[OWNER: XXXX XXX
SUCCESSOR OWNER: XXXX XXX
ANNUITANT: XXXX XXX
CERTIFICATE NUMBER: 00000
CONTRACT DATE: March 1 2008]
2007IFL-I-A(rev 11-07)
FLEXIBLE PREMIUM DEFERRED VARIABLE ANNUITY CONTRACT
Processing Office: AXA Equitable Life Insurance Company, [P.O. Box 1547,
Secaucus, New Jersey 07096-1547]
This Contract is issued in return for the Contributions to be made to us under
the Contract.
In this Contract, "we", "our" and "us" mean AXA Equitable Life Insurance Company
("AXA Equitable"). "You" and "your" mean the Owner. We will provide the benefits
and other rights pursuant to the terms of this Contract.
This Contract provides a [Lifetime Income] Benefit which guarantees that you can
receive lifetime payments up to a maximum amount per Contract Year. See Part VI,
"[Lifetime Income] Benefit" which describes the terms and conditions of this
benefit.
TEN DAYS TO CANCEL - Not later than ten days after you receive this Contract,
you may return it to us. We will cancel it and refund any Contribution made to
us.
NEW YORK,
AXA EQUITABLE LIFE INSURANCE COMPANY, A STOCK LIFE INSURANCE COMPANY.
Home Office address: [0000 Xxxxxx xx xxx Xxxxxxxx, Xxx Xxxx, Xxx Xxxx 00000]
/s/ Xxxxxxxxxxx X. Xxxxxxx /s/ Xxxxx Xxxxx Xxxxx
Xxxxxxxxxxx X. Xxxxxxx Xxxxx Xxxxx Xxxxx, Vice President,
Chairman and Chief Executive Officer Secretary and Associate General Counsel
THE ANNUITY ACCOUNT VALUE HELD IN THE SEPARATE ACCOUNT MAY INCREASE OR DECREASE
IN VALUE BASED ON THE VALUE OF SEPARATE ACCOUNT ASSETS WHICH ARE NOT GUARANTEED
AS TO FIXED DOLLAR AMOUNTS. SEPARATE ACCOUNT ASSETS WILL INCREASE OR DECREASE IN
VALUE BASED UPON INVESTMENT RESULTS.
2007IFL-I-A(rev 11-07)
TABLE OF CONTENTS
Page
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DATA
Part I - DEFINITIONS 3
Part II - VARIABLE INVESTMENT OPTIONS 6
Part III - CONTRIBUTIONS AND ALLOCATIONS 9
Part IV - TRANSFERS AMONG VARIABLE INVESTMENT OPTIONS 10
Part V - WITHDRAWALS AND TERMINATION 11
Part VI [LIFETIME INCOME] BENEFIT 12
Part VII - PAYMENT UPON DEATH 17
Part VIII - ANNUITY BENEFITS 19
Part IX - CHARGES 22
Part X - GENERAL PROVISIONS 24
TABLE OF GUARANTEED ANNUITY PAYMENTS 26
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2007IFL-I-A(rev 11-07)
PART I - DEFINITIONS
SECTION 1.01 ANNUITANT
"Annuitant" means (i) the individual shown as such in the Data Pages, who is
also the Owner, or (ii) the Successor Owner, upon the death of the Owner.
SECTION 1.02 ANNUITY ACCOUNT VALUE
"Annuity Account Value" means the sum of the amounts held for you in the
Variable Investment Options.
SECTION 1.03 ANNUITY BENEFIT
"Annuity Benefit" means a benefit payable by us as described in Part VIII.
SECTION 1.04 AUTOMATIC PAYMENT PLAN
"Automatic Payment Plan" means a withdrawal plan for periodic payments up to the
Guaranteed Annual Payment amount each Contract Year, if such withdrawal plan is
shown in the Data Pages.
SECTION 1.05 BUSINESS DAY
"Business Day" means generally any day on which the New York Stock Exchange is
open for trading and generally ends at 4:00 pm Eastern Time or such other time
as we state in writing to the Owner.
SECTION 1.06 CASH VALUE
"Cash Value" means an amount equal to the Annuity Account Value, less any
charges that apply under Part IX and any applicable Endorsement(s) or Rider(s).
SECTION 1.07 CODE
"Code" means the Internal Revenue Code of 1986, as amended at any time, or any
corresponding provisions of prior or subsequent United States revenue laws.
References to the "Code" in this Contract include references to applicable
Federal income tax Regulations.
SECTION 1.08 CONTRACT
"Contract" means this Contract including the Data Pages and any Endorsement(s)
or Rider(s).
SECTION 1.09 CONTRACT DATE
"Contract Date" means the date on which the Owner is enrolled under the Contract
according to our enrollment procedures. Such date is shown in the Data Pages.
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SECTION 1.10 CONTRACT DATE ANNIVERSARY
A Contract Date Anniversary is the last day of the Contract Year.
SECTION 1.11 CONTRACT YEAR
"Contract Year" means the twelve month period starting on (i) the Contract Date
and (ii) each anniversary of the Contract Date, unless we agree to another
period.
SECTION 1.12 CONTRIBUTION
"Contribution" means a payment made to us under the Contract. See Section 3.01.
SECTION 1.13 EMPLOYER
"Employer" means, if applicable, an employer as defined in an endorsement
hereto.
SECTION 1.14 GUARANTEED ANNUAL PAYMENT
Guaranteed Annual Payment means the payment amount under the [Lifetime Income]
Benefit, as described in Part VI.
SECTION 1.15 JOINT LIFE CONTRACT
"Joint Life Contract" means a contract that was issued with a Successor Owner.
SECTION 1.16 MATURITY DATE
"Maturity date" means the date on which the annuity payments described in
Section 8.02 are to commence. The Maturity Date is shown in the Data Pages and
is subject to change as described in Section 8.02. The Maturity Date is based on
the Annuitant's date of birth.
SECTION 1.17 OWNER
"Owner" means the person shown as such in the Data Pages.
SECTION 1.18 PLAN
"Plan" means, if applicable, the retirement plan from which the distribution
used to purchase the Contract was made or which purchased this Contract for
distribution to the Owner.
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SECTION 1.19 PROCESSING DATE
A Processing Date is each Contract Date Anniversary. If the Contract Date
Anniversary is not on a Business Day, then the Processing Date is the first
Business Day thereafter. "Processing Date" means the day(s) we deduct charges
from the Annuity Account Value.
SECTION 1.20 PROCESSING OFFICE
"Processing Office" means the AXA Equitable administrative office shown on the
cover page of this Contract, or such other location we may state upon written
notice to you.
SECTION 1.21 SEPARATE ACCOUNT
"Separate Account" means any of the Separate Accounts described or referred to
in Sections 2.01 and 2.04.
SECTION 1.22 SINGLE LIFE CONTRACT
"Single Life Contract" means a contract that is issued without a Successor
Owner.
SECTION 1.23 SUCCESSOR OWNER
"Successor Owner" means the individual shown as such in the Data Pages when a
Joint Life Contract is owned by an individual. The Successor Owner must be the
spouse of the Owner on the Contract Date, unless a change is subsequently made
in accordance with Section 6.03.
SECTION 1.24 TRANSACTION DATE
"Transaction Date" is the Business Day we receive at the Processing Office a
Contribution or a transaction request providing the information we need.
Transaction requests must be in a form acceptable to us.
SECTION 1.25 VARIABLE INVESTMENT OPTION
"Variable Investment Option" means a subdivision of a Separate Account available
under this Contract. A Variable Investment Option may invest its assets in a
separate class (or series) of shares of a specified trust or investment company
where each class (or series) represents a separate portfolio in the specified
trust or investment company.
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2007IFL-I-A(rev 11-07)
PART II - VARIABLE INVESTMENT OPTIONS
SECTION 2.01 SEPARATE ACCOUNT
We have established the Separate Account(s) and maintain such Account(s) in
accordance with the laws of New York State. Xxxxxx, realized and unrealized
gains and losses from the assets of the Separate Account(s) are credited to or
charged against it without regard to our other income, gains or losses. Assets
are placed in the Separate Account(s) to support this Contract and other
variable annuity contracts and certificates. Assets may be placed in the
Separate Account(s) for other purposes, but not to support contracts or policies
other than variable annuities and variable life insurance.
The Data Pages set forth the Separate Account(s). A Separate Account may be
subdivided into Variable Investment Options.
The assets of a Separate Account are our property. The portion of such assets
equal to the reserves and other contract liabilities will not be chargeable with
liabilities which arise out of any other business we conduct. We may transfer
assets of a Separate Account in excess of the reserves and other liabilities
with respect to such Account to another Separate Account or to our general
account.
We may, at our discretion, invest Separate Account assets in any investment
permitted by applicable law. We may rely conclusively on the opinion of counsel
(including counsel in our employ) as to what investments we may make as law
permits.
SECTION 2.02 SEPARATE ACCOUNT ACCUMULATION UNITS AND UNIT VALUES
The amount you have in a Variable Investment Option at any time is equal to the
number of Accumulation Units you have in that Variable Investment Option
multiplied by the Variable Investment Option's Accumulation Unit Value at that
time. "Accumulation Unit" means a unit which is purchased in a Separate Account.
"Accumulation Unit Value" means the dollar value of each Accumulation Unit in a
Separate Account on a given date. (If Variable Investment Options apply as
described in Section 2.01, then the terms of this Section 2.02 apply separately
to each Variable Investment Option, unless otherwise stated.)
Amounts allocated or transferred to a Separate Account are used to purchase
Accumulation Units of that Account. Units are redeemed when amounts are
deducted, transferred or withdrawn.
The number of Accumulation Units you have in a Separate Account at any time is
equal to the number of Accumulation Units purchased minus the number of Units
redeemed in that Account up to that time. The number of Accumulation Units
purchased or redeemed in a transaction is equal to the dollar amount of the
transaction divided by the Account's Accumulation Unit Value for that
Transaction Date.
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We determine Accumulation Unit Values for each Separate Account for each
Valuation Period. A "Valuation Period" is each Business Day together with any
consecutive preceding non-business days. For example, for each Monday which is a
Business Day, the preceding Saturday and Sunday will be included to equal a
three-day Valuation Period.
Unless the following paragraph applies, the Accumulation Unit Value for a
Separate Account for any Valuation Period is equal to the Accumulation Unit
Value for the immediately preceding Valuation Period multiplied by the ratio of
values "(i) " and "(ii) ". Value "(i) " is the value of the Separate Account at
the close of business at the end of the current Valuation Period, before any
amounts are allocated to or withdrawn from the Separate Account in that Period.
Value "(ii)" is the value of the Separate Account at the close of business at
the end of the preceding Valuation Period, after all allocations and withdrawals
were made for that Period. For this purpose, "value of the Separate Account"
means the market value or, where there is no readily available market, the fair
value of the assets allocated to the Separate Account, as determined in
accordance with our rules, accepted accounting practices, and applicable laws
and regulations.
To the extent the Separate Account invests in Variable Investment Options, and
the assets of the Variable Investment Options are invested in a class or series
of shares of a specified trust or investment company, the Accumulation Unit
Value of a Variable Investment Option for any Valuation Period is equal to the
Accumulation Unit Value for that Fund on the immediately preceding Valuation
Period multiplied by the Net Investment Factor for that Fund for the current
Valuation Period. The Net Investment Factor for a Valuation Period is (a)
divided by (b) minus (c), where
(a) is the value of the Variable Investment Option's shares of the
related portfolio of the specified trust or investment company at
the end of the Valuation Period (before taking into account any
amounts allocated to or withdrawn from the Variable Investment
Option for the Valuation Period and after deduction of investment
advisory fees and direct operating expenses of the specified trust
or investment company; for this purpose, we use the share value
reported to us by the specified trust or investment company);
(b) is the value of the Variable Investment Option's shares of the
related portfolio of the specified trust or investment company at
the end of the preceding Valuation Period (taking into account any
amounts allocated or withdrawn for that Valuation Period);
(c) is the daily charge (see Section 9.04) for the expenses and risks
of this Contract, times the number of calendar days in the
Valuation Period, plus any charge for taxes or amounts set aside
as a reserve for taxes.
SECTION 2.03 AVAILABILITY OF VARIABLE INVESTMENT OPTIONS
Section 3.01 describes how Contributions are allocated among the Variable
Investment Options under the Contract based on your election. Your election is
subject to the
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available Variable Investment Options on the Contract Date as shown in the Data
Pages. We have the right to add Variable Investment Options and to limit the
number of Variable Investment Options which you may elect.
SECTION 2.04 CHANGES WITH RESPECT TO SEPARATE ACCOUNT
In addition to the right reserved pursuant to Section 2.03, we have the right,
subject to compliance with applicable law, including approval of Contract owners
if required:
(a) to add Variable Investment Options (or sub-funds of Variable
Investment Options) to, or to remove Variable Investment Options
(or sub-funds) from, the Separate Account, or to add other
separate accounts;
(b) to combine any two or more Variable Investment Options or
sub-funds thereof;
(c) to transfer the assets we determine to be the share of the class
of contracts to which this Contract belongs from any Variable
Investment Option to another Variable Investment Option;
(d) to operate the Separate Account or any Variable Investment Option
as a management investment company under the Investment Company
Act of 1940, in which case charges and expenses that otherwise
would be assessed against an underlying mutual fund would be
assessed against the Separate Account;
(e) to operate the Separate Account or any Variable Investment Option
as a unit investment trust under the Investment Company Act of
1940;
(f) to deregister the Separate Account under the Investment Company
Act of 1940, provided that such action conforms with the
requirements of applicable law;
(g) to restrict or eliminate any voting rights as to the Separate
Account;
(h) to cause one or more Variable Investment Options to invest some or
all of their assets in one or more other trusts or investment
companies.
If the exercise of these rights results in a material change in the underlying
investment of a Separate Account, you will be notified of such exercise, as
required by law.
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PART III - CONTRIBUTIONS AND ALLOCATIONS
SECTION 3.01 CONTRIBUTIONS, ALLOCATIONS
You must allocate Contributions among the Variable Investment Options. You need
not allocate Contributions to each Variable Investment Option available. You may
change the allocation election at any time by sending us a request in a form we
accept. Allocation percentages must be in whole numbers (no fractions) and must
total 100%.
Each Contribution is allocated (after deduction of any charges that may apply)
in accordance with the allocation election in effect on the Transaction Date.
Contributions made to a Separate Account purchase Accumulation Units in that
Account, using the Accumulation Unit Value for that Transaction Date.
SECTION 3.02 LIMITS ON CONTRIBUTIONS
We have the right not to accept any Contribution which is less than the minimum
amount shown in the Data Pages. The Data Pages indicate other minimum and
maximum Contribution requirements which may apply. We also have the right, upon
advance notice to you, to:
(a) change such requirements to apply to Contributions
made after the date of such change, and
(b) discontinue acceptance of Contributions under this
Contract with respect to all Owners or with respect
to all Owners to whom the same type of Contract
applies.
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PART IV - TRANSFERS AMONG VARIABLE INVESTMENT OPTIONS
SECTION 4.01 TRANSFER REQUESTS
You may request to transfer all or part of the amount held in a Variable
Investment Option to one or more of the other Variable Investment Options. The
request must be in a form we accept. All transfers will be made on the
Transaction Date. Transfers are subject to Section 4.02 and to our rules in
effect at the time of transfer. With respect to a Separate Account, the
transfers will be made at the Accumulation Unit Value for that Transaction Date.
SECTION 4.02 TRANSFER RULES
The transfer rules which apply are described in the Data Pages. A transfer
request will not be accepted if it involves less than the minimum amount, if
any, stated in the Data Pages (unless the Annuity Account Value is less than
such amount). We have the right to change our transfer rules. Any change will be
made upon advance notice to you.
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PART V - WITHDRAWALS AND TERMINATION
SECTION 5.01 WITHDRAWALS
Unless otherwise stated in the Data Pages, you may request, pursuant to our
procedures then in effect, a withdrawal from the Variable Investment Options
before the Maturity Date and while you are alive. The request must be in a form
we accept.
On the Transaction Date, we will pay the amount of the withdrawal requested or,
if less, the Cash Value. The amount to be paid plus any Withdrawal Charge which
applies (see Section 9.01) will be withdrawn on a pro-rata basis from the
amounts held for you in the Variable Investment Options, unless you elect
otherwise and unless otherwise stated in the Data Pages.
We will not accept a withdrawal request that is less than the minimum amount, if
any, stated in the Data Pages. Further conditions or restrictions apply as
described below under [Lifetime Income] Benefit.
SECTION 5.02 TERMINATION OF THE CONTRACT
Unless the conditions described in Section 6.02, "Effect of your Annuity Account
Value Falling to Zero" apply, upon surrender of this Contract, we will pay the
Cash Value (not the Income Base) to the Owner and no further Guaranteed Annual
Payments will be made. Your Contract will also terminate on the issuance of a
supplementary contract as described in Part VI, [Lifetime Income] Benefit and
Part VIII, Annuity Benefit. Your Contract will terminate upon the Last
Applicable Death as described in Part VII, subject to our obligation to pay any
remaining death benefit. We will not be liable for any payments we make or
actions we take in accordance with the Contract before receiving notice of
death.
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PART VI - [LIFETIME INCOME] BENEFIT
SECTION 6.01 [LIFETIME INCOME] BENEFIT
Under the [Lifetime Income] Benefit, we guarantee that when you reach age [59
1/2] (or, if later, when your Successor Owner reaches age [59 1/2]), you will be
eligible to receive payments while you are living, even if such payments cause
the Annuity Account Value to fall to zero. Once eligible, payments, for purposes
of the [Lifetime Income] Benefit, are your total withdrawals during each
Contract Year up to the Guaranteed Annual Payment amount (as defined below). If
a Successor Owner is named in the Data Pages, we guarantee such payments during
the lives of you and such Successor Owner. The terms and conditions of the
[Lifetime Income] Benefit are set forth below.
A Contract with no Successor Owner named in the Data Pages is a Single Life
Contract. A Contract with a Successor Owner named in the Data Pages is a Joint
Life Contract. You cannot add a Successor Owner to a Single Life Contract.
SECTION 6.02 DEFINITIONS AND CONDITIONS
INCOME BASE
Your Income Base is equal to your initial Contribution and will increase or
decrease, as follows: 1) your Income Base increases by the dollar amount of any
subsequent Contribution, 2) your Income Base may be increased by an "Annual
Step-Up" or "Deferral Bonus", and 3) your Income Base may be reduced by
withdrawals that exceed your Guaranteed Annual Payment amount ("Excess
Withdrawals") as described below.
GUARANTEED ANNUAL PAYMENT AMOUNT
Your Guaranteed Annual Payment amount is equal to the Applicable Percentage of
the Income Base as shown in the Data Pages. Your Guaranteed Annual Payment
amount may increase or decrease, as follows: 1) your Guaranteed Annual Payment
amount will increase to the Applicable Percentage of your Income Base that is
increased by any subsequent Contribution, 2) your Guaranteed Annual Payment
amount will increase to the Applicable Percentage of your Income Base that is
increased by an "Annual Step-Up" or "Deferral Bonus", and 3) your Guaranteed
Annual Payment amount may be reduced by Excess Withdrawals as described below.
To the extent so provided in the Data Pages, Guaranteed Annual Payments may be
taken through an Automatic Payment Plan we offer. If you take less than the
Guaranteed Annual Payment amount in any Contract Year, you may not add the
remainder to your Guaranteed Annual Payment amount in any subsequent Contract
Year. If Subsequent Contributions are permitted in the Data Pages, once any
withdrawal is made, no subsequent Contributions may be made.
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ANNUAL STEP-UP
Your Income Base is recalculated on each Contract Date Anniversary to equal the
greater of (i) the Annuity Account Value or (ii) the prior Income Base. If the
Income Base is increased by such recalculation, your Guaranteed Annual Payment
amount will be increased as of the next Contract Year following such Contract
Date Anniversary to equal your Applicable Percentage multiplied by your new
Income Base.
If on the Contract Date Anniversary your Income Base would be eligible for both
an Annual Step-Up and a Deferral Bonus, only one of them will be applied, as
described below under "Deferral Bonus".
DEFERRAL BONUS
The "Deferral Bonus" is an amount that is applied to your Income Base on each
Contract Anniversary until you make a withdrawal. Once any withdrawal (including
a Guaranteed Annual Payment Amount) is made, you are no longer eligible to
receive a Deferral Bonus in that or any subsequent Contract Year.
The Deferral Bonus is determined as follows:
For the first Contract Year, the Deferral Bonus will be [6%] of Contributions
received in the first [90 days].
For Contract Years after the first, the Deferral Bonus will be [6%] of your
total Contributions, except Contributions made in the immediately preceding
[twelve months].
If your Income Base has been increased because of an Annual Step-Up, any
Deferral Bonus applicable in the following years will be [6%] of the sum of the
adjusted Income Base plus any Contributions received after the Income Base
adjustment except Contributions made during the [twelve months] immediately
preceding the Contract Date Anniversary on which the Deferral Bonus is to be
applied.
In a Contract Year in which the Deferral Bonus is applicable, we will, on the
Contract Date Anniversary, compare:
(i) the sum of the Deferral Bonus and the current Income Base, which,
for purposes of this paragraph, is called the "Deferral Bonus Income Base" to
(ii) the Annuity Account Value.
If the Deferral Bonus Income Base is greater than the Annuity Account Value, the
Deferral Bonus Income Base amount will become the new Income Base and there is
no further Annual Step-Up on that Contract Date Anniversary. If the Deferral
Bonus Income Base amount is less
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than or equal to the Annuity Account Value, then the Income Base will be
increased to the Annuity Account Value; the Annual Step-Up will apply and the
Deferral Bonus will not apply.
EXCESS WITHDRAWAL
An Excess Withdrawal occurs when either: (i) in a Single Life Contract you make
a withdrawal before reaching age [59 1/2] (or in a Joint Life Contract you make
a withdrawal before the younger individual reaches age [59 1/2]), or (ii) you
withdraw more than your Guaranteed Annual Payment amount in any Contract Year.
Once a withdrawal causes cumulative withdrawals in a Contract Year to exceed
your Guaranteed Annual Payment amount, the entire amount of that withdrawal and
all subsequent withdrawals in that Contract Year are considered Excess
Withdrawals.
Withdrawals made before your (or your Successor Owner's if later) [59 1/2th]
birthday do not affect your Guaranteed Annual Payment Amount, except as
described in this Section under "Income Base".
If you make an Excess Withdrawal, we recalculate your Income Base and the
Guaranteed Annual Payment amount, as follows: 1) The Income Base is reset as of
the date of the Excess Withdrawal to equal the lesser of (i) the Income Base
immediately prior to the Excess Withdrawal or (ii) the Annuity Account Value
immediately following the Excess Withdrawal. 2) The Guaranteed Annual Payment
amount is recalculated to equal the lesser of (i) the Applicable Percentage
multiplied by the reset Income Base, and (ii) the Guaranteed Annual Payment
amount prior to the Excess Withdrawal.
An Excess Withdrawal that reduces your Annuity Account Value to zero terminates
the Contract, including all benefits, without value.
EFFECT OF YOUR ANNUITY ACCOUNT VALUE FALLING TO ZERO
If, while you are living and this Contract is in effect, you make a withdrawal
for an amount that is equal to or exceeds the Annuity Account Value but is not
an Excess Withdrawal, you will receive Guaranteed Annual Payments subject to the
following terms and conditions: The date of such event is the benefit
transaction date for purposes of this subsection. Guaranteed Annual Payments
will be made for the full amount on the next Contract Date Anniversary following
the benefit transaction date and continue on each subsequent Contract Date
Anniversary, while you or the Successor Owner, if applicable, is living. If, on
the benefit transaction date, you were taking payments through an Automatic
Payment Plan, the frequency of payments after the benefit termination date is
described in the Data Pages. If you were not taking payments through an
Automatic Payment Plan, then any remaining balance of the Guaranteed Annual
Payment for the Contract Year in which your Annuity Account Value was reduced to
zero will be paid to you in a lump sum on the benefit transaction date and
Guaranteed Annual Payments will continue to be made for the full amount
thereafter on an annual basis. As of the benefit transaction date, your Contract
will be cancelled and a supplementary life annuity contract setting forth your
continuing benefit will be issued to you, as further described below.
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When the supplementary life annuity contract is issued, the Owner of record
under this Contract on the benefit transaction date will be the Owner under the
supplementary life annuity contract. The Owner will also become the Annuitant
under the supplementary life annuity contract.
OTHER CONDITIONS
We may require proof acceptable to us that the person on whose life a benefit
payment is based is alive when each payment is due. We will require proof of the
age of any such person on whose life a benefit is based.
If a benefit was based on information that is later found not to be correct,
including but not limited to age or sex, such benefit will be adjusted on the
basis of the correct information. The adjustment will be made in the number or
amount of the benefit payments, or any amount used to provide the benefit, or
any combination. Overpayments by us will be charged against future payments.
Underpayments will be added to future payments. Our liability is limited to the
correct information and the actual amounts used to provide the benefits.
SECTION 6.03 CERTAIN CHANGES UNDER JOINT LIFE CONTRACTS
CHANGE OF SUCCESSOR OWNER
Before any payment or other withdrawal has been made under this
Contract you may change the Successor Owner named in the Data Pages to
your current spouse. Any such change must be made in writing in a form
we accept. The change will take effect as of the date you sign it, but,
we will not be liable as to any payments we make or actions we take
before we receive such change.
After a payment or other withdrawal has been made under this Contract,
the Successor Owner cannot be changed.
CONVERSION TO A SINGLE LIFE CONTRACT
(i) Before Guaranteed Annual Payments have commenced under this
Contract, you may terminate the Successor Owner provisions
of this Contract by written notice satisfactory to us.
Effective on the Transaction Date we receive the notice,
the [Lifetime Income] Benefit guarantee will apply solely
with respect to your life and we will adjust the [Lifetime
Income] Benefit charge shown in the Data Pages
prospectively to the single life charge for Contracts of
the same class as yours. The commencement of the Guaranteed
Annual Payment as described in Section 6.02 will be based
on your attainment of age [59 1/2]. Once the Successor
Owner provisions have been terminated, a new Successor
Owner may not be named.
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(ii) After Guaranteed Annual Payments have commenced under this
Contract, you may terminate the Successor Owner provisions
of this Contract. Effective on the Transaction Date we
receive the notice, the [Lifetime Income] Benefit guarantee
will apply solely with respect to your life; however, we
will not reduce the charge for the benefit shown in the
Data Pages. Once the Successor Owner provisions have been
terminated, a new Successor Owner may not be named.
CONTRACTS SPLIT BY COURT ORDER
If required under an applicable court order relating to a divorce, we
will split the Contract as near as is practicable in accordance with
the Order, and in order to effect the split, we will replace the
Contract with two single-life Contracts.
(i) If the split of the Contract occurs before any payment or
other withdrawal has been made under the Contract, the
[Lifetime Income] Benefit charge under each respective new
Contract will be lowered prospectively to the single life
charge, and the Applicable Percentage for Guaranteed Annual
Payments will be based on each respective individual's age
at first payment or other withdrawal.
(ii) If the split of the Contract occurs after any payment or
other withdrawal has been made under your original
Contract, the [Lifetime Income] Benefit charge will remain
a joint life charge and the Applicable Percentage that was
established at first withdrawal will remain the same for
each respective individual under a new Contract.
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PART VII - PAYMENT UPON DEATH
SECTION 7.01 BENEFICIARY
You give us the name of the beneficiary who is to receive any death benefit
payable upon the "Last Applicable Death" under this Contract ("Beneficiary").
"Last Applicable Death" means:
For a Single Life Contract, the Last Applicable Death is the death of
the Owner.
For a Joint Life Contract, the Last Applicable Death is the death of
the second to die of the Owner and the Successor Owner, provided that
the Owner and Successor Owner are married at the time of the first
death.
For a Joint Life Contract where the Owner and Successor Owner are not
married at the time of the first death, the Payment Upon Death Rules
described in the applicable Endorsement applies.
You may change the Beneficiary from time to time during your lifetime and while
coverage under the Contract is in force. Any such change must be made in writing
in a form we accept. A change will, upon receipt at the Processing Office, take
effect as of the date the written form is executed, whether or not you are
living on the date of receipt. We will not be liable as to any payments we make
or actions we take before we receive any such change.
You may name one or more persons to be primary Beneficiary upon the Last
Applicable Death and one or more other persons to be successor Beneficiary if
the primary Beneficiary dies before the Owner. Unless you direct otherwise, if
you have named two or more persons as Beneficiary, the Beneficiary will be the
named person or persons who survive you and payments will be made to such
persons in equal shares or to the survivor.
Any part of a death benefit payable as described in Section 7.02 for which there
is no named Beneficiary living at your death will be payable in a single sum to
the Owner's surviving spouse, if any; if there is no surviving spouse, then to
the surviving children in equal shares; if there are no surviving children, then
to the Owner's estate.
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SECTION 7.02 PAYMENT UPON DEATH
Upon the Last Applicable Death before the Annuity Account Value falls to zero
and before an Annuity Benefit is elected under Section 8.01, we will pay a death
benefit to the Beneficiary in accordance with Section 7.03.
The Death Benefit is equal to the Annuity Account Value at the time of payment.
Payment of a Death Benefit will be made upon our receipt of the following
"Beneficiary Requirements":
(i) a properly completed written request;
(ii) due proof of death (as evidenced by a certified copy of the death
certificate);
(iii) proof satisfactory to us that the person claiming the Death Benefit is the
person entitled to receive it;
(iv) tax information required by the Code; and
(v) any other forms we require.
For a Joint Life Contract, upon the death of the Owner, the Successor Owner
becomes the sole Owner and the new Annuitant. The Contract and [Lifetime Income
for Life] Benefit continue. However, no additional Contributions will be
permitted. If Guaranteed Annual Payments have commenced, the Contract continues
with the Joint Life charge and with payments over the Successor Owner's life
only. If Guaranteed Annual Payments have not commenced, they will begin when the
Successor Owner reaches age [59 1/2]. Charges will be reduced to a Single Life
charge prospectively.
SECTION 7.03 MANNER OF PAYMENT
If you so elect in writing, any amount that would otherwise be payable to a
Beneficiary in a single sum may be applied to provide an Annuity Benefit in Part
VIII, on the form of annuity elected by you, subject to the terms of this
Contract and any applicable endorsement and our rules then in effect. If, at the
Last Applicable Death, as defined in Section 7.01, there is no election in
effect, the Beneficiary may make such an election. In the absence of any
election by either you or the Beneficiary, we will pay the Death Benefit in a
single sum.
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PART VIII ANNUITY BENEFITS
SECTION 8.01 ELECTION OF ANNUITY BENEFITS
As of the Maturity Date, provided the Annuitant is then living, the Annuity
Account Value will be applied to provide the Normal Form of Annuity Benefit
(described below). However, you may instead elect (i) to have the Cash Value
paid in a single sum, (ii) to apply the Annuity Account Value or Cash Value,
whichever applies pursuant to the first paragraph of Section 8.05, to provide an
Annuity Benefit of any form offered by us or one of our subsidiary life
insurance companies, or (iii) to apply the Cash Value to provide any other form
of benefit payment we offer, subject to our rules then in effect and applicable
laws and regulations. At the time an Annuity Benefit is purchased, we will issue
a supplementary contract which reflects the Annuity Benefit terms.
We will provide notice and election forms to you not more than six months before
the Maturity Date.
We have the right to require you to furnish any information we need to provide
an Annuity Benefit. We will be fully protected in relying on such information
and need not inquire as to its accuracy or completeness.
SECTION 8.02 COMMENCEMENT OF ANNUITY BENEFITS
Before the Maturity Date, you may elect to change such Date to any date after
your election is filed (other than the 29th, 30th, or 31st of any month). You
must do this in writing. The change will not take effect until your written
election is received and accepted by us at our Processing Office.
However, no Maturity Date will be later than the first day of the month which
follows the date the Annuitant attains the "maximum maturity age" or, if later,
the tenth anniversary of the Contract Date. The current "maximum maturity date"
is shown in the Data Pages, but may be changed by us in conformance with
applicable law. The Maturity Date may not be earlier than [thirteen months]
following the Contract Date.
SECTION 8.03 ANNUITY BENEFIT
Payments under an Annuity Benefit will be made monthly. You may elect instead to
have the Annuity Benefit paid at other intervals, such as every three months,
six months, or twelve months, instead of monthly, subject to our rules at the
time of your election or as otherwise stated in the Data Pages or any
endorsement hereto. This election may be made at the time the Annuity Benefit
form as described in Section 8.01 is elected. In that event, all references in
this Contract to monthly payments will, with respect to the Annuity Benefit to
which the election applies, are deemed to mean payments at the frequency
elected.
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SECTION 8.04 ANNUITY BENEFIT FORMS
The "Normal Form" of Annuity Benefit is an Annuity Benefit payable on the
Life-Period Certain Annuity Form described below. We may offer other annuity
forms as available from us or from one of our affiliated or subsidiary life
insurance companies.
The Life-Period Certain Annuity is an annuity payable during the lifetime of the
person upon whose life the payments depend, but with 10 years of payments
guaranteed (10 years certain period). That is, if the original payee dies before
the certain period has ended, payments will continue to the beneficiary named to
receive such payments for the balance of the certain period.
SECTION 8.05 AMOUNT OF ANNUITY BENEFITS
If you elect pursuant to Section 8.01 to have an Annuity Benefit paid in lieu of
the Cash Value, the amount applied to provide the Annuity Benefit will, unless
otherwise stated in the Data Pages or required by applicable laws or
regulations, be (i) the Annuity Account Value if the annuity form elected
provides payments for a person's remaining lifetime or (ii) the Cash Value if
the annuity form elected does not provide such lifetime payments.
The amount applied to provide an Annuity Benefit may be reduced by a charge for
any taxes which apply on annuity purchase payments. The balance will be used to
purchase the Annuity Benefit on the basis of either (i) the Tables of Guaranteed
Annuity Payments or (ii) our then current individual annuity rates, whichever
rates would provide a larger benefit with respect to the payee.
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SECTION 8.06 CONDITIONS
We may require proof acceptable to us that the person on whose life a benefit
payment is based is alive when each payment is due. We will require proof of the
age of any such person on whose life an Xxxxxxx Xxxxxxx is based.
If a benefit was based on information that is later found not to be correct,
such benefit will be adjusted on the basis of the correct information. The
adjustment will be made in the number or amount of the benefit payments, or any
amount used to provide the benefit, or any combination. Overpayments by us will
be charged against future payments. Underpayments will be added to future
payments. Our liability is limited to the correct information and the actual
amounts used to provide the benefits.
If the age (or sex, if applicable as stated in the Tables of Guaranteed Annuity
Payments) of any person upon whose life an Annuity Benefit depends has been
misstated, any benefits will be those which would have been purchased at the
correct age (or sex). Any overpayments or underpayments made by us will be
charged or credited with interest at (a) the rate shown in the Data Pages or (b)
the then current Guaranteed Interest Rate; we will choose which rate will apply
on a uniform basis for like Contracts. Such interest will be deducted from or
added to future payments.
If we receive acceptable proof that (i) a payee entitled to receive any payment
under the terms of this Contract is physically or mentally incompetent to
receive such payment or a minor, (ii) another person or an institution is then
maintaining or has custody of such payee, and (iii) no guardian, committee, or
other representative of the estate of such payee has been appointed, we may make
the payments to such other person or institution. In the case of a minor, the
payments will not exceed $200, or such other amount as may be shown in the Data
Pages. We will have no further liability with respect to the payments so made.
If the amount to be applied hereunder is less than the minimum amount stated in
the Data Pages, we may pay the amount to the payee in a lump sum instead of
applying it under the annuity form elected.
SECTION 8.07 CHANGES
We have the right, upon advance notice to you, to change at any time after the
fifth anniversary of the Contract Date and at intervals of not less than five
years, the actuarial basis used in the Tables of Guaranteed Annuity Payments.
However, no such change will apply to (a) any Annuity Benefit provided before
the change or (b) Contributions made before such change which are applied to
provide an Annuity Benefit.
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PART IX - CHARGES
SECTION 9.01 WITHDRAWAL CHARGES
The amount of the Withdrawal Charge is stated in the Data Pages.
A "Free Withdrawal Amount" will apply as follows:
"Free Withdrawal Amount" means an amount that may be withdrawn each
Contract Year without incurring a Withdrawal Charge. At any time after you
or any Successor Owner, whoever is younger, is age [59 1/2], the "Free
Withdrawal Amount" is equal to the Guaranteed Annual Payment at the
beginning of the Contract Year minus any amount previously withdrawn
during the Contract Year. There is no Free Withdrawal Amount prior to that
age.
If the amount of a withdrawal is more than an applicable Free Withdrawal
Amount as defined above, we will (a) first withdraw from the Variable
Investment Options, on the basis described in Section 5.01, an amount
equal to the Free Withdrawal Amount, and (b) then withdraw from the
Variable Investment Options an amount equal to the excess of the amount
requested over the Free Withdrawal Amount, plus a Withdrawal Charge if one
applies.
Any withdrawals in excess of the Free Withdrawal Amount will be deemed
withdrawals of Contributions in the order in which they were made. For
purposes of this Section, amounts withdrawn up to the Free Withdrawal
Amount will not be deemed a withdrawal of any Contributions.
If specified in the Data Pages we have the right to reduce or waive the
Withdrawal Charge upon such events as stated in the Data Pages. Moreover, the
Withdrawal Charge will be reduced if needed in order to comply with any
applicable state or federal law. The Free Withdrawal Amount does not apply when
calculating the withdrawal charge applicable upon a surrender.
SECTION 9.02 CHARGES DEDUCTED FROM ANNUITY ACCOUNT VALUE
As of each Processing Date, we will deduct the Charges shown in the Data Pages.
If specified in the Data Pages, the Charges will be deducted in full or prorated
for the Contract Year, or portion thereof, in which the Contract Date occurs or
in which the Annuity Account Value is withdrawn or applied to provide an Annuity
Benefit or death benefit. If so, the Charges will be deducted when withdrawn or
so applied.
The amount of any such Charge will in no event exceed any maximum amount shown
in the Data Pages, subject to any maximum amount permitted under any applicable
law.
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We have the right to change the amount of the Charges with respect to future
Contributions. We will give you advance notice of any such change.
SECTION 9.03 TRANSFER CHARGES
We have the right to impose a charge with respect to any transfer among Variable
Investment Options after the number of free transfers, shown in the Data Pages.
The amount of such charge will be set forth in a notice from us to you and will
in no event exceed any maximum amount stated in the Data Pages.
SECTION 9.04 ANNUAL CHARGE
Assets of the Variable Investment Options will be subject to an annual charge to
be assessed as a daily asset charge. This daily asset charge is for the expenses
and benefit features of the Contract. The charge will be made pursuant to item
(c) of "Net Investment Factor" as defined in Section 2.02. Such charge will be
applied after any deductions to provide for taxes. It will be at a rate not to
exceed the maximum annual rate stated in the Data Pages. We have the right to
charge less on a current basis; the actual charge to apply, for at least the
first Contract Year, is also stated in the Data Pages.
SECTION 9.05 CHANGES
In addition to our right to reduce or waive charges as described in this Part
IX, we have the right, upon advance notice to you, to increase the amount of any
charge stated in the Data Pages, subject to (a) any maximum amount provided in
this Part IX or the Data Pages and (b) with respect to Administrative or Other
Charges deducted from the Annuity Account Value, the application of any increase
only to Contributions made after the date of the change.
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PART X - GENERAL PROVISIONS
SECTION 10.01 CONTRACT
This Contract, including any Data Pages, endorsements and riders attached
hereto, is the entire contract between the parties. It will govern with respect
to our rights and obligations.
This Contract may not be changed, nor may any of our rights or rules be waived,
except in writing and by our authorized officer.
SECTION 10.02 STATUTORY COMPLIANCE
We have the right to change this Contract without the consent of any other
person in order to comply with any laws and regulations that apply. Such right
will include, but not be limited to, the right to conform this Contract to
reflect changes in the Code, in Treasury regulations or published rulings of the
Internal Revenue Service, Employee Retirement Income Security Act of 1974
(ERISA), as amended, and in Department of Labor regulations.
The benefits and values available under this Contract will not be less than the
minimum benefits required by any state law that applies.
SECTION 10.03 DEFERMENT
The use of proceeds to provide a payment of a death benefit and payment of any
portion of the Annuity Account Value (less any Withdrawal Charge that applies)
will be made within seven days after the Transaction Date. Payments or use of
proceeds from the Variable Investment Options can be deferred for any period
during which (1) the New York Stock Exchange is closed or trading is restricted,
(2) sales of securities or determination of the fair value of an Variable
Investment Option's assets is not reasonably practicable because of an
emergency, or (3) the Securities and Exchange Commission, by order, permits us
to defer payment in order to protect persons with interests in the Variable
Investment Options.
SECTION 10.04 REPORTS AND NOTICES
At least once each year while the Contract is in effect, we will send you a
report showing:
(a) the total number of Accumulation Units in each Separate Account or
Variable Investment Option;
(b) the Accumulation Unit Value;
(c) the dollar amount in each Separate Account or Variable Investment
Option and
(d) the Cash Value.
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The terms which require us to send you a report as described above or any
written notice as described in any other Section will be satisfied by our
mailing any such report or notice to your last known address as shown in our
records.
All written notices sent to us will not be effective until received at the
Processing Office. Your Contract Number should be included in all
correspondence.
SECTION 10.05 ASSIGNMENTS, NONTRANSFERABILITY, NONFORFEITABILITY
No amounts payable under this Contract to a payee other than you may be assigned
by that payee unless permitted herein, nor will they be subject to the claims of
creditors or to legal process, except to the extent permitted by law. Other
restrictions may apply if stated in any endorsement hereto.
SECTION 10.06 PAYMENTS
All amounts payable by you must be paid (in United States dollars) by check
payable to us or by any other method acceptable to us.
We will pay (in United States dollars) all amounts hereunder by check or, if so
agreed by you and us, by wire transfer.
Any requirement for distribution or withdrawal of interest in the Contract shall
be fully discharged by payment of the Death Benefit, Annuity Account Value or
Cash Value, whichever is applicable, in accordance with the terms and conditions
of the Contract.
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TABLE OF GUARANTEED ANNUITY PAYMENTS
[AMOUNT OF ANNUITY BENEFIT PAYABLE MONTHLY ON THE LIFE ANNUITY FORM
WITH TEN *YEARS CERTAIN PROVIDED BY APPLICATION OF $1,000.
Monthly Income Monthly Income
Ages Males Females Age Males Females
---- ----- ------- --- ----- -------
60 3.69 3.43 78 5.31 4.86
61 3.76 3.48 79 5.43 4.97
62 3.82 3.54 80 5.55 5.10
63 3.89 3.59 81 5.76 5.26
64 3.96 3.65 82 5.97 5.44
65 4.03 3.72 83 6.20 5.64
66 4.11 3.78 84 6.45 5.84
67 4.19 3.85 85 6.71 6.06
68 4.27 3.92 86 6.98 6.29
69 4.36 4.00 87 7.26 6.52
70 4.45 4.08 88 7.56 6.77
71 4.55 4.16 89 7.85 7.02
72 4.64 4.25 90 8.14 7.27
73 4.75 4.34 91 8.43 7.53
74 4.85 4.43 92 8.74 7.79
75 4.96 4.53 93 9.07 8.07
76 5.07 4.64 94 9.43 8.37
77 5.19 4.75 95 9.80 8.69
* At age 80 and over the rates are adjusted so that the certain period does
not exceed life expectancy. See Data Pages for Period Certain tables for
ages 80 and older.
The amount of income provided under an Annuity Benefit payable on the Life
Annuity Form with Ten Years Certain is based on 2.5% interest and mortality
equal to 70% for males and 75% for females of the Annuity 2000 Mortality Table
projected for (attained age minus 20, but not less than 30) years at 1% for
males and 1.35% for females.
Amounts required for ages or for annuity forms not shown in the above Table or
for other annuity forms will be calculated by us on the same actuarial basis.
If a variable annuity form is available from us and elected pursuant to Section
7.01, then the amounts required will be calculated by us based on the 1983
Individual Annuity Mortality Table "a" projected with modified Scale "G" and a
modified two year age setback and on an Assumed Base Rate of Net Investment
Return of 5.0%.]
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