Exhibit 99-B.4.3
Aetna Life Insurance and Annuity Company
ENDORSEMENT
This Contract, and the Certificate, if applicable, are endorsed as follows.
Subject to the provisions below, loans are available under the Contract.
During the Accumulation Phase, loans are available (1) as permitted under
applicable law, and (2) subject to the terms and conditions of the loan
agreement.
The Loan Account
For each loan, an amount equal to the loan amount is transferred from the
Investment Options in which the Individual Account is invested and is credited
to the loan account. [The loan account is then credited with interest at a rate
which is not less than the loan interest rate (which is the rate we charge on a
loan as defined below), less [3.0%], on an annual basis.]
Loan Effective Date
The loan effective date is the date we receive a loan request in Good Order at
our Home Office. [For loan requests received in Good Order on the 29th, 30th, or
31st day of the month, however, the loan effective date is the first business
day of the following month.]
Amount Available For Loan
The amount available for loan is limited to the Individual Account value
attributable to employee contributions, plus any additional amounts allowed by
the Plan as determined by the Contract Holder (the vested Individual Account
value).
For plans subject to ERISA, the minimum loan amount is $1,000; for plans not
subject to ERISA, the minimum loan amount is defined in the loan agreement.
The maximum loan amount is the lesser of:
(1) Fifty percent of the vested Individual Account value, including
the amount, if any, in the loan account, reduced by the amount
of any outstanding loan balance on the date we receive a loan
agreement in Good Order at our Home Office; or
(2) Fifty thousand dollars reduced by the highest outstanding loan
balance for the preceding 12 months.
The total amount of all outstanding loans cannot exceed $50,000.
Amounts available from some Investment Options may be subject to limitations
specified in the loan agreement. To obtain the loan amount requested, these
limitations may require transfer of funds among Investment Options. [A market
value adjustment may apply to amounts transferred from the Guaranteed
Accumulation Account.] The amount, if any, from the Fixed Plus Account may be
subject to a default charge if the Participant defaults on the loan.
Loan Interest Rate
For plans subject to ERISA: We set a loan interest rate on the first calendar
day of each month. The rate will be equal to the Monthly Average Corporates
(which is Moody's Corporate Bond Yield Average-Monthly Average Corporates
published by Xxxxx'x Investor Service or its successor, or a substantially
similar average that may be allowed by law or regulation) for the calendar month
beginning two months before the loan interest rate is effective. The initial
rate for each loan is the rate for the calendar month in which the Loan
Effective Date occurs. The initial interest rate is effective for not less than
three months and not more than one year. For each subsequent period, the
interest rate is adjusted if the new rate is at least 0.5% higher or lower than
the current rate. We provide reasonable notification in writing of any change to
the loan interest rate.
For plans not subject to ERISA: The loan interest rate will be not greater than
8% on an annual basis.
Loan Repayment
A loan may be repaid as described in the loan agreement, or repaid in full at
any time.
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Partial Withdrawal(s) While A Loan Is Outstanding
While a loan is outstanding, the amount available for partial withdrawal is
equal to the vested Individual Account value, including the loan account, minus
125% of the outstanding loan balance.
Full Withdrawal While A Loan Is Outstanding
When a full withdrawal is requested while a loan is outstanding, one of the
following occurs:
(1) If the amount of the vested Individual Account value available for
distribution is sufficient to repay (a) the outstanding loan
balance, plus (b) any applicable Fixed Plus Account default charge,
and (c) any applicable withdrawal charge due on the outstanding
loan balance, that amount (the total of a, b, and c,), minus the
loan account balance, is deducted from the vested Individual
Account value and the loan is canceled. The outstanding loan
balance, if not previously reported, will be reported to the
Internal Revenue Service as a distribution.
(2) If the amount of the vested Individual Account value available for
distribution is not sufficient to repay (a) the outstanding loan
balance, plus (b) any applicable Fixed Plus Account default charge,
and (c) any applicable withdrawal charge due on the outstanding
loan balance, the withdrawal cannot be made until the loan is
repaid in full.
Electing An Annuity Option While A Loan Is Outstanding
Before all or any portion of the vested Individual Account value is used to
purchase Annuity payments, the Participant may repay any outstanding loan
balance, or the vested Individual Account value is adjusted to cancel the loan
as described in "Full Withdrawal While a Loan Is Outstanding" above.
Death Of The Participant While A Loan Is Outstanding
If a death benefit claim is submitted for an Individual Account with an
outstanding loan, the vested Individual Account value, including the amount of
the loan account, is reduced by the amount of the outstanding loan balance
before the death benefit amount is determined.
[Loan Default: If we do not receive a loan payment when it is due, the defaulted
payment is treated as follows:
(1) If the amount of the vested Individual Account value available for
distribution is sufficient to repay (a) the defaulted payment, plus
(b) any applicable Fixed Plus Account default charge, and (c) any
withdrawal charge due on the defaulted payment, then that amount
(the total of a, b, and c,) is deducted from the vested Individual
Account value. The amount of the defaulted payment is reported to
the Internal Revenue Service as a distribution.
(2) If the amount of the vested Individual Account value available for
distribution is not sufficient to repay (a) the defaulted payment,
plus (b) any applicable Fixed Plus Account default charge, and (c)
any withdrawal charge due on the defaulted payment, until such time
that the amount due (the total of a, b and c) can be distributed,
the loan account continues to earn interest, and interest is
charged on the defaulted payment. The amount of the defaulted
payment is reported to the Internal Revenue Service as a deemed
distribution. At the time the amount due can be distributed, it is
withdrawn from the vested Individual Account value.]
Endorsed and made part of this Contract, and the Certificate, if applicable, on
the Effective Date of the Contract and Certificate.
/s/ Xxxxxx X. XxXxxxxxx
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President
Aetna Life Insurance and Annuity Company
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