OWNER: [Xxxx Xxx]
ANNUITANT: [Xxxx Xxx]
CONTRACT NUMBER: [00000]
CONTRACT DATE: [January 15, 1999]
CONTRACT
Processing Office: Income Management Group, P.O. Box 1547,
Secaucus, New Jersey 07096-1547
This is the Contract which is issued under the terms of the Contract defined in
Section 1.09. This Contract is issued in return for the application for coverage
under the Contract and the Contributions to be made to us under the Contract.
In this Contract, "we", "our" and "us" mean Equitable of Colorado, Inc. "You"
and "your" mean the Owner.
We will provide the benefits and other rights pursuant to the terms of this
Contract.
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, plus or minus any investment gain or loss which applies to the Investment
Funds of the Separate Account from the date such Contribution was allocated to
such Fund to the date of cancellation.
EQUITABLE OF COLORADO, INC.
Xxxxxx X. Xxxxxxxxxx, Xxxxx Xxxxxxx,
President and Chief Executive Officer Secretary
THE PORTION OF ANNUITY ACCOUNT VALUE HELD IN THE SEPARATE ACCOUNT MAY INCREASE
OR DECREASE IN VALUE (SEE PART II OF THIS CONTRACT).
No. EOC99APICB-INDV Page 1
TABLE OF CONTENTS
Page
Part I - DEFINITIONS 3
Part II - INVESTMENT OPTIONS 5
Part III - CONTRIBUTIONS AND ALLOCATIONS 7
Part IV - TRANSFERS AMONG INVESTMENT OPTIONS 8
Part V - WITHDRAWALS AND TERMINATION 8
Part VI - DEATH BENEFITS 9
Part VII - ANNUITY BENEFITS 10
Part VIII - CHARGES 12
Part IX - GENERAL PROVISIONS 13
TABLE OF GUARANTEED ANNUITY PAYMENTS 15
No. EOC99APICB-INDV Page 2
PART I - DEFINITIONS
SECTION 1.01 ANNUITANT
"Annuitant" means the individual shown as such in the Data pages, or any
successor Xxxxxxxxx.
SECTION 1.02 ANNUITY ACCOUNT VALUE
"Annuity Account Value" means the sum of the amounts held for you in the
Investment Options.
SECTION 1.03 ANNUITY BENEFIT
"Annuity Benefit" means a benefit payable by us as described in Part VII.
SECTION 1.04 ANNUITY COMMENCEMENT DATE
"Annuity Commencement Date" means the date on which annuity payments are to
commence as described in Section 7.03. Such date is the date shown in the Data
pages and is subject to change as described in Section 7.03.
SECTION 1.05 BUSINESS DAY
A "Business Day" is any day on which the New York Stock Exchange is open for
trading, or any other day which may be specified in the Data pages. Our Business
Day ends at 4:00 p.m., Eastern time, or such other time as we state in writing
to you.
SECTION 1.06 CASH VALUE
"Cash Value" means an amount equal to the Annuity Account Value, less any
charges that apply as described in Part VIII and any charges that may apply as
described in any applicable Endorsement(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.
SECTION 1.08 CONTRACT
"Contract" means this Contract including the Data pages and any Endorsement(s).
SECTION 1.09 CONTRACT DATE
"Contract Date" means the earlier of (a) the effective date of the Contract and
(b) the effective date of a prior Contract. Such date is shown in the Data
pages.
SECTION 1.10 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 1.11 CONTRIBUTION
No. EOC99APICB-INDV Page 3
"Contribution" means a payment made to us under the Contract. See Section 3.01.
SECTION 1.12 EMPLOYER
"Employer" means, if applicable, an employer as defined in an endorsement
hereto.
SECTION 1.13 INVESTMENT FUND
"Investment Fund" means a sub-fund of a Separate Account. An Investment Fund may
invest its assets in a separate class (or series) or shares of a specified trust
or investment company where each class (or series) represents a separate
portfolio in such trust or investment company.
SECTION 1.14 INVESTMENT OPTION
"Investment Option" means a Separate Account or an Investment Fund of a Separate
Account.
SECTION 1.15 OWNER
"Owner" means the person or entity shown as such in the Data pages, or any
successor owner.
SECTION 1.16 PLAN
"Plan" means, if applicable, the annuity program sponsored by the Employer and
as may be defined in an endorsement hereto.
SECTION 1.17 PRIOR CONTRACT
"Prior Contract" means another contract or Contract issued by us and from which
the Owner and we have agreed to transfer amounts to this Contract.
SECTION 1.18 PROCESSING DATE
"Processing Date" means the day(s) we deduct charges from the Annuity Account
Value. The Data pages show how often a Processing Date will occur.
SECTION 1.19 PROCESSING OFFICE
"Processing Office" means the Equitable of Colorado processing office shown on
the cover page of this Contract, or such other location we may state upon
written notice to you.
SECTION 1.20 SEPARATE ACCOUNT
"Separate Account" means any of the Separate Accounts (except our Separate
Account No. 46) described or referred to in Sections 2.01 and 2.04.
No. EOC99APICB-INDV Page 4
SECTION 1.21 TRANSACTION DATE
The 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.
PART II - 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 the State of Colorado. 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 Contracts. 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 Investment Funds.
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 an Investment Fund at any time is equal to the number of
Accumulation Units you have in that Fund multiplied by the Fund'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 Investment Funds
apply as described in Section 2.01, then the terms of this Section 2.02 apply
separately to each Fund, 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.
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
No. EOC99APICB-INDV Page 5
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 accepted
accounting practices, and applicable laws and regulations.
To the extent the Separate Account invests in Investment Funds, and the assets
of the Funds are invested in a class or series of shares of a specified trust or
investment company, the Accumulation Unit Value of an Investment Fund 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 Investment Fund'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 Investment Fund 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 Investment Fund'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 Separate Account charges (see Section 8.04) 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 INVESTMENT OPTIONS
Section 3.01 describes how Contributions are allocated among Investment Options
based on your election.
The Data pages list which Options are available as of the Contract Date.
SECTION 2.04 CHANGES WITH RESPECT TO SEPARATE ACCOUNT
In addition to the right reserved pursuant to subsection (b) of Section 2.03, we
have the right, subject to compliance with applicable law, including approval of
Contract owners if required:
(a) to add Investment Funds (or sub-funds of Investment Funds) to, or
to remove Investment Funds (or sub-funds) from, the Separate
Account, or to add other separate accounts;
(b) to combine any two or more Investment Funds 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 Investment
Fund to another Investment Fund;
(d) to operate the Separate Account or any Investment Fund 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 Investment Fund as a unit
investment trust under the Investment Company Act of 1940;
No. EOC99APICB-INDV Page 6
(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 Investment Funds 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.
A Separate Account or Investment Fund which may be added by us as described
above may be one with respect to which (i) there may be periods during which
Contributions may be restricted pursuant to the maturity terms of such Account
or Fund, (ii) amounts therein may be automatically liquidated pursuant to the
investment policy of the Account, and (iii) investments therein may mature. We
will have the right to reallocate amounts arising from liquidation or maturity
according to your allocation instructions then in effect unless you specify
other instructions with respect to such amounts. If no such allocation
instructions have been made, the reallocation will be made to a designated
Investment Option, or to the next established Account or Fund of the same type
as described in this paragraph, if applicable, as specified in the Data pages.
PART III - CONTRIBUTIONS AND ALLOCATIONS
SECTION 3.01 CONTRIBUTIONS, ALLOCATIONS
You elect which Investment Option will be available under the Contract subject
to the terms of Section 2.03. Once this election is made, you may allocate
Contributions to, or transfer among, only these Options. You may add or subtract
Options by sending us a written request, but we have the right to decline your
request.
You also elect how to allocate Contributions among the Options chosen. If you
are not the Annuitant, you may delegate to the Annuitant authority to allocate
Contributions. You need not allocate Contributions to each Option available. You
may change the allocation election at any time by sending us the proper form.
Allocation percentages must be in whole numbers (no fractions) and must equal
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 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.
No. EOC99APICB-INDV Page 7
PART IV - TRANSFERS AMONG INVESTMENT OPTIONS
SECTION 4.01 TRANSFER REQUESTS
You may request to transfer all or part of the amount held in an Investment
Option to one or more of the other Options. The request must be in a form we
accept. All transfers will be made on the Transaction Date. Transfers are
subject to the terms of 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.
The Investment Funds may consist of funds which are classified as "Type A"
Investment Options or "Type B" Investment Options or any other type which may be
specified in the Data pages, as we designate in our discretion for purposes of
the transfer rules described in the Data pages. The Data pages specify whether
such Investment Options are designated Type A or Type B or another type as well
as the minimum or maximum limits on transfers which apply.
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 Investment Options before the
Annuity Commencement Date and while the Annuitant is 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 8.01) will be withdrawn on a pro-rata basis from the
amounts held for you in the Investment Options, unless you elect otherwise and
unless otherwise stated in the Data pages.
We will not accept a withdrawal request if it involves less than the minimum
amount, if any, stated in the Data pages. Further conditions or restrictions may
apply if stated in the Data pages or in an Endorsement hereto.
SECTION 5.02 TERMINATION
This Contract will terminate if one or more of the following events occurs,
unless otherwise specified in the Data pages:
(a) If a withdrawal made under Section 5.01 would result in an Annuity Account
Value of an amount less than the minimum amount stated in the Data pages, we
will so advise you and have the right to pay you such Value. In that case this
Contract will be terminated.
(b) Before the Annuity Commencement Date, we have the right to pay the Cash
Value and terminate this Contract if no Contributions are made during the last
three Contract Years, and the Annuity Account Value is less than the amount
described in item (a) above.
No. EOC99APICB-INDV Page 8
(C) We also have the right to terminate this Contract if no Contributions have
been made within 120 days of the Contract Date
PART VI - DEATH BENEFITS
SECTION 6.01 DEATH BENEFIT
Upon receipt of due proof that the Annuitant has died before the Annuity
Commencement Date, we will pay a death benefit to the beneficiary named under
Section 6.02. Payment may be subject to the terms of Section 6.02 and any
special rules which may apply as described in any Endorsement hereto.
The amount of the death benefit is described in the Data pages.
The death benefit will be paid as an Annuity Benefit or in a single sum, as
described in Section 6.02.
SECTION 6.02 BENEFICIARY
You give us the name of the beneficiary who is to receive any death benefit
payable on the Annuitant's death. You may change the beneficiary from time to
time during the Annuitant's 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 made before we receive any such
change.
You may name one or more persons to be primary beneficiary on the Annuitant's
death and one or more other persons to be successor beneficiary if the primary
beneficiary dies before the Annuitant. 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 the Annuitant 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 6.01 for which there
is no named beneficiary living at the Annuitant's death will be payable in a
single sum to the Annuitant's surviving children. The payments will be made in
equal shares, or should none survive or should there be none, then to the
Annuitant's estate.
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, on the
form of annuity elected by you, subject to our rules then in effect. If at the
Annuitant's death 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.
Any naming of a beneficiary is subject to the terms of the Plan, if one applies,
including any terms requiring spousal consent.
No. EOC99APICB-INDV Page 9
PART VII - ANNUITY BENEFITS
SECTION 7.01 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 7.02 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, be deemed to mean payments at the frequency elected.
SECTION 7.02 ELECTION OF ANNUITY BENEFITS
As of the Annuity Commencement 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 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 Annuity Commencement Date.
We will 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 7.03 COMMENCEMENT OF ANNUITY BENEFITS
Before the Annuity Commencement 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 Annuity Commencement 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 age is shown in the Data pages, but may be changed by us in conformance
with applicable law.
SECTION 7.04 ANNUITY BENEFIT FORMS
The "Normal Form" of Annuity Benefit is an Annuity Benefit payable on the
Life-Period Certain Annuity Form described below, unless another Form is to
apply pursuant to the terms of the Plan, if applicable, the requirements of the
Employee Retirement Income Security Act of 1974 (ERISA), as amended, or any
other law that applies. The Data pages will state the Normal Form which applies.
We may offer other annuity forms as available from us or from one of our
affiliated or subsidiary life insurance companies. Such a form may, for example,
include the Joint and Survivor Life Annuity Form which provides monthly payments
while either of two persons upon whose lives such payments depend is living. The
monthly amount to be continued when only one of the persons is living will be
equal to a percentage, as elected, of the monthly amount that was paid while
both were living.
No. EOC99APICB-INDV Page 10
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 7.05 AMOUNT OF ANNUITY BENEFITS
If you elect pursuant to Section 7.02 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 the (i) 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. If we have previously
deducted charges for taxes from Contributions, we will not again deduct charges
for the same taxes before an Annuity Benefit is provided. The balance will be
used to purchase the Annuity Benefit on the basis of either (i) the Table of
Guaranteed Annuity Payments or (ii) our then current individual annuity rates,
whichever rates would provide a larger benefit with respect to the payee.
SECTION 7.06 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 Data pages or Table 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 the rate shown in the Data
pages. 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 single sum instead of
applying it under the annuity form elected.
No. EOC99APICB-INDV Page 11
SECTION 7.07 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.
PART VIII - CHARGES
SECTION 8.01 WITHDRAWAL CHARGES
The amount of the Withdrawal Charge is stated in the Data pages. We have the
right to change the Charge shown in the Data Pages with respect to future
Contributions, subject to any maximum stated in the Data pages. We will give you
notice of any change.
If specified in the Data pages, a "Free Corridor Amount" will apply as follows:
"Free Corridor Amount" means an amount equal to the percentage, stated in
the Data pages, of the Annuity Account Value, minus the total of all prior
withdrawals (and associated Withdrawal Charges) made as described in
Section 5.01 in the current Contract Year. We have the right to change the
Free Corridor Amount, but it will always be a percentage between 0% and
30% if so provided in the Data.
If the amount of a withdrawal made under Part V is more than the Free
Corridor Amount (defined above), we will (a) first withdraw from the
Investment Options, on the basis described in Section 5.01, an amount
equal to the Free Corridor Amount, and (b) then withdraw from the
Investment Options an amount equal to the excess of the amount requested
over the Free Corridor Amount, plus a Withdrawal Charge if one applies.
For purposes of this Section, amounts withdrawn up to the Free Corridor
Amount will not be deemed a withdrawal of any Contributions. We have the
right to carry forward the free Corridor Amount into a future Contract
Year, if not used in any Year, if so stated in the Data pages.
Any withdrawals in excess of the Free Corridor Amount will be deemed
withdrawals of Contributions in the reverse order in which they were made.
That is, contributions will be withdrawn on a last-in, first-out basis
unless the Data pages state that a first-in, first-out basis will apply.
In addition, the Annuitant's years of participation under the Prior Contract, if
applicable, will be included for purposes of determining the Withdrawal Charge,
if so specified in the Data pages in accordance with our rules then in effect.
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.
SECTION 8.02 ADMINISTRATIVE AND OTHER CHARGES DEDUCTED FROM ANNUITY ACCOUNT
VALUE
As of each Processing Date, we will deduct Charges related to the administration
and/or distribution of this Contract from the Annuity Account Value. Such
Charges are 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.
No. EOC99APICB-INDV Page 12
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.
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 8.03 TRANSFER CHARGES
We have the right to impose a charge with respect to any transfer among
Investment Options after the number of free transfers, shown in the Data pages,
made on behalf of an Annuitant. 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 8.04 DAILY SEPARATE ACCOUNT CHARGE
Assets of the Investment Funds will be subject to a daily asset charge. This
daily asset charge is for mortality risk, expenses and expense risk that we
assume, as well as for financial accounting and death benefits if specified in
the Data pages. 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 8.05 CHANGES
In addition to our right to reduce or waive charges as described in this Part
VIII, 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 VIII or the Data pages and (b) with respect to Withdrawal Charges
and Administrative or Other Charges deducted from the Annuity Account Value, the
application of any increase only to Contributions made after the date of the
changes.
PART IX - GENERAL PROVISIONS
SECTION 9.01 CONTRACT
This Contract 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 9.02 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, ERISA, 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.
No. EOC99APICB-INDV Page 13
SECTION 9.03 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 Investment Funds 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 Investment Fund'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 Investment Funds.
SECTION 9.04 REPORTS AND NOTICES
At least once each year until the Annuity Commencement Date, we will send you a
report showing:
(a) the total number of Accumulation Units in each Separate Account or
Investment Fund;
(b) the Accumulation Unit Value;
(c) the dollar amount in each Separate Account or Investment Fund;
(d) the Cash Value; and
(e) the amount of the death benefit.
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 9.05 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 9.06 MANNER OF PAYMENT
We will pay all amounts hereunder by check (in United States dollars) or, if so
agreed by you and us, by wire transfer. All amounts payable to you will be paid
by check payable to us (in United States dollars) or by any other method
acceptable to us.
No. EOC99APICB-INDV Page 14
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 4.12 3.70 73 5.52 4.87
61 4.20 3.76 74 5.66 4.99
62 4.29 3.83 75 5.80 5.12
63 4.38 3.90 76 5.95 5.26
64 4.48 3.98 77 6.10 5.40
65 4.58 4.06 78 6.25 5.55
66 4.68 4.14 79 6.40 5.70
67 4.79 4.23 80 6.56 5.85
68 4.90 4.32 81 6.72 6.01
69 5.02 4.42 82 6.88 6.18
70 5.14 4.52 83 7.04 6.34
71 5.26 4.63 84 7.20 6.51
72 5.39 4.75 85 7.36 6.67
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 the 1983
Individual Annuity Mortality Table "a" projected with modified Scale G.
Amounts required for ages 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
7.02, 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%.]
No. EOC99APICB-INDV Page 15
