Aetna Life Insurance and Annuity Company
Home Office: 000 Xxxxxxxxxx Xxxxxx
P.O. Box 30670
Hartford, Connecticut 06150-0670
(000) 000-0000
You may call the toll-free number shown above for
answers to questions or to resolve a complaint.
Aetna Life Insurance and Annuity Company (We or Us), a stock company, agrees to
pay benefits according to the terms and conditions set forth in this Contract.
--------------------------------------------------------------------------------
Certificate of Group Annuity Coverage
Aetna certifies that an account is established for you under the Group Annuity
Contract and Certificate numbers shown below.
This certificate describes Group Annuity Contract provisions. It replaces any
and all prior certificates or endorsements issued to you under the stated
Contract and Certificate numbers. This Certificate is for information only and
is not a part of the Contract.
The variable features of the Group Contract are described in sections 6 and 12.
--------------------------------------------------------------------------------
Right to Cancel
The Certificate Holder may cancel the Certificate within ten (10) days of
receiving it by returning it to Us at the address above or the person from whom
it was purchased. Within seven (7) days of the cancellation request, We will
return the Certificate Holder's Purchase Payment(s) made plus any increase, or
minus any decrease on the amount allocated to the Separate Account.
Signed at the home office on the Effective Date.
/s/ Xxx Xxxxxxx /s/ Xxxxx X. Xxxxxxxxx
President Secretary
------------------------------------------------------------------------------
Contract Holder Group Annuity Contract Number
SPECIMEN SPECIMEN
SPECIMEN
------------------------------------------------------------------------------
Certificate Holder Certificate Number
SPECIMEN SPECIMEN
SPECIMEN
------------------------------------------------------------------------------
Annuitant Name Type of Plan
SPECIMEN SPECIMEN
SPECIMEN
ALL PAYMENTS AND VALUES PROVIDED BY THE GROUP CONTRACT, WHEN BASED ON INVESTMENT
EXPERIENCE OF A SEPARATE ACCOUNT, ARE VARIABLE AND ARE NOT GUARANTEED AS TO
FIXED DOLLAR AMOUNT. THIS CERTIFICATE CONTAINS A MARKET VALUE ADJUSTMENT
FORMULA. APPLICATION OF A MARKET VALUE ADJUSTMENT MAY RESULT IN EITHER AN
INCREASE OR DECREASE IN THE CURRENT VALUE. THE MARKET VALUE ADJUSTMENT FORMULA
DOES NOT APPLY TO A GUARANTEED TERM AT THE TIME OF ITS MATURITY.
2
Table of Contents
Page
Right to Cancel..............................................................1
Contract Schedule............................................................5
Separate Account...................................................5
ALIAC Guaranteed Account (AG Account)..............................5
Separate Account and AG Account....................................5
Fixed Annuity......................................................7
Section 1. Definitions.......................................................8
Section 2. General Provisions..............................................10
The Contract......................................................10
Certificates......................................................10
Nonparticipating Contract.........................................10
Misstatements and Adjustments.....................................10
Reports...........................................................10
Premium Taxes.....................................................10
Protection of Proceeds............................................10
Evidence of Survival..............................................11
Proof of Age......................................................11
Change of Contract................................................11
Section 3. Ownership.......................................................12
Group Contract Holder.............................................12
Certificate Holder Rights.........................................12
Transfer of Ownership.............................................12
Section 4. Beneficiary Provisions..........................................12
Beneficiary.......................................................12
Change of Beneficiary.............................................13
Death of Beneficiary..............................................13
Section 5. Purchase Payments................................................13
Purchase Payments.................................................13
Allocation of Purchase Payments...................................13
Section 6. Separate Account................................................13
General...........................................................13
Investment Allocations to the Separate Account....................14
Valuation of Assets...............................................14
Accumulation Unit.................................................14
Net Return Factor for Each Valuation Period.......................14
Administrative Charge.............................................15
Mortality Risk Charge.............................................15
Expense Risk Charge...............................................15
Mortality and Expense Guarantee...................................15
3
Page
Section 7. AG Account.......................................................15
AG Account Guaranteed Interest Rate...............................15
Deposit Period....................................................15
Guaranteed Term...................................................15
Guaranteed Term(s) Groups.........................................15
Maturity Date.....................................................15
Allocation of Net Purchase Payments to the AG Guaranteed Account..16
AG Account Guaranteed Term Maturity Date and Maturity Value.......16
Withdrawals from the AG Account...................................16
Reinvestment......................................................17
AG Account Market Value Adjustment (Factor).......................17
Section 8. Certificate Holder's Account Value; Transfers and Withdrawals
During the Accumulation Period.........................................18
Certificate Holder's Account Value................................18
Transfers During the Accumulation Period..........................18
Withdrawals During the Accumulation Period........................18
Deferred Sales Charge.............................................19
Waiver of Deferred Sales Charge...................................19
Payment of Adjusted Certificate Holder Account Value..............19
Systematic Withdrawal Option (SWO)................................19
Section 9. Maintenance Charge..............................................21
Maintenance Charge................................................21
Section 10. Proceeds Payable on Death......................................21
Death of the Certificate Holder Prior to the Annuity Date.........21
Death Benefit Amount Prior to the Annuity Date....................21
Death Benefit Payment Methods.....................................23
Death of Certificate Holder On or After the Annuity Date..........23
Death of the Annuitant............................................23
Section 11. Delay of Payments..............................................24
Delay of Payments.................................................24
Section 12. Annuity Provisions.............................................24
Designation of Annuitant..........................................24
Terms of Annuity Options..........................................25
Xxxxxxx Unit......................................................26
Annuity Unit Value................................................26
Annuity Net Return Factor.........................................26
Annuity Options...................................................27
4
Contract Schedule
Separate Account
--------------------------------------- -------------------------------------------------------------------------------------------
Separate Account Variable Account B
Charges to the A daily charge is deducted from the assets of the Separate Account. The deduction is the
Separate Account: daily equivalent of the annual effective percentage shown below:
(a) During the Accumulation Period:
Administrative Charge 0.15%
Mortality Risk Charge 0.35%
Expense Risk Charge 0.90%
TOTAL Separate Account Charges During
Accumulation Period 1.40%
(b) During the Annuity Period
Administrative Charge Not To Exceed 0.25%
Mortality Risk Charge 0.35%
Expense Risk Charge 0.90%
TOTAL Maximum Separate Account Charges
During Annuity Period 1.50%
ALIAC Guaranteed Account (AG Guaranteed Account)
-----------------------------------------------------------------------------------------------------------------------------------
Minimum Guaranteed Interest Rate
(effective annual rate of return): 3.0%
Separate Account and AG Account
-----------------------------------------------------------------------------------------------------------------------------------
Minimum Initial $1,500
Purchase Payment:
Minimum Subsequent Purchase Payment: $500 or $50 per month if paid by an automatic check plan
Maximum Subsequent Purchase Payment: $1,000,000 without home office approval
Transfers: We allow an unlimited number of transfers during the Accumulation Period. Twelve (12)
transfers in any calendar year are free. Thereafter, We reserve the right to charge a
transfer charge up to $10 for each subsequent transfer.
5
Maintenance Charge: The annual maintenance charge is $30. If the Certificate Holder's Account is $50,000 or
more on the date the maintenance charge is to be deducted, the maintenance charge is $0.
Deferred Sales Charge: For each withdrawal from a Certificate Holder's Account, a deferred sale charge for each
Net Purchase Payment will be determined as follows:
Years from Receipt of Deferred
Net Purchase Payment Sales Charge
0-1 7%
1-2 6%
2-3 5%
3-4 4%
4-5 3%
5-6 2%
6-7 1%
7+ 0%
Waiver of Deferred Section 8.05 provides for the following:
Sales Charge:
(c) At least 12 months after the date of the first Purchase Payment in an amount equal to
or less than 15% of the Certificate Holder's Account Value.
(d) For a full withdrawal where the Certificate Holder's Account Value does not exceed
$2,500 and no withdrawals have been taken from the Certificate Holder's Account
within the prior 12 months.
Systematic (a) Specified Payment - Maximum Percentage: 10%
Withdrawal Option:
(b) Specified Period - Minimum Period: 10 years
(c) Specified Percentage - Maximum Percentage: 10%
Death Benefit Factor: 4%
Death Benefit There is no maximum death benefit amount.
Maximum Amount:
Death Benefit 85 years
Maximum Age:
Fund for Allocation of Federated Prime Money Fund II
Excess Guaranteed
Death Benefit Value:
Latest Annuity Date: The Certificate Holder's 90th birthday.
6
Fixed Annuity
--------------------------------------- -------------------------------------------------------------------------------------------
Minimum Guaranteed 3.0%
Interest Rate
(effective annual rate
of return):
7
Section 1. Definitions
--------------------------------------------------------------------------------
1.01 Accumulation Period - The period during which one or more Net
Purchase Payments applied to a Certificate Holder's Account
accumulate to provide future Annuity payments.
1.02 Accumulation Unit - A measure of the net investment results for
each variable investment option during the Accumulation Period.
The Accumulation Units for the applicable Funds are used to
calculate the portion of a Certificate Holder's Account Value
attributable to a Separate Account during the Accumulation
Period.
1.03 Adjusted Certificate Holder Account Value - The Certificate
Holder's Account Value, plus or minus any aggregate AG Account
Market Value Adjustment.
1.04 ALIAC Guaranteed Account (AG Account) - An investment option
where We guarantee specified rate(s) of interest for specified
periods of time. The AG Account is a separate account
established by Us in accordance with the provisions of the
Connecticut General Statutes Section 38a-433. Certificate
Holders do not participate in the investment gain or loss from
the assets held in the AG Account. Assets in the AG Account may
be charged with liabilities arising out of any other business
We may conduct.
1.05 Annuitant - The natural person on whose life an Annuity payment
is based.
1.06 Annuity - A series of payments We make for life, a definite
period or a combination of the two.
1.07 Annuity Date - The date on which Annuity payments commence.
1.08 Annuity Options - Annuity payment methods available during the
Annuity Period.
1.09 Annuity Period - The period of time during which Annuity
payments are made.
1.10 Annuity Unit - A measure of the net investment results for each
variable investment option during the Annuity Period. Annuity
Units are used to calculate the amount of each variable Annuity
payment.
1.11 Beneficiary - The person(s) entitled to receive any death
benefit under the Certificate Holder's Account. Upon the death
of a joint Certificate Holder, the surviving joint Certificate
Holder, if any, is treated as the Beneficiary. Any other
Beneficiary designation on record with Us at the time of death
is treated as a contingent Beneficiary.
1.12 Certificate - The document issued to a Certificate Holder to
evidence a Certificate Holder's Account established under the
group Contract.
8
1.13 Certificate Holder - A person who has established a Certificate
Holder's Account under a group Contract. We reserve the right
to limit ownership to natural persons. If more than one
Certificate Holder owns an Account, each Certificate Holder
shall be a joint Certificate Holder. Any joint Certificate
Holder must be the spouse of the other joint Certificate
Holder. Joint Certificate Holders have joint ownership rights
and both must authorize any exercising of those ownership
rights unless otherwise allowed by Us. If the Certificate
Xxxxxx's Account is owned by a nonnatural person, the death
benefit will be paid at the death of the Annuitant and a new
Annuitant may not be named.
1.14 Certificate Holder's Account - A record We establish for each
Certificate Holder to maintain values under a group Contract.
1.15 Certificate Holder's Account Value - The dollar value as of any
Valuation Period of all amounts accumulated in a Certificate
Holder's Account.
1.16 Contract - This agreement between the Group Contract Holder and
Us.
1.17 Dollar Cost Averaging - A program that permits the Certificate
Holder to systematically transfer amounts from any of the Funds
and the one-year guaranteed term of the AG Account to any of
the Funds. Dollar Cost Averaging is not available if the
Systematic Withdrawal Option is in effect.
1.18 Effective Date - The date a Certificate is issued to a
Certificate Holder.
1.19 Fund - One of the variable investment options which may be
selected by a Certificate Holder.
1.20 General Account - The General Account is made up of all of our
general assets other than those allocated to the separate
accounts.
1.21 Group Contract Holder - The entity to which a group Contract is
issued.
1.22 Home Office - Our headquarters, located at 000 Xxxxxxxxxx
Xxxxxx, Xxxxxxxx, XX 00000.
1.23 Market Value Adjustment - An adjustment that may apply to a
withdrawal made from the AG Account before the end of a
guaranteed term as stated in Section 7.10.
1.24 Net Purchase Payment - The Purchase Payment less premium taxes,
if applicable.
1.25 Purchase Payment - The gross payment accepted by Us and
allocated to the Certificate Holder's Account. We reserve the
right to refuse to accept any Purchase Payment at any time for
any reason.
9
1.26 Separate Account - A separate account that buys and holds
shares of the Fund(s). Income, gains or losses, realized or
unrealized, are credited or charged to the Separate Account
without regard to Our other income, gains or losses. We own the
assets held in the Separate Account and are not a trustee as to
such amounts. The Separate Account generally is not guaranteed
and is held at market value. The name of the Separate Account
is shown on the Contract Schedule. The assets of the Separate
Account, to the extent of reserves and other Contract
liabilities of the Separate Account, will not be charged with
Our other liabilities.
1.27 Valuation Period - The period of time for which a Fund
determines its net asset value, usually from 4:15 p.m. Eastern
time each day the New York Stock Exchange is open until 4:15
p.m. the next such business day, or such other day that one or
more of the Funds determines its net asset value. The assets of
the Separate Account are not chargeable with the liabilities
arising out of any other business We may conduct.
1.28 Variable Annuity Contract - An Annuity Contract providing for
the accumulation of value and/or for Annuity payments which
vary in amount based on investment results.
Section 2. General Provisions
--------------------------------------------------------------------------------
2.01 The Contract - The entire Contract consists of this Contract
and any endorsements attached or subsequently issued.
2.02 Certificates - A Certificate is issued to each Certificate
Holder whose Purchase Payment(s) is accepted by Us. The
Certificate evidences a Certificate Holder's Account
established under the Contract. Certificates are not part of
the Contract.
2.03 Nonparticipating Contract - Neither the Group Contract Holder,
Certificate Holder nor any Beneficiary have a right to share in
our earnings.
2.04 Misstatements and Adjustments - If We learn that the age of any
Annuitant or second Annuitant is misstated, the correct age
will be used to adjust payments. We reserve the right to
request reimbursement or adjust future payments for any amount
overpaid. We will pay the amount of any underpayment.
2.05 Reports - We furnish each Certificate Holder with a report
showing the Certificate Holder's Account Value at least once
each calendar year. We also furnish an annual report of the
Separate Account.
2.06 Premium Taxes - Any premium taxes paid to any governmental
entity are charged against Purchase Payments or a Certificate
Holder's Account. We may, at our sole discretion, pay premium
taxes when due and deduct that amount from the Certificate
Holder's Account at a later date. Payment at an earlier date
does not waive any right We may have to deduct amounts at a
later date.
2.07 Protection of Proceeds - To the extent permitted by law, all
payments under this Contract to a Certificate Holder or
Beneficiary shall be free from legal process and the claim of
any creditor.
10
2.08 Evidence of Survival - The Company may require satisfactory
evidence of the continued survival of any person(s) on whose
life Annuity payments are based.
2.09 Proof of Age - The Company may require evidence of age of any
Annuitant under Annuity Options 2 and 3 and of the designated
second Annuitant under Annuity Option 3.
2.10 Change of Contract - Only our authorized officers may change
the terms of this Contract. We will notify the Group Contract
Holder in writing at least 30 days before the effective date of
any change. Any change will not affect the amount or terms of
any Annuity which begins before the change.
We may make any change that affects the AG Account Market Value
Adjustment with at least thirty (30) days' advance written
notice to the Group Contract Holder and the Certificate Holder.
Any such change shall become effective for any new guaranteed
term and will apply to all present and future Certificate
Holders' Accounts.
We reserve the right to change the terms of the Systematic
Withdrawal Option for future elections and discontinue the
availability of this option.
Any change to any of the following provisions under this
Contract will not apply to Certificate Holder's Accounts in
existence before the effective date of the change:
(a) Net Purchase Payment (1.24)
(b) AG Account Guaranteed Interest Rate (7.01)
(c) Net Return Factor (6.05)
(d) Certificate Holder's Account Value (1.15)
(e) Deferred Sales Charge (8.04)
(f) Annuity Unit Value (12.04)
(g) Annuity Options (12.06)
(h) Fixed Annuity Interest Rates (12.01)
(i) Transfers (8.02).
Any change that affects the Annuity Option and the tables for
the Annuity Options may be made:
(a) No earlier than twelve (12) months after the Effective
Date; and
(b) No earlier than twelve (12) months after the effective
date of any prior change.
Any Certificate Holder's Account established on or after the
effective date of any change will be subject to the change. If
the Group Contract Holder does not agree to any change under
this provision, We reserve the right to not allow any new
Certificate Holder's Accounts to be established under this
Contract. This Contract may also be changed as deemed necessary
by Us to comply with federal or state law.
11
Section 3. Ownership
--------------------------------------------------------------------------------
3.01 Group Contract Holder - The Group Contract Holder has title to
the Contract. The Contract and any amounts accumulated
thereunder are not subject to the claims of the Group Contract
Holder nor any of its creditors.
3.02 Certificate Holder Rights - The Certificate Holder has all
interest and right to amounts held in his or her Certificate
Xxxxxx's Account. The Certificate Holder and any joint
Certificate Holder are named on the Specifications page. The
Certificate Holder and any joint Certificate Holder may
exercise all the rights under the Certificate Holder's Account,
subject to the rights of:
(a) Any assignee under an assignment filed at our home
office; and
(b) Any irrevocably named Beneficiary.
Upon the death of a Certificate Holder prior to the Annuity
Date, a spousal Beneficiary may elect to continue the
Certificate Holder's Account in his or her own name and retain
all ownership rights and privileges or take distribution of the
death benefit as defined in Section 10.
3.03 Transfer of Ownership - The Group Contract Holder may transfer
ownership of this Contract. A written request, dated and
signed, must be filed at our home office.
Any transfer of ownership terminates the interest of any
existing Group Contract Holder. It does not change the rights
of any Certificate Holder.
A Certificate Holder may transfer all of his or her rights
under the Contract. We reserve the right not to accept an
assignment or transfer to a nonnatural person. A written
request, dated and signed by the Certificate Holder and any
joint Certificate Holder, must be filed at our home office.
After the transfer is recorded, it will take effect as of the
date the request was signed. Any such transfer terminates the
interest of any existing Certificate Holder. It does not change
the Beneficiary, nor transfer the Beneficiary's interest. A
transfer will not affect any payments We may make or actions We
may take before such transfer has been recorded at our home
office.
Section 4. Beneficiary Provisions
--------------------------------------------------------------------------------
4.01 Beneficiary - The Certificate Holder may name a Beneficiary and
a contingent Beneficiary. At the death of the Certificate
Holder prior to the Annuity Date, the Beneficiary(ies) named in
our records will receive a death benefit as stated in Section
10. Upon the death of either joint Certificate Holder prior to
the Annuity Date, the surviving joint Certificate Holder, if
any, will be treated as the designated Beneficiary and any
other Beneficiary designation on record with Us at the time of
death is treated as a contingent Beneficiary. If the
Certificate Holder is a nonnatural person, the death benefit
will be paid at the death of the Annuitant.
12
4.02 Change of Beneficiary - The Certificate Holder may change the
Beneficiary. A written request, dated and signed by the
Certificate Holder, must be filed at our home office. If there
are joint Certificate Holders, both must sign the request.
After the change is recorded, it will take effect as of the
date the request was signed. If the request reaches our home
office and is recorded after the Certificate Holder dies, but
before any payment is made, the change is valid.
4.03 Death of Beneficiary - If all of the Beneficiaries and
contingent Beneficiaries die prior to the Certificate Holder's
death, We pay the death benefit in one sum to the Certificate
Holder's estate. If the Certificate Holder is a nonnatural
person, and all of the Beneficiaries and contingent
Beneficiaries die prior to the Annuitant's death, We will pay
the death benefit in one sum to the Certificate Holder.
Section 5. Purchase Payments
--------------------------------------------------------------------------------
5.01 Purchase Payments - Subject to the maximum and minimum shown on
the Contract Schedule, the Certificate Holder may determine the
amount and frequency of Purchase Payments. We reserve the right
not to accept any Purchase Payment. We will declare from time
to time the acceptability of additional Purchase Payments.
5.02 Allocation of Purchase Payments - The Certificate Holder may
elect to have each Net Purchase Payment accumulate:
(a) On a variable basis invested in shares of one or more
Funds in which the Separate Account invests;
(b) For guaranteed terms offered in the current deposit
period(s) under the AG Account; or
(c) In a combination of any of the available investment
options.
Net Purchase Payments must be allocated in whole percentages.
For subsequent Purchase Payments, if no allocation instructions
are received with the Purchase Payment, the allocation will be
as indicated in the most recent directive from the Certificate
Holder. If the same guaranteed term(s) are not available, the
next shortest will be used. If no shorter guaranteed term is
available, the next longer guaranteed term will be used.
Section 6. Separate Account
--------------------------------------------------------------------------------
6.01 General - The assets of the Separate Account, equal to the
reserves and other Contract liabilities that depend on the
investment performance of the Separate Account are not
chargeable with liabilities arising out of any other business
We may conduct. Income, gains or losses of the Separate
Account, realized or unrealized, are credited to or charged
against the assets of the Separate Account without regard to
Our other income, gains or losses.
13
6.02 Investment Allocations to the Separate Account - The assets of
the Separate Account are segregated by Fund. If the shares of
any Fund are no longer available for investment by the Separate
Account or if in our judgment, further investment in such
shares should become inappropriate in view of the purpose of
the Contract, We may cease to make such Fund shares available
for investment under the Contract prospectively, or We may
substitute shares of another Fund for shares already acquired.
We may also, from time to time, add additional Funds. Any
elimination, substitution or addition of Funds will be done in
accordance with applicable state and federal securities laws.
We reserve the right to substitute shares of another Fund for
shares already acquired without a proxy vote.
6.03 Valuation of Assets - The shares of the Funds will be valued at
their net asset value at the end of each Valuation Period.
6.04 Accumulation Unit - A Net Purchase Payment that is allocated to
one or more Funds is credited to the Certificate Holder's
Account as Accumulation Units. The number of Accumulation Units
credited is determined by dividing the applicable portion of
the Net Purchase Payment by the Accumulation Unit value for the
appropriate Fund. The Accumulation Unit value used is that
which is computed for the next Valuation Period after which the
Purchase Payment is received at our home office. Accumulation
Units attributable to the initial Purchase Payments will be
credited within two business days of acceptance.
Accumulation Unit values may increase or decrease from
Valuation Period to Valuation Period.
6.05 Net Return Factor for Each Valuation Period - The value of an
Accumulation Unit for any Valuation Period is calculated by
multiplying the Accumulation Unit value for the immediately
preceding Valuation Period by the net return factor of the
appropriate Fund for the current period.
The net return factor for each Fund is equal to 1.0000000 plus
the net return rate.
The net return rate equals:
(a) The value of the shares of the Fund held by the Separate
Account at the end of a Valuation Period; minus
(b) The value of the shares of the Fund held by the Separate
Account at the start of the Valuation Period; plus or
minus
(c) Taxes (or reserves for taxes) on the Separate Account
(if any); divided by
(d) The total value of the Funds(s) Accumulation Units and
Fund(s) Annuity Units of the Separate Account at the
start of the Valuation Period; minus
(e) A daily actuarial charge as shown on the Contract
Schedule for Annuity mortality and expense risks and
profit and a daily administrative charge.
The net return rate may be more or less than zero (0) percent.
The value of a share of the Fund is equal to the net assets of
the Fund divided by the number of shares outstanding.
14
6.06 Administrative Charge - We deduct an administrative charge
equal, on an annual basis, to the amount shown on the Contract
Schedule.
6.07 Mortality Risk Charge - We deduct a mortality risk charge
equal, on an annual basis, to the amount shown on the Contract
Schedule.
6.08 Expense Risk Charge - We deduct an expense risk charge equal,
on an annual basis, to the amount shown on the Contract
Schedule.
6.09 Mortality and Expense Guarantee - We guarantee that the dollar
amount of each Annuity payment after the first will not be
affected by variations in mortality or expense experience.
Section 7. AG Account
--------------------------------------------------------------------------------
7.01 AG Account Guaranteed Interest Rate - All amounts allocated to
the AG Account earn a rate of interest that is guaranteed for a
specified period of time. The rate will be credited daily and
will never be less than the minimum guaranteed interest rate
shown on the Contract Schedule. We determine the rate and it is
not based on investment experience.
For guaranteed terms of one year or less, one guaranteed
interest rate is credited for the full guaranteed term. For
longer guaranteed terms, an initial guaranteed interest rate is
credited from the date of deposit to the end of a specified
period within the guaranteed term. There may be different
guaranteed interest rate(s) declared for subsequent specified
time intervals throughout the guaranteed term.
7.02 Deposit Period - A calendar week, a calendar month, a calendar
quarter, or any other period of time We specify during which
Net Purchase Payment(s), transfers and reinvestments are
accepted into the AG Account for one or more guaranteed terms.
We reserve the right to extend the deposit period.
7.03 Guaranteed Term - The period of time for which AG Account
guaranteed interest rates are guaranteed on Net Purchase
Payments. Transfers and reinvestments are made into a current
deposit period for the AG Account. Such period begins on the
day following the close of the deposit period and ends on the
designated Maturity Date. Guaranteed terms, if any, are offered
at our discretion for various lengths of time ranging up to and
including ten years.
During a deposit period, We may make available any number of
guaranteed terms. The Certificate Holder may allocate Net
Purchase Payments and transfers into any or all of the
available guaranteed terms.
7.04 Guaranteed Term(s) Groups - All AG Account guaranteed term(s)
with the same length of time from the close of the deposit
period until the designated Maturity Date.
7.05 Maturity Date - The last day of a guaranteed term.
15
7.06 Allocation of Net Purchase Payments to the AG Account - When
the Certificate Holder wishes to allocate all or any portion of
a Net Purchase Payment to the Guaranteed Account, he or she
must tell Us the percentage to apply to one or more of the AG
Account guaranteed term(s) available during the current deposit
period. If no allocation instructions are received, a Net
Purchase Payment is allocated as indicated in the most recent
directive from the Certificate Holder. If the same guaranteed
term is not available for any amount allocated to the AG
Account, We will allocate the amount to the next shortest
guaranteed term available. If no shorter guaranteed term is
available, We will allocate it to the next longest guaranteed
term.
7.07 AG Account Guaranteed Term Maturity Date and Maturity Value -
On the maturity date, the value of the total of all amounts
allocated to that guaranteed term is called the maturity value.
When Certificate Holders have assets in the AG Account, at
least eighteen (18) days before a maturity date, We notify them
of the:
(a) Projected maturity value; and
(b) Guaranteed terms and the applicable guaranteed interest
rates available during the current deposit period.
When no allocation instructions are received and the assets in
a guaranteed term have been reinvested by Us in another
guaranteed term on the maturity date, the Certificate Holder
may transfer or withdraw, during the month following the
maturity date, the reinvested amount with interest earned (as
of the date the request is received at our home office) without
incurring a Market Value Adjustment. This transaction is
allowed only once for each maturity date, regardless of whether
the transfer or withdrawal is partial or full.
7.08 Withdrawals and Transfers from the AG Account - When the
Certificate Holder requests a withdrawal or transfer from the
AG Account, if instructions are not provided by the Certificate
Holder, amounts are withdrawn on a pro rata basis from the
guaranteed term(s) groups in which the Certificate Holder's
Account is currently invested. Within a guaranteed term group,
the amount to be withdrawn will be withdrawn first from the
oldest deposit period. Withdrawals or transfers from an AG
Account guaranteed term before the maturity date are subject to
a Market Value Adjustment, except for:
(a) A one month period following the maturity date described
in 7.07;
(b) Transfers under the Dollar Cost Averaging program; and
(c) Withdrawals under the Systematic Withdrawal Option
described in Section 8.07.
Only a positive Market Value Adjustment will apply to amounts
transferred from the AG Account when the Certificate Holder
elects Annuity Option 2 or 3.
16
7.09 Reinvestment - We will mail a notice to the Certificate Holder
before a guaranteed term's maturity date. This notice will
contain the guaranteed terms available during the current
deposit periods with their guaranteed interest rate(s) and
projected maturity value. If no specific direction is given by
the Certificate Holder prior to the maturity date, each
maturity value will be reinvested in the current deposit period
for a guaranteed term of the same duration. If a guaranteed
term of the same duration is unavailable, each matured term
value will automatically be reinvested in the current deposit
period for the next shortest guaranteed term available. If no
shorter guaranteed term is available, the next longer
guaranteed term will be used. We will mail a confirmation
statement to the Certificate Holder after the maturity date.
This notice will state the guaranteed term and guaranteed
interest rate(s) which will apply to the reinvested matured
term value.
7.10 AG Account Market Value Adjustment (Factor) - The Market Value
Adjustment factor (MVA factor) reflects any change in interest
rates from the time assets are allocated to the AG Account to
the time they are transferred or withdrawn. Except as noted in
Section 7.09, 10.02 and 12.01, an MVA factor is applied to any
amount withdrawn or transferred from the AG Account before the
end of a guaranteed term.
The amount withdrawn from the AG Account is multiplied by the
MVA factor which is calculated as follows:
x
---
365
(1 + i)
------------
x
---
365
(i + j)
Where:
i is the Deposit Period Yield
j is the Current Yield
x is the number of days remaining, (computed from
Wednesday of the week of withdrawal) in the
guaranteed Term.
Determination of MVA factor parameters:
A yield is computed at the close of the last business day of
each week of the deposit period. The yield will equal the
average of the yields on U.S. Treasury Notes which matured
during the last three months of the applicable guaranteed term.
The deposit period yield is the average of those yields for the
deposit period. If withdrawal is made prior to the close of the
deposit period, it is the average of those yields on each week
preceding withdrawal.
The current yield is the average of the yields on the last
business day of the week preceding withdrawal on the same U.S.
Treasury Notes included in the deposit period yield.
17
If no U.S. Treasury Notes matured during the last three months
of the guaranteed term, We reserve the right to use the average
of the yields on U.S. Treasury Notes that mature during a
following quarter.
Section 8. Certificate Holder's Account Value; Transfers and Withdrawals
During the Accumulation Period
--------------------------------------------------------------------------------
8.01 Certificate Holder's Account Value - The value of a Certificate
Holder's Account is determined by adding the value of the total
of Accumulation Units attributed to the selected Fund(s) to the
value of any amounts attributed to the AG Account.
8.02 Transfers, During the Accumulation Period - Before the Annuity
Date, the Certificate Holder may transfer from any Fund or
guaranteed term of the AG Account to:
(a) Any other Fund; or
(b) Any guaranteed term of the AG Account available in the
current deposit period.
Transfer requests can be submitted as a percentage or as a
dollar amount. We may establish a minimum transfer amount.
Within a guaranteed term group, the amount transferred is
withdrawn first from the oldest deposit period, then from the
next oldest, and so on until the amount requested is satisfied.
The Certificate Holder may make an unlimited number of
transfers during the Accumulation Period. The number of free
transfers allowed is shown on the Contract Schedule. Transfers
in excess of that number may be subject to the transfer charge
shown on the Contract Schedule. Transfers under the Dollar Cost
Averaging program do not count toward the annual limit.
Transfers of a matured term value from the AG Account on or
within one calendar month after a guaranteed term's maturity
date do not count against the annual transfer limit.
Amounts applied to guaranteed terms of the AG Account may not
be transferred to the Funds or to another guaranteed term
during the deposit period or for 90 days after the close of the
deposit period except for (1) matured term value(s) during the
calendar month following the guaranteed term's maturity date;
(2) amounts applied to an annuity option; (3) transfers from
the one-year guaranteed term under the Dollar Cost Averaging
program; and (4) amounts distributed under the Systematic
Withdrawal Option.
Except as noted in Section 7.09, 10.02 and 12.01, transfers
from guaranteed terms of the AG Account before the Maturity
Date are subject to a Market Value Adjustment.
8.03 Withdrawals During the Accumulation Period - The Certificate
Holder may withdraw all or a portion of the Certificate
Holder's Account Value during the Accumulation Period by
properly completing a withdrawal request form. Withdrawal
requests can be submitted as a percentage or as a specific
dollar amount. Net Purchase Payment amounts are withdrawn
first, and then the excess value, if any. For any partial
withdrawal, if instructions are not provided by the Certificate
Holder, amounts are withdrawn on a pro rata basis from the
Fund(s), and/or the guaranteed term(s) groups in which the
Certificate Holder's Account is currently invested. Within a
guaranteed term group, the amount to be withdrawn will be
withdrawn first from the oldest deposit period, then from the
next oldest, and so on until the amount requested is satisfied.
18
After deduction of the maintenance charge, if applicable, the
withdrawn amount shall be reduced by the applicable deferred
sales charge and any applicable premium taxes.
8.04 Deferred Sales Charge - The deferred sales charge only applies
to the portion of the amount withdrawn attributable to Net
Purchase Payment(s) and varies according to the elapsed time
since receipt of the Purchase Payment. The deferred sales
charge is shown on the Contract Schedule.
8.05 Waiver of Deferred Sales Charge - No deferred sales charge is
deducted when a Certificate Holder's Account Value is paid:
(a) To a Beneficiary as a death benefit, except for Purchase
Payments made by a surviving joint Certificate Holder as
described in Section 10.02(b);
(b) As a premium for an Annuity Option;
(c) At least the number of months, as shown on the Contract
Schedule, after the date of the first Purchase Payment
and in an amount equal to or less than the percentage of
the Certificate Holder's Account Value as shown on the
Contract Schedule. This applies to the first withdrawal
request, partial or full, in a calendar year. The
Certificate Holder's Account Value is calculated as of
the date the withdrawal request is received in good
order at our home office. This waiver is not available
to the Certificate Holder while a SWO is in effect;
(d) For a full withdrawal where the Certificate Holder's
Account Value does not exceed the amount shown on the
Contract Schedule and no withdrawals have been taken
from the Certificate Holder's Account within the prior
12 months;
(e) For a distribution made by Us under Section 8.06; or
(f) For a distribution which is part of a SWO under Section
8.07.
We reserve the right to allow the proceeds of a total
withdrawal to be reinstated under the terms and conditions as
established by Us from time to time.
8.06 Payment of Adjusted Certificate Holder Account Value - Upon 90
day's written notice to the Certificate Holder, We will
terminate any Certificate Holder's Account if the Certificate
Holder's Account Value becomes less than $1,500 immediately
following any partial withdrawal. We do not intend to exercise
this right in cases where the Certificate Holder's Account
Value is reduced to $1,500 or less solely due to investment
performance. When We make a distribution pursuant to this
provision, the deferred sales charge will not be deducted.
8.07 Systematic Withdrawal Option (SWO) - We will allow the
Certificate Holder to establish a schedule of withdrawals to be
made automatically from the Certificate Holder's Account Value.
All distributed amounts will be withdrawn on a pro rata basis
from the Fund(s) and/or the guaranteed term(s) groups of the AG
Account in which the Certificate Holder's Account is invested.
19
The Certificate Holder must elect one of the following SWO
methods:
(a) Specified Payment: Payments of a designated dollar
amount. The annual amount may not be greater than the
percentage of the Certificate Holder's Account Value at
time of the election as shown on the Contract Schedule.
This annual dollar amount will remain constant. At our
discretion, We may require a minimum payment amount; or
(b) Specified Period: Payments which are made over a period
of time which must be at least the minimum period as
shown on the Contract Schedule. The annual amount paid
each year is calculated by dividing the Certificate
Holder's Account Value as of December 31 of the prior
year by the number of payment years remaining; or
(c) Specified Percentage: Payment of a designated percentage
which cannot be greater than the percentage of the
Certificate Holder's Account Value at the time of
election as shown on the Contract Schedule. The
percentage may be changed by written request. We reserve
the right to limit the number of times the percentage
may be changed. The annual amount is calculated by
multiplying the Certificate Holder's Account Value as of
December 31 of the year prior to the payment by the
designated percentage.
SWO payments will cease at the Certificate Holder's death (or
if the Certificate Holder is a nonnatural person, at the death
of the Annuitant). A beneficiary may elect to continue SWO as
provided in Section 10.01.
In our discretion, We may require a minimum initial Certificate
Holder's Account Value for election of this option. SWO may be
elected by submitting a completed and signed election form to
Us. Once elected, this option may be revoked by submitting a
written request to Us. SWO may be elected only once by the
Certificate Holder or by a spousal Beneficiary.
Certificate Holders should consult their tax adviser prior to
requesting this distribution option. We are not responsible for
any adverse tax consequences due to a Certificate Holder's
receiving SWO payments. A ten (10) percent penalty tax may
apply to distributions to a Certificate Holder who has not
reached age 59-1/2. Upon death of the Certificate Holder, any
payments will be made under the terms of Section 10.
Dollar Cost Averaging is not available to Certificate Holders
who have elected SWO.
20
Section 9. Maintenance Charge
--------------------------------------------------------------------------------
9.01 Maintenance Charge - We will deduct an annual maintenance
charge as shown in the Contract Schedule from the Certificate
Holder's Account during the Accumulation Period. We will deduct
the maintenance charge on the anniversary of the Effective Date
of the Certificate for the Certificate Holder's Account. This
maintenance charge is also deducted upon withdrawal of the
entire Adjusted Certificate Holder's Account. The maintenance
charge is deducted proportionately from each investment option
used.
Section 10. Proceeds Payable on Death
--------------------------------------------------------------------------------
10.01 Death of the Certificate Holder Prior to the Annuity Date - In
the event of the death of the Certificate Holder or a joint
Certificate Holder prior to the Annuity Date, a death benefit
is payable to the Beneficiary(ies) designated by the
Certificate Holder. Upon the death of a joint Certificate
Holder, the surviving joint Certificate Holder, if any, will be
treated as the designated Beneficiary. Any other Beneficiary
designation on record with Us at the time of death will be
treated as a contingent Beneficiary. If the Certificate Holder
is a nonnatural person, the death benefit will be payable to
the Beneficiary(ies) at the death of the Annuitant.
A Beneficiary may request We pay the death benefit under one of
the methods described in Section 10.03. If the Beneficiary is
the spouse of the Certificate Holder, or the spouse of the
Annuitant if the Certificate Holder is a nonnatural person, he
or she may elect to continue the Certificate Holder's Account
in his or her own name and exercise all the Certificate
Holder's rights under the Contract.
10.02 Death Benefit Amount Prior to the Annuity Date -
(a) Except as set forth below, the amount of the guaranteed
death benefit value is equal to the greater of:
(i) The Certificate Holder's Account Value at the end
of the Valuation Period during which We receive
at our home office due proof of death and
election of the type of payment to be made; or
(ii) The death benefit determined as of the Valuation
Period corresponding to the date of death.
Until the first Effective Date anniversary, the
death benefit is equal to the Purchase Payments
made by the Certificate Holder prior to the
Effective Date anniversary less any withdrawals
and any amounts applied to an Annuity Option.
For each Certificate year thereafter, the death
benefit during the Certificate year equals the
death benefit at the beginning of the Certificate
year plus Purchase Payments made during the year
less any withdrawals and any amounts applied to
an Annuity Option.
21
On each Effective Date anniversary, the death
benefit is determined as follows:
(A) The death benefit on the previous Effective
Date anniversary increased by the death
benefit factor shown on the Contract
Schedule; plus
(B) Purchase Payments made by the Certificate
Holder during the Certificate year
increased by the death benefit factor shown
on the Contract Schedule for the portion of
the year since the Purchase Payment was
made; less
(C) Any withdrawals or amounts applied to an
Annuity Option during the Certificate year
increased by the death benefit factor shown
on the Contract Schedule for the portion of
the Certificate year since the withdrawal
or election of Annuity option; or
(iii) The Certificate Holder's Account Value on the
most recent seventh year anniversary of the
Effective Date plus any Purchase Payments made
after such Effective Date anniversary less any
withdrawals and any amounts applied to an Annuity
Option.
Notwithstanding the foregoing, the death benefit under
(ii) or (iii) will not exceed the death benefit maximum
amount shown on the Contract Schedule.
The death benefit calculation described in (ii) and
(iii) above, applies until the Certificate Holder
reaches the death benefit maximum age shown on the
Contract Schedule. If the Certificate Holder is a
nonnatural person, death provisions will be based on the
age of the Annuitant. Thereafter, the death benefit is
only adjusted for Purchase Payments, withdrawals and
amounts applied to Annuity Options. If the Certificate
Holder reaches the death benefit maximum age shown on
the Contract Schedule prior to the seventh anniversary
of the Effective Date, the death benefit will be the
greater of (i) or (ii) above.
The excess, if any, of the guaranteed death benefit
value over the Certificate Holder's Account Value is
determined when we receive at our home office due proof
of death and allocated to the Fund shown on the Contract
Schedule. The Certificate Holder's Account Value plus
any excess amount deposited becomes the Certificate
Holder's Account Value.
(b) In the case of a spousal Beneficiary who continued the
Certificate Holder's Account in his or her own name, the
death benefit shall be equal to the Adjusted Current
Value less any applicable deferred sales charge on any
Purchase Payment made after We have received at our home
office due proof of death of the joint Certificate
Holder (or Annuitant, if applicable).
When the Beneficiary withdraws or transfers all or any portion
of the death benefit in the AG Account within six months after
the date of death, the amount withdrawn or transferred from the
AG Account will be the greater of:
(1) The aggregate Market Value Adjustment amount (the amount
resulting from the application of relevant Market Value
Adjustment factors); or
(2) The applicable portion of Certificate Holder's Account
Value in the AG Account.
22
After the six-month period, when the Beneficiary withdraws or
transfers all or any portion of the death benefit in the AG
Account, the amount will be equal to the aggregate Market Value
Adjustment amount. Only a positive market value adjustment will
apply, however, to amounts transferred from the AG Account when
the Beneficiary elects Annuity Option 2 or 3.
At the death of a spousal Beneficiary who continued the
Certificate Xxxxxx's Account in his or her own name, when the
Beneficiary withdraws or transfers all or any portion of the
death benefit in the AG Account, the amount will be equal to
the Aggregate Market Value Adjustment amount.
10.03 Death Benefit Payment Methods - A non-spousal Beneficiary must
elect the death benefit to be paid under one of the following
methods in the event of the death of the Certificate Holder
prior to the Annuity Date:
Method 1 - Lump sum payment of the death benefit; or
Method 2 - The payment of the entire death benefit within five
years of the date of the Certificate Holder's death; or
Method 3 - Payment of the death benefit over the lifetime of
the designated Beneficiary or over a period not extending
beyond the life expectancy of the designated Beneficiary with
distribution beginning within one year of the date of death of
the Certificate Holder.
Any portion of the death benefit not applied under Method 3
within one year of the date of Certificate Holder's death, or
the death of the Annuitant if the Certificate Holder is a
nonnatural person, must be distributed within five years of the
date of death.
A spousal Beneficiary may elect to continue the Certificate
Holder's Account in his or her name, elect a lump sum payment
of the death benefit, or apply the Adjusted Certificate
Holder's Account Value to an Annuity Option.
10.04 Death of Certificate Holder On or After the Annuity Date - If
the Certificate Holder who is not the Annuitant, dies on or
after the Annuity Date, the remaining payments under the
Annuity Option elected will be made to the Beneficiary at least
as rapidly as under the method of distribution in effect at the
Certificate Holder's death.
10.05 Death of the Annuitant - If the Annuitant, who is not a
Certificate Holder, dies on or before the Annuity Date, a new
Annuitant may be named. If no Annuitant is named, the
Certificate Holder will be the Annuitant. If the Certificate
Holder is a nonnatural person, the death benefit will be paid
at the death of the Annuitant and no new Annuitant may be
named. If the Annuitant dies after the Annuity Date, the death
benefit, if any, will be payable to the Beneficiary as
specified in the Annuity Option elected. We will require proof
of the Annuitant's death. Death benefits will be paid at least
as rapidly as under the method of distribution in effect at the
Annuitant's death.
23
Section 11. Delay of Payments
--------------------------------------------------------------------------------
11.01 Delay of Payments - We will make any payments under this
Contract within seven days after a request is received in good
order. We reserve the right to suspend or postpone any type of
payment from the Separate Account for any period when:
(a) The New York Stock Exchange is closed for other than
customary weekend and holiday closings;
(b) Trading on the Exchange is restricted;
(c) An emergency exists as a result of which it is not
reasonably practicable to dispose of securities held in
the Separate Account or determine their value; or
(d) The Securities and Exchange Commission so permits delay
for the protection of security holders.
The applicable rules of the Securities and Exchange Commission
will govern as to whether the conditions in (b) or (c) exist.
We also reserve the right to delay any type of payment from the
AG Account for up to six months.
Section 12. Annuity Provisions
--------------------------------------------------------------------------------
12.01 Designation of Annuitant - The Certificate Holder and the
Annuitant need not be the same person. The Certificate Holder
names the Annuitant and during the Accumulation Period, may
change the designated Annuitant. We change the Annuitant when
We receive a written request in good order at our home office.
We will not change the Annuitant when Annuity payments have
commenced.
The Certificate Holder elects an Annuity Option by telling Us
to use all or any portion of the Certificate Holder's Account
Value (minus any applicable premium taxes if not previously
deducted) to purchase Annuity payments under an Annuity Option.
If the Certificate Holder elects Annuity Option 1, the amount
applied to purchase Annuity payments will be equal to the
Adjusted Certificate Holder's Account Value. If the Certificate
Holder elects Annuity Option 2 or 3, the amount applied to
purchase Annuity payments will be the greater of:
(1) The Adjusted Certificate Holder's Account Value; or
(2) The Certificate Holder's Account Value.
When an Annuity Option is chosen the Certificate Holder must
designate a:
(a) Fixed Annuity using the General Account;
(b) Variable Annuity using any of the Funds available during
the Annuity Period; or
(c) Combination of (a) and (b).
If a fixed Annuity is chosen, We will calculate the amount
using an interest assumption no less than the percentage
specified on the Contract Schedule. We may calculate the amount
using a higher interest rate.
24
If a variable Annuity is chosen, an Assumed Annual Net Return
Rate of 5% may be chosen. If not chosen, We will use an Assumed
Annual Net Return Rate of 3.5%
Payments are made on a monthly basis to the Certificate Holder
unless the Certificate Holder requests a different mode of
payment.
Once elected, an Annuity Option may not be revoked, except for
Option 1 when elected on a variable basis.
12.02 Terms of Annuity Options - The minimum first payment amount
must be at least $50 per month and at least $250 per year.
If the Certificate Holder elects a fixed Annuity and We
determine that the Certificate Holder would receive larger
payments by applying the Certificate Holder's Account Value,
reduced by the deferred sales charge, to a single premium
immediate Annuity currently offered by Us, We will make the
larger payments.
We determine the first payment of a variable Annuity, or the
payment amount of a fixed Annuity, using the Annuitant's (and
second Annuitant's if applicable) adjusted age which We
calculate as follows:
(a) If Annuity payments begin any time between July 1, 1992
and December 31, 1999, the adjusted age is the
Annuitant's age as of the birthday closest in time to
the Annuity Date reduced by one (1) year.
(b) If the Annuity begins any time between January 1, 2000
and December 31, 2009, the adjusted age is the
Annuitant's age as of the birthday closest in time to
the Annuity Date reduced by two (2) years.
(c) For each succeeding decade, the adjusted age is the
Annuitant's age as determined in (b), reduced by one
additional year.
The Annuity rates for Options 2 and 3 are based on mortality
from 1983 Table A.
Assumed Annual Net Return Rate is the interest rate used to
determine the amount of the first Annuity payment under a
variable Annuity. The Separate Account must earn this rate plus
enough to cover the mortality and expense risks charges (which
may include profit) and administrative charges if future
variable Annuity payments are to remain level.
25
The Certificate Holder must give written notice to Us at least
30 days before the Annuity payments begin, electing or
changing:
(a) The date on which Annuity payments are to begin;
(b) The Annuity Option;
(c) Whether the payments are to be made monthly, quarterly,
semiannually or annually;
(d) The investment options used to provide Annuity payments.
The first Annuity payment may not be earlier than one (1)
calendar year after the initial Purchase Payment, nor later
than the later of the:
(a) First day of the month following the Annuitant's
birthday shown on the Contract Schedule; or
(b) Tenth anniversary of the last Purchase Payment. In lieu
of the election of an Annuity, the Certificate Holder
may request a lump sum payment.
12.03 Annuity Unit - The number of Annuity Units per Fund is based on
the amount of the first variable Annuity payment which is equal
to:
(a) The portion of the Certificate Holder's Account Value
(minus any premium taxes) applied to pay a variable
Annuity; divided by,
(b) 1000; multiplied by,
(c) The payment rate for the Annuity Option chosen.
Such amount, or portion, of the variable Annuity payment will
be divided by the Annuity Unit value for the appropriate Fund
on the tenth Valuation Period before the due date of the first
payment to determine the number of each Fund's Annuity Units.
The number of each Fund's Annuity Unit remains fixed. Each
future payment is equal to the sum of the products of each
Fund's Annuity Unit value multiplied by the appropriate number
of units. The Fund's Annuity Unit value on the tenth Valuation
Period prior to the due date of the payment is used.
12.04 Annuity Unit Value - For any Valuation Period, a Fund's Annuity
Unit value is equal to:
(a) The value for the previous Valuation Period; multiplied
by,
(b) The Annuity Net Return Factor for the Valuation Period;
multiplied by,
(c) A daily factor to reflect the Assumed Annual Net Return
Rate (the factor for 3.5% per year is .9999058; for 5%
per year it is .9998663).
The dollar value of a Fund(s) Annuity Unit values and payments
may go up or down due to investment gain or loss.
12.05 Annuity Net Return Factor - The Annuity net return factor is
used to compute all Separate Account Annuity payments for any
Fund.
26
The Annuity net return factor(s) for each Fund is equal to
1.0000000 plus the net return rate. The net return rate is
equal to:
(a) The value of the shares of the Fund held by the Separate
Account at the end of a Valuation Period; minus,
(b) The value of the shares of the Fund held by the Separate
Account at the start of the Valuation Period; plus or
minus,
(c) Taxes (or reserves for taxes) on the Separate Account
(if any); divided by
(d) The total value of the Fund(s) Accumulation Units and
Fund(s) Annuity Units of the Separate Account at the
start of the Valuation Period; minus,
(e) A daily actuarial charge as shown of the Contract
Schedule for Annuity mortality and expense risks and
profit and a daily administrative charge which will not
exceed the administrative charge as shown on the
Contract Schedule.
The net return rate may be more or less than zero (0) percent.
The value of a share of the Fund is equal to the net assets of
the Fund divided by the number of shares outstanding.
12.06 Annuity Options
Option 1 - Payments for a Stated Period of Time - An Annuity
will be paid for the number of years chosen. The number of
years must be at least 5 and not more than 30.
If payments for this Annuity Option are made under a variable
Annuity, the present value of any remaining payments may be
withdrawn at any time. Option 2 - Life Income - An Annuity will
be paid for the life of the Annuitant. If also chosen, We will
guarantee payments for 60, 120, 180, or 240 months.
Option 3 - Life Income Based upon the Lives of Two Annuitants -
An Annuity will be paid during the lives of the Annuitant and a
second Annuitant. Payments will continue until both Annuitants
have died. When this Annuity Option is chosen, a choice must be
made of:
(a) 100% of the payment to continue after the first death;
(b) 66-2/3% of the payment to continue after the first
death;
(c) 50% of the payment to continue after the first death;
(d) Payments for a minimum of 120 months with 100% of the
payment to continue after the first death; or
(e) 100% of the payment to continue at the death of the
second Annuitant and 50% of the payment to continue at
the death of the Annuitant.
We may make other options available as allowed by law.
27
OPTION 1
Payments for a Stated Period of Time
Amount of First Monthly Payment for Each $1,000
After Deduction of any Charge for Premium Taxes
Rates for a Fixed Annuity with Guaranteed Interest Rate of 3.0%
-------------------------------------------------------------------------------------------------------------------
Guaranteed Monthly Quarterly Semi-Annual Annual
Years Rate Payment Payment Payment Payment
-------------------------------------------------------------------------------------------------------------------
5 3.00% 17.91 53.59 106.78 211.99
6 3.00% 15.14 45.30 90.27 179.22
7 3.00% 13.16 39.39 78.49 155.83
8 3.00% 11.68 34.96 69.66 138.31
9 3.00% 10.53 31.52 62.81 124.69
10 3.00% 9.61 28.77 57.33 113.82
11 3.00% 8.86 26.52 52.85 104.93
12 3.00% 8.24 24.65 49.13 97.54
13 3.00% 7.71 23.08 45.98 91.29
14 3.00% 7.26 21.73 43.29 85.95
15 3.00% 6.87 20.56 40.96 81.33
16 3.00% 6.53 19.54 38.93 77.29
17 3.00% 6.23 18.64 37.14 73.74
18 3.00% 5.96 17.84 35.56 70.59
19 3.00% 5.73 17.13 34.14 67.78
20 3.00% 5.51 16.50 32.87 65.26
21 3.00% 5.32 15.92 31.72 62.98
22 3.00% 5.15 15.40 30.68 60.92
23 3.00% 4.99 14.92 29.74 59.04
24 3.00% 4.84 14.49 28.88 57.33
25 3.00% 4.71 14.09 28.08 55.76
26 3.00% 4.59 13.73 27.36 54.31
27 3.00% 4.47 13.39 26.68 52.97
28 3.00% 4.37 13.08 26.06 51.74
29 3.00% 4.27 12.79 25.49 50.60
30 3.00% 4.18 12.52 24.95 49.53
-------------------------------------------------------------------------------------------------------------------
28
OPTION 2
Life Income
Amount of First Monthly Payment for Each $1,000
After Deduction of any Charge for Premium Taxes
Rates for a Fixed Annuity with Guaranteed Interest Rate of 3.0%
Payments Guaranteed for a Stated Period of Months
------------------------------------------------------------------------------------------------------------------------------------
Adjusted None 60 120 180 240
Age of -------------------------------------------------------------------------------------------------------------------
Annuitant Male Female Male Female Male Female Male Female Male Female
------------------------------------------------------------------------------------------------------------------------------------
50 $ 4.27 $3.90 $4.26 $ 3.90 $ 4.22 $ 3.89 $ 4.17 $ 3.86 $ 4.08 $ 3.82
51 4.34 3.97 4.33 3.96 4.30 3.95 4.23 3.92 4.14 3.88
52 4.43 4.03 4.41 4.03 4.37 4.01 4.30 3.98 4.20 3.93
53 4.51 4.10 4.50 4.10 4.45 4.08 4.37 4.04 4.26 3.99
54 4.60 4.18 4.59 4.17 4.54 4.15 4.45 4.11 4.32 4.04
55 4.70 4.25 4.68 4.25 4.62 4.22 4.53 4.18 4.39 4.11
56 4.80 4.34 4.78 4.33 4.72 4.30 4.61 4.25 4.45 4.17
57 4.91 4.42 4.89 4.41 4.82 4.38 4.69 4.32 4.51 4.23
58 5.03 4.52 5.00 4.51 4.92 4.47 4.78 4.40 4.58 4.30
59 5.15 4.61 5.12 4.60 5.03 4.56 4.87 4.48 4.65 4.37
60 5.28 4.72 5.25 4.70 5.14 4.66 4.96 4.57 4.71 4.44
61 5.43 4.83 5.39 4.81 5.27 4.76 5.06 4.66 4.78 4.51
62 5.58 4.95 5.53 4.93 5.39 4.87 5.16 4.75 4.84 4.58
63 5.74 5.08 5.69 5.05 5.53 4.99 5.26 4.85 4.90 4.65
64 5.91 5.21 5.85 5.18 5.66 5.10 5.36 4.95 4.96 4.72
65 6.10 5.36 6.03 5.32 5.81 5.22 5.46 5.05 5.02 4.79
66 6.30 5.51 6.21 5.47 5.96 5.36 5.56 5.16 5.08 4.86
67 6.51 5.67 6.41 5.63 6.12 5.50 5.66 5.26 5.13 4.93
68 6.73 5.85 6.62 5.80 6.28 5.65 5.77 5.37 5.18 5.00
69 6.97 6.04 6.84 5.98 6.44 5.80 5.86 5.49 5.23 5.06
70 7.23 6.25 7.07 6.18 6.61 5.97 5.96 5.60 5.27 5.12
71 7.51 6.47 7.32 6.39 6.79 6.14 6.05 5.71 5.31 5.18
72 7.80 6.71 7.58 6.62 6.96 6.32 6.14 5.83 5.34 5.23
73 8.12 6.98 7.85 6.86 7.14 6.50 6.23 5.94 5.37 5.28
74 8.46 7.26 8.14 7.12 7.32 6.69 6.31 6.04 5.40 5.32
75 8.82 7.57 8.45 7.40 7.50 6.89 6.38 6.14 5.42 5.35
------------------------------------------------------------------------------------------------------------------------------------
Rates are based on mortality from 1983 Table a.
Rates for ages not shown will be provided on request and will be computed
on a basis consistent with the rates in the above tables.
29
OPTION 3
Life Income for Two Payees
Amount of First Monthly Payment for Each $1,000
After Deduction of any Charge for Premium Taxes
(Annuitant is Male and Second Annuitant is Female)
Rates for a Fixed Annuity with Guaranteed Interest Rate of 3.0%
------------------------------------------------------------------------------------------------------------------------------------
Adjusted Ages
-------------------------------------
Second
Annuitant Annuitant Option 3a Option 3b Option 3c Option 3d Option 3e
------------------------------------------------------------------------------------------------------------------------------------
55 50 $ 3.69 $ 4.05 $ 4.27 $ 3.69 $ 4.13
55 55 3.88 4.25 4.47 3.87 4.25
55 60 3.06 4.47 4.71 4.06 4.36
60 55 3.99 4.44 4.71 3.98 4.55
60 60 4.24 4.71 4.99 4.23 4.70
60 65 4.49 5.01 5.32 4.48 4.85
65 60 4.38 4.97 5.32 4.38 5.10
65 65 4.72 5.33 5.70 4.71 5.32
65 70 5.07 5.75 6.17 5.05 5.54
70 65 4.93 5.68 6.15 4.91 5.86
70 70 5.40 6.21 6.70 5.36 6.18
70 75 5.89 6.82 7.40 5.81 6.49
75 70 5.69 6.68 7.32 5.62 6.92
75 75 6.37 7.45 8.15 6.23 7.40
75 80 7.07 8.34 9.16 6.78 7.85
------------------------------------------------------------------------------------------------------------------------------------
Rates are based on mortality from 1983
Table a. The rates assume the Annuitant is Male and the
Second Annuitant is Female.
Rates for ages not shown will be provided on request
and will be computed on a basis consistent
with the rates in the above tables.
30
OPTION 3
Life Income for Two Payees
Amount of First Monthly Payment for Each $1,000
After Deduction of any Charge for Premium Taxes
(Annuitant is Female and Second Annuitant is Male)
Rates for a Fixed Annuity with Guaranteed Interest Rate of 3.0%
------------------------------------------------------------------------------------------------------------------------------------
Adjusted Ages
-------------------------------------
Second
Annuitant Annuitant Option 3a Option 3b Option 3c Option 3d Option 3e
------------------------------------------------------------------------------------------------------------------------------------
55 50 $ 3.75 $ 4.07 $ 4.26 $ 3.75 $ 3.98
55 55 3.88 4.25 4.47 3.87 4.06
55 60 3.99 4.44 4.71 3.98 4.12
60 55 4.06 4.47 4.71 4.06 4.37
60 60 4.24 4.71 4.99 4.23 4.47
60 65 4.38 4.97 5.32 4.38 4.54
65 60 4.49 5.01 5.32 4.48 4.89
65 65 4.72 5.33 5.70 4.71 5.02
65 70 4.93 5.68 6.15 4.91 5.14
70 65 5.07 5.75 6.17 5.05 5.60
70 70 5.40 6.21 6.70 5.36 5.79
70 75 5.69 6.68 7.32 5.62 5.96
75 70 5.89 6.83 7.40 5.81 6.63
75 75 6.37 7.45 8.15 6.23 6.92
75 80 6.78 8.11 8.99 6.54 7.15
------------------------------------------------------------------------------------------------------------------------------------
Rates are based on mortality from 1983
Table a. The rates assume the Annuitant is Female and
the Second Annuitant is Male.
Rates for ages not shown will be provided on request
and will be computed on a basis consistent
with the rates in the above tables.
31
OPTION 1
Payments for a Stated Period of Time
Amount of First Monthly Payment for Each $1,000
After Deduction of any Charge for Premium Taxes
Rates for a Variable Annuity with Assumed Net Return Rate of 3.5%
-------------------------------------------------------------------------------------------------------------------
Guaranteed Monthly Quarterly Semi-Annual Annual
Years Rate Payment Payment Payment Payment
-------------------------------------------------------------------------------------------------------------------
5 3.50% 18.12 54.19 107.92 213.99
6 3.50% 15.35 45.92 91.44 181.32
7 3.50% 13.38 40.01 79.69 158.01
8 3.50% 11.90 35.59 70.88 140.56
9 3.50% 10.75 32.16 64.05 127.00
10 3.50% 9.83 29.42 58.59 116.18
11 3.50% 9.09 27.18 54.13 107.34
12 3.50% 8.46 25.32 50.42 99.98
13 3.50% 7.94 23.75 47.29 93.78
14 3.50% 7.49 22.40 44.62 88.47
15 3.50% 7.10 21.24 42.31 83.89
16 3.50% 6.76 20.23 40.29 79.89
17 3.50% 6.47 19.34 38.51 76.37
18 3.50% 6.20 18.55 36.94 73.25
19 3.50% 5.97 17.85 35.54 70.47
20 3.50% 5.75 17.22 34.28 67.98
21 3.50% 5.56 16.65 33.15 65.74
22 3.50% 5.39 16.13 32.13 63.70
23 3.50% 5.24 15.66 31.19 61.85
24 3.50% 5.09 15.24 30.34 60.17
25 3.50% 4.96 14.85 29.56 58.62
26 3.50% 4.84 14.49 28.85 57.20
27 3.50% 4.73 14.15 28.19 55.90
28 3.50% 4.63 13.85 27.58 54.69
29 3.50% 4.53 13.57 27.02 53.57
30 3.50% 4.45 13.30 26.49 52.53
-------------------------------------------------------------------------------------------------------------------
32
OPTION 1
Payments for a Stated Period of Time
Amount of First Monthly Payment for Each $1,000
After Deduction of any Charge for Premium Taxes
Rates for a Variable Annuity with Assumed Net Return Rate of 5.0%
-------------------------------------------------------------------------------------------------------------------
Guaranteed Monthly Quarterly Semi-Annual Annual
Years Rate Payment Payment Payment Payment
-------------------------------------------------------------------------------------------------------------------
5 5.00% 18.74 56.00 111.33 219.98
6 5.00% 15.99 47.77 94.96 187.64
7 5.00% 14.02 41.90 83.30 164.59
8 5.00% 12.56 37.52 74.58 147.35
9 5.00% 11.42 34.11 67.81 133.99
10 5.00% 10.51 31.40 62.42 123.34
11 5.00% 9.77 29.19 58.03 114.66
12 5.00% 9.16 27.36 54.38 107.45
13 5.00% 8.64 25.81 51.31 101.39
14 5.00% 8.20 24.50 48.69 96.21
15 5.00% 7.82 23.36 46.44 91.75
16 5.00% 7.49 22.37 44.47 87.88
17 5.00% 7.20 21.51 42.75 84.48
18 5.00% 6.94 20.74 41.23 81.47
19 5.00% 6.71 20.06 39.88 78.80
20 5.00% 6.51 19.46 38.68 76.42
21 5.00% 6.33 18.91 37.59 74.28
22 5.00% 6.17 18.42 36.62 72.35
23 5.00% 6.02 17.98 35.73 70.61
24 5.00% 5.88 17.57 34.93 69.02
25 5.00% 5.76 17.20 34.20 67.57
26 5.00% 5.65 16.87 33.53 66.25
27 5.00% 5.54 16.56 32.92 65.04
28 5.00% 5.45 16.28 32.35 63.93
29 5.00% 5.36 16.01 31.83 62.90
30 5.00% 5.28 15.77 31.35 61.95
-------------------------------------------------------------------------------------------------------------------
33
OPTION 2
Life Income
Amount of First Monthly Payment for Each $1,000
After Deduction of any Charge for Premium Taxes
Rates for a Variable Annuity with Assumed Net Return Rate of 3.5%
Payments Guaranteed for a Stated Period of Months
------------------------------------------------------------------------------------------------------------------------------------
Adjusted None 60 120 180 240
Age of -------------------------------------------------------------------------------------------------------------------
Annuitant Male Female Male Female Male Female Male Female Male Female
------------------------------------------------------------------------------------------------------------------------------------
50 $ 4.56 $ 4.20 $ 4.55 $ 4.19 $ 4.51 $ 4.18 $ 4.45 $ 4.15 $ 4.36 $ 4.11
51 4.64 4.26 4.62 4.25 4.58 4.24 4.51 4.21 4.42 4.16
52 4.72 4.32 4.70 4.32 4.66 4.30 4.58 4.26 4.48 4.21
53 4.80 4.39 4.79 4.38 4.74 4.36 4.65 4.32 4.53 4.27
54 4.89 4.46 4.87 4.46 4.82 4.43 4.73 4.39 4.59 4.32
55 4.99 4.54 4.97 4.53 4.91 4.50 4.80 4.46 4.65 4.38
56 5.09 4.62 5.07 4.61 5.00 4.58 4.88 4.53 4.72 4.44
57 5.20 4.71 5.17 4.70 5.10 4.66 4.96 4.60 4.78 4.50
58 5.32 4.80 5.29 4.79 5.20 4.75 5.05 4.68 4.84 4.57
59 5.44 4.90 5.41 4.88 5.31 4.84 5.14 4.76 4.91 4.63
60 5.57 5.00 5.53 4.99 5.42 4.93 5.23 4.84 4.97 4.70
61 5.71 5.11 5.67 5.09 5.54 5.03 5.32 4.93 5.03 4.77
62 5.86 5.23 5.81 5.21 5.66 5.14 5.42 5.02 5.09 4.84
63 6.02 5.36 5.97 5.33 5.79 5.25 5.51 5.11 5.16 4.91
64 6.20 5.49 6.13 5.46 5.93 5.37 5.61 5.21 5.21 4.98
65 6.38 5.64 6.31 5.60 6.07 5.49 5.71 5.31 5.27 5.05
66 6.58 5.79 6.49 5.75 6.22 5.63 5.81 5.41 5.32 5.12
67 6.79 5.95 6.69 5.91 6.38 5.76 5.91 5.52 5.38 5.18
68 7.02 6.13 6.89 6.08 6.53 5.91 6.01 5.63 5.42 5.25
69 7.26 6.32 7.11 6.26 6.70 6.06 6.11 5.74 5.47 5.31
70 7.52 6.53 7.35 6.45 6.86 6.23 6.20 5.85 5.51 5.37
71 7.80 6.75 7.59 6.66 7.03 6.39 6.29 5.96 5.54 5.42
72 8.09 6.99 7.85 6.89 7.21 6.57 6.38 6.07 5.57 5.47
73 8.41 7.26 8.12 7.13 7.38 6.75 6.46 6.17 5.60 5.51
74 8.75 7.54 8.41 7.39 7.55 6.94 6.53 6.28 5.63 5.55
75 9.12 7.85 8.71 7.66 7.73 7.13 6.61 6.38 5.65 5.59
------------------------------------------------------------------------------------------------------------------------------------
Rates are based on mortality from 1983 Table a.
Rates for ages not shown will be provided on request and will be computed
on a basis consistent with the rates in the above tables.
34
OPTION 2
Life Income
Amount of First Monthly Payment for Each $1,000
After Deduction of any Charge for Premium Taxes
Rates for a Variable Annuity with Assumed Net Return Rate of 5.0%
Payments Guaranteed for a Stated Period of Months
------------------------------------------------------------------------------------------------------------------------------------
Adjusted None 60 120 180 240
Age of -------------------------------------------------------------------------------------------------------------------
Annuitant Male Female Male Female Male Female Male Female Male Female
------------------------------------------------------------------------------------------------------------------------------------
50 $5.48 $5.12 $5.46 $5.11 $5.41 $5.09 $5.34 $5.06 $5.24 $5.01
51 5.55 5.17 5.53 5.17 5.48 5.14 5.40 5.11 5.29 5.05
52 5.63 5.23 5.61 5.23 5.55 5.20 5.46 5.16 5.34 5.10
53 5.71 5.30 5.69 5.29 5.62 5.26 5.53 5.22 5.40 5.15
54 5.80 5.37 5.77 5.36 5.70 5.33 5.60 5.27 5.45 5.20
55 5.89 5.44 5.86 5.43 5.79 5.39 5.67 5.34 5.51 5.25
56 5.99 5.52 5.96 5.51 5.87 5.47 5.74 5.40 5.56 5.31
57 6.10 5.60 6.06 5.59 5.97 5.54 5.82 5.47 5.62 5.37
58 6.21 5.69 6.17 5.67 6.06 5.62 5.90 5.54 5.68 5.42
59 6.33 5.79 6.29 5.77 6.17 5.71 5.98 5.61 5.74 5.48
60 6.46 5.89 6.41 5.87 6.28 5.80 6.06 5.69 5.79 5.55
61 6.60 6.00 6.55 6.97 6.39 5.90 6.15 5.77 5.85 5.61
62 6.75 6.11 6.69 6.08 6.51 6.00 6.24 5.86 5.91 5.67
63 6.91 6.23 6.84 6.20 6.64 6.10 6.33 5.95 5.96 5.73
64 7.09 6.37 7.00 6.33 6.77 6.22 6.42 6.04 6.02 5.80
65 7.27 6.51 7.18 6.46 6.91 6.34 6.52 6.13 6.07 5.86
66 7.47 6.66 7.36 6.61 7.05 6.46 6.61 6.23 6.12 5.92
67 7.68 6.82 7.55 6.76 7.20 6.60 6.70 6.33 6.16 5.99
68 7.91 7.00 7.76 6.93 7.35 6.74 6.80 6.43 6.21 6.04
69 8.15 7.19 7.98 7.11 7.51 6.89 6.89 6.54 6.25 6.10
70 8.41 7.39 8.21 7.30 7.67 7.04 6.97 6.64 6.28 6.15
71 8.69 7.62 8.45 7.51 7.83 7.21 7.06 6.74 6.32 6.20
72 8.99 7.86 8.70 7.73 8.00 7.38 7.14 6.85 6.35 6.25
73 9.31 8.12 8.97 7.97 8.16 7.55 7.21 6.95 6.37 6.29
74 9.65 8.41 9.26 8.23 8.33 7.73 7.29 7.04 6.39 6.33
75 10.02 8.72 9.55 8.50 8.50 7.92 7.35 7.14 6.41 6.36
------------------------------------------------------------------------------------------------------------------------------------
Rates are based on mortality from 1983 Table a.
Rates for ages not shown will be provided on request and will be computed
35
on a basis consistent with the rates in the above tables.
36
OPTION 3
Life Income for Two Payees
Amount of First Monthly Payment for Each $1,000
After Deduction of any Charge for Premium Taxes
(Annuitant is Male and Second Annuitant is Female)
Rates for a Variable Annuity with Assumed Net Return Rate of 3.5%
------------------------------------------------------------------------------------------------------------------------------------
Adjusted Ages
-------------------------------------
Second
Annuitant Annuitant Option 3a Option 3b Option 3c Option 3d Option 3e
------------------------------------------------------------------------------------------------------------------------------------
55 50 $ 3.97 $ 4.35 $ 4.56 $ 3.97 $ 4.42
55 55 4.16 4.54 4.76 4.15 4.54
55 60 4.34 4.76 5.00 4.34 4.64
60 55 4.27 4.73 5.00 4.26 4.83
60 60 4.51 4.99 5.27 4.50 4.98
60 65 4.76 5.29 5.60 4.75 5.13
65 60 4.66 5.25 5.61 4.65 5.39
65 65 4.99 5.61 5.99 4.98 5.60
65 70 5.34 6.03 6.46 5.31 5.81
70 65 5.19 5.97 6.44 5.17 6.14
70 70 5.67 6.49 6.99 5.62 6.47
70 75 6.16 7.10 7.68 6.07 6.77
75 70 5.95 6.96 7.61 5.87 7.20
75 75 6.64 7.73 8.43 6.48 7.68
75 80 7.33 8.62 9.45 7.02 8.13
------------------------------------------------------------------------------------------------------------------------------------
Rates are based on mortality from 1983
Table a. The rates assume the Annuitant is Male and the
Second Annuitant is Female.
Rates for ages not shown will be provided on request
and will be computed on a basis consistent
with the rates in the above tables.
37
OPTION 3
Life Income for Two Payees
Amount of First Monthly Payment for Each $1,000
After Deduction of any Charge for Premium Taxes
(Annuitant is Female and Second Annuitant is Male)
Rates for a Variable Annuity with Assumed Net Return Rate of 3.5%
------------------------------------------------------------------------------------------------------------------------------------
Adjusted Ages
-------------------------------------
Second
Annuitant Annuitant Option 3a Option 3b Option 3c Option 3d Option 3e
------------------------------------------------------------------------------------------------------------------------------------
55 50 $ 4.03 $ 4.36 $ 4.55 $ 4.03 $ 4.41
55 55 4.16 4.54 4.76 4.15 4.54
55 60 4.27 4.73 5.00 4.26 4.83
60 55 4.34 4.76 5.00 4.34 4.64
60 60 4.51 4.99 5.27 4.50 4.98
60 65 4.66 5.25 5.61 4.65 5.39
65 60 4.76 5.29 5.60 4.75 5.13
65 65 4.99 5.61 5.99 4.98 5.60
65 70 5.19 5.97 6.44 5.17 6.14
70 65 5.34 6.03 6.46 5.31 5.81
70 70 5.67 6.49 6.99 5.62 6.47
70 75 5.95 6.96 7.61 5.87 7.20
75 70 6.16 7.10 7.68 6.07 6.77
75 75 6.64 7.73 8.43 6.48 7.68
75 80 7.04 8.39 9.29 6.79 8.70
------------------------------------------------------------------------------------------------------------------------------------
Rates are based on mortality from 1983
Table a. The rates assume the Annuitant is Female and
the Second Annuitant is Male.
Rates for ages not shown will be provided on request
and will be computed on a basis consistent
with the rates in the above tables.
38
OPTION 3
Life Income for Two Payees
Amount of First Monthly Payment for Each $1,000
After Deduction of any Charge for Premium Taxes
(Annuitant is Male and Second Annuitant is Female)
Rates for a Variable Annuity with Assumed Net Return Rate of 5.0%
------------------------------------------------------------------------------------------------------------------------------------
Adjusted Ages
-------------------------------------
Second
Annuitant Annuitant Option 3a Option 3b Option 3c Option 3d Option 3e
------------------------------------------------------------------------------------------------------------------------------------
55 50 $ 4.88 $ 5.26 $ 5.48 $ 4.88 $ 5.34
55 55 5.04 5.44 5.66 5.04 5.43
55 60 5.21 5.65 5.89 5.21 5.53
60 55 5.15 5.63 5.91 5.14 5.73
60 60 5.37 5.87 6.16 5.37 5.86
60 65 5.61 6.16 6.49 5.60 6.01
65 60 5.52 6.14 6.51 5.51 6.28
65 65 5.83 6.49 6.87 5.82 6.47
65 70 6.17 6.90 7.33 6.13 6.67
70 65 6.04 6.84 7.34 6.00 7.03
70 70 6.49 7.35 7.87 6.44 7.33
70 75 6.97 7.96 8.56 6.87 7.62
75 70 6.77 7.84 8.51 6.68 8.08
75 75 7.45 8.60 9.33 7.27 8.55
75 80 8.14 9.49 10.35 7.80 8.98
------------------------------------------------------------------------------------------------------------------------------------
Rates are based on mortality from 1983
Table a. The rates assume the Annuitant is Male and the
Second Annuitant is Female.
Rates for ages not shown will be provided on request
and will be computed on a basis consistent
with the rates in the above tables.
39
OPTION 3
Life Income for Two Payees
Amount of First Monthly Payment for Each $1,000
After Deduction of any Charge for Premium Taxes
(Annuitant is Female and the Second Annuitant is Male)
Rates for a Variable Annuity with Assumed Net Return Rate of 5.0%
------------------------------------------------------------------------------------------------------------------------------------
Adjusted Ages
-------------------------------------
Second
Annuitant Annuitant Option 3a Option 3b Option 3c Option 3d Option 3e
------------------------------------------------------------------------------------------------------------------------------------
55 50 $ 4.93 $ 5.27 $ 5.46 $ 4.93 $ 5.19
55 55 5.04 5.44 5.66 5.04 5.43
55 60 5.15 5.63 5.91 5.14 5.73
60 55 5.21 5.65 5.89 5.21 5.53
60 60 5.37 5.87 6.16 5.37 5.86
60 65 5.52 6.14 6.51 5.51 6.28
65 60 5.61 6.16 6.49 5.60 6.01
65 65 5.83 6.49 6.87 5.82 6.47
65 70 6.04 6.84 7.34 6.00 7.03
70 65 6.17 6.90 7.33 6.13 6.67
70 70 6.49 7.35 7.87 6.44 7.33
70 75 6.77 7.84 8.51 6.68 8.08
75 70 6.97 7.96 8.56 6.87 7.62
75 75 7.45 8.60 9.33 7.27 8.55
75 80 7.86 9.28 10.20 7.57 9.59
------------------------------------------------------------------------------------------------------------------------------------
Rates are based on mortality from 1983,
Table a. The rates assume the Annuitant is Female and
the Second Annuitant is Male.
Rates for ages not shown will be provided on request
and will be computed on a basis consistent
with the rates in the above tables.
40
Aetna Life Insurance and Annuity Company
Home Office: 000 Xxxxxxxxxx Xxxxxx
P.O. Box 30670
Hartford, Connecticut 06150-0670
(000) 000-0000
Group Variable, Fixed, or Combination Annuity Contract
Nonparticipating
ALL PAYMENTS AND VALUES PROVIDED BY THE GROUP CONTRACT, WHEN BASED ON INVESTMENT
EXPERIENCE OF A SEPARATE ACCOUNT, ARE VARIABLE AND ARE NOT GUARANTEED AS TO
FIXED DOLLAR AMOUNT. THIS CONTRACT CONTAINS A MARKET VALUE ADJUSTMENT FORMULA.
APPLICATION OF A MARKET VALUE ADJUSTMENT MAY RESULT IN EITHER AN INCREASE OR
DECREASE IN THE CURRENT VALUE. THE MARKET VALUE ADJUSTMENT FORMULA DOES NOT
APPLY TO A GUARANTEED TERM AT THE TIME OF ITS MATURITY.
41
