American United Life Insurance Company(R)
Indianapolis, IN 46206-0368
CONTRACT NUMBER: [GA XX,XXX]
CONTRACTHOLDER: [ABC CORPORATION]
DATE OF ISSUE: [JANUARY 2, 2003]
CONTRACT DATE: [JANUARY 1, 2003]
FIRST CONTRACT ANNIVERSARY: [JANUARY 1, 2004]
American United Life Insurance Company (AUL) issues this contract in
consideration of the Contractholder's application and its payment of
Contributions to AUL. When used in this contract, "we," "us," or "our" refer to
AUL and "you" or "your" refer to the Contractholder.
All provisions and conditions stated on this and subsequent pages are part of
this contract.
This contract is signed for us at our Home Office in Indianapolis, Indiana. Our
mailing address is P.O. Box 368, Indianapolis, Indiana 46206-0368. Our street
address is Xxx Xxxxxxxx Xxxxxx, Xxxxxxxxxxxx, Xxxxxxx 00000.
(non-North Dakota version)
NOTICE OF TEN DAY RIGHT TO EXAMINE CONTRACT
Please read this contract carefully. You may return the contract for any reason
within ten days after receiving it. If returned, the contract is void from the
beginning and any Contributions will be refunded.
(North Dakota version)
NOTICE OF TWENTY DAY RIGHT TO EXAMINE CONTRACT
Please read this contract carefully. You may return the contract for any reason
within twenty days after receiving it. If returned, the contract is void from
the beginning and any Contributions will be refunded.
AMERICAN UNITED LIFE INSURANCE COMPANY(R)
By /s/ Xxxxx X. Xxxxxx
Chairman of the Board & Chief Executive Officer
Attest
/s/ Xxxxxx X. Xxxxx
Secretary
AUL American Series
[Guaranteed Benefit] IRA Multiple-Fund Group Variable Annuity
[with Guaranteed Minimum Death Benefit (NBR)]
Current Interest Credited
Nonparticipating
ACCUMULATION UNITS IN AN INVESTMENT ACCOUNT UNDER THIS CONTRACT MAY INCREASE OR
DECREASE IN VALUE ACCORDING TO THE INVESTMENT PERFORMANCE OF
THE UNDERLYING INVESTMENTS HELD BY THE INVESTMENT ACCOUNT. THE VALUE OF SUCH
ASSETS AND ACCUMULATION UNITS IS NOT GUARANTEED. SECTION 4 OF THIS CONTRACT
EXPLAINS THE VALUATION OF SUCH ASSETS AND ACCUMULATION UNITS.
If you have questions concerning your contract, or wish to register a complaint,
you may reach us by calling [0- 000-000-0000].
(for Oklahoma only)
WARNING: Any person who knowingly, and with intent to injure, defraud, or
deceive any insurer, makes any claim for the proceeds of an insurance policy
containing any false, incomplete, or misleading information is guilty of a
felony.
TABLE OF CONTENTS
SECTION 1 - DEFINITIONS [3]
SECTION 2 - ADMINISTRATION OF PARTICIPANT ACCOUNTS [7]
2.1----- Amount of Contributions
2.2----- How Contributions Are Handled
2.3----- Transfers to or from Other Retirement Programs
SECTION 3 - OPERATION OF FIXED INTEREST ACCOUNT [10]
3.1----- Allocations to Participant Accounts
3.2----- Provision of Guaranteed Rates for Interest Pockets
3.3----- Renewal of Guaranteed Rates
3.4----- Minimum Rate Guarantee
3.5----- Allocation of Withdrawals
3.6----- Limitation on Contributions and Transfers to FIA
SECTION 4 - VALUATION OF INVESTMENT ACCOUNTS [11]
4.1----- Operation of Investment Accounts
4.2----- Valuation of Mutual Funds, Portfolios, and Other Entities
4.3----- Accumulation Units
4.4----- Value of Accumulation Units
4.5----- Valuing Participant Accounts
SECTION 5 - BENEFIT PAYMENTS AND TRANSFERS [12]
5.1----- General Withdrawal Provisions
5.2----- Death Benefits
5.3----- Distributions Before Death
5.4----- Transfers Between Investment Options
5.5----- Transfers to and from the FIA
SECTION 6 - ANNUITIES [16]
6.1----- Annuity Purchases
6.2----- Annuity Options
6.3----- Determining Annuity Amount
6.4----- Proof of Age and Survival; Minimum Payments
6.5----- Annuity Certificates
SECTION 7 - OTHER CONTRACT CHARGES [17]
7.1----- Investment Option Charge (IOC)
7.2----- Taxes
7.3----- Other Charges
1
7.4----- Reduction or Waiver of Charges
(use if VIP requested)
[7.5----- Variable Investment Plus (VIP) Credit Factor]
SECTION 8 - CONTRACT MODIFICATIONS [18]
8.1----- Contract Amendment
8.2----- Rates and '7 Charges
8.3----- Conformance with Law
8.4----- Addition, Deletion, or Substitution of Investments
8.5----- Our Right to Initiate Changes
8.6----- Prohibited Amendments
SECTION 9 - GENERAL PROVISIONS [20]
9.1----- Ownership
9.2----- Entire Contract
9.3----- Benefit Determinations
9.4----- Termination of Contract
9.5----- Representations and Warranties
9.6----- [Contractholder] Representative; Misstatement of Data
9.7----- Form of Request, Notice, Instruction, or Direction
9.8----- Statements and Reports
9.9----- Conformity with Law
9.10---- Gender and Number
9.11---- Facility of Payment
9.12---- Voting
9.13---- Acceptance of New Participants or Contributions
9.14---- Our Annual Statement
9.15---- Nonforfeitability and Nontransferability
9.16---- Notice of Annual Meeting of Members
[9.17--- SIMPLE IRA of Designated Financial Institution]
[TABLE OF CONTRACT CHARGES] [23]
[TABLE OF GUARANTEED IMMEDIATE ANNUITIES] [24]
[TABLE OF INVESTMENT ACCOUNTS] [25]
2
SECTION 1 - DEFINITIONS
1.1 "Account Value" for a Participant Account as of a date is:
(a) that Account's balance of funds in the Fixed Interest Account (FIA),
if any, on that date; plus
(b) the value of that Account's Accumulation Units in each Investment
Account on that date.
1.2 "Accumulation Unit" is a valuation device used to measure increases in and
decreases to the value of any Investment Account.
1.3 "Annuity Commencement Date" is the first day of the month an annuity begins
under this contract. However, amounts allocated to a Participant's Account
will be distributed or begin to be distributed no later than the date
determined under Section 5.
1.4 "Business Day" is any day both the New York Stock Exchange and our Home
Office are open for the general conduct of business.
1.5 "Code" means the Internal Revenue Code of 1986, as amended, and any
applicable regulations or rulings thereunder.
1.6 The "First Contract Anniversary" is listed on the contract face page.
Subsequent "Contract Anniversaries" are on the same day of each subsequent
year.
1.7 "Contract Quarter" is each of the four successive three-month periods in a
Contract Year.
1.8 The first AContract Year" starts on the Contract Date and ends on the day
before the First Contract Anniversary. Each subsequent Contract Year starts
on a Contract Anniversary and ends on the day before the next Contract
Anniversary.
1.9 "Contributions" are funds which can be allocated to Participant Accounts
according to your instructions and which have been paid to us in cash
(pursuant to your plan, if this contract is a Simplified Employee Pension
(SEP) or a SIMPLE IRA). These include funds which are transferred in cash
from a prior AUL group annuity contract or which are transferred in cash
from a prior funding medium to this contract [as part of a transfer
eligible for rollover treatment under Code Section Section 402(c),
402(e)(6), 403(a)(4), 403(b)(8), 403(b)(10), 408(d)(3), or 457(e)(16). (For
taxable years beginning after 2010, references to Code Sections 402(e)(6),
403(b)(10), and 457(e)(16) in the previous sentence shall be deleted,
unless the Code requires reference to such Code Sections in this contract
after 2010.)] Such transferred funds may be listed under categories other
than AContributions" on annual and quarterly reporting. The legal title to,
and ownership of, such amounts is vested solely in the Participant.
1.10 A "Contribution-Source" means each type of Contribution.
(Use following version of Section 1.11 if client selects GMDB)
1.11 "Death Benefit" is [the greater of:
(a) the Participant's Account Value as of the date the Death Benefit is
calculated (minus any charges described in Section 7 and in the Table
of Contract Charges that are not included in the Accumulation Unit
value), or
(b) (1) the Guaranteed Minimum Death Benefit (GMDB) on the Contract
Anniversary immediately preceding the date of the Participant's
death, increased by
3
(2) any Contributions made for the Participant since the last
Contract Anniversary, reduced proportionately to reflect
(3) any withdrawals by the Participant since the last Contract
Anniversary.]
(Use following version of Section 1.11 if client does not select GMDB)
1.11 "Death Benefit" is the Participant's Account Value as of the date the Death
Benefit is calculated (minus any charges described in Section 7 and in the
Table of Contract Charges that are not included in the Accumulation Unit
value).
1.12 "Excess Contributions" are Contributions in excess of the applicable Code
limits.
1.13 "Fixed Interest Account" or "FIA" is an Investment Option described in
Section 3 to which Contributions may be allocated for accumulation at the
Guaranteed Rates. The FIA funds constitute a portion of our general asset
account.
(Use following version of Section 1.14 if client selects GMDB)
[1.14The "Guaranteed Minimum Death Benefit" or "GMDB" prior to the first
Contract Anniversary is equal to the Contributions made for a Participant
minus any of his withdrawals. On each Contract Anniversary prior to, or
concurrent with, the Participant's date of death, the GMDB is reset, based
on the age of the Participant on his last birthday, as follows:
(a) For Participants less than 81 years of age, the GMDB is the greater
of:
(1) the Participant's Account Value as of the current Contract
Anniversary, or
(2) (A) the GMDB as of the immediately preceding Contract
Anniversary, increased by
(B) any Contributions made for the Participant since the
immediately preceding Contract Anniversary, and reduced
proportionately to reflect
(C) any withdrawals by the Participant since the immediately
preceding Contract Anniversary.
(b) For Participants 81 years of age or older, the GMDB is equal to:
(1) the GMDB as of the immediately preceding Contract Anniversary,
increased by
(2) any Contributions made for the Participant since the immediately
preceding Contract Anniversary, reduced proportionately to
reflect
(3) any withdrawals by the Participant since the immediately
preceding Contract Anniversary.
As of the Participant's date of death, the GMDB ceases to increase or
decrease in value.]
(Use following version of Section 1.14 if client does not select GMDB)
[1.14 [This Section is reserved.]]
1.15 "Guaranteed Rates" are the guaranteed annual effective rates of interest we
credit to each Interest Pocket. We credit interest daily to each Interest
Pocket. A Guaranteed Rate may be modified only as described in Section 3.3.
4
1.16 "Home Office" is our principal office in Indianapolis, Indiana. For
anything to be Areceived by AUL," it must be received at our Home Office.
1.17 "Interest Pocket" means a tracking method which associates funds allocated
to the FIA over a specific time period with a specific Guaranteed Rate, as
described in Section 3. After the guaranteed period provided in Section 3.3
has elapsed, we may consolidate two or more Interest Pockets in conjunction
with the announcement of new Guaranteed Rates.
1.18 "Investment Account" means each distinct portfolio established within our
[Variable Account] and identified in the Table of Investment Accounts of
this contract. Amounts allocated to any Investment Account are invested in
the shares of the corresponding Mutual Fund, Portfolio, or other entity
identified in the Table of Investment Accounts. Our "[Variable Account]" is
a separate account we maintain under Indiana law which is called the [AUL
American Unit Trust] and which is registered under the Investment Company
Act of 1940 as a unit investment trust.
1.19 "Investment Option" is the FIA or any Investment Account.
1.20 "Mutual Fund" means any diversified, open-end, management company made
available by us and listed in the Table of Investment Accounts.
1.21 AParticipant" is any person that has a Participant Account.
1.22 AParticipant Account" is an account under this contract for each
Participant. Each Contribution-Source is tracked separately within the
Participant Account. We credit Contributions to Participant Accounts and
Contribution-Sources as [you] direct.
1.23 "Portfolio" is a portfolio established within a particular Mutual Fund, as
described in the Mutual Fund's current prospectus.
1.24 "Valuation Periods" start at the close of each Business Day and end at the
close of the next Business Day.
(Contract Year)
1.25 The "Withdrawal Charge" is [a percentage of the Account Value withdrawn
under this contract.] The Withdrawal Charge will not apply to Account
Values withdrawn to provide certain benefit payments or an annuity as
described in [Section Section 5.1, 5.2, and 6.1, respectively. The
percentage varies by the Contract Year in which a withdrawal is made.] The
Withdrawal Charge percentage is as follows:
[During Contract Years Percentage
1 6
2 5
3 4
4 3
5 2
6 1
Thereafter 0]
In no event will the cumulative total of all Withdrawal Charges, including
those previously assessed against any amount withdrawn from a Participant
Account, exceed [8.5%] of total Contributions allocated to that Participant
Account.
(Participant Account Year)
1.25 The "Withdrawal Charge" is a [percentage of the Account Value withdrawn
under this contract.] The Withdrawal Charge will not apply to Account
Values withdrawn to provide certain benefit
5
payments or an annuity as described in [Section Section 5.1, 5.2, and 6.1,
respectively. The percentage varies by the Participant Account Year in
which a withdrawal is made. The first Participant Account Year begins on
the date when we establish a Participant Account and credit the initial
Contribution for the Participant, and ends on the day immediately preceding
the next anniversary of such date. Each Participant Account Year thereafter
begins on such an anniversary date and ends on the day immediately
preceding the next succeeding anniversary date.] The Withdrawal Charge
percentage is as follows:
[During Withdrawal Charge
Participant Account Years Percentage
1 6
2 5
3 4
4 3
5 2
6 1
Thereafter 0]
In no event will the cumulative total of all Withdrawal Charges, including
those previously assessed against any amount withdrawn from a Participant
Account, exceed [8.5%] of total Contributions allocated to that Participant
Account.
1.26 "Withdrawal Value" is a Participant's Account Value, less any Withdrawal
Charge.
6
SECTION 2 - ADMINISTRATION OF PARTICIPANT ACCOUNTS
2.1 Amount of Contributions:
(a) Contributions may vary in amount and frequency. If making
Contributions, [you] may stop making Contributions at any time.
[(b) Except for eligible rollover Contributions under CodeSection Section
402(c), 402(e)(6), 403(a)(4), 403(b)(8), 403(b)(10), 408(d)(3), and
457(e)(16), Contributions during a Participant's taxable year (which
is presumed to be a calendar year) may not exceed the amounts
described below, as adjusted or otherwise determined under the Code.
(For taxable years beginning after 2010, references to Code Section
Section 402(e)(6), 403(b)(10), and 457(e)(16) in the previous sentence
shall be deleted, unless the Code requires reference to such Code
Sections in this contract after 2010.):
(1) if this is a Code Section 408(b) traditional individual
retirement annuity (IRA) (not a Simplified Employee Pension (SEP)
or a SIMPLE IRA), the dollar amount in effect for that taxable
year under Code Section 219(b)(1)(A), as follows:
(A) $2,000 for any taxable year beginning after 2010 (unless the
Code ceases to apply this $2,000 amount for any taxable year
beginning after 2010);
(B) $3,000 for any taxable year beginning in 2002 through 2004;
(C) $4,000 for any taxable year beginning in 2005 through 2007;
and
(D) $5,000 for any taxable year beginning in 2008 and years
thereafter (unless adjusted for taxable years beginning
after 2010 as described in Subsection (b)(1)(A) above).
After 2008, the limit will be adjusted by the Secretary of the
Treasury for cost- of-living increases under Code Section
219(b)(5)(C). Such adjustments will be in multiples of $500.
(This provision ceases to apply to taxable years beginning after
2010 unless the Code requires its application to such post-2010
years.)
For a Participant age 50 or older, the annual Contribution limit
is increased by $500 for any taxable year beginning in 2002
through 2005, and $1,000 for any taxable year beginning in 2006
and years thereafter. (This provision ceases to apply to taxable
years beginning after 2010 unless the Code requires its
application to such post-2010 years.)
(2) if this is a Code Section 408(k) Simplified Employee Pension
(SEP), the dollar amount in effect for that taxable year as
determined pursuant to Code Section 408(j).
(3) if this is a Code Section 408(p) SIMPLE IRA (an IRA used in
conjunction with a Simple Retirement Account (SIMPLE IRA plan)),
this contract will accept only:
(A) a cash Contribution made by a Participant's employer on
behalf of the Participant under the SIMPLE IRA plan that
meets the requirements
7
of Code Section 408(p) in an amount not to exceed the dollar
amount in effect for that taxable year under Code Section
408(p), and
(B) a rollover Contribution or a transfer of assets from another
SIMPLE IRA for the Participant.
No other Contributions will be accepted.
(c) If this contract is not a SIMPLE IRA, then, notwithstanding any other
provisions of this contract, no Contribution will be accepted under a
Code Section 408(p) SIMPLE IRA plan established by a Participant's
employer, with the exception that a transfer or rollover of funds
attributable to contributions made by a Participant's employer under
its SIMPLE IRA plan will be accepted from a SIMPLE IRA after the
expiration of the 2- year period beginning on the date the Participant
first participated in that employer's SIMPLE IRA plan.]
(d) Excess Contributions: On receipt of instructions from [you or the
Participant], we will withdraw Excess Contributions, plus gains and
minus losses, from a Participant Account and return them to the
[Participant]. Such instructions must state the amount to be returned
and certify that such Contributions are Excess Contributions and that
such return is permitted by the Code. A return of Excess Contributions
is not subject to a Withdrawal Charge.
(e) Refunds of Contributions (other than Excess Contributions) will be
applied before the close of the calendar year following the year of
such refund toward the payment of future Contributions or the purchase
of additional benefits.
2.2 How Contributions Are Handled: Contributions are credited to the
appropriate Contribution-Sources within each Participant Account as [you]
direct in [your] allocation instructions. A Participant's initial
Contribution is allocated to the Participant Account by the second Business
Day after we (1) receive the initial Contribution or, if later, (2) receive
all data necessary to complete the allocation (including data required to
establish the Participant Account, the amount of the Participant's
Contribution, and Investment Option elections). Subsequent Contributions
are allocated to the Participant Account on the Business Day we (1) receive
that Contribution or, if later, (2) receive all data necessary to complete
the allocation.
If we receive funds which cannot be allocated to a Participant=s Account,
those funds will be returned to [you] in their entirety or, at our option,
only the unallocable portion will be returned to [you], within 5 Business
Days.
(Use the following paragraph if we allow the 90-day equity wash option for
this contract)
If we can allocate a Contribution to a Participant=s Account, but we have
not received his Investment Option elections, the Contribution will be
credited to [the AUL Money Market Investment Account. However, such a
Contribution will be credited to the FIA (not the AUL Money Market
Investment Account) if you elect the 90-day transfer option outlined in
Section 5.5(a).] Subsequently received Investment Option elections for that
Participant will be used to allocate future Contributions only. We will
transfer amounts previously allocated for that Participant to [the AUL
Money Market Investment Account (or the FIA), plus gains or minus losses
thereon, only if we are directed to make a transfer. This transfer request
must be submitted in a format specifically authorized by us.]
8
(Use the following paragraph if we do not allow the 90-day equity wash
option for this contract)
If we can allocate a Contribution to a Participant=s Account, but we have
not received his Investment Option elections, the Contribution will be
credited to [the AUL Money Market Investment Account.] Subsequently
received Investment Option elections for that Participant will be used to
allocate future Contributions only. We will transfer amounts previously
allocated for that Participant to [the AUL Money Market Investment Account,
plus gains or minus losses thereon, only if we are directed to make a
transfer. This transfer request must be submitted in a format specifically
authorized by us.]
Participant Account funds may be allocated to Investment Options in any
increments acceptable to us. Investment Option elections remain in effect
until changed by [the Participant]. A change in Investment Option elections
is made by giving us new Investment Option elections.
2.3 Transfers to or from Other Retirement Programs: If permitted by applicable
state and federal law, we may accept, or may initiate the transfer of,
amounts transferred from other retirement programs. Such transferred
amounts, as identified to us, are credited as a rollover Contribution under
the appropriate Participant Account and are tracked within this contract as
required by applicable state and federal law.
[If this contract is a SIMPLE IRA, prior to the expiration of the 2-year
period beginning on the date the Participant first participated in any
SIMPLE IRA plan maintained by the Participant's employer, any rollover or
transfer by the Participant of funds from this contract must be made to
another SIMPLE IRA of the Participant. Any distribution of funds to the
Participant during this 2-year period may be subject to a 25% additional
tax if the Participant does not roll over the amount distributed into a
SIMPLE IRA. After the expiration of this 2-year period, the Participant may
roll over or transfer funds to any IRA of his that is qualified under Code
Section Section 408(a), (b), or (p), or to another eligible retirement plan
described in Code Section 402(c)(8)(B).]
9
SECTION 3 -- OPERATION OF FIXED INTEREST ACCOUNT
3.1 Allocations to Participant Accounts: We credit each Participant=s
Contributions to the FIA based on the information [you] provide. We credit
interest daily from the date of the Contribution or transfer to the FIA to
the date of withdrawal or transfer from the FIA to an Investment Account.
3.2 Provision of Guaranteed Rates for Interest Pockets: At least [10 days] in
advance of each [calendar] [quarter], we will declare a Guaranteed Rate for
the Interest Pocket for that [quarter]. All Contributions or transfers
hereunder which are allocated to the FIA during that [quarter] will earn
interest at that Guaranteed Rate until that [quarterly] pocket matures on
[the second January 1] following the [quarter] in which that pocket was
established.
3.3 Renewal of Guaranteed Rates: Those [quarterly] Interest Pockets which
mature at the same time will be combined into [an annual renewal Interest
Pocket]. Funds associated with that [annual renewal Interest Pocket] will
earn interest for [a full year] at the Guaranteed Rate declared for that
pocket. A new Guaranteed Rate for each [annual renewal Interest Pocket]
will be declared [at least 30 days prior to every January 1 for the 5 years
following the establishment of that pocket]. An [annual renewal Interest
Pocket] will mature on [January 1 of the sixth year following its
establishment], when it will be combined into [one annual portfolio
Interest Pocket]. Funds associated with that [annual portfolio Interest
Pocket] will earn interest for [a full year] at the Guaranteed Rate for
that pocket, which will be declared [at least 30 days prior to every
January 1].
3.4 Minimum Rate Guarantee: No Guaranteed Rate may be less than an annual
effective interest rate of [3.00%].
3.5 Allocation of Withdrawals: Withdrawals or transfers from the FIA are on a
first-in/first-out (FIFO) basis.
3.6 Limitation on Contributions and Transfers to FIA: Except for annuity
purchases as described in Section 6.1, we reserve the right to limit or
disallow allocation of new Contributions and transfers to the FIA upon [30
days] notice to [you or the Participant].
10
SECTION 4 - VALUATION OF INVESTMENT ACCOUNTS
4.1 Operation of Investment Accounts: All income, gains, or losses, realized or
unrealized, from assets held in any Investment Account are credited to or
charged against the applicable Investment Account without regard to our
other income, gains, or losses. Investment Account assets are not
chargeable with liabilities arising out of any other business we may
conduct.
4.2 Valuation of Mutual Funds, Portfolios, and Other Entities: The current
report or prospectus for each Mutual Fund, Portfolio, or other entity
listed in the second column of the Table of Investment Accounts describes
how that Mutual Fund's, Portfolio's, or other entity=s assets are valued.
4.3 Accumulation Units: We credit amounts allocated to an Investment Account in
Accumulation Units. The Accumulation Unit value used is the one for the
Valuation Period when we allocate the amount to the Investment Account.
4.4 Value of Accumulation Units: We establish the initial Accumulation Unit
value for a new Investment Account on the inception date of that Investment
Account. The value of an Accumulation Unit for any later Valuation Period
reflects the Section 4.1 income, gains, and losses and the Section 7.1
Investment Option Charge (IOC). We determine the Accumulation Unit value
before giving effect to any additions, withdrawals, or transfers in the
current Valuation Period.
4.5 Valuing Participant Accounts: We determine the Account Value in an
Investment Account by multiplying the Accumulation Units in a Participant
Account by the Accumulation Unit value. The Accumulation Unit value of an
Investment Account changes only on a Business Day.
11
SECTION 5 - BENEFIT PAYMENTS AND TRANSFERS
5.1 General Withdrawal Provisions:
(a) Subject to the limitations provided in this Section, the Participant
may direct us to withdraw all or a portion of his Account Value (minus
any charges described in Section 7 and in the Table of Contract
Charges that are not included in the Accumulation Unit value) to
provide a single- sum payment to him to pay [required minimum
distribution benefits pursuant to Code Section 401(a)(9).] Such a
withdrawal is not subject to a Withdrawal Charge.
(b) Other benefits not listed in Subsection (a) above, or Section Section
5.2 or 6.1 below, are subject to a Withdrawal Charge. For these
benefits, if the entire Account Value is withdrawn, the amount paid
equals the Withdrawal Value (minus any charges described in Section 7
and in the Table of Contract Charges that are not included in the
Accumulation Unit value). In all other instances, the Account Value is
reduced by an amount sufficient to make the payment requested and to
cover the Withdrawal Charge and any charges described in Section 7 and
in the Table of Contract Charges that are not included in the
Accumulation Unit value.
[Notwithstanding the previous paragraph, in the first Contract Year in
which a Participant Account is established, the Participant may
withdraw up to 10% of the sum of his Account Value (determined as of
the later of the Contract Date or the Contract Anniversary immediately
preceding the request for the withdrawal) plus Contributions made for
him during that Contract Year, without application of the Withdrawal
Charge. The Participant may also do this in the next succeeding
Contract Year. In any subsequent Contract Year, the Participant may
withdraw up to 10% of his Account Value (determined as of the Contract
Anniversary immediately preceding the request for the withdrawal)
without application of the Withdrawal Charge.]
(c) [Withdrawals from a Participant Account's FIA share may not be made in
an amount less than the smaller of $500 or the Participant Account's
entire FIA share. If a withdrawal reduces the Participant Account's
FIA share to less than $500, the remaining share will also be
withdrawn.]
(d) A withdrawal request is effective, and the Account Value to be applied
pursuant to Section Section 5.1 and 5.2 is determined, on the Business
Day that we receive a proper withdrawal request (or due proof of
death, if received later).
(e) We will pay any cash lump-sum to the Participant within [7 days] from
the appropriate Business Day as determined in Subsection (d) above,
except as we may be permitted to defer such payment of amounts
withdrawn from the Variable Account in accordance with appropriate
provisions of the federal securities laws. We reserve the right to
defer the payment of amounts withdrawn from the FIA for a period of up
to [6 months] after we receive the withdrawal request.
5.2 Death Benefits:
(a) Upon receipt of instructions and of due proof of the Participant's
(and, if applicable, the beneficiary's) death prior to the date the
Participant Account is closed, we will apply the Account Value of the
Participant Account (minus any charges described in Section 7 and in
the Table of Contract Charges that are not included in the
Accumulation Unit value) for the purpose of providing a Death Benefit.
Such a withdrawal is not subject to a Withdrawal
12
Charge. The Death Benefit will be paid to the Participant's
beneficiary according to the method of payment elected by the
beneficiary (unless such method of payment was previously elected by
the Participant). The Participant's beneficiary may also designate a
beneficiary.
[(b) (1) If the Participant dies before his Annuity Commencement Date, his
entire interest will be distributed at least as rapidly as
follows:
(A) If the designated beneficiary is not the Participant's
surviving spouse, the entire interest will be distributed,
beginning on or before December 31 of the calendar year
immediately following the calendar year in which the
Participant died, over the remaining life expectancy of such
designated beneficiary. Such life expectancy is determined
using the age of the beneficiary as of his birthday in the
year following the year of the Participant's death or, if
elected, in accordance with Subsection (b)(1)(C) below.
(B) If the sole designated beneficiary is the Participant's
surviving spouse, the entire interest will be distributed,
beginning on or before December 31 of the calendar year
immediately following the calendar year in which the
Participant died (or by the end of the calendar year in
which the Participant would have attained age 70 1/2, if
later), over such spouse's life or, if elected, in
accordance with Subsection (b)(1)(C) below. If the surviving
spouse dies before required distributions commence to him,
the remaining interest will be distributed, beginning on or
before December 31 of the calendar year immediately
following the calendar year in which the spouse died, over
the spouse's designated beneficiary's remaining life
expectancy determined using such beneficiary's age as of his
birthday in the year following the death of the spouse, or,
if elected, will be distributed in accordance with
Subsection (b)(1)(C) below. If the surviving spouse dies
after required distributions commence to him, any remaining
interest will continue to be distributed under the payment
option chosen.
(C) If there is no designated beneficiary, or if applicable by
operation of Subsection (b)(1)(A) or (B) above, the entire
interest will be distributed no later than December 31 of
the calendar year containing the fifth anniversary of the
Participant's death (or of the spouse's death in the case of
the surviving spouse's death before distributions are
required to begin under Subsection (b)(1)(B) above).
(D) Life expectancy is determined using the Single Life Table in
Q&A-1 of Section 1.401(a)(9)-9 of the Income Tax
Regulations. If distributions are being made to a surviving
spouse as the sole designated beneficiary, such spouse's
remaining life expectancy for a year is the number in the
Single Life Table corresponding to such spouse's age in the
year. In all other cases, remaining life expectancy for a
year is the number in the Single Life Table corresponding to
the beneficiary's age in the year specified in Subsection
(b)(1)(A) or (B) above and reduced by 1 for each subsequent
year.
13
(2) If the Participant dies on or after his Annuity Commencement
Date, any interest remaining under the benefit payment option
selected will continue to be distributed under that benefit
payment option.
(3) The Participant's "interest" includes the amount of any
outstanding rollover, transfer, and recharacterization under
Q&As-7 and -8 of Section 1.408-8 of the Income Tax Regulations
and the actuarial value of any other benefits provided under the
contract, such as guaranteed death benefits.
(4) For purposes of Subsection (b)(1) and (2) above, required
distributions are considered to commence on the Participant's
required beginning date or, if applicable, on the date
distributions are required to begin to the surviving spouse under
Subsection (b)(1)(B) above. However, if distributions start prior
to the applicable date in the preceding sentence, on an
irrevocable basis (except for acceleration) under an annuity
contract meeting the requirements of Section 1.401(a)(9)-6T of
the Temporary Income Tax Regulations, then required distributions
are considered to commence on the annuity starting date.
(c) If the sole designated beneficiary is the Participant's surviving
spouse, such spouse may treat the Participant's Account as his or her
own IRA. This election will be deemed to have been made if such
surviving spouse makes a Contribution to this contract, makes a
rollover to this contract, or fails to take required distributions as
a beneficiary.]
5.3 Distributions Before Death:
[(a) Notwithstanding any provision of this contract to the contrary, the
distribution of the Participant's interest in the contract will be
made in accordance with the requirements of Code Section 408(b)(3) and
the regulations issued thereunder. If distributions are not made in
the form of an annuity on an irrevocable basis (except for
acceleration), then distribution of the Participant's interest in the
contract (as determined above under Section 5.2(b)(3)) must satisfy
the requirements of Code Section 408(a)(6) and the regulations issued
thereunder, rather than the requirements of Subsections (b), (c), and
(d) below and Section 5.2 above.
(b) The Participant's entire interest will begin to be distributed no
later than the first day of April following the calendar year in which
the Participant attains age 70 1/2 (the "required beginning date")
over (1) the life of the Participant or the lives of the Participant
and his designated beneficiary or (2) a period certain not extending
beyond the life expectancy of the Participant or the joint and last
survivor expectancy of the Participant and his designated beneficiary.
Payments will be made in periodic payments at intervals of no longer
than 1 year, and must be either nonincreasing or they may increase
only as provided in Q&As-1 and -4 of Section 1.401(a)(9)-6T of the
Temporary Income Tax Regulations. In addition, any distribution must
satisfy the incidental benefit requirements specified in Q&A-2 of
Section 1.401(a)(9)-6T.
(c) The distribution periods described in Subsection (b) above cannot
exceed the periods specified in Section 1.401(a)(9)-6T of the
Temporary Income Tax Regulations.
(d) The first required payment can be made as late as April 1 of the year
following the year the Participant attains age 70 1/2, and must be the
payment that is required for one
14
payment interval. The second payment need not be made until the end of
the next payment interval.]
5.4 Transfers between Investment Options: The Participant may direct us to
transfer amounts between Investment Options. Transfers are effective on
[the Business Day we receive the transfer direction]. Transfer directions
for a Participant Account may be made [daily on any Business Day]. We will
make the transfer as requested within [7 days] from the date we receive the
request, except as we may be permitted to defer the transfer of amounts
withdrawn from the Variable Account in accordance with appropriate
provisions of the federal securities laws. We reserve the right to defer a
transfer of amounts from the FIA for a period of up to [6 months] after we
receive the transfer request.
(Use the following paragraph if we allow the 90-day equity wash option for this
contract)
5.5 Transfers to and from the FIA:
[(a) If you do not make available to Participants any of the Competing
Investment Accounts identified in the Table of Investment Accounts,
once a Participant transfers funds from the FIA to an Investment
Account, he may transfer funds to the FIA only after 90 days have
elapsed since the date of his last transfer from the FIA.
(b) If you make available to Participants any of the Competing Investment
Accounts identified in the Table of Investment Accounts, the 90-day
transfer restriction discussed in Subsection (a) above does not apply.
Instead:
(1) if a Participant=s FIA Account Value is less than $2,500 as of
the first day of the Contract Year in which we receive the
transfer request, he may transfer any amount from the FIA.
(2) if a Participant=s FIA Account Value is $2,500 or more as of the
first day of the Contract Year in which we receive the transfer
request, no more than 20% of his FIA Account Value as of the
first day of that Contract Year less amounts previously
transferred by him during that Contract Year may be transferred
by him from the FIA as of the date we receive the transfer
request.]
(Use the following paragraph if we do not allow the 90-day equity wash option
for this contract)
5.5 Transfers to and from the FIA:
[(a) If a Participant's FIA Account Value is less than $2,500 as of the
first day of the Contract Year in which we receive the transfer
request, he may transfer any amount from the FIA.
(b) If a Participant=s FIA Account Value is $2,500 or more as of the first
day of the Contract Year in which we receive the transfer request, no
more than 20% of his FIA Account Value as of the first day of that
Contract Year less amounts previously transferred by him during that
Contract Year may be transferred by him from the FIA as of the date we
receive the transfer request.]
15
SECTION 6 - ANNUITIES
6.1 Annuity Purchases: The Participant may withdraw all or a portion of his
Account Value (minus any charges described in Section 7 and in the Table of
Contract Charges that are not included in the Accumulation Unit value) to
provide an annuity benefit. Such a withdrawal is not subject to a
Withdrawal Charge. [On the date we receive an annuity purchase request, we
transfer the entire Participant Account to the FIA. Such amounts remain in
the FIA until the full Account Value (reflecting interest earned on such
amounts in the FIA) is applied to purchase the annuity on the last day of
the month preceding the Annuity Commencement Date. As of that annuity
purchase date, such Participant Account funds are no longer maintained in
this contract.]
The Participant's annuity purchase request must specify the purpose for the
annuity, the election of an annuity option, Annuity Commencement Date, any
contingent annuitant or beneficiary, and any additional information we
require. If the Participant or any contingent annuitant dies before the
Annuity Commencement Date, the annuity election is cancelled.
The minimum amount which the Participant may apply to purchase an annuity
is [$10,000].
6.2 Annuity Options: The Participant may elect any optional form of annuity we
offer at the time of purchase. Available annuity options always include:
(a) Life Annuity. A monthly annuity is payable as long as the annuitant
lives.
(b) Survivorship Annuity. A monthly annuity is payable as long as the
annuitant lives. After the annuitant's death, all or a portion of the
monthly annuity is paid to the contingent annuitant as long as the
contingent annuitant lives.
If a certain period annuity is available, the certain period may not extend
beyond the life expectancy of a Participant or the joint life expectancy of
a Participant and any contingent annuitant, as determined on the Annuity
Commencement Date.
6.3 Determining Annuity Amount: We compute the annuity amount using the factors
reflected in the Table of Guaranteed Immediate Annuities attached to this
contract. However, if our current single premium, nonparticipating,
immediate annuity rates for this class of group annuity contract produce a
higher monthly annuity than the Table of Guaranteed Immediate Annuities,
then that more favorable annuity rate is applied.
6.4 Proof of Age and Survival; Minimum Payments: We may require proof of any
annuitant's or contingent annuitant's date of birth before commencing
payments under any annuity. We may also require proof that an annuitant or
contingent annuitant is living before making any annuity payment. If a
monthly annuity is less than our current established minimum payment, we
may make payments on a less-frequent basis.
6.5 Annuity Certificates: We issue to each person for whom an annuity is
purchased a certificate setting forth the annuity's amount and terms.
16
SECTION 7 - OTHER CONTRACT CHARGES
7.1 [Investment Option Charge (IOC): Under Section 4.4, the Accumulation Unit
values of all Investment Accounts reflect the daily equivalent of an IOC
expressed as an annual percentage.
The IOC for an Investment Account is applied directly against the
Investment Account and is equal to the sum of "x" + "y" where:
"x" = a current charge for the investment advisory fees and for the
operational, organizational, and other expenses of the corresponding
Mutual Fund, Portfolio, or other entity in which the Investment
Account invests. Periodically, for a given Investment Account, "x"
will change to reflect changes in the related expenses and other
factors. Any change in "x" for an Investment Account will be effective
without prior written notice. Copies of the prospectuses or reports of
the Mutual Fund, Portfolio, or other entity are made available to
Participants as required under NASD rules.
"y" = a current asset charge of 1.25%.
(Non-NM&OR)
7.2 Taxes: We may deduct charges equal to any premium tax we incur from the
balance applied to purchase an annuity or at such other time as premium
taxes are incurred by us. We may also deduct from Investment Accounts
reasonable charges for federal, state, or local income taxes we incur that
are attributable to such Investment Accounts.
(NM,OR)
7.2 Taxes: We may deduct from Investment Accounts reasonable charges for
federal, state, or local income taxes we incur that are attributable to
such Investment Accounts.
7.3 Other Charges: [We apply those charges listed in the Table of Contract
Charges.]
7.4 Reduction or Waiver of Charges: We may reduce or waive the Withdrawal
Charge or the charges discussed above if the appropriate expenses
associated with the sale or administration of any contract are reduced.
(use if VIP requested)
[7.5 Variable Investment Plus (VIP) Credit Factor: We determine a VIP credit
factor each month by multiplying the portions of the aggregate month-end
Account Value in all Investment Accounts by the monthly equivalent of the
corresponding annual VIP credit factors in the table below. The sum of
these products is divided by the aggregate month-end Account Value in all
Investment Accounts. We multiply the resulting percentage by each
Participant's month-end Account Value in each Investment Account, and add
the resulting amount to the Participant's Account Value for that Investment
Account.
Aggregate Month-End Account Value
allocated to Investment Accounts Annual VIP Credit Factors
First $ 750,000 0.10%
Next $ 750,000 0.30%
Next $ 1,000,000 0.45%
Next $ 2,500,000 0.75%
Next $ 5,000,000 0.85%
Over $ 10,000,000 0.95%
The VIP Credit Factor may be reduced by an annual charge percentage equal
to the current fixed dollar charge for expenses you have selected and
agreed to in writing divided by the aggregate period-end Account Value in
all Investment Accounts. Period-end will be month-end. Alternatively, at
our option and upon 30 days notice to you prior to the beginning of the
next calendar quarter, we may use the aggregate calendar quarter-end
Account Value in all Investment Accounts to calculate this charge. We also
reserve the right to revert to a month- end calculation upon 30 days notice
to you prior to the beginning of the month in which the change is to be
effective. Such charge percentage may not reduce the VIP Credit Factor
below 0%.]
17
SECTION 8 - CONTRACT MODIFICATIONS
8.1 Contract Amendment: You and we may agree to any change or amendment to this
contract without the consent of any other person or entity. This contract
cannot be modified or amended, nor can any provision or condition be
waived, except by written authorization of a corporate officer of AUL.
8.2 Rates and Section 7 Charges: We may announce new Guaranteed Rates, as
described in Section Section 3.2 and 3.3 (including the consolidation of
existing Interest Pockets). However, as provided in Section Section 3.2 and
3.3, we may not change the declared Guaranteed Rate applicable to an
established Interest Pocket during the guaranteed period. We may also
modify the charge levels in Section 7 [and the charge level listed in item
(1) of the Table of Contract Charges] using the procedures of Section 8.5.
For the charge listed in [item (2)] of the Table of Contract Charges, we
may not exceed the maximum charge level listed therein.
8.3 Conformance with Law: We may amend this contract at any time, without your
consent, or that of any other person or entity, if the amendment is
reasonably needed to comply with, or give you or Participants the benefit
of, any provisions of federal or state laws. Any such amendment will be
delivered to you prior to its effective date.
8.4 Addition, Deletion, or Substitution of Investments:
(a) We reserve the right, subject to compliance with applicable law, to
make additions to, deletions from, substitution for, or combinations
of, the securities that are held by any Investment Account or that any
Investment Account may purchase. We reserve the right to eliminate the
shares of any of the eligible Mutual Funds, Portfolios, or other
entities and to substitute shares of, or interests in, another Mutual
Fund, Portfolio, or another investment vehicle, for shares already
purchased or to be purchased in the future under the contract, if the
shares of any or all eligible Mutual Funds, Portfolios, or other
entities are no longer available for investment or if further
investment in any or all eligible Mutual Funds, Portfolios, or other
entities becomes inappropriate in view of the purposes of the
contract. Where required under applicable law, we will not substitute
any shares attributable to a Participant's interest in any Investment
Account without notice, your approval or Participant approval, or
prior approval of the Securities and Exchange Commission or a state
insurance commissioner, and without following the filing or other
procedures established by applicable state insurance regulators.
Nothing contained herein will prevent the Variable Account from
purchasing other securities for other series or classes of contracts,
or from effecting a conversion between series or classes of contracts
on the basis of requests made by a majority of other contractholders
or as permitted by federal law.
(b) We reserve the right to establish additional Investment Accounts, each
of which would invest in the corresponding Mutual Fund, Portfolio, or
other entity, or in other securities or investment vehicles. We
reserve the right to eliminate or combine existing Investment Accounts
if marketing, tax, or investment conditions warrant. We reserve the
right to provide other Investment Options under this contract at any
time. Subject to any required regulatory approvals, we reserve the
right to transfer assets from any Investment Account to another
separate account of AUL or Investment Account.
(c) In the event of any such substitution or change, we may, by
appropriate amendment, make such changes in this contract as may be
necessary or appropriate to reflect such substitution or change. Any
transfer request or Investment Option election received on or after
the effective date of such substitution or change which reflects the
previous Investment Option which has
18
been substituted or changed will be transacted using the new
substituted or changed Investment Option. If deemed by us to be in the
best interests of persons or entities having voting rights under this
contract, the Variable Account may be operated as a management
investment company under the Investment Company Act of 1940 or any
other form permitted by law, it may be deregistered in the event such
registration is no longer required under the Investment Company Act of
1940, or it may be combined with other separate accounts of AUL or an
affiliate thereof. We may take such action as is necessary to comply
with, or to obtain, exemptions from the Securities and Exchange
Commission with regard to the Variable Account. Subject to compliance
with applicable law, we also may combine one or more Investment
Accounts and may establish a committee, board, or other group to
manage one or more aspects of the Investment Accounts.
8.5 Our Right to Initiate Changes: In addition to those amendments permitted by
Section Section 8.2, 8.3, and 8.4, we may initiate an additional provision
or modification of any other provision of this contract (except for those
prohibited amendments listed in Section 8.6) by giving you [60 days] notice
of such modification. Any such modification is effective without your
affirmative assent.
8.6 Prohibited Amendments:
(a) Notwithstanding our right to initiate changes under Section 8.5, we
may not initiate changes to the minimum Guaranteed Rate specified in
Section 3.4, our obligation to set Guaranteed Rates for the period of
time specified in Section Section 3.2 and 3.3, the maximum charge
level listed in [item (2)] of the Table of Contract Charges, or the
Table of Guaranteed Immediate Annuities.
(b) No modification to this contract may change the terms of a previously
purchased annuity or reduce any interest guarantee applicable to
Participant Account balances held in the FIA on the modification's
effective date.
19
SECTION 9 - GENERAL PROVISIONS
9.1 Ownership: You own this contract. No other person or entity has any right,
title, or interest in this contract or to amounts received or credited
under it until such amounts are made available to them under this contract.
All amounts received or credited under this contract become our property.
We are obligated to make only the payments or distributions specified in
this contract. [This contract is established for the exclusive benefit of
the Participants and their beneficiaries.]
9.2 Entire Contract: This contract and your application constitute the entire
agreement between you and us. We are not a party to, nor bound by, a plan,
trust, custodial agreement, or other agreement, or any amendment or
modification to any of the same. We are not a fiduciary under this contract
or under any such plan, trust, custodial agreement, or other agreement.
9.3 Benefit Determinations: The Participant shall furnish us whatever
information is necessary to establish the eligibility for and amount of
annuity or other benefit due. We rely solely on his instructions and
certifications with respect to his benefits.
9.4 Termination of Contract: This contract terminates automatically if no
amounts remain in either the FIA or any Investment Account.
9.5 Representations and Warranties: You and we mutually represent and warrant,
each to the other, that each is fully authorized to enter into this
contract and that this contract is a valid and binding obligation and that
the execution or performance of this contract does not violate any law,
regulation, judgment, or order by which the representing party is bound.
We do not make any representation or warranty regarding the federal, state,
or local tax status of this contract, any Participant Account, or any
transaction involving this contract.
9.6 [Contractholder] Representative; Misstatement of Data: [You] may designate
a representative to act on [your] behalf under Section Section 2 or 3. We
may rely on any information [you, your] designee, or a Participant furnish.
We need not inquire as to the accuracy or completeness of such information.
If any essential data pertaining to any person has been omitted or
misstated, including, but not limited to, a misstatement of an annuitant's
or contingent annuitant's age, we will make an equitable adjustment to
provide the annuity or other benefit determined using correct data.
9.7 Form of Request, Notice, Instruction, or Direction: When reference is made
to [you, your] designee, or a Participant making a request or giving
notice, instruction, or direction, such request, notice, instruction, or
direction must be in writing, or in a form otherwise acceptable to us, and
is effective when we receive it.
9.8 Statements and Reports: Reasonably promptly after the end of each [Contract
Quarter], we will prepare a statement of the Account Value for each
Participant Account that is maintained under this contract. [We will also
furnish any information concerning required minimum distributions that is
required by the Internal Revenue Service.]
[If this contract is a SIMPLE IRA and Contributions made on behalf of a
Participant under a SIMPLE IRA plan maintained by the Participant's
employer are received directly by us from the employer, we will provide the
employer with the summary description required by Code Section
408(1)(2)(B).]
9.9 Conformity with Law: Any benefit payable under this contract will not be
less than the minimum benefit required by the insurance laws of the state
in which the contract is delivered. Language in this contract referring to
state or federal tax, securities, or other statutes or rules do not
incorporate within this contract any such statutes or rules.
9.10 Gender and Number: Whenever the context so requires, the plural includes
the singular, the singular the plural, and the masculine the feminine.
9.11 Facility of Payment: If any Participant, contingent annuitant, or
beneficiary is legally incapable of giving a valid receipt for any payment,
if no guardian has been appointed, and if we receive a valid power of
attorney for such Participant, contingent annuitant, or beneficiary, we may
pay the person or persons named in such power of attorney. Any such payment
fully discharges us to the extent of such payment.
9.12 Voting: We own all shares of a Mutual Fund, Portfolio, or other entity held
in an Investment Account. We exercise the voting rights of such shares at
all shareholder meetings on all matters requiring shareholder voting under
the Investment Company Act of 1940 or other applicable laws. Our vote
reflects instructions received from persons having the voting interest in
the shares, as follows:
(a) The Participants have the voting interest under this contract. Unless
otherwise required by applicable law, the number of shares of a Mutual
Fund, Portfolio, or other entity for which we may receive voting
instructions is determined by dividing the aggregate Account Values in
the affected Investment Account by the net asset value of the shares
of the Mutual Fund, Portfolio, or other entity. Fractional votes are
counted. Our determination is made as of the date used by the Mutual
Fund, Portfolio, or other entity to determine shareholders eligible to
vote.
(b) We vote shares proportionally, to reflect the voting instructions we
receive in a timely manner from Participants and from all other
contractholders. If no timely voting instructions are received, we
vote shares proportionally, to reflect the voting instructions we
received in a timely manner for all other contracts.
To the extent permitted by applicable law, we may vote shares in our own
right or may modify the above procedures to reflect changes in the law or
its interpretation.
We will provide prospectuses and other reports as required by applicable
federal law.
9.13 Acceptance of New Participants or Contributions: We may refuse to accept
new Participants at any time. We have the right to refuse Contributions as
of [the last day of the second month] following the date that [you] are
notified by us in writing of this refusal.
9.14 Our Annual Statement: No provision of this contract controls, determines,
or modifies any annual statement made by us to any insurance department,
contractholder, regulatory body, or other person. Nor does anything in such
annual statement control, determine, or modify the provisions of this
contract.
9.15 Nonforfeitability and Nontransferability: [A Participant's entire
Withdrawal Value (minus any charges described in Section 7 and in the Table
of Contract Charges that are not included in the Accumulation Unit value)
under this contract is nonforfeitable and is nontransferable by the
Participant at all times. No sum payable under this contract with respect
to a Participant may be sold, assigned, discounted, or pledged as
collateral for a loan or as security for the performance of an obligation
or for any other purpose to any person or entity other than us. In
addition, to the extent permitted by law, no such sum shall in any way be
subject to legal process requiring the payment of any claim against the
payee.]
9.16 Notice of Annual Meeting of Members: By-law, Art II, Sec. 2: the regular
annual meeting of the members of American United Mutual Insurance Holding
Company shall be held at its principal place
21
of business on [the third Thursday in February each year at ten o'clock
A.M.] local time or at such other location, place, or time as may be
designated by the Board of Directors. The election of directors shall be
held at the annual meeting.
[9.17SIMPLE IRA of Designated Financial Institution: If this contract is a
SIMPLE IRA and it is maintained by a designated financial institution
within the meaning of Code Section 408(p)(7), under the terms of a SIMPLE
IRA plan of the Participant's employer, the Participant must be permitted
to transfer his balance without cost or penalty (within the meaning of Code
Section 408(p)(7) to another IRA of the Participant that is qualified under
Code Section 408(a), (b), or (p), or to another eligible retirement plan
described in Code Section 402(c)(8)(B).]
22
[TABLE OF CONTRACT CHARGES
(1) Participant Account Administrative Charge: We deduct a Participant Account
Administrative Charge per Contract Quarter equal to 0.875% of the first
$1,000 of the Account Value on the last day of each Contract Quarter from
each Participant Account in existence on such day for as long as the
Participant Account is in effect. This charge is to be prorated among each
Contribution-Source and each Investment Option utilized under this contract
by that Participant Account. If the entire balance of a Participant Account
is applied or withdrawn before the last day of the Contract Quarter
pursuant to the contract, no Participant Account Administrative Charge will
be assessed for that quarter.
There is no such charge for a Participant for any Contract Quarter in which
the Participant's Account Value on the last day of that quarter is greater
than $35,000.
(2) Charge for Non-Electronic Transfers: We deduct from a Participant's Account
a service fee of up to $5 for his non-electronic transfers between
Investment Options.
(Use following Section (3) if client selects GMDB)
(3) GMDB Charge: We shall deduct a GMDB charge per Contract Quarter equal to
0.05% of the Account Value on the last day of each Contract Quarter from
each Participant Account in existence on such day for as long as the
Participant Account is in effect during the Accumulation Period. This
charge is to be prorated among each subaccount of the Participant Account
which corresponds to each Investment Option utilized under this contract by
that Participant Account.
If the entire balance of a Participant Account is applied or withdrawn
before the last day of the Contract Quarter pursuant to Sections 4.1, 4.7,
4.8, 8.2, or 8.4, no GMDB charge will be assessed for that quarter.
(Use for Ibbotson cases only)
(4) Investment Advice Provider Fee: We bill the Participant for an Investment
Advice Provider Fee in an amount separately agreed upon by the Participant
and the third-party investment advice provider, if permitted under
applicable law, regulations, and rulings. Alternatively, we may assess this
Investment Advice Provider Fee against the Account of each Participant who
utilizes the investment advice provider's services if permitted under
applicable law, regulations, and rulings. The entire fee collected by us
will be forwarded to the investment advice provider. No portion of this fee
will be retained by us.]
23
[TABLE OF GUARANTEED IMMEDIATE ANNUITIES
MONTHLY INCOME PER $1,000 OF ACCOUNT VALUE
10-YEAR CERTAIN
ADJUSTED AGE LIFE ANNUITY AND LIFE ANNUITY
45 2.7498 2.7455
46 2.7986 2.7938
47 2.8498 2.8444
48 2.9036 2.8975
49 2.9602 2.9532
50 3.0197 3.0116
51 3.0823 3.0730
52 3.1483 3.1375
53 3.2178 3.2052
54 3.2913 3.2763
55 3.3690 3.3512
56 3.4511 3.4299
57 3.5381 3.5126
58 3.6301 3.5995
59 3.7273 3.6906
60 3.8300 3.7862
61 3.9387 3.8865
62 4.0536 3.9919
63 4.1751 4.1024
64 4.3037 4.2184
65 4.4397 4.3400
66 4.5837 4.4676
67 4.7365 4.6014
68 4.8992 4.7419
69 5.0735 4.8895
70 5.2610 5.0448
71 5.4635 5.2077
72 5.6823 5.3783
73 5.9180 5.5559
74 6.1718 5.7400
75 6.4456 5.9301
Adjusted Age = Actual Age at Settlement (in years and completed months) less the
following number of months: [0.6 times (Birth Year - 1915)] rounded to the
nearest integer.
Guaranteed purchase rates are 100% of the net single premium for the benefit
provided based on 85% of the unprojected 1994 Group Annuity Reserving Table for
females with interest at 1.5%.]
24
TABLE OF INVESTMENT ACCOUNTS
The following Investment Accounts are made available to [you] under this
contract. By completing a form we require, [you] may restrict the Investment
Accounts [you] make available to [your] Participants. Amounts allocated to any
Investment Account identified below are invested in the shares of the
corresponding Mutual Fund, Portfolio, or other entity listed below.
(Use the following sentence and asterisks if we allow the 90-day equity wash
option for this contract) [The Competing Investment Accounts marked with an
asterisk (*) are not available if you do not want the FIA 20% annual transfer
restriction provided in Section 5.5(b) to apply.
Investment Account Mutual Fund, Portfolio, or Other Entity
AIM Basic Value AIM Basic Value Fund
AIM Mid Cap Core Equity AIM Mid Cap Core Equity Fund
AIM Small Cap Growth AIM Small Cap Growth Fund
Xxxxx American Balanced Xxxxx American Balanced Portfolio
Xxxxx American Growth Xxxxx American Growth Portfolio
Xxxxx American Leveraged AllCap Xxxxx American Leveraged AllCap Portfolio
American Century Equity Income American Century Equity Income Fund
American Century Income & Growth American Century Income & Growth Fund
American Century International Growth American Century International Growth Fund
American Century Select American Century Select Fund
American Century Small Cap Value American Century Small Cap Value Fund
American Century Strategic Allocation: American Century Strategic Allocation:
Aggressive Aggressive Fund
American Century Strategic Allocation: American Century Strategic Allocation:
Conservative Conservative Fund
American Century Strategic Allocation: American Century Strategic Allocation:
Moderate Moderate Fund
American Century Ultra American Century Ultra Fund
American Century VP Capital Appreciation American Century VP Capital Appreciation Fund
Xxxxx Xxxxx Fund
Ariel Appreciation Ariel Appreciation Fund
Xxxxxxx Income Xxxxxxx Income Fund
Xxxxxxx New Vision Small Cap Xxxxxxx New Vision Small Cap Fund
Xxxxxxx Social Investment Equity Xxxxxxx Social Investment Equity Portfolio
Xxxxxxx Social Mid-Cap Growth Xxxxxxx Social Mid-Cap Growth Portfolio
Fidelity VIP Asset Manager Fidelity VIP Asset Manager Portfolio
Fidelity VIP Contrafund Fidelity VIP Contrafund Portfolio
Fidelity VIP Equity-Income Fidelity VIP Equity-Income Portfolio
Fidelity VIP Growth Fidelity VIP Growth Portfolio
Fidelity VIP High Income Fidelity VIP High Income Portfolio
Fidelity VIP Overseas Fidelity VIP Overseas Portfolio
INVESCO Dynamics INVESCO Dynamics Fund
INVESCO Energy INVESCO Energy Fund
INVESCO Financial Services INVESCO Financial Services Fund
INVESCO Health Sciences INVESCO Health Sciences Fund
INVESCO Technology INVESCO Technology Fund
INVESCO Telecommunications INVESCO Telecommunications Fund
Janus Aspen Series Flexible Income Janus Aspen Series Flexible Income Portfolio
Janus Aspen Series Worldwide Growth Janus Aspen Series Worldwide Growth Portfolio
MFS International New Discovery MFS International New Discovery Fund
MFS Mid Cap Growth MFS Mid Cap Growth Fund
MFS Strategic Value MFS Strategic Value Fund
MFS Value MFS Value Fund
OneAmerica Investment Grade Bond OneAmerica Investment Grade Bond Portfolio
OneAmerica Value OneAmerica Value Portfolio
OneAmerica Asset Director OneAmerica Asset Director Portfolio
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OneAmerica Money Market * OneAmerica Money Market Portfolio
PBHG Emerging Growth PBHG Emerging Growth Fund
PBHG Insurance Series Growth II PBHG Insurance Series Growth II Portfolio
PBHG Insurance Series Technology & PBHG Insurance Series Technology &
Communication Communication Portfolio
PBHG Large Cap Value PBHG Large Cap Value Fund
PIMCO High Yield PIMCO High Yield Fund
PIMCO Renaissance PIMCO Renaissance Fund
PIMCO Value PIMCO Value Fund
Safeco RST Equity Safeco RST Equity Portfolio
Safeco RST Growth Opportunities Safeco RST Growth Opportunities Portfolio
State Street Equity 000 Xxxxx Xxxx Xxxxx Xxxxxx Equity 500 Index Fund
X. Xxxx Price Equity Income X. Xxxx Price Equity Income Portfolio
X. Xxxx Price European Stock X. Xxxx Price European Stock Fund
Vanguard Explorer Vanguard Explorer Fund
Vanguard Short-Term Federal Bond*
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