Sun Life Assurance Company of Canada (U.S.)
U.S.
Headquarters Office:
Sun
Life
Assurance Company of Canada (U.S.)Insured [Xxxx
Xxx]
Policy
Number [E00#00001]
This
Policy is a legal contract in which We, Sun Life Assurance Company
of
Canada (U.S.), a member of the Sun Life Financial group of companies,
promise to provide the kind of insurance described below. Upon death
of
the Insured, We agree to pay the Beneficiary such amounts as then
become
due and payable. Until that time, We agree to provide You, as Owner,
the
other rights and benefits of this Policy. These rights and benefits
are
subject to the provisions on the pages which follow.
|
Signed
at Wellesley Hills, Massachusetts, on the Issue Date.
[Missing
Graphic Reference]
[Xxxxxx
X. Xxxxxxxxx, President]
[Missing
Graphic Reference]
[Xxxxxxx
X. Xxxxx, Secretary]
|
As
described in Section 7, the amount of the Death Benefit or the duration of
the
Death Benefit may increase or decrease to reflect the investment experience
of
the Variable Account.
The
Account Value in each Sub-Account of the Variable Account may increase or
decrease in accordance with the investment experience of that Sub-Account of
the
Variable Account. There is no minimum guaranteed Account Value for amounts
in
the Sub-Accounts of the Variable Account.
The
Policy Proceeds are payable at the death of the Insured and while this Policy
is
in force.
This
Policy does not participate in dividends and will not share in any surplus
earnings of the Company.
Flexible
Premiums are payable for this Policy.
RIGHT
TO RETURN POLICY PERIOD. Please read Your Policy carefully. If You are not
satisfied with it, You may return it by delivering or mailing it to Us at One
Sun Life Executive Park, Attn: Corporate Markets, Wellesley Hills, Massachusetts
02481, or to the sales representative through whom You purchased this Policy
within 10 days from the date of receipt (the "Free Look Period"). This Policy
will then be deemed void as though it had never been applied for. You will
receive a refund equal to the sum of (1) the difference between any Premium
payments made, including fees and charges, and the amounts allocated to the
Variable Account, (2) the value of the amounts allocated to the Variable Account
on the date the cancellation request is received by the Company or the sales
representative through whom You purchased this Policy and (3) any fees or
charges imposed on amounts allocated to the Variable
Account.
VUL-SCOLI-07 Page
Small
Business COLI - Draft 5-81-07
TABLE
OF CONTENTS
SECTION
POLICY
SPECIFICATIONS 1
TABLE
OF
GUARANTEED MAXIMUM MONTHLY COST OF INSURANCE
RATES
PER
$1,000 OF NET AMOUNT AT RISK 2
DEFINITIONS 3
GENERAL
PROVISIONS 4
THE
VARIABLE ACCOUNT AND THE FIXED ACCOUNT 5
PREMIUMS 6
DEATH
BENEFIT 7
ACCOUNT
VALUE 8
POLICY
BENEFITS 9
RIDERS
AND ENDORSEMENTS
APPLICATION
VUL-SCOLI-07 Page
Small
Business COLI - Draft 5-81-07
1.
POLICY SPECIFICATIONS
Insured [Xxxx
Xxx]
Policy
Number [E00000001]
Issue
Age, Sex [35,
Male]
Class [Preferred
Non Tobacco - Medical Issue]
Specified
Face Amount [$100,000]
Supplemental
Insurance
Face
Amount
[$00,000]
Total
Face Amount [$100,000]
Minimum
Total Face Amount [$100,000]
Minimum
Specified Face Amount [$10,000]
Planned
Periodic Premium [$1,400]
Death
Benefit Compliance Test [Guideline
Premium]
Billing
Period [Annual]
Issue
Date [May
1,
2007]
Currency [United
States Dollars]
Owner [XYZ
Corporation]
Beneficiary As
stated
in the Application unless later changed
Death
Benefit Option [Option
A: Specified Face Amount]
Variable
Account Name [I]
Securities
& Exchange Commission Registration [Unit
Investment Trust]
THE
PLANNED PERIODIC PREMIUM SHOWN ABOVE MAY BE INSUFFICIENT TO CONTINUE COVERAGE
FOR THE LIFETIME OF THE INSURED. THE PERIOD FOR WHICH THIS POLICY WILL REMAIN
IN
FORCE DEPENDS ON THE AMOUNT AND TIMING OF PREMIUMS PAID, DEDUCTIONS FOR BENEFITS
AND RIDERS, CHANGES IN THE SPECIFIED FACE AMOUNT AND DEATH BENEFIT OPTION,
SUB-ACCOUNT PERFORMANCE, POLICY LOANS, PARTIAL SURRENDERS AND FEES.
VUL-SCOLI-07 Page
Small
Business COLI - Draft 5-81-07
1.
POLICY SPECIFICATIONS (CONTINUED)
Xxxx
Xxx VL0000001
Premium
Expense Load
Policy
Year [1]
On
Premium paid during the Policy Year up to and including Target
Premium [35]%
On
Premium paid during the Policy Year in excess of Target Premium [5]%
Policy
Years [2 - 10]
On
Premium paid during the Policy Year up to and including Target
Premium [12]%
On
Premium paid during the Policy Year in excess of Target Premium [5]%
Policy
Years [11] and after on all Premium [5%]
Target
Premium [$3,965]
Monthly
Expense Charge [$10.00]
Monthly
Face Amount Charge [$0.20]
during Policy Years [1-10]
[$0.00]
Policy Years [11] and after
Mortality
and Expense Risk Percentage [0.60]%
Daily
Risk Percentage [0.0016389%]
Policy
Loan Interest Rate (payable in arrears) [3.75]%
annually during Policy Years [1-10]
[3]%
annually in Policy Years [11] and after
Interest
Credited on Loan Account [3]%
annually
Fixed
Account
Guaranteed
Interest Crediting Rate 3%
(0.008099% daily)
Transfer
Percentage [25]%
Transfer
Period [4]
Policy Years
Transfer
Minimum [$5,000]
VUL-SCOLI-07 Page
Small
Business COLI - Draft 5-81-07
1.
POLICY SPECIFICATIONS (CONTINUED)
Supplemental
Benefit Rider(s):
[Charitable
Giving Benefit Rider
Charitable
Gift Amount [$10,000]
Charitable
Beneficiary [ABC
Charity]]
VUL-SCOLI-07 Page
Small
Business COLI - Draft 5-81-07
1.
POLICY SPECIFICATIONS (CONTINUED)
Applicable
Applicable
Age Percentage Age Percentage
[20
250% 60
130%
21
250% 61
128%
22
250% 62
126%
23
250% 63
124%
24
250% 64
122%
25
250% 65
120%
26
250% 66
119%
27
250% 67
118%
28
250% 68
117%
29
250% 69
116%
30
250% 70
115%
31
250% 71
113%
32
250% 72
111%
33
250% 73
109%
34
250% 74
107%
35
250% 75
105%
36
250% 76
105%
37
250% 77
105%
38
250% 78
105%
39
250% 79
105%
40
250% 80
105%
41
243% 81
105%
42
236% 82
105%
43
229% 83
105%
44
222% 84
105%
45
215% 85
105%
46
209% 86
105%
47
203% 87
105%
48
197% 88
105%
49
191% 89
105%
50
185% 90
105%
51
178% 91
104%
52
171% 92
103%
53
164% 93
102%
54
157% 94
101%
55
150% 95
and after
100%]
56
146%
57
142%
58
138%
59
134%
|
VUL-SCOLI-07 Page
Small
Business COLI - Draft 5-81-07
2.
TABLE OF GUARANTEED MAXIMUM MONTHLY COST OF INSURANCE
RATES
PER
$1,000 OF NET AMOUNT AT RISK FOR SPECIFIED FACE AMOUNT AND SUPPLEMENTAL
INSURANCE FACE AMOUNT
Monthly
Rates
|
Monthly
Rates
|
|||||||
Age
|
Males
|
Females
|
Unisex
|
Age
|
Males
|
Females
|
Unisex
|
|
[20
|
0.15836
|
0.08751
|
0.14502
|
60
|
1.34180
|
0.78979
|
1.22817
|
|
21
|
0.15919
|
0.08917
|
0.14585
|
61
|
1.46381
|
0.84488
|
1.33511
|
|
22
|
0.15752
|
0.09084
|
0.14419
|
62
|
1.60173
|
0.91417
|
1.45796
|
|
23
|
0.15502
|
0.09251
|
0.14252
|
63
|
1.75809
|
1.00267
|
1.59922
|
|
24
|
0.15169
|
0.09501
|
0.14085
|
64
|
1.93206
|
1.10539
|
1.75725
|
|
25
|
0.14752
|
0.09668
|
0.13752
|
65
|
2.12283
|
1.21731
|
1.92955
|
|
26
|
0.14419
|
0.09918
|
0.13585
|
66
|
2.32623
|
1.33511
|
2.11195
|
|
27
|
0.14252
|
0.10168
|
0.13418
|
67
|
2.54312
|
1.45461
|
2.30614
|
|
28
|
0.14169
|
0.10501
|
0.13418
|
68
|
2.77350
|
1.57247
|
2.50878
|
|
29
|
0.14252
|
0.10835
|
0.13585
|
69
|
3.02328
|
1.69955
|
2.72909
|
|
30
|
0.14419
|
0.11251
|
0.13752
|
70
|
3.30338
|
1.84590
|
2.97466
|
|
31
|
0.14836
|
0.11668
|
0.14169
|
71
|
3.62140
|
2.02325
|
3.25640
|
|
32
|
0.15252
|
0.12085
|
0.14585
|
72
|
3.98666
|
2.24419
|
3.58279
|
|
33
|
0.15919
|
0.12502
|
0.15252
|
73
|
4.40599
|
2.51548
|
3.95978
|
|
34
|
0.16669
|
0.13168
|
0.15919
|
74
|
4.87280
|
2.83552
|
4.38330
|
|
35
|
0.17586
|
0.13752
|
0.16836
|
75
|
5.37793
|
3.19685
|
4.84334
|
|
36
|
0.18670
|
0.14669
|
0.17837
|
76
|
5.91225
|
3.59370
|
5.33245
|
|
37
|
0.20004
|
0.15752
|
0.19170
|
77
|
6.46824
|
4.01942
|
5.84227
|
|
38
|
0.21505
|
0.17003
|
0.20588
|
78
|
7.04089
|
4.47410
|
6.36948
|
|
39
|
0.23255
|
0.18503
|
0.22338
|
79
|
7.64551
|
4.97042
|
6.92851
|
|
40
|
0.25173
|
0.20171
|
0.24173
|
80
|
8.30507
|
5.52957
|
7.54229
|
|
41
|
0.27424
|
0.22005
|
0.26340
|
81
|
9.03761
|
6.17118
|
8.22883
|
|
42
|
0.29675
|
0.23922
|
0.28508
|
82
|
9.86724
|
6.91414
|
9.01216
|
|
43
|
0.32260
|
0.25757
|
0.31010
|
83
|
10.80381
|
7.77075
|
9.90124
|
|
44
|
0.34929
|
0.27674
|
0.33428
|
84
|
11.82571
|
8.72632
|
10.87533
|
|
45
|
0.37931
|
0.29675
|
0.36263
|
85
|
12.91039
|
9.76952
|
11.92213
|
|
46
|
0.41017
|
0.31677
|
0.39182
|
86
|
14.03509
|
10.89151
|
13.01471
|
|
47
|
0.44353
|
0.33761
|
0.42268
|
87
|
15.18978
|
12.08770
|
14.15507
|
|
48
|
0.47856
|
0.36096
|
0.45437
|
88
|
16.36948
|
13.35774
|
15.33494
|
|
49
|
0.51777
|
0.38598
|
0.49107
|
89
|
17.57781
|
14.70820
|
16.56493
|
|
50
|
0.55948
|
0.41350
|
0.53028
|
90
|
18.82881
|
16.15259
|
17.85746
|
|
51
|
0.60870
|
0.44270
|
0.57533
|
91
|
20.14619
|
17.71416
|
19.23899
|
|
52
|
0.66377
|
0.47523
|
0.62539
|
92
|
21.57655
|
19.43814
|
20.76665
|
|
53
|
0.72636
|
0.51276
|
0.68297
|
93
|
23.20196
|
21.40786
|
22.49837
|
|
54
|
0.79730
|
0.55114
|
0.74722
|
94
|
25.28174
|
23.83051
|
24.70915
|
|
55
|
0.87326
|
0.59118
|
0.81566
|
95
|
28.27411
|
27.16158
|
27.82758
|
|
56
|
0.95591
|
0.63123
|
0.88996
|
96
|
33.10677
|
32.32378
|
32.78845
|
|
57
|
1.04192
|
0.66961
|
0.96593
|
97
|
41.68475
|
41.21204
|
41.45783
|
|
58
|
1.13378
|
0.70633
|
1.04609
|
98
|
58.01259
|
57.81394
|
57.95663
|
|
59
|
1.23235
|
0.74556
|
1.13211
|
99
|
83.33333
|
83.33333
|
83.33333]
|
BASIS
OF
VALUES:
Commissioners'
1980 Standard Ordinary Tables, Age Nearest Birthday, Male, Female and Unisex
Tables.
VUL-SCOLI-07 Page
Small
Business COLI - Draft 5-81-07
Account
Value:
The sum
of the amounts in each Sub-Account of the Variable Account, the Fixed Account
and the Loan Account.
Anniversary:
The
same day in each succeeding year as the day of the year corresponding to the
Issue Date.
Application:
Your
application for this Policy, a copy of which is attached hereto and incorporated
herein.
Attained
Age:
The
Insured’s Issue Age plus the number of completed Policy Years.
Base
Death Benefit:
The
death benefit under the Policy exclusive of the Supplemental Insurance Death
Benefit or any other supplemental benefits.
Beneficiary:
The
person or entity entitled to receive the Policy Proceeds as they become due
after the death of the Insured.
Business
Day:
Any day
that We are open for business.
Cash
Surrender Value:
The
Gross Cash Surrender Value decreased by the balance of any outstanding Policy
Debt.
Class:
The
risk, underwriting and substandard table rating, if any, classification of
the
Insured. See Section 1.
Company:
Sun
Life Assurance Company of Canada (U.S.).
Daily
Risk Percentage:
The
daily rate for deduction of the mortality and expense risk charge as specified
in Section 1.
Death
Benefit:
The sum
of the Base Death Benefit and the Supplemental Insurance Death
Benefit.
Due
Proof:
Such
evidence as We may reasonably require in order to establish that Policy Proceeds
are due and payable.
Effective
Date of Coverage:
Initially, the Investment Start Date; with respect to any increase in the Total
Face Amount, the Monthly Anniversary Day that falls on or next follows the
date
We approve the supplemental application for such increase; with respect to
any
decrease in the Total Face Amount, the Monthly Anniversary Day that falls on
or
next follows the date We receive Your request.
Enhancement
Benefit:
An
amount that may be payable upon Surrender of this Policy. See Section 9.
Fixed
Account:
The
portion of the Account Value funded by assets invested in the General
Account.
Fund:
A
mutual fund in which a Sub-Account invests.
General
Account:
The
assets held by Us other than those allocated to the Sub-Accounts of the Variable
Account or any other separate account of the Company.
Gross
Cash Surrender Value:
The
Account Value increased by the Enhancement Benefit, if any.
Insured:
The
person on whose life this Policy is issued.
Investment
Option:
Any of
the Sub-Accounts of the Variable Account and the Fixed Account.
Investment
Start Date:
The
date the first Premium is applied, which will be the later of the Issue Date,
the Business Day We approve the application for this Policy, or the Business
Day
We receive a Premium.
Issue
Age:
The
Insured's age as of the Insured's birthday nearest the Issue Date.
Issue
Date:
The
date specified as such in Section 1, from which Anniversaries, Policy Years
and
Policy Months are measured.
Loan
Account:
An
account established for this Policy, the value of which is the principal amount
of any outstanding loan against this Policy, plus credited interest
thereon.
Monthly
Anniversary Day:
The
same day in each succeeding month as the day of the month corresponding to
the
Issue Date.
Monthly
Cost of Insurance:
A
deduction made on a monthly basis for the insurance coverage provided by this
Policy. See Section 8.
Monthly
Expense Charge:
A per
Policy deduction, made on a monthly basis, for administration and other
expenses. See Section 1.
Monthly
Face Amount Charge:
A per
Specified Face Amount deduction, made on a monthly basis, for administration
and
other expenses. See Section 1.
Mortality
and Expense Risk Percentage:
The
annual percentage rate deducted from the Account Value in the Sub-Accounts
for
the mortality and expense risk charge. This annual rate is converted to a daily
rate, the Daily Risk Percentage, and deducted from the Variable Account on
a
daily basis. See Section 1.
Net
Premium:
The
Premium less the Premium Expense Load.
Our
Principal Office:
Sun
Life Assurance Company of Canada (U.S.) (Attn: Corporate Markets), One Sun
Life
Executive Park, Wellesley Hills, Massachusetts, 02481, or such other address
as
We may hereafter specify to You by written notice.
Owner:
The
person, persons or entity entitled to all rights and benefits under this Policy,
unless otherwise stated.
Partial
Surrender:
A
surrender of a portion of the Account Value in exchange for a payment to the
Owner in accordance with the terms of Section 9.
Policy:
This
life insurance contract, including the attached copy of the Application and
any
attached copies of supplemental applications for increases in the Total Face
Amount.
Policy
Debt:
The
principal amount of any outstanding loan against this Policy, plus accrued
but
unpaid interest on such loan.
Policy
Month: A
one-month period commencing on the Issue Date or any Monthly Anniversary Day
and
ending on the next Monthly Anniversary Day.
Policy
Proceeds:
The
amount determined in accordance with the terms of this Policy which is payable
at the death of the Insured. This amount is the Death Benefit as described
in
Section 7, decreased by the amount of any outstanding Policy Debt, and increased
by the amounts payable under any supplemental benefits.
Policy
Year:
A
one-year period commencing on the Issue Date or any Anniversary and ending
on
the next Anniversary.
Premium:
An
amount paid to Us by the Owner or on the Owner's behalf as consideration for
the
benefits provided by this Policy.
Premium
Expense Load:
The
percentage charge applied to Premium. See Section 1.
Specified
Face Amount:
The
amount of life insurance coverage under the base Policy and specified as such
in
Section 1.
Supplemental
Insurance Death Benefit:
The
death benefit associated with the Supplemental Insurance Face
Amount.
Supplemental
Insurance Face Amount:
The
amount of additional insurance coverage specified as such in Section 1.
Sub-Accounts:
Accounts into which the assets of the Variable Account are divided.
Target
Premium:
The
amount of Premium specified as such in Section 1. The Premium Expense Load
deduction varies depending on whether Premiums paid in a given Policy Year
are
below, equal to or above Target Premium.
Total
Face Amount:
The
Specified Face Amount plus the Supplemental Insurance Face Amount specified
as
such in Section 1.
Unit:
A unit
of measurement that We use to calculate the value of Your investment in each
Sub-Account.
Unit
Value:
The
value of each Unit of a Sub-Account, as determined by Us.
Valuation
Date:
A day
that the New York Stock Exchange (or its successor; or, if the securities in
which the assets of the Sub-Account are invested are not traded on the New
York
Stock Exchange, any principal exchange on which such securities are traded),
We
and, with respect to a Sub-Account, the relevant Fund are open for business.
At
a minimum, a Valuation Date will occur once each Policy Month. We will determine
Unit Values for each Valuation Date as of the close of the New York Stock
Exchange on that Valuation Date.
Valuation
Period:
The
period of time from one Valuation Date to the next subsequent Valuation Date.
Variable
Account:
A
separate account of the Company consisting of assets set aside by the Company,
the investment performance of which is kept separate from that of the general
assets of the Company as specified in Section 1.
We,
Our
and
Us:
Sun
Life Assurance Company of Canada (U.S.).
You
and
Your:
In this
Policy, You and Your refer to the Owner of this Policy. In the Application,
You
and Your refer to the proposed Insured.
Entire
Contract.
Your
entire contract with Us consists of this Policy, including the attached copy
of
the Application, any attached copies of supplemental applications for increases
in the Total Face Amount, any riders and any endorsements. Any illustrations
prepared in connection with this Policy do not form a part of Our contract
with
You and are intended solely to provide information about possible future
performance, based solely upon data available at the time such illustrations
are
prepared.
Alteration.
Sales
representatives do not have the authority to alter or modify this Policy or
to
waive any of its provisions. The only persons with this authority are Our
president, actuary, secretary or one of Our vice presidents.
Modification.
Upon
written notice to You, We may modify this Policy if such modification (1) is
necessary to make this Policy, the Variable Account or the Fixed Account comply
with any law or regulation issued by a governmental agency to which the Company,
the Variable Account or the Fixed Account is subject; or (2) is necessary to
assure continued qualification of this Policy under the Internal Revenue Code
or
other federal or state laws as a life insurance policy; or (3) is necessary
to
reflect a change in the operation of the Variable Account or the Sub-Accounts;
or (4) adds, deletes or otherwise changes Investment Options. We also reserve
the right to modify certain provisions of this Policy as stated in those
provisions. In the event of any such modification, We may make an appropriate
endorsement to this Policy to reflect such modification.
Assignments.
During
the lifetime of the Insured, You may assign all or some of Your rights under
this Policy. All assignments must be filed at Our Principal Office and must
be
in a form satisfactory to Us. The assignment will then be effective as of the
date You signed the form, subject to any action taken before it was recorded
by
Us at Our Principal Office. We are not responsible for the validity or legal
effect of any Assignment.
Nonparticipating.
This
Policy does not pay dividends and will not share in any surplus earnings of
the
Company.
Misstatement
of Age or Sex (Non-Unisex Policy).
If the
age or sex (in the case of a Non-Unisex Policy) of the Insured is stated
incorrectly in the Application, the amounts payable by Us will be adjusted
as
follows:
· |
Misstatement
discovered at death: The Death Benefit will be recalculated to that
which
would be purchased by the most recently charged Monthly Cost of Insurance
Rate for the correct age or sex (for a Non-Unisex
Policy).
|
· |
Misstatement
discovered prior to death: The Account Value will be recalculated from
the
Issue Date using the Monthly Cost of Insurance Rates based on the correct
age or sex (for a Non-Unisex Policy).
|
If
Your
Policy is Unisex, it is so indicated in Section 1.
Suicide.
If the
Insured, whether sane or insane, commits suicide within two years after the
Investment Start Date, We will not pay any part of the Policy Proceeds. We
will
refund You the greater of (a) or (b) where:
(a) |
is
the Cash Surrender Value; and
|
(b) |
is
the Premiums paid, less the amount of any Policy Debt and less any
Partial
Surrenders.
|
Incontestability.
All
statements made in the Application or in a supplemental application are
representations and not warranties. We relied and will rely on these statements
when approving the issuance, increase in Total Face Amount, increase in Death
Benefit over Premium paid, or change in Death Benefit Option of this Policy.
No
statement can be used by Us in defense of a claim unless the statement was
made
in the Application or in a supplemental application. In the absence of fraud,
after this Policy has been in force during the lifetime of the Insured for
a
period of two years from its Investment Start Date, We cannot contest it except
for non-payment of Premiums in accordance with the Insufficient Value provision
of Section 8. However, any increase in the Total Face Amount which is effective
after the Investment Start Date will be incontestable only after such increase
has been in force during the lifetime of the Insured for two years from the
Effective Date of Coverage of such increase. Any increase in Death Benefit
over
Premium paid or increase in Death Benefit due to a Death Benefit Option change
will be incontestable only after such increase has been in force during the
lifetime of the Insured for two years from the date of the
increase.
Report
to Owner.
We will
send You a report at least once each Policy Year. The report will show current
Policy values, Premiums paid, and deductions made since the last report. It
will
also show the balance of any Policy Debt. There is no charge for this
report.
Illustrations.
Upon
request, We will provide You with an illustration of future Account Value and
Death Benefits. This illustration will be furnished to You for no charge once
per year and subsequent requests in a year for a nominal fee not to exceed
$25.
Owner
and Beneficiary. The
Owner
is as stated in Section 1. The Owner has the sole and absolute power to exercise
all rights and privileges under this Policy without the consent of any other
person unless You provide otherwise by written notice. The
Beneficiary has no rights under this Policy until the death of the Insured.
A
Beneficiary is any person or entity, named in Our records as the proper
recipient of the Policy Proceeds. You may change a Beneficiary by sending notice
in a form satisfactory to Us. If there is no Beneficiary living when the Insured
dies, We will pay the Policy Proceeds to You. If You are also the Insured,
the
Policy Proceeds will be paid to Your estate. The Beneficiary designation in
effect on the Issue Date is stated in the Application
for this Policy.
The
assets of the Variable Account shall be kept separate from Our other assets.
We
have the right to transfer to the General Account any assets of the Variable
Account which are in excess of the reserves and other Policy liabilities of
the
Variable Account. Although the assets maintained in the Variable Account will
not be charged with any liabilities arising out of any other business conducted
by Us, all obligations arising under this Policy, including the promise to
make
all benefit payments, are Our general corporate obligations.
At
Our
election, and subject to any necessary vote by those having voting rights,
the
Variable Account may be operated as a unit investment trust or a management
company under the Investment Company Act of 1940. It may be registered under
the
Investment Company Act of 1940 or de-registered in the event registration is
no
longer required. In the event of any change in the operation of the Variable
Account pursuant to this provision, We may make an appropriate endorsement
to
this Policy to reflect the change and take such other action as may be necessary
and appropriate to effect the change.
Fixed
Account. The
Fixed
Account represents the portion of the Account Value funded by assets invested
in
the General Account. The guaranteed interest crediting rate is specified in
Section 1 of this Policy. Interest in excess of the guaranteed rate may be
applied to the amount in the Fixed Account at such increased rates and in such
manner as We may determine, based on Our expectations of future experience
with
respect to interest, mortality costs, persistency, profit, expenses, taxes,
as
well as size, timing and frequency of deposits. Interest credited will be
computed on a compound interest basis.
Sub-Accounts.
The
assets of the Variable Account are divided into Sub-Accounts. Each Sub-Account
invests exclusively in a Fund. Income, gains and losses, whether or not
realized, from the assets of each Sub-Account are credited or charged against
that Sub-Account without regard to income, gains or losses in other Sub-Accounts
of the Variable Account. All amounts allocated to the Variable Account will
be
used to purchase shares of one or more of the Funds, as You designate.
Deductions and surrenders from the Variable Account will, in effect, be made
by
redeeming the number of Fund shares at net asset value equal in total value
to
the amount to be deducted. The Variable Account will be fully invested in Fund
shares at all times.
The
Sub-Accounts available under this Policy are further described in supplementary
materials.
Addition,
Deletion or Substitution of Investments.
Shares
of any or all of the Funds may not always be available for purchase by the
Sub-Accounts of the Variable Account, or We may decide that further investment
in any such shares is no longer appropriate. In either event, shares of other
registered open-end investment companies or unit investment trusts may be
substituted both for Fund shares already purchased by the Variable Account
and/or as the security to be purchased in the future, provided that these
substitutions have been approved by the Securities and Exchange Commission.
In
addition, the investment policies of the Variable Account will not be changed
without the approval of the Insurance Commissioner of the State of Delaware.
We
also reserve the right to eliminate or combine existing Sub-Accounts or to
transfer assets between Sub-Accounts upon a Sub-Account elimination or
combination.
Transfers
Between Investment Options.
Subject
to Our rules as they may exist from time to time and to any limits that may
be
imposed by the Funds, You may transfer from one Sub-Account to another
Sub-Account, all or a portion of the Account Value allocated to a Sub-Account.
We will make transfers pursuant to an authorized request received at Our
Principal Office.
All
transfers are subject to Our consent. We reserve the right to impose limitations
on transfers, including, but not limited to: (1) the minimum amount that may
be
transferred; (2) the frequency of transfers; and (3) the minimum amount that
may
remain in a Sub-Account following a transfer from that Sub-Account.
In
any
Policy Year, transfers from the Fixed Account to another Sub-Account in the
Variable Account are limited to the greater of (a) or (b) where:
(a)
is
the Transfer Percentage, as specified in Section 1, multiplied by the greatest
amount in the Fixed Account during the Transfer Period; and
(b)
is
the Transfer Minimum as specified in Section 1.
We
reserve the right to restrict amounts transferred to the Fixed Account from
the
Sub-Accounts.
All
Premium payments are payable to Us and should be sent to Our Principal Office.
Planned
Periodic Premiums.
While
You are not required to make subsequent Premium payments according to a fixed
schedule, You may select a planned periodic Premium schedule and corresponding
billing period, subject to Our Premium limits. Except as otherwise provided
herein, the billing period must be annual, semi-annual, or quarterly. We will
send You reminder notices for the planned periodic Premium at each billing
period as specified in Section 1 unless reminder notices have been suspended
as
described below.
You
are
not required to pay the planned periodic Premium. You may increase or decrease
the planned periodic Premium subject to Our limits. You may skip a planned
payment or make unscheduled payments. Unscheduled payments are subject to Our
approval. You may change Your planned payment schedule or the billing period,
subject to Our approval. Depending on the investment performance of the
Investment Options You select, the planned periodic Premium may not be
sufficient to keep this Policy in force. You may need to make additional
payments in order to prevent termination of Your Policy. We will suspend
reminder notices at your request, and We reserve the right to suspend reminder
notices if Premiums are not being paid (except for notices in connection with
the grace period). We will notify You prior to suspending reminder
notices.
Premium.
We
reserve the right to limit the number of Premium payments We accept in any
Policy Year. No Premium payment may be less than $100 without Our consent,
although We will accept a smaller Premium payment if it is necessary to keep
this Policy in force. We reserve the right not to accept a Premium payment
that
causes the Death Benefit to increase by an amount that exceeds the Premium
received. Evidence of insurability satisfactory to Us may be required before
We
accept such a Premium. After the first Policy Year, we also reserve the right
not to accept unscheduled premiums in any Policy Year in excess of
$100,000.
Premium
Expense Load.
The
Premium Expense Load will not be greater than as specified in Section 1. The
Premium Expense Load will be determined by Us from time to time based on, among
other factors, Our expectations of future experience with respect to interest,
mortality experience, persistency, expenses, profit and taxes.
Allocation
of Net Premium.
Except
as otherwise provided herein, Net Premium will be allocated to the Investment
Options in accordance with the allocation percentages specified by You. While
there are no limitations concerning the number of Investment Options to which
Net Premium may be allocated, We and the Fund reserve the right to impose
minimum allocation amounts for any or all Investment Options.
You
may
change the allocation percentages at any time pursuant to a request submitted
to
Our Principal Office in a form acceptable to Us.
An
allocation change will be effective as of the date We receive the request for
that change provided that it is received on a Valuation Day before the close
of
the New York Stock Exchange. If a request is received on a day that is not
a
Valuation Day or after the close of the New York Stock Exchange on a Valuation
Day, it will become effective on the next Valuation Day.
Modified
Endowment Contract.
At the
time a Premium is received that would, in Our opinion, cause this Policy to
become a modified endowment contract based on Our reasonable interpretation
of
Section 7702A of the Internal Revenue Code, We will so notify You or Your sales
representative within one Business Day, and will not credit the Premium unless
We have received specific instructions to do so. Any such Premium received
will
be held, for a period of time no greater than 90 days, in a non-interest bearing
account. This Premium will be refunded at the end of the 90-day period if we
have not, at that time, received specific instruction from You or Your sales
representative concerning the Premium.
Death
Benefit Compliance Test.
The
Death Benefit compliance test, as specified by You in the Application, is either
the cash value accumulation test or the guideline premium test, as shown in
Section 1. The choice You make determines the Death Benefit Percentages as
shown
in Section 1. Once selected, this test may not be changed to another
test.
Death
Benefit and Death Benefit Option.
The
Death Benefit depends upon the Death Benefit Option in effect at the time of
the
Insured's death. The Death Benefit Option in effect on the Issue Date is
specified in Section 1. The three options are:
Option
B
- Specified Face Amount plus Gross Cash Surrender Value. The Base Death Benefit
is the greater of the Specified Face Amount plus Gross Cash Surrender Value,
or
the Gross Cash Surrender Value multiplied by the applicable Death Benefit
Percentage specified in Section 1.
Option
C
- Specified Face Amount plus cumulative Premiums paid. The Base Death Benefit
is
the greater of the Specified Face Amount plus the sum of all Premium payments
less any Partial Surrenders, or the Gross Cash Surrender Value multiplied by
the
applicable Death Benefit Percentage specified in Section 1.
The
Supplemental Insurance Death Benefit is the greater of zero or the result of
the
Supplemental Insurance Face Amount minus the excess, if any, of the Base Death
Benefit over:
· the
Specified Face Amount if Option A or
· the
Specified Face Amount plus the Gross Cash Surrender Value if Option B
or
· the
Specified Face Amount plus cumulative Premiums less any Partial Surrenders
if
Option C
The
Policy’s Death Benefit equals the sum of the Base Death Benefit and the
Supplemental Insurance Death Benefit.
On
any
Monthly Anniversary Day where the Death Benefit is defined as the Gross Cash
Surrender Value multiplied by the applicable Death Benefit Percentage, and
the
Death Benefit less the Gross Cash Surrender Value exceeds the greater of (1)
the
Total Face Amount and (2) the Death Benefit less the Gross Cash Surrender Value
on the prior Monthly Anniversary Day, We reserve the right to distribute Account
Value to You as a Partial Surrender to the extent necessary so that the Death
Benefit less the Gross Cash Surrender Value does not exceed the greater of
(1)
and (2) above.
The
Policy Proceeds will be paid as they become due upon the death of the Insured.
If the Insured dies while this Policy is in force, We will make a lump sum
payment when We receive Due Proof of that death.
Changes
in Specified Face Amount and Supplemental Insurance Face
Amount.
You may
change the Specified Face Amount or Supplemental Insurance Face Amount. You
must
send Your request for a change to Our Principal Office, in writing. If We
approve the changes, each such change will be effective on the Effective Date
of
Coverage for the change.
Decreases
in Specified Face Amount and Supplemental Insurance Face
Amount.
The
Specified Face Amount may not decrease to less than the Minimum Specified Face
Amount specified in Section 1. A decrease in Specified Face Amount or
Supplemental Insurance Face Amount may not decrease this Policy’s Total Face
Amount to an amount less than the Minimum Total Face Amount specified in Section
1. A decrease in Specified Face Amount or Supplemental Insurance Face Amount
will be applied in the following order:
·
|
first,
to the most recent increase, either Specified Face Amount or Supplemental
Insurance Face Amount, if any, whichever is most recent. If the increase
was processed to the Specified Face Amount and Supplemental Insurance
Face
Amount simultaneously, then to the Supplemental Insurance Face Amount
first;
|
·
|
second,
to the next most recent increases, either Specified Face Amount or
Supplemental Insurance Face Amount, if any, in reverse chronological
order. If the increase was processed to the Specified Face Amount
and
Supplemental Insurance Face Amount simultaneously, then to the
Supplemental Insurance Face Amount
first;
|
· third,
to
the initial Supplemental Insurance Face Amount; and
· finally,
to the initial Specified Face Amount.
Increases
in Specified Face Amount and Supplemental Insurance Amount.
An
increase in the Specified Face Amount or Supplemental Insurance Face Amount
is
subject to Our underwriting rules in effect at the time of the increase. You
may
be required to submit evidence of the Insured’s insurability satisfactory to Us.
Changes
in the Death Benefit Option.
Changes
in the Death Benefit Option are subject to Our underwriting rules in effect
at
the time of the change. Requests for a change in the Death Benefit Option must
be made in writing to Our Principal Office. The effective date of the change
will be the Anniversary on or next following the date We approve Your
request.
Account
Value.
We
measure the amounts in the Sub-Accounts in terms of Units and Unit Values.
On
any given date, the amount You have in a Sub-Account is equal to the Unit Value
multiplied by the number of Units credited to You in that Sub-Account. Amounts
allocated to a Sub-Account will be used to purchase Units of that Sub-Account.
Units are redeemed when You make Partial Surrenders, undertake Policy loans
or
transfer amounts from a Sub-Account, and for payment of the mortality and
expense risk charge, the Monthly Expense Charge, the Monthly Face Amount Charge,
and the Monthly Cost of Insurance charge. The number of Units of each
Sub-Account purchased or redeemed is determined by dividing the dollar amount
of
the transaction by the Unit Value for the Sub-Account. The Unit Value for each
Sub-Account is established by Us for the first Valuation Date. The Unit Value
for any subsequent Valuation Date is equal to the Unit Value for the preceding
Valuation Date multiplied by the Net Investment Factor (determined as provided
below). The Unit Value of a Sub-Account for any Valuation Date is determined
as
of the close of the Valuation Period ending on that Valuation Date.
Transactions
are processed on the date We receive a Premium at Our Principal Office or any
acceptable request is received at Our Principal Office. If Your Premium or
request is received on a date that is not a Valuation Date, or after the close
of the New York Stock Exchange on a Valuation Date, the transaction will be
processed on the next subsequent Valuation Date.
The
Account Value for Investment Options on the Investment Start Date
equals:
·
|
that
portion of Net Premium received and allocated to Investment Options,
less
|
·
|
the
Monthly Expense Charges due on the Issue Date and subsequent Monthly
Anniversary Days through the Investment Start Date,
less
|
·
|
the
Monthly Face Amount Charges due on the Issue Date and subsequent
Monthly
Anniversary Days through the Investment Start Date,
less
|
·
|
the
Monthly Cost of Insurance deductions due from the Issue Date through
the
Investment Start Date.
|
The
Account Value for Investment Options on subsequent Valuation Dates is equal
to:
·
|
the
Account Value attributable to each Sub-Account on the preceding Valuation
Date multiplied by that Sub-Account’s Net Investment Factor, less the
Daily Risk Percentage multiplied by the number of days in the Valuation
Period multiplied by the Account Value in the Sub-Account,
plus
|
·
|
the
value of the Fixed Account on the preceding Valuation Date, accrued
at
interest, plus
|
·
|
that
portion of Net Premium received and allocated to each Investment
Option
during the current Valuation Period,
plus
|
·
|
that
portion of any loan repayment allocated to any Investment Option
during
the current Valuation Period, less
|
· |
that
portion of any Partial Surrender deducted from each Investment Option
during the current Valuation Period, less
|
·
|
that
portion of any Policy loan transferred from each Investment Option
to the
Loan Account during the current Valuation Period,
less
|
·
|
if
a Monthly Anniversary Day occurs during the current Valuation Period,
that
portion of the Monthly Expense Charge due for the Policy Month just
beginning charged to each Investment Option,
less
|
·
|
if
a Monthly Anniversary Day occurs during the current Valuation Period,
that
portion of the Monthly Face Amount Charge due for the Policy Month
just
beginning charged to each Investment Option,
less
|
· if
a
Monthly Anniversary Day occurs during the current Valuation Period, that portion
of the Monthly Cost of Insurance to each Investment Option.
Net
Investment Factor.
The Net
Investment Factor for each Sub-Account for any Valuation Period is determined
by
dividing (1) by (2) where:
(1)
is
the net result of:
(I)
the
net asset value of a Fund share held in the Sub-Account determined as of the
end
of the Valuation Period, plus
(II)
the
amount of any dividend or other distribution declared on amounts held in the
Sub-Account if the "ex-dividend" date occurs during the Valuation Period, which
for some assets will not be credited with investment experience until the
dividend is paid, plus or minus
(III)
a
credit or charge with respect to any taxes reserved for by Us, or paid by Us
if
not previously reserved for, during the Valuation Period which are determined
by
Us to be attributable to the operation of the Sub-Account; and
(2)
is
the net asset value of a Fund share held in the Sub-Account determined as of
the
end of the preceding Valuation Period.
Loan
Account. The
Loan
Account is an account established for this Policy, the value of which is the
principal amount of any outstanding Policy loan against this Policy, plus
credited interest thereon.
The
Account Value in the Loan Account is zero on the Investment Start Date.
The
Account Value in the Loan Account on subsequent Valuation Dates
equals:
·
|
the
Account Value in the Loan Account on the preceding day credited with
interest at the Interest Credited on Loan Account rate specified
in
Section 1, plus
|
·
|
any
amount transferred from any Investment Option to the Loan Account
for
Policy loans requested on that day,
less
|
· any
loan
repayments made on that day.
Daily
Risk Percentage, Monthly Expense Charge and Monthly Face Amount Charge.
These
deductions will be determined by Us from time to time based on, among other
factors, Our expectations of future experience with respect to interest,
mortality experience, persistency, expenses, profit and taxes. However, these
deductions will not be greater than that specified in Section 1.
Monthly
Cost of Insurance.
We
deduct a Monthly Cost of Insurance charge from Your Account Value to cover
anticipated costs of providing insurance coverage. This charge is made on the
Monthly Anniversary Day. If You Surrender this Policy on any day other than
a
Monthly Anniversary Day, a pro-rata charge will be made.
The
Monthly Cost of Insurance equals the sum of (1), (2), (3), and (4) where:
(1)
is
the Specified Face Amount Monthly Cost of Insurance Rate (described below)
multiplied by the net amount at risk divided by 1,000. The net amount at risk
equals the Base Death Benefit less the Account Value;
(2)
is
the Supplemental Insurance Face Amount Monthly Cost of Insurance Rate (described
below) multiplied by the net amount at risk divided by 1,000. The net amount
at
risk equals the Supplemental Insurance;
(3)
is
the monthly rider cost for any riders which are a part of this Policy (with
the
monthly rider cost as described in the rider itself); and
(4)
is
any Flat Extra specified in Section 1 of this Policy, times the Total Face
Amount divided by 1000.
The
Account Value deduction occurs first to the initial Total Face Amount and second
to successive increases.
The
cost
of insurance deductions described above are determined separately for the
initial Specified Face Amount and the Supplemental Insurance Face Amount and
each increase in Specified Face Amount or Supplemental Insurance Face
Amount.
Monthly
Cost of Insurance Rates.
The
Monthly Cost of Insurance Rates are based on the length of time this Policy
has
been in force, the Insured’s Sex (in the case of Non-Unisex Policies), Issue Age
and Class. The Monthly Cost of Insurance Rates will be determined by Us from
time to time based on, among other factors, Our expectations of future
experience with respect to interest, mortality experience, persistency,
expenses, profit and taxes. However, the Monthly Cost of Insurance Rates for
the
Specified Face Amount and Supplemental Insurance Face Amount will not be greater
than those shown in Section 2.
Basis
of Computation.
Guaranteed Maximum Monthly Cost of Insurance Rates are based on the Guaranteed
Mortality Table specified in Section 1. We have filed a detailed statement
of
Our methods for computing Account Value with the insurance department in the
jurisdiction where this Policy is delivered.
Directed
Deductions.
You may
allocate the Mortality and Expense Risk Charge, the Monthly Expense Charge,
Monthly Face Amount Charges or the Monthly Cost of Insurance deductions among
Investment Options. The deductions will be allocated among the selected
Investment Options in the same proportion that the Account Value attributable
to
each of those Investment Options bears to the aggregate value of the Account
Value in all Investment Options selected. If You do not specify the allocation,
or to the extent the aggregate value of the Account Value in all Investment
Options selected is less than the deduction, deductions will be allocated among
Investment Options in the same proportion that the Account Value attributable
to
each Investment Option bears to the total Account Value less the Loan Account
immediately prior to the deduction.
Insufficient
Value.
If, on
a Valuation Date, the Account Value less the outstanding Policy Debt is less
than or equal to zero, then this Policy will terminate for no value, subject
to
the Grace Period provision.
Grace
Period.
If, on
a Valuation Date, this Policy will terminate by reason of insufficient value,
We
will allow a grace period. This grace period will allow 61 days from that
Valuation Date for the payment of a Premium sufficient to cover the deductions
from the Account Value. Notice of Premium due will be mailed to Your last known
address or the last known address of any assignee of record. We will assume
that
Your last known address is the address shown on the Application (or notice
of
assignment), unless We receive notice of a change in address in a form
satisfactory to Us. If the Premium due is not paid within 61 days after the
beginning of the Grace Period, then this Policy will terminate without value
at
the end of the 61 day period. This Policy will continue to remain in force
during the Grace Period. If the Policy Proceeds become payable by Us during
the
Grace Period, they will be reduced by any overdue deductions.
Splitting
Units.
We
reserve the right to split or combine the value of Units. In effecting any
such
change, strict equity will be preserved and no change will have a material
effect on the benefits or other provisions of this Policy.
If
the
Insured is alive on the Monthly Anniversary Day on which the Attained Age of
the
Insured is 100 and if this Policy is in force on that date, then this Policy
will continue in force until the death of the Insured regardless of the amount
of Account Value. The Death Benefit after that date will continue to be based
on
the Death Benefit and Death Benefit Option provision in Section 8. As of that
date, no more Premiums will be accepted and the Monthly Cost of Insurance,
Monthly Expense Charge and Monthly Face Amount Charge will cease. Any Policy
Debt will continue and interest on Policy loans will continue to be charged.
The
Account Value will remain invested in the Investment Options chosen at that
time.
You
should note that this Policy may not qualify as life insurance after the
Insured's Attained Age 100, which may result in adverse tax consequences.
Consult your tax advisor prior to continuing this Policy beyond Insured's
Attained Age 100.
Benefits
at Death.
The
Policy Proceeds will be paid in one lump sum payment as they become due upon
the
death of the Insured while this Policy is in force.
Payment
of Claims. When
this
Policy becomes a claim by death of the Insured, settlement will be made upon
receipt of Due Proof of death.
Surrender.
You may
Surrender this Policy for the Cash Surrender Value at any time.
Enhancement
Benefit.
If You
Surrender this Policy, we may pay an Enhancement Benefit. The Enhancement
Benefit, if any, represents a return of a portion of the charges You paid under
this Policy including the Premium
Expense Load, Monthly Cost of Insurance, Monthly Expense Charge, and Monthly
Face Amount Charge.
No
Enhancement Benefit will paid upon a Surrender made as part of an exchange
under
Internal Revenue Code §1035.
Partial
Surrender.
You may
make a Partial Surrender of this Policy once each Policy Year after the first
Policy Year by request to Our Principal Office, in a form satisfactory to Us.
The maximum amount of any Partial Surrender is the Account Value decreased
by
the balance of any outstanding Policy Debt. Unless You provide evidence
satisfactory to Us that the Insured is still insurable, the Total Face Amount
will be reduced to the extent necessary so that (1) does not exceed (2)
where
(1)
is
the Death Benefit increased by the amounts payable under supplemental benefits
less the Account Value immediately after the Partial Surrender; and
(2)
is
the Death Benefit increased by the amounts payable under supplemental benefits
less the Account Value immediately before the Partial Surrender.
If
You
provide such evidence, You will have the option of keeping the Death Benefit
equal to what it was immediately prior to the Partial Surrender. The Specified
Face Amount remaining in force after the Partial Surrender must be no lower
than
the Minimum Specified Face Amount shown in Section 1. A Partial Surrender may
not decrease this Policy’s Total Face Amount shown in Section 1 to an amount
less than the Minimum Total Face Amount shown in Section 1.
Allocation
of Partial Surrender.
You may
allocate the Partial Surrender among the Investment Options. However, We reserve
the right to restrict Partial Surrenders from the Fixed Account. If You do
not
specify the allocation, then the Partial Surrender will be allocated among
Investment Options in the same proportion that the Account Value attributable
to
each Investment Option bears to the total Account Value less the Loan Account
immediately prior to the Partial Surrender.
Policy
Loan.
You may
request a Policy loan of up to the following:
This
Policy’s Account Value, decreased by the sum of (a) and (b) where
(a) |
is
the amount of any outstanding Policy Debt on the date the Policy loan
is
made; and
|
(b) |
is
the sum of the projected monthly deductions, described in Section 8,
to
the next Anniversary.
|
Account
Value equal to the Policy loan will be transferred from the Investment Options
to the Loan Account on the date the Policy loan is made. You may allocate the
Policy loan among the Investment Options; however, We reserve the right to
restrict loans from the Fixed Account. If You do not specify the allocation,
then the Policy loan shall be allocated among the Investment Options in the
same
proportion that the Account Value attributable to each Investment Option bears
to the total Account Value less the Loan Account immediately prior to the Policy
Loan.
Interest
on the Policy loan will accrue daily at the Policy Loan Interest Rate specified
in Section 1. This interest shall be due and payable to Us in arrears on each
Anniversary. Any unpaid interest will be added to the principal amount as an
additional Policy loan and will bear interest at the same rate and in the same
manner as the prior Policy loan.
All
amounts paid by You that We receive will be credited to Your Policy as Premium
unless We have received notice, in form satisfactory to Us, that the amounts
paid are for loan repayment. Loan repayments will first reduce the outstanding
balance of the Policy loan and then accrued but unpaid interest on such loans.
We will accept repayment of any Policy loan at any time while this Policy is
in
force. The amount of the loan repayment up to the outstanding balance of the
Policy loan will be transferred from the Loan Account to the Investment Options.
You may allocate the loan repayment among the Investment Options. If You do
not
specify the allocation, then the loan repayment shall be allocated among the
Investment Options in the same proportion that the Account Value of each
Investment Option bears to the total Account Value less the Loan Account
immediately prior to the loan repayment. We may require that loan repayments,
up
to the amount of the loan allocated to the Fixed Account, first be allocated
back to the Fixed Account.
Deferral
of Payment.
We will
usually pay any amount due from the Variable Account within seven days after
the
Valuation Date following Our receipt of notice, in a form acceptable to Us,
giving rise to such payment or, in the case of death of the Insured, of Due
Proof of such death. Payment of any amount payable from the Variable Account
on
death, Surrender, Partial Surrender or Policy loan may be postponed
whenever:
·
|
the
New York Stock Exchange ("NYSE") is closed other than customary weekend
and holiday closing, or trading on the NYSE is otherwise restricted,
|
·
|
the
Securities and Exchange Commission or other regulatory agency with
jurisdiction, by order, permits postponement for the protection of
Policy
Owners, or
|
·
|
an
emergency exists as determined by the Securities and Exchange Commission,
as a result of which disposal of securities is not reasonably practicable,
or it is not reasonably practicable to determine the value of the
assets
of the Variable Account.
|
We
reserve the right to defer payment of any portion of the Cash Surrender Value,
Policy loan or Partial Surrender payable from the Fixed Account for a period
not
exceeding six months from the date We receive Your request.
Termination.
This
Policy terminates on the earlier of the date We receive Your request to
Surrender, the expiration date of the Grace Period due to insufficient value
or
the date of death of the Insured.
VUL-SCOLI-07 Page
Small
Business COLI - Draft 5-81-07
SUN
LIFE ASSURANCE COMPANY OF CANADA (U.S.)
U.S Headquarters Office:
One
Sun
Life Executive Park
Wellesley
Hills, MA 02481
Head
Office:
Wilmington,
Delaware
Nonparticipating