Aetna Life Insurance and Annuity Company
Endorsement
This Contract is endorsed as follows.
Add the following to Section I General Definitions:
Dollar Cost Averaging - A program that permits the Certificate Holder
to systematically transfer amounts from any of the Funds and the
one-year AG Account Guaranteed Term to any of the Funds by completing
the appropriate section of the enrollment form or a Dollar Cost
Averaging election form.
Delete Section 1.21, Market Value Adjustment, and replace it with the following.
1.21 Market Value Adjustment - An adjustment that may apply to an
amount withdrawn or transferred from an AG Account Guaranteed
Term prior to the end of that Guaranteed Term. The adjustment
reflects the change in the value of the investment due to
changes in interest rates since the date of deposit and is
computed using the formula given in 3.06. The adjustment is
expressed as a percentage of each dollar withdrawn or
transferred.
Delete the first two paragraphs of Section 3.06, Market Value Adjustment, and
replace it with the following:
3.06 Market Value Adjustment - Except as noted below, there will be
an MVA for a withdrawal from the AG Account before the end of
a Guaranteed Term when the withdrawal is due to:
(a) A Transfer; except for Transfers from the one-year AG
Account Guaranteed Term under the Dollar Cost
Averaging program or, as specified in AG Account
Matured Term Value Transfer;
(b) A full or partial surrender (including a 10% free
withdrawal under 3.16), except for a partial
withdrawal under the Systematic Withdrawal Option
(see 3.11); or
(c) An election of Annuity option 2 (see 4.09).
Full and partial surrenders and Transfers made within six
months after the date of the Annuitant's death will be the
greater of:
(a) The aggregate MVA amount which is the sum of all
market value adjusted amounts calculated due to a
withdrawal of amounts. This total may be greater or
less than the Current Value of those amounts; or
(b) The applicable portion of the Current Value in the AG
Account.
MPIREND(4/95)
Delete Section 3.07, Transfer of Current Value from the Funds or AG Account, and
replace it with the following:
3.07 Transfer of Current Value from the Funds or AG Account -
Before an Annuity option is elected, all or any portion of the
Adjusted Current Value of the Certificate Holder's Account may
be transferred from any Fund or Guaranteed Term of the AG
Account:
(a) To any other Fund; or
(b) To a 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. Aetna may establish a minimum transfer amount.
Within a Guaranteed Term Group, the amount to be surrendered
to transferred will be 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 by Aetna is shown on Contract Schedule I.
Additional Transfers may be subject to a Transfer fee as shown
on Contract Schedule I.
Amounts transferred from the AG Account under the Dollar Cost
Averaging program, or amounts transferred as a Matured Term
Value on or within one calendar month of the 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) a Matured Term Value(s)
during the calendar month following the Term's Maturity Date
and (2) amounts transferred from the one-year AG Account
Guaranteed Term under the Dollar Cost Averaging program.
Delete the first paragraph in Subsection 3.11(a), Estate Conservation Option
(ECO), and replace it with the following:
(a) Estate Conservation Option (ECO) - A distribution option under
which a portion of the Account's Current Value will be
surrendered automatically and distributed each year. ECO
payments will be calculated based on the Account's full
Current Value. The distributed amount will be withdrawn pro
rata from each investment option used under the Account. A
Surrender Fee will not be deducted from any portion of the
Current Value which is paid as a distribution under ECO.
Certificate Holders should consult their tax advisor prior to
requesting this distribution option. Aetna will not be
responsible for any adverse tax consequences due to receiving
ECO payments.
Delete the first paragraph in Subsection 3.11(b), Systematic Withdrawal Option
(SWO), and replace it with the following:
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(b) Systematic Withdrawal Option (SWO) - A distribution option
under which a portion of the Account's Current Value will be
surrendered automatically and distributed each year. SWO
payments will be calculated based on the Account's full
Current Value. The distributed amount will be withdrawn pro
rata from each investment option used under the Account. A
Surrender Fee will not be deducted from any portion of the
Current Value which is paid as a distribution under SWO.
Certificate Holders should consult their tax advisor prior to
requesting this distribution option. Aetna will not be
responsible for any adverse tax consequences due to receiving
SWO payments.
Delete Section 3.12, Death Benefit Amount, and replace it with the following:
3.12 Death Benefit Amount - If the Certificate Holder or Annuitant
dies before Annuity payments start, the Beneficiary is
entitled to a death benefit under the Account. The claim date
is the date when proof of death and the Beneficiary's claim
are received in good order at Aetna's Home Office. The amount
of the death benefit is determined as follows:
(a) Death of Certificate Holder/Annuitant less than 75
years of age: The guaranteed death benefit is the
greatest of:
(1) The sum of all Net Purchase Payment(s) made
to the Account (as of the date of death)
minus the sum of all amounts surrendered,
applied to an Annuity, or deducted from the
Account;
(2) The highest step-up value as of the date of
death. A step-up value is determined on each
anniversary of the Effective Date. Each
step-up value is calculated as the Account's
Current Value on the Effective Date
anniversary, increased by the amount of any
Purchase Payment(s) made, and decreased by
the sum of all amounts surrendered,
deducted, and/or applied to an Annuity
option since the Effective Date anniversary.
(3) The Account's Current Value as of the date
of death.
The excess, if any, of the guaranteed death benefit
value over the Account's Current Value is determined
as of the date of death. Any excess amount will be
deposited in the Account and allocated to the Aetna
Variable Encore Fund as of the claim date. The
Current Value on the claim date, plus any excess
amount deposited, becomes the Account's Current
Value.
(b) Death of Certificate Holder/Annuitant age 75 or
greater: The death benefit amount is the greatest of:
(1) The sum of all Net Purchase Payment(s) made
to the Account (as of the date of death)
minus the sum of all amounts surrendered,
applied to an Annuity, or deducted from the
Account;
(2) The highest step-up value prior to the
Certificate Holder's 75th birthday. A
step-up value is determined on each
anniversary of the Effective Date.
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Each step-up value is calculated as the
Account's Current Value on the Effective
Date anniversary, increased by the amount
of any Purchase Payment(s) made, and
decreased by the sum of all amounts
surrendered, deducted, and/or applied to an
Annuity option since the Effective Date
anniversary.
(3) The Account's Current Value as of the date
of death.
The excess, if any, of the guaranteed death benefit
value over the Account's Current Value is determined
as of the date of death. Any excess amount will be
deposited in the Account and allocated to the Aetna
Variable Encore Fund as of the claim date. The
Current Value on the claim date, plus any excess
amount deposited, becomes the Account's Current
Value.
(c) At the death of a surviving spouse Xxxxxxxxxxx who
continued the Account in his or her own name, the
death benefit amount is equal to the Account's
Current Value less any applicable Surrender Fee on
the amount of any Purchase Payment(s) made since the
death of the Certificate Holder.
Delete Section 3.15, Liquidation of Surrender Value, and replace it with the
following:
3.15 Liquidation of Surrender Value - All or any portion of the
Account's Current Value may be surrendered at any time.
Surrender requests can be submitted as a percentage of the
Account's Current Value or as a specific dollar amount. Net
Purchase Payment amounts are withdrawn first, and then the
excess value, if any. For any partial surrender, amounts are
withdrawn on a pro rata basis from the Fund(s) and/or the
Guaranteed Term(s) Groups of the AG Account in which the
Current Value is invested. Within a Guaranteed Term Group, the
amount to be surrendered or transferred will be withdrawn
first from the oldest Deposit Period, then from the next
oldest, and so on until the amount requested is satisfied.
After deduction the Maintenance Fee, if applicable, the
surrendered amount shall be reduced by a Surrender Fee, if
applicable. An MVA may apply to amounts surrendered from the
AG Account.
Endorsed and made part of this Contract on the Effective Date of the Contract.
/s/ Xxx Xxxxxxx
President
Aetna Life Insurance and Annuity Company
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