
payments depend. If the age or sex of the
Annuitant has been misstated, the benefits will be
those which the Purchase Payments would have
provided for the correct age and sex. If we have
made incorrect annuity payments, the amount of any
underpayment, adjusted with interest at 4% per
annum, will be paid immediately. The amount of any
overpayment will be deducted from future annuity
payments.
ADDITION, DELETION OR We reserve the right, subject to prior approval of
the New York
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SUBSTITUTION OF superintendent of Insurance and compliance with
INVESTMENT OPTIONS applicable law, to make additions to, deletions
from, or substitutions for the Portfolio shares
that are held by the Variable Account or that the
Variable Account may purchase. We reserve the
right to eliminate the shares of any of the
eligible Portfolios and to substitute shares of
another Portfolio of the Trust, or of another
open-end registered investment company, if the
shares of any eligible Portfolio are no longer
available for in vestment, or if in our judgment
further investment in any eligible Portfolio
should become inappropriate in view of the
purposes of the Variable Account. We will not
substitute any shares attributable to your
interest in a Sub-Account without notice to you
and prior approval of the Securities and Exchange
Commission to the extent required by the
Investment Company Act of 1940. Nothing contained
herein shall prevent the Variable Account from
purchasing other securities for other series or
classes of contracts, or from effecting a
conversion between shares of another open-end
investment company.We reserve the right, subject
to prior approval of the New York Superintendent
of Insurance and compliance with applicable law,
to establish additional Sub-Accounts which would
invest in shares of a new Portfolio of the Trust
or in shares of another open-end investment
company. We also reserve the right, subject to
prior approval of the New York Superintendent of
Insurance and compliance with applicable law, to
eliminate existing Sub-Accounts, to combine
Sub-Accounts or to transfer assets in a
Sub-Account to another Separate Account
established by us or an affiliated company. In the
event of any such substitutions or changes, we
may, by appropriate endorsement, make such changes
in this and other Contracts as may be necessary or
appropriate to reflect such substitutions or
changes. If deemed by us to be in the best
interests of persons having voting rights under
the Contracts, the Variable Account may be
operated as a management company under the
Investment Company Act of 1940 or it may be
deregistered under such Act in the event such
registration is no longer required.
NON-PARTICIPATING Your Contract is non-participating and will not
share in our profits or surplus earnings. We will
pay no dividends on your Contract.
REPORTS At least once each year we will send you a report
containing information required by the Investment
Company Act of 1940 and the laws of the state of
New York.
INSULATION The portion of the assets of the Variable Account
equal to the reserves and other contract
liabilities with respect to such account are not
chargeable with liabilities arising out of any
other business we may conduct. Moreover, the
income, gains and losses, realized or unrealized,
from assets allocated to the Variable Account
shall be credited to or charged against such
account without regard to our other income, gains
or losses.
OWNERSHIP OF ASSETS We shall have exclusive and absolute ownership and
control of our assets, including the assets of the
Variable Account.
CURRENCY AND PLACE OF All payments made to or by us shall be made in the
PAYMENTS lawful currency of the United States of America.
Payments to us or by us shall be made at the
Annuity Service Office or elsewhere if we consent.
NOTICES AND ELECTIONS To be effective, all notices and elections you
make under this Contract must be in writing,
signed by you and received by us at our Annuity
Service Office. Un less otherwise provided, all
notices, requests and elections will be effective
when received by us, complete with all necessary
information and your signature, at our Annuity
Service Office.
GOVERNING LAW This Contract will be governed by the laws of the
state of New York.
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PART 3 OWNERSHIP
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GENERAL During the Annuitant's lifetime and prior to the
Maturity Date, the Owner of this Contract shall be
the person so named in the Application or the
latest change filed with us. On and after the
Maturity Date, the Annuitant is the Owner of the
Contract. After the Annuitant's death, the
Beneficiary is the Owner of the Contract.
CHANGE OF OWNER, Subject to the rights of an irrevocable
ANNUITANT, BENEFICIARY Beneficiary, you may change the Beneficiary during
the Annuitant's lifetime by written request in a
form acceptable to us and which is received at our
Annuity Service Office. The Annuitant may not be
changed after the Maturity Date. You need not send
us the Contract unless we request it. Any change
must be approved by us. If approved, it will take
effect on the date you signed the request. We will
not be liable for any payments or actions we take
before the change is approved. In the case of the
Qualified Contracts, ownership of the Contract
generally may not be transferred except by the
trustee of an exempt employees' trust which is
part of a retirement plan qualified under section
401 of the Internal Revenue Code. Subject to the
foregoing, a Qualified Contract may not be sold,
assigned, transferred, discounted or pledged as
collateral for a loan or as security for the
performance of an obligation or for any other
purpose to any person other than the employer.
PART 4 BENEFITS
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ANNUITY BENEFITS We will pay a monthly income to the Annuitant, if
living, on the Maturity Date. Payments can be
fixed or variable, or a combination of fixed and
variable. Annuity benefits will commence on the
Maturity Date and continue for the period of time
provided for under the Annuity Option selected.
We may pay the Contract Value, less Debt, on the
Maturity Date in one lump sum if the monthly
income is less than $20.
On or before the Maturity Date you must select how
the Contract Value will be used to provide the
monthly income. You may select a Fixed or Variable
Annuity. Unless you indicate otherwise, we will
provide either variable or fixed, or a combination
variable and fixed annuity payments in proportion
to the Investment Account Value of each Investment
Option at the Maturity Date. Annuity payments will
continue for 10 years or the life of the
Annuitant, if longer.
If a Variable Annuity is used, the amount of the
first monthly annuity payment will be obtained
from the appropriate option table under the
"Payment of Contract Benefits" Section. Subsequent
monthly annuity payments will vary based on the
investment experience of the Sub-Account(s) used
to effect the annuity. The method used to
calculate the amount of the initial and subsequent
payments is described under the "Variable Annuity
Payments" Section of Part 8.
If a Fixed Annuity is used, the portion of the
Contract Value used to effect a Fixed Annuity will
be applied to the appropriate table contained in
this Contract. If the table in use by us on the
Maturity date is more favorable to you, we will
use that table. We guarantee the dollar amount of
fixed annuity payments.
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DEATH BENEFIT BEFORE DEATH OF ANNUITANT WHERE YOU ARE NOT THE
MATURITY DATE ANNUITANT. We will pay the minimum death benefit,
less any Debt, to the Beneficiary if you are not
the Annuitant and the Annuitant dies before the
Maturity Date. Payment will be made either as a
lump sum or in accordance with any Annuity Option
described in this Contract. If there is more than
one Annuitant, the minimum death benefit will be
paid on the death of the last surviving
Co-Annuitant. Upon the death of the Annuitant, the
Beneficiary becomes the Owner of the Contract and
may elect to continue the Contract rather than to
receive payment of the minimum death benefit.
DEATH OF ANNUITANT WHERE YOU ARE THE ANNUITANT. We
will pay the minimum death benefit, less any debt,
to the Beneficiary if you are the Annuitant, there
is no surviving Co-Annuitant and you die before
the Maturity Date. The Beneficiary becomes
entitled to exercise ownership rights in the
Contract and may continue the Contract. If this is
a Non-Qualified Contract, the following special
distribution rules apply. Distribution of the
Beneficiary's interest in the Contract must be
made within 5 years after your death or as an
annuity which begins within one year of death and
is payable over the life of the Beneficiary (or
over a period not in excess of the Beneficiary's
life expectancy). If your spouse is the
Beneficiary, your spouse may elect to be treated
as Owner and distribution will be made no later
than the date on which distribution would be
required after the death of your spouse. If you
are the Annuitant, there is a surviving
Co-Annuitant, and you die before the Maturity
Date, payment of your interest in the Contract
will be made in accordance with the Death of Owner
provision of this Contract.
MINIMUM DEATH BENEFIT. If the Annuitant dies on or
prior to the first of the month following his or
her 85th birthday, the minimum death benefit will
be determined as follows:
1. During the first 6 Contract Years, the
minimum death benefit will be the greater of:
a) the Contract Value on the date that due
proof of death is received at the
Annuity Service Office, or
b) The sum of all Purchase Payments made,
less any amount deducted in connection
with partial withdrawals.
2. During any subsequent 6 Contract Year period,
the minimum death benefit will be the greater
of:
a) the Contract Value on the date that due
proof of death is received at the
Annuity Service Office, or
b) the minimum death benefit on the last
day of the previous 6 Contract Year
period plus any Purchase Payments made
and less any amount deducted in
connection with partial withdrawals
since then.
If the Annuitant dies after the first of the month
following his or her 85th birthday, the minimum
death benefit will be the Contract Value on the
date that due proof of death is received at the
Annuity Service Office.
DEATH OF OWNER. If you die before the Annuitant
and before the Maturity Date, the Successor Owner
will become the Owner of the Contract and will be
entitled to your interest in the Contract (the
amount payable on total withdrawal). If this is a
Non-Qualified Contract, the following special
distribution rules apply. Distribution of such
interest must be made within 5 years after your
death or as an annuity which begins within one
year of death and is payable over the life of the
Successor Owner (or over a period not in excess of
the Successor Owner's life expectancy). If your
spouse is the Successor Owner, your spouse will be
treated as Owner and distribution will be made no
later than the date distribution would be required
after the
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death of your spouse. If you
DEATH BENEFIT ON OR AFTER If annuity payments have been selected based on an
MATURITY DATE Annuity Option providing for a guaranteed period,
and the Annuitant dies on or after the Maturity
Date, we will make the remaining guaranteed
payments to the Beneficiary. Such payments will be
made as rapidly as under the method of
distribution being used as of the date of the
Annuitant's death. If no Beneficiary is living, we
will commute any unpaid guaranteed payments to a
single sum (on the basis of the interest rate used
in determining the payments) and pay that single
sum to the estate of the last to die of the
Annuitant and the Beneficiary.
DUE PROOF OF DEATH Due proof of death is required upon the death of
the Annuitant or the Owner. Due proof of death is
one of the following received at the Annuity
Service Office within 1 year of the date of death:
a) A certified copy of a death certificate.
b) A certified copy of a decree of a court of
competent jurisdiction as to the finding of
death.
c) Any other proof satisfactory to us.
Death benefits will be paid within 7 days of
receipt of due proof of death, accompanied by
appropriate distribution instructions.
PART 5 PURCHASE PAYMENTS
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GENERAL All Purchase Payments under this Contract are
payable at our Annuity Service Office or such
other place as we may designate.
The minimum Purchase Payment will be $30. However
at least $300 must be paid during the first
Contract Year. Purchase Payments may be made at
any time. If a Purchase Payment would cause the
Contract Value to exceed $1,000,000, or the
Contract Value already exceeds $1,000,000, no
additional Purchase Payments will be accepted
without our prior approval.
NONPAYMENT OF PURCHASE If, prior to the Maturity Date, no Purchase
PAYMENTS FOR THREE YEARS Payments are made for three consecutive Contract
Years, and if both:
a) the total Purchase Payments made, less any
partial withdrawals, are less than $2,000;
and
b) the Contract Value at the end of such three
year period is less than $2,000;
we may cancel the Contract and pay you the
Contract Value (measured as of the Valuation
Period during which the cancellation occurs), less
any Debt and administration fee.
ALLOCATION OF NET When we receive Purchase Payments, the Net
PURCHASE PAYMENTS Purchase Payments will be allocated among
Investment Options in accordance with the
allocation percentages shown in the Application.
You may change the allocation of subsequent
Purchase Payments at any time, without charge, by
giving us written notice.
PART 6 VARIABLE ACCOUNT PROVISIONS
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INVESTMENT ACCOUNT We will establish a separate Investment Account
for you for each variable Investment Option to
which you allocate amounts. The Investment Account
represents the number of your Accumulation Units
in an Investment Option.
INVESTMENT ACCOUNT VALUE The Investment Account Value of an Investment
Account is determined by (a) times (b) where:
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a) equals the number of Accumulation Units
credited to the Investment Account, and
b) equals the value of the appropriate
Accumulation Unit.
ACCUMULATION UNITS We will credit Net Purchase Payments to your
Investment Accounts in the form of Accumulation
Units. The number of Accumulation Units to be
credited to each Investment Account of the
Contract will be determined by dividing the Net
Purchase Payment allocated to that Investment
Account by the Accumulation Unit value for that
Investment Account.
Accumulation Units will be adjusted for any
transfers and will be canceled on payment of a
death benefit, withdrawal, maturity or assessment
of certain charges based on their value for the
Valuation Period in which such transaction occurs.
VALUE OF ACCUMULATION The Accumulation Unit value for any Valuation
UNIT Period is determined by multiplying the
Accumulation Unit value for the immediately
preceding Valuation Period by the "net investment
factor" for the Investment Account for the
Valuation Period for which the value is being
determined. The value of an Accumulation Unit may
increase, decrease or remain the same from one
Valuation Period to the next.
NET INVESTMENT FACTOR The net investment factor for a variable
Investment Account is an index that measures the
investment performance of a Sub-Account from one
Valuation Period to the next. The net investment
factor for any Valuation Period is determined by
dividing (a) by (b) and subtracting (c) from the
result where:
a) is the net result of:
1) the net asset value per share of a
Portfolio share held in the Sub-Account
determined as of the end of the current
Valuation Period, plus
2) the per share amount of any dividend or
capital gain distributions made by the
Portfolio on shares held in the
Sub-Account if the "ex-dividend" date
occurs during the current Valuation
Period, and
(b) is the net asset value per share of a
Portfolio share held in the Sub-Account
determined as of the end of the immediately
preceding Valuation Period, and
(c) is a factor representing the charges deducted
from the Sub-Account on a daily basis. Such
factor is equal on an annual basis to 1.40%
(1.25% for mortality and expense risks; and
0.15% for administrative expenses).
The net investment factor may be greater or less
than, or equal to, one.
PART 7 FIXED ACCOUNT PROVISIONS
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INVESTMENT ACCOUNT We will establish a separate Investment Account
for you each time you allocate amounts to a fixed
Investment Option. Any amounts you allocate to the
same fixed Investment Option on the same day will
establish a new Investment Account. Amounts
invested in these Investment Accounts will earn
interest at the guaranteed rate in effect on the
date the amounts are allocated for the duration of
the guarantee period.
We will determine the guaranteed rate from time to
time for new allocations, but in no event will the
minimum guaranteed rate under a fixed Investment
Account be less than 4%.
GUARANTEE PERIODS For any amounts allocated to the
fixed options, you have the choice of the length
of the guarantee period. The amount can be
allocated into any combination of the 1-year,
3-year or 6-year guarantee periods.
Separate Investment Accounts will be established
for each guarantee period. The guarantee period
will be the 1-year, 3-year or 6-year period
measured from the date the amount is allocated to
the Investment Account.
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Amounts cannot be allocated to a fixed option that
would extend the guarantee period beyond the
Maturity Date.
RENEWALS The renewal amount is the Investment
Account Value at the end of the particular
guarantee period.
The renewal amount will be automatically renewed
in the same Investment Option at the end of the
guarantee period, unless you specify otherwise. If
renewal in a particular Investment Option would
result in the guarantee period for that In
vestment Account being beyond the Maturity Date,
the renewal amount may not be renewed in that
Investment Option. The renewal amount will be
applied to the longest guarantee period of an
Investment Option such that the guarantee period
does not extend beyond the Maturity Date. Renewals
within 3 years of the Maturity Date will be
applied to the 1 Year Investment Option.
INVESTMENT ACCOUNT VALUE The amount in the Investment Accounts will
accumulate at a rate of interest determined by us
and in effect on the date the amount is allocated
to the Investment Account. The Investment Account
Value is the accumulated value of the amount
invested in the Investment Account reduced by any
withdrawals, loans, transfers or charges taken
from the Investment Account.
MARKET VALUE CHARGE Any amounts withdrawn from a 3-year or a 6-year
fixed Investment Account, prior to the end of the
guarantee period, may be subject to a Market Value
Charge. The Market Value Charge will only apply to
amounts withdrawn from a 3-year or 6-year
Investment Account pursuant to a partial
withdrawal, total withdrawal, transfer or a loan.
A Market Value Charge will be calculated
separately for each 3-year or 6-year Investment
Account affected. The Market Value Charge for a
particular Investment Account will be calculated
by multiplying the amount withdrawn or transferred
from the Investment Account by the adjustment
factor described below.
The adjustment factor for a particular Investment
Account is determined by the following formula:
0.75 x (B-A) x C/12
Where A, B and C are defined as follows:
A- The guaranteed interest rate on the
Investment Account.
B- The guaranteed interest rate available, on
the date the request is processed, for
amounts allocated to a new Investment Account
with the same length of guarantee period as
the Investment Account from which amounts are
being withdrawn.
C-The number of complete months remaining to
the end of the guarantee period.
For purposes of this calculation, the maximum
difference between "B" and "A" will be 3%.
Furthermore, the adjustment factor will never be
greater than 2 x (A - 4%) and never less than
zero.The total Market Value Charge will be the sum
of the Market Value Charges for each Investment
Account being withdrawn. For full withdrawals, the
Market Value Charge will be calculated on the
total amount of each Investment Account, and the
total Market Value Charge will be deducted from
the amount otherwise payable. For partial
withdrawals, the Market Value Charge will be
calculated based on the withdrawal amount
requested from each Investment Account and the
Market Value Charge, if applicable, will be
deducted from the remaining Investment Account
Value.
For transfers (including transfers to the Loan
Account pursuant to a loan request) the Market
Value Charge, if applicable, will be deducted from
the amount transferred.
There will be no Market Value Charge on
withdrawals from the fixed
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Investment Accounts in the following situations:
(a) death of the Annuitant, (b) amounts withdrawn
to pay any fees or charges, and (c) amounts
withdrawn from 3-year or 6-year Investment
Accounts within one month prior to the end of the
guarantee period.
In no event will the Market Value Charge exceed
the earnings attributable to the amount withdrawn
from an Investment Account.
In no event will the Market Value Charge plus any
withdrawal charges for an In vestment Account be
greater than 10% of the amount transferred or
withdrawn.
In no event will the Market Value Charge reduce
the amount payable on withdrawal or transfer below
the amount required under the non-forfeiture laws
of the state that has jurisdiction over this
Contract.
PART 8 ANNUITY PROVISIONS
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VARIABLE ANNUITY PAYMENTS The amount of the first variable annuity payment
is determined by applying the portion of the
Contract Value used to effect a Variable Annuity,
measured as of a date not more than 10 business
days prior to the Maturity Date (minus any ap
plicable premium taxes), to the appropriate
tables(s) contained in this Contract. If the table
in use by us on the Maturity Date is more
favorable to you, we will use that table.
Subsequent payments will be based on the
investment performance of one or more Sub-Accounts
as you select. The amount of such payments is
determined by the number of Annuity Units credited
for each Sub-Account. Such number is determined by
dividing the portion of the first payment
allocated to that Sub-Account by the Annuity Unit
value for that Sub-Account determined as of the
same date that the Contract Value to effect
annuity payments was determined. This number of
Annuity Units for each Sub-Account is then
multiplied by the appropriate Annuity Unit value
for each subsequent determination date, which is a
uniformly applied date not more than 10 business
days before the payment is due.
MORTALITY AND EXPENSE We guarantee that the dollar amount of each
GUARANTEE variable annuity payment will not be affected by
changes in mortality and expense experience.
ANNUITY UNIT VALUE The value of an Annuity Unit for each Sub-Account
for any Valuation Period is determined as follows:
a) The net investment factor for the Sub-Account
for the Valuation Period for which the Annuity
Unit value is being calculated is multiplied by
the value of the Annuity Unit for the preceding
Valuation Period; and
b) The result is adjusted to compensate for the
interest rate assumed in the tables used to
determine the first variable annuity payment.
The dollar value of Annuity Units may increase,
decrease or remain the same from one Valuation
Period to the next.
FIXED ANNUITY PAYMENTS The amount of each fixed annuity payment is
determined by applying the portion of the Contract
Value used to effect a Fixed Annuity measured as
of a date not more than 10 business days prior to
the Maturity Date (minus any applicable premium
taxes) to the appropriate table contained in this
Contract. If the table in use by us on the
Maturity Date is more favorable to you, we will
use that table. In addition, at the time of their
commencement, fixed annuity payments will not be
less than those provided by an amount applied to
purchase a single consideration immediate annuity
to the same class of annuitants at that time. This
amount will be the greater of:
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a) the contract value less applicable withdrawal
charges
b) 95% of the contract value
We guarantee the dollar amount of fixed annuity
payments.
PART 9 TRANSFERS
--------------------------------------------------------------------------------
TRANSFERS Before the Maturity Date you may transfer amounts
among Investment Accounts of the Contract. There
is no transaction charge for transfers, however,
amounts transferred from a 3-year or 6-year fixed
Investment Account prior to the end of the
guarantee period may be subject to a Market Value
Charge. Amounts will be canceled from the
Investment Accounts from which amounts are
transferred and credited to the Investment Account
to which amounts are transferred. We will effect
such transfers so that the Contract Value on the
date of transfer will not be affected by the
transfer, except for the Market Value Charge, if
applicable.
We reserve the right to limit, upon notice, the
maximum number of transfers you may make per
Contract Year to one per month or six at any time
within a Contract Year.
You must transfer at least $300 or, if less, the
entire amount in the Investment Account each time
you make a transfer. If, after the transfer, the
amount remaining in the Investment Account of the
Contract from which the transfer is made is less
than $100, then we will transfer the entire amount
instead of the requested amount. We reserve the
right to defer the transfer privilege at any time
that we are unable to purchase or redeem shares of
the Trust Portfolios. In addition, in accordance
with applicable law, the Company reserves the
right to modify or terminate the transfer
privilege at any time.
Amounts may not be transferred from a fixed
Investment Account unless those amounts have been
in the fixed Investment Account for at least one
year. Amounts transferred from a 3-year or 6-year
fixed Investment Account may be subject to a
Market Value Charge. The Market Value Charge, if
applicable, will be deducted from the amount
transferred.
Once variable annuity payments have begun, you may
transfer all or part of the investment upon which
your variable annuity payments are based from one
Sub-Account to another. To do this, we will
convert the number of variable Annuity Units you
hold in the Sub-Account from which you are
transferring to a number of variable Annuity Units
of the Sub-Account to which you are transferring
so that the amount of a variable annuity payment,
if it were made at that time, would not be
affected by the transfer. After that, your
variable annuity payments will reflect changes in
the values of your new variable Annuity Units. You
must give us notice at least 30 days before the
due date of the first variable annuity payment to
which the transfer will apply. We reserve the
right to limit, upon notice, the maximum number of
transfers you may make per Contract Year after
variable annuity payments have begun to four.
After the Maturity Date, transfers will not be
allowed from a fixed to a variable Annuity Option,
or from a variable to a fixed Annuity Option.
PART 10 WITHDRAWAL PROVISIONS
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CONTRACT VALUE Your Contract Value is equal to the total of the
Investment Account Values and, if applicable, any
amount in the Loan Account attributable to the
Contract.
PAYMENTS OF WITHDRAWALS You may withdraw part or all of the Contract
Value, less any Debt, at any time before the
earlier of the death of the Annuitant or the
Maturity Date, by sending us a written request. We
will pay all withdrawals within seven days of
receipt at the Annuity Service Office subject to
postponement in certain circumstances, as
specified below.
SUSPENSION OF PAYMENTS We may defer the right of withdrawal, or postpone
the date of payment, from the variable Investment
Accounts for any period when: (1) the New York
Stock Exchange is closed (other than customary
weekend and holiday closings); (2) trading on the
New York Stock Exchange is restricted; (3) an
emergency exists as a result of which disposal of
securities held in the Variable Account is not
reasonably practicable or it is not reasonably
practicable to determine the value of the Variable
Account's net assets; or (4) the Securities and
Exchange Commission, by order, so permits for the
protection of security holders; provided that
applicable rules and regulations of the Securities
and Exchange Commission shall govern as to whether
the conditions described in (2) and (3) exist.
We may defer the right of withdrawal from the
fixed Investment Accounts for not more than six
months from the day we receive written request and
the Contract, if required. If such payments are
deferred 10 days or more, the amount deferred will
earn interest at a rate not less than 4% per year.
TOTAL WITHDRAWAL If you are withdrawing all of the Contract Value,
we will deduct, if applicable, the Debt, the
withdrawal charge, the Market Value Charge and the
administration fee from the amount otherwise
payable.
PARTIAL WITHDRAWAL If you are withdrawing part of the Contract Value,
you should specify the amount that should be
withdrawn from each Investment Option of the
Contract. If there are multiple Investment
Accounts under a fixed Investment Option, the
requested amount from that Investment Option must
be withdrawn from those Investment Accounts on a
first-in-first-out basis. If you do not specify,
the requested amount will be withdrawn in the
following order:
a) from the variable Investment Accounts, on a pro
rata basis,
b) 1-year Investment Accounts,
c) 3-year Investment Accounts, and
d) 6-year Investment Accounts.
We will deduct the withdrawal charge and the
Market Value Charge, if applicable, from the
Contract Value remaining after payment of the
requested amount.
WITHDRAWAL CHARGE If a withdrawal is made from the Contract before
the Maturity Date, a withdrawal charge (contingent
deferred sales charge) may be assessed against
Purchase Payments that have been in your Contract
for less than 6 years. No withdrawal charge will
apply to Purchase Payments being withdrawn that
have been in the Contract for 6 or more years. The
amount of the withdrawal charge and when it is
assessed is discussed below:
1. An amount can be withdrawn without withdrawal
charges. This amount is defined as the
greater of:
a) the excess of the Contract Value on the
date of withdrawal over the unliquidated
Purchase Payments, or
b) after the first Contract Year, 10% of
total Purchase Payments minus 100% of all
prior partial withdrawals, in that contract
year.
The amount withdrawn without withdrawal charges
will be applied to your requested withdrawal in
the following order:
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a) withdrawals from the variable Investment
Accounts,
b) withdrawals from your 1-year Investment
Accounts,
c) withdrawals from your 3-year Investment
Accounts, and
d) withdrawals from your 6-year Investment
Accounts.
2. Withdrawals in excess of the amount available
without withdrawal charges as defined in (1)
above, may be subject to withdrawal charges.
A withdrawal charge will be assessed against
Purchase Payments liquidated that have been
in the Contract for less than 6 years.
Purchase Payments will be liquidated on a
first-in-first-out basis. We will liquidate
Purchase Payments in the order such Purchase
Payments were made: the oldest unliquidated
Purchase Payment first, the next Purchase
Payment second, etc...until all Purchase
Payments have been liquidated.
3. Any Purchase Payments liquidated are subject
to a withdrawal charge based on the length of
time the Purchase Payment has been in this
Contract. The withdrawal charge is determined
by multiplying the amount of the Purchase
Payment being liquidated by the applicable
withdrawal charge percentage obtained from
the table below.
Number of Complete Years
Purchase Payment has been Withdrawal Charge
in Contract Percentage
------------------------- -----------------
0 6%
1 6
2 5
3 4
4 3
5 2
6+
The total withdrawal charge will be the sum of the
withdrawal charges for the Purchase Payments being
liquidated.
4. The withdrawal charge is deducted from the
Contract Value remaining after you are paid
the amount requested, except in the case of a
complete withdrawal when it is deducted from
the amount otherwise payable. In the case of
a partial withdrawal, the amount requested
from an Investment Account may not exceed the
value of that Investment Account less any
applicable withdrawal charge and/or Market
Value Charge, if applicable.
5. In no event will the aggregate withdrawal
charge be greater than 6% of the total
Purchase Payments made.
FREQUENCY AND AMOUNT OF You may make as many partial withdrawals as you
PARTIAL WITHDRAWALS wish. Any withdrawal from an Investment Account of
the Contract must be at least $300 or the entire
balance of the Investment Account, if less. If
after the withdrawal, the amount remaining in the
Investment Account is less than $100, then we will
consider the withdrawal request to be a request
for withdrawal of the entire amount held in the
Investment Account. If a partial withdrawal would
reduce the Contract Value to less than $300, then
we will treat the partial withdrawal request as a
total withdrawal of the Contract Value.
PART 11 CHARGES AND DEDUCTIONS
--------------------------------------------------------------------------------
MORTALITY AND EXPENSE Amounts invested in a variable Investment Option
RISK CHARGE are subject to a mortality and expense charge to
compensate us for assuming the mortality and
expense risks. We deduct from each Sub-Account a
charge each Valuation Period at an annual rate of
1.25% (0.8% for mortality risk and 0.45% for
expense risk). There are no mortality and expense
risk charges associated with fixed Investment
Options.
ADMINISTRATION FEES To compensate us for assuming certain
administrative expenses we charge administration
fees equal to $30 per year plus we deduct from
each Sub-Account a charge each Valuation Period at
an annual rate of 0.15%. The 0.15% administration
fee does not apply to the fixed Investment Option.
Prior to the Maturity Date, the $30 administrative
fee is deducted on each
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Contract Anniversary. It is withdrawn from each
Investment Option in the same proportion that the
value of the Investment Accounts of each
Investment Option bears to the Contract Value. If
the Contract Value is totally withdrawn on any
date other than the Contract Anniversary, we will
deduct the total amount of the $30 administration
fee from the amount paid.
During the annuity period, the $30 administration
fee is deducted on a pro rata basis from each
annuity payment.
The 0.15% administration fee is added to the
mortality and expense risk charge of 1.25% and is
reflected in the net investment factor used to
determine the value of Accumulation Units and
Annuity Units for the variable portion of the
Contract.
TAXES We reserve the right to charge certain taxes
against your Purchase Payments, Contract Value, or
annuity payments, as appropriate. Such taxes may
include any premium taxes or other taxes levied by
any government entity which we, in our sole
discretion, determine have resulted from the
establishment or maintenance of the Variable
Account, or from the receipt by us of Purchase
Payments, or from the issuance of this Contract,
or from the commencement or continuance of annuity
payments under this Contract.
PART 12 PAYMENT OF CONTRACT BENEFITS
--------------------------------------------------------------------------------
GENERAL Benefits payable under this Contract may be
applied in accordance with one or more of the
Annuity Options described below.
ALTERNATE ANNUITY OPTIONS Instead of settlement in accordance with the
Annuity Options described below, you may choose an
alternate form of settlement acceptable to us.
DESCRIPTION OF ANNUITY Option 1: Life Annuity
OPTIONS (a) Life Non-Refund. We will make payments during
the lifetime of the Annuitant. No payments
are due after the death of the Annuitant.
(b) Life 10-Year Certain. We will make payments
for 10 years and after that during the
lifetime of the Annuitant. No payments are
due after the death of the Annuitant or, if
later, the end of the 10-year period certain.
Option 2: Joint and Survivor Life Annuity
(a) Joint and Survivor Non-Refund. We will make
payments during the joint lifetime of the
Annuitant and Co-Annuitant. Payments will
then continue during the remaining lifetime
of the survivor. No payments are due after
the death of the last survivor of the
Annuitant and Co-Annuitant.
(b) Joint and Survivor with 10-Year Certain. We
will make payments for 10 years and after
that during the joint lifetime of the
Annuitant and Co-Annuitant. Payments will
then continue during the remaining lifetime
of the survivor. No payments are due after
the death of the survivor of the Annuitant
and Co-Annuitant or, if later, the end of the
10-year period certain.
ANNUITY PAYMENT RATES The annuity payment rates on the attached tables
show, that for each $1,000 applied, the dollar
amount of both (a) the first monthly variable
annuity payment based on the assumed interest rate
of 4% and (b) the monthly fixed annuity payment,
when this payment is based on the minimum
guaranteed interest rate of 4% per year. The
annuity payment rates for payments made on a less
frequent basis (quarterly, semiannual or annual)
will be quoted by us upon request.
The annuity payment rates are based on the 1983
Table A projected at Scale G with interest at the
rate of 4% per annum and assume births in year
1942. The amount of each annuity payment will
depend upon the sex and adjusted age of the
Annuitant, the Co-Annuitant, if any, or other
payee. The adjusted age is determined from the
actual age nearest birthday at the time
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the first monthly annuity payment is due, as
follows:
Calendar Year of Birth and Adjustment to Actual Age
-------------------------- ------------------------
1899 - 1905 +6
1906 - 1911 +5
1912 - 1918 +4
1919 - 1925 +3
1926 - 1932 +2
1933 - 1938 +1
1939 - 1945 0
1946 - 1951 -1
1952 - 0000 -0
0000 - 0000 -0
1966 - 1972 -4
1973 - 1979 -5
1980 + -6
The dollar amount of annuity payment for any age
or combination of ages not shown following or for
any other form of Annuity Option agreed to by us
will be quoted on request.
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AMOUNT OF FIRST MONTHLY ANNUITY PAYMENT
PER $1000 OF CONTRACT VALUE
OPTION 1: LIFE ANNUITY
Option 1(A): Non-Refund Option 1(B): 10-Year Certain
--------------------------------------------------------------------------------
Adjusted Adjusted
Age of Age of
Annuitant Male Female Annuitant Male Female
--------------------------------------------------------------------------------
55 4.83 4.44 55 4.78 4.41
60 5.24 4.74 60 5.15 4.70
65 5.79 5.15 65 5.62 5.08
70 6.35 5.70 70 6.21 5.58
75 7.51 6.49 75 6.89 6.21
80 8.81 7.56 80 7.65 6.98
85 10.57 9.06 85 8.40 7.80
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OPTION 2: JOINT AND SURVIVOR LIFE ANNUITY
Option 2(A): Non-Refund
--------------------------------------------------------------------------------
AGE OF CO-ANNUITANT
Adjusted
Age of 10 Years 5 Years Same 5 Years 10 Years
Annuitant Younger Younger Age Older Older
--------------------------------------------------------------------------------
55 3.87 3.99 4.13 4.27 4.41
60 4.02 4.18 4.36 4.55 4.73
65 4.21 4.43 4.67 4.92 5.16
70 4.47 4.76 5.08 5.43 5.75
75 4.80 5.20 5.65 6.11 6.54
80 5.26 5.80 6.41 7.04 7.60
85 5.89 6.63 7.47 8.29 8.97
--------------------------------------------------------------------------------
Option 2(B): 10-Year Certain
--------------------------------------------------------------------------------
AGE OF CO-ANNUITANT
Adjusted
Age of 10 Years 5 Years Same 5 Years 10 Years
Annuitant Younger Younger Age Older Older
--------------------------------------------------------------------------------
55 3.87 3.99 4.13 4.27 4.41
60 4.02 4.18 4.36 4.55 4.73
65 4.21 4.43 4.66 4.91 5.15
70 4.46 4.75 5.07 5.40 5.70
75 4.80 5.18 5.61 6.03 6.39
80 5.24 5.75 6.30 6.81 7.20
85 5.82 6.47 7.13 7.68 8.06
--------------------------------------------------------------------------------
Monthly installments for ages not shown will be furnished on request.
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THE MANUFACTURERS LIFE INSURANCE
COMPANY OF NEW YORK
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Manulife Financial and the block design are registered service marks of The
Manufacturers Life Insurance Company and are used by it and its subsidiaries.
