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EXHIBIT 4.9
XXX CUSTODIAL CONTRACT, FORM P-12867
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CONTRACT NUMBER VXX,XXX
CONTRACTHOLDER ABC Company
DATE OF ISSUE January 1, 1992
CONTRACT DATE January 1, 1992
FIRST CONTRACT ANNIVERSARY January 1, 1993
American United Life Insurance Company (AUL) shall provide all the rights and
benefits of this contract.
This contract is issued in consideration of the application and of the payment
of Contributions to AUL.
All provisions and conditions stated on this and subsequent pages are made a
part of this contract.
Signed for AUL at its Home Office in Indianapolis, Indiana.
NOTICE OF TEN DAY RIGHT TO EXAMINE CONTRACT
Please read this contract carefully. The Contractholder may return the contract
for any reason within ten days after receiving it. If returned, the contract
shall be considered void from the beginning, and any Contributions shall be
refunded.
AMERICAN UNITED LIFE INSURANCE COMPANY
By /s/ Xxxxx X. Xxxxxx
Chairman, President, and Chief Executive Officer
Attest /s/ Xxxxxxx X. Xxxxx
Secretary
AUL American Series Contract
XXX Multiple-Fund Group Variable Annuity
THE ASSETS HELD IN ANY INVESTMENT ACCOUNT FOR WHICH THIS CONTRACT MAKES
PROVISION MAY INCREASE OR DECREASE IN DOLLAR VALUE ACCORDING TO THE INVESTMENT
PERFORMANCE OF THE CORRESPONDING PORTFOLIO OF THE MUTUAL FUND IN WHICH THE
INVESTMENT ACCOUNT INVESTS. THE VALUE OF SUCH ASSETS IS NOT GUARANTEED. ARTICLE
5 OF THIS CONTRACT EXPLAINS THE VALUATION OF SUCH ASSETS.
If you have questions concerning your AUL contract, or wish to register a
complaint, please call 1-800- 000-0000.
P-12867TX
1
CONTRACT NUMBER VXX,XXX
CONTRACTHOLDER ABC Company
DATE OF ISSUE January 1, 1992
CONTRACT DATE January 1, 1992
FIRST CONTRACT ANNIVERSARY January 1, 1993
American United Life Insurance Company (AUL) shall provide all the rights and
benefits of this contract.
This contract is issued in consideration of the application and of the payment
of Contributions to AUL.
All provisions and conditions stated on this and subsequent pages are made a
part of this contract.
Signed for AUL at its Home Office in Indianapolis, Indiana.
NOTICE OF TEN DAY RIGHT TO EXAMINE CONTRACT
Please read this contract carefully. The Contractholder may return the contract
for any reason within ten days after receiving it. If returned, the contract
shall be considered void from the beginning, and any Contributions shall be
refunded.
AMERICAN UNITED LIFE INSURANCE COMPANY
By /s/ Xxxxx X. Xxxxxx
Chairman, President, and Chief Executive Officer
Attest /s/ Xxxxxxx X. Xxxxx
Secretary
AUL American Series Contract
XXX Multiple-Fund Group Variable Annuity
THE ASSETS HELD IN ANY INVESTMENT ACCOUNT FOR WHICH THIS CONTRACT MAKES
PROVISION MAY INCREASE OR DECREASE IN DOLLAR VALUE ACCORDING TO THE INVESTMENT
PERFORMANCE OF THE CORRESPONDING PORTFOLIO OF THE MUTUAL FUND IN WHICH THE
INVESTMENT ACCOUNT INVESTS. THE VALUE OF SUCH ASSETS IS NOT GUARANTEED. ARTICLE
5 OF THIS CONTRACT EXPLAINS THE VALUATION OF SUCH ASSETS.
P-12867
2
TABLE OF CONTENTS
ARTICLE 1 DEFINITIONS
ARTICLE 2 CONTRACT AND AUTHORITY
2.1--------Entire Contract
2.2--------Authority
ARTICLE 3 CONTRIBUTIONS, INVESTMENTS, AND TRANSFERS
3.1--------Amount of Contributions
3.2--------How Contributions Are Handled
3.3--------Addition, Deletion, or Substitution of Investments
3.4--------Transfers
3.5--------Limitations on Transfers
ARTICLE 4 BENEFITS
4.1--------Election of Annuity Options
4.2--------Annuity Options
4.3--------Guaranteed Rate of Interest
4.4--------Alternate Nonparticipating Retirement Annuity
4.5--------Minimum Payments
4.6--------Due Proof of Date of Birth and Survival
4.7--------Death Benefits
4.8--------Withdrawal Benefits
ARTICLE 5 VALUATIONS
5.1--------Time of Valuation
5.2--------Accumulation Units
5.3--------Value of Accumulation Units
5.4--------Determining the Net Investment Factor
5.5--------Determining the Value of Each Participant Account's Share
of any Investment Account
ARTICLE 6 OTHER CHARGES
6.1--------Mortality Risk and Expense Risk Charges
6.2--------Investment Management Charge
6.3--------Administrative Charge
6.4--------Transfer Charge
6.5--------Other Charges
6.6--------Reduction or Waiver of Certain Charges
ARTICLE 7 RIGHT OF AUL TO CHANGE CERTAIN PROVISIONS
7.1--------Right of AUL to Change Interest Rates
7.2------- Right of AUL to Change Annuity Table
7.3--------Right of AUL to Change Charges
7.4--------Amendment of Contract to Conform with Law
3
ARTICLE 8 MISCELLANEOUS
8.1--------Ownership
8.2--------AUL's Annual Statement
8.3--------Tax Status
8.4--------Essential Data
8.5--------Reliance
8.6--------Misstatement of Essential Data
8.7--------Annuity Certificates
8.8--------Election, Notice, or Direction Requirements
8.9--------Quarterly Statement of Account Value
8.10-------Conformity with State Laws
8.11-------Reference to Federal Laws
8.12-------Sex and Number
8.13-------Facility of Payment
8.14-------Insulation from Liability
8.15-------Voting
8.16-------Acceptance of New Participants or Contributions
8.17-------Nonforfeitability and Nontransferability
8.18-------Termination
8.19-------Notice of Annual Meeting of Members
TABLE OF IMMEDIATE ANNUITIES
P-12867.1
4
ARTICLE 1 - DEFINITIONS
1.1 "Account Value" for any Participant Account on any given date means:
(a) the balance of the Participant Account's share of the Fixed
Interest Account on that date; plus
(b) the value of the Participant Account's share of each Investment
Account on that date.
1.2 "Accumulation Period" means the period of time commencing on the date
on which a Participant's initial Contribution is credited to the Participant
Account and terminating on the date when such Participant Account is closed.
1.3 "Accumulation Unit" means a statistical device used to measure amounts
of increases to, decreases from, and accumulations in any Investment Account
during the Accumulation Period.
1.4 "Annuity Commencement Date" means the first day of any month upon which
an annuity begins under this contract. However, for any Participant, amounts
allocated to the Participant Account will be distributed or commence to be
distributed no later than the first day of April following the calendar year in
which such Participant attains age 70 1/2.
1.5 "Code" means the Internal Revenue Code of l986, as amended.
1.6 "Contract Anniversary" means the first day of each Contract Year. Each
Contract Anniversary after the First Contract Anniversary shall be the same day
of the same month as the day and month which is stated on the face page of this
contract for the First Contract Anniversary.
1.7 "Contract Quarter" means each of the four successive intervals of three
months, the sum of which corresponds to a 12-month Contract Year.
1.8 "Contract Year" means, for the first such year, the period beginning
with the Contract Date and ending on the day immediately preceding the First
Contract Anniversary, and for each succeeding Contract Year, the period
beginning with a Contract Anniversary and ending on the day immediately
preceding the next succeeding Contract Anniversary.
1.9 "Contributions" means amounts paid in cash to AUL from time to time by,
or on behalf of, Participants, which are credited to Participant Accounts
hereunder. The legal title to, and ownership of, such amounts is vested solely
in the Participant. The contract is established for the exclusive benefit of the
Participant or his beneficiaries.
1.10 "Current Rates of Interest" means each of the annual effective rates
of interest as determined and declared by AUL from time to time and as credited
to each interest pocket maintained within the Fixed Interest Account. The
Current Rates of Interest shall always be equal to or greater than the
Guaranteed Rate of Interest.
1.11 "Excess Contributions" means those Contributions made by, or on behalf
of, a Participant which exceed the limitations in effect under applicable
provisions of the Code and Regulations issued thereunder.
5
1.12 "Fixed Interest Account" means that fund of AUL's general asset
account in which all or a portion of a Participant's Account Value may be held
for accumulation at the Current Rates of Interest.
(a) Contributions allocated, or amounts transferred, to the Fixed
Interest Account shall be credited to the open interest pocket
and shall earn interest at the Current Rate of Interest in effect
for that interest pocket. Such Contributions or transferred
amounts, during the time that the Current Rate of Interest
exceeds the Guaranteed Rate of Interest, shall earn interest at
such credited Current Rate of Interest for at least 1 year. After
such 1-year period, AUL reserves the right to declare, at any
time, a new Current Rate of Interest to be applied to funds held
within that interest pocket. Any such new Current Rate of
Interest must remain in effect for that interest pocket for at
least 1 year.
(b) If AUL changes the Current Rate of Interest for new Contributions
or new amounts transferred to the Fixed Interest Account, the
previous open interest pocket shall close, and any Contributions
or amounts transferred on or after the effective date of such
change shall be credited to a new open interest pocket and shall
earn interest at the new Current Rate of Interest in effect for
such new open interest pocket. Therefore, at any given time,
various funds credited to a Participant Account and allocated to
the Fixed Interest Account may be earning interest at different
Current Rates of Interest for different periods of time.
1.13 "Guaranteed Rate of Interest" means interest at an annual effective
rate of 4.00%.
1.14 "Home Office" means the principal office of AUL. The mailing address
is P. O. Xxx 0000, Xxxxxxxxxxxx, Xxxxxxx 00000-0000.
1.15 "Investment Account" means each subaccount of the Variable Account,
which subaccounts currently include the Equity Investment Account, the Bond
Investment Account, the Money Market Investment Account, and the Managed
Investment Account, as the case may be, where:
(a) Amounts allocated to the Equity Investment Account shall be
invested in shares of the AUL American Equity Portfolio of the
Mutual Fund.
(b) Amounts allocated to the Bond Investment Account shall be
invested in shares of the AUL American Bond Portfolio of the
Mutual Fund.
(c) Amounts allocated to the Money Market Investment Account shall be
invested in shares of the AUL American Money Market Portfolio of
the Mutual Fund.
(d) Amounts allocated to the Managed Investment Account shall be
invested in shares of the AUL American Managed Portfolio of the
Mutual Fund.
1.16 "Investment Option" means the Fixed Interest Account or any of the
Investment Accounts of the Variable Account. AUL reserves the right to provide
other Investment Options under this contract at any time.
1.17 "Mutual Fund" means the AUL American Series Fund, Inc., a diversified,
open-end management investment company registered under The Investment Company
Act of l940.
1.18 "Participant" means any person enrolled in this contract who elects to
make Contributions or for
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whom Contributions are made, and for whom a Participant Account is established.
1.19 "Participant Account" means an account established under this contract
for a Participant. Contributions received by AUL shall be credited to
Participant Accounts as AUL is directed in writing.
1.20 "Portfolio" means a series of the Mutual Fund as described in the
prospectus for the Mutual Fund as such prospectus may be amended or supplemented
from time to time.
1.21 "Valuation Date" means any day when the Home Office of AUL and the New
York Stock Exchange are open and operational.
1.22 "Valuation Period" means the period beginning at the close of business
on a Valuation Date and ending at the close of business on the next succeeding
Valuation Date.
1.23 "Variable Account" means a separate account established by AUL called
the AUL American Unit Trust, which is registered under The Investment Company
Act of l940 as a unit investment trust.
1.24 "Withdrawal Charge" means a charge taken by AUL equal to a percentage
of the Account Value withdrawn pursuant to Section 4.8, where the percentage
varies by the number of full years measured from the date a Participant Account
is established to the date the Withdrawal Charge is determined. Such percentage
is as follows:
During
Account Years Percentage
1-5 8
6-10 4
Thereafter 0
In no event will the cumulative total of all Withdrawal Charges, including those
previously assessed against any amount withdrawn from a Participant Account,
exceed 9% of total Contributions allocated to that Participant Account.
1.25 "Withdrawal Value" means a Participant's Account Value minus the
applicable Withdrawal Charge.
P-12867.2
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ARTICLE 2 - CONTRACT AND AUTHORITY
2.1 Entire Contract: This contract is for the exclusive benefit of the
Participants and their beneficiaries. This contract and the application of the
Contractholder is the entire agreement between AUL and the Contractholder.
Unless there is a specific written agreement signed by a corporate officer of
AUL, AUL is not a party to, nor bound by, a plan, trust, custodial agreement, or
other agreement, or any amendment or modification to any of the same. AUL is not
a fiduciary under this contract or under any such plan, trust, custodial
agreement, or other agreement.
2.2 Authority: This contract cannot be modified or amended, nor can any
provision or condition be waived, except by a written agreement signed by a
corporate officer of AUL. Such authority may not be delegated to any other
person or entity, except by a written agreement signed by a corporate officer of
AUL.
P-12867.3
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ARTICLE 2 - CONTRACT AND AUTHORITY
2.1 Entire Contract. This contract is for the exclusive benefit of the
Participants and their beneficiaries. This contract and the application of the
Contractholder is the entire agreement between AUL and the Contractholder.
Unless there is a specific written agreement signed by a corporate officer of
AUL, AUL is not a party to a plan, trust, custodial agreement, or other
agreement, or any amendment or modification to any of the same. AUL is not a
fiduciary under this contract or under any such plan, trust, custodial
agreement, or other agreement.
2.2 Authority: This contract cannot be modified or amended, nor can any
provision or condition be waived, except by a written agreement signed by a
corporate officer of AUL. Such authority may not be delegated to any other
person or entity, except by a written agreement signed by a corporate officer of
AUL.
P-12867.6 (MO)
9
ARTICLE 3 - CONTRIBUTIONS, INVESTMENTS, AND TRANSFERS
3.1 Amount of Contributions:
(a) Contributions may vary in amount and frequency; however, they must be
at least equal to a minimum annual Contribution of $300 per
Participant in any full Contract Year. AUL may change such minimum
annual Contribution acceptable under this contract, but any such
change shall apply only to individuals who become Participants on or
after the date of the change. This contract will not terminate solely
because a Contribution is not made for any Contract Year.
(b) Except for amounts eligible for rollover treatment under Code Sections
402(a)(5), 402(a)(6), 402(a)(7), 403(a)(4), 403(b)(8), or 408(d)(3),
Contributions during a Participant's taxable year (which is presumed
to be a calendar year) must be made in cash and may not exceed the
amounts described below (as adjusted by Code Section 408(a)):
(1) the lesser of $2,000 or 100% of compensation includible in the
Participant's gross income for such taxable year; or (2) the
lesser of $2,250 or 100% of compensation includible in the
Participant's gross income for such taxable year if a
Contribution is made on behalf of the Participant's non-employed
spouse (no more than $2,000 may be allocated to either the
Participant or his spouse); or (3) the lesser of $30,000 (or, if
greater, 25% of the dollar limitation in effect under Code
Section 415(b)(1)(A)) or 15% of compensation in the case of a
simplified employee pension (SEP, as described in Code Section
408(k)) Contribution.
(c) Excess Contributions (plus gains or minus losses thereon) shall be
withdrawn from a Participant Account and returned to the Participant
upon receipt by AUL at its Home Office of complete written
instructions from the Participant. Such written instructions must
include the amount to be withdrawn and returned, and certification
that such Contributions constitute Excess Contributions and that such
returns are permitted by applicable provisions of the Code and
Regulations issued thereunder. It shall not be the responsibility of
AUL to determine the existence or amount of Excess Contributions or
gains or losses thereon, or that returns of Excess Contributions are
permitted by applicable provisions of the Code and Regulations. In
withdrawing and returning the identified amount, AUL may rely solely
on such written instructions and certification. Such a withdrawal and
return of Excess Contributions shall not be subject to Section 4.8.
(d) Other refunds of Contributions shall be applied before the close of
the calendar year following the year of such refund toward the payment
of future Contributions or the purchase of additional benefits.
3.2 How Contributions Are Handled:
(a) When a Contribution is received at the Home Office, it shall be
credited to Participant Accounts as directed in written allocation
instructions.
(b) The initial Contribution for a Participant shall be credited and
allocated to the Participant Account no later than the close of
business on the second business day of AUL after the later of (1) the
business day that AUL receives the initial Contribution at its Home
Office, or (2) the business day that AUL receives, at its Home Office,
the data required
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to establish the Participant Account and allocation instructions
regarding the initial Contribution. If the data required to establish
the Participant Account and allocation instructions regarding the
initial Contribution are not received by AUL at its Home Office within
5 business days after AUL first receives the initial Contribution, AUL
shall return the initial Contribution to the contributing party unless
consent is given to AUL to retain the initial Contribution until AUL
receives the data and allocation instructions for the Participant.
Alternatively, if the data required to establish the Participant
Account and allocation instructions regarding the initial Contribution
are not received by AUL at its Home Office when AUL first receives the
initial Contribution, to the extent permitted by applicable law, AUL
may allocate the initial Contribution to the Money Market Investment
Account, and shall transfer such amounts credited to the Money Market
Investment Account according to the applicable allocation instructions
upon receipt of the data required to establish the Participant Account
and allocation instructions.
(c) All Contributions subsequent to the initial Contribution shall be
credited and allocated as of the close of business on the Valuation
Period in which AUL receives the Contribution at its Home Office,
provided that the Contribution is received by 4:00 p.m. E.S.T. If the
Contribution is received after 4:00 p.m. E.S.T., such Contribution
shall be deemed to be received, and shall be credited and allocated as
of the close of business, on the next succeeding Valuation Period.
(d) Within any one Participant Account, the amount so credited shall be
allocated to an Investment Option in increments of 10%, 25%, or
33-1/3%, as elected by the Participant in writing. If no allocation
instruction is made with respect to any Participant Account, AUL shall
process such credits in accordance with the allocation instruction
applicable to the immediately preceding Contribution. If there should
be no allocation instruction applicable to a portion of a Contribution
other than the initial Contribution, that amount shall be credited to
the Fixed Interest Account until such time as an appropriate
allocation instruction is received, at which time such amount shall be
withdrawn from the Fixed Interest Account and allocated pursuant to
such instructions. The Participant may change an allocation
instruction with respect to future allocations to his Participant
Account by giving new written allocation instructions to AUL at its
Home Office.
3.3 Addition, Deletion, or Substitution of Investments:
(a) AUL reserves the right, subject to compliance with applicable law, to
make additions to, deletions from, substitution for, or combinations
of, the securities that are held by the Variable Account or any
Investment Account or that the Variable Account or any Investment
Account may purchase. AUL reserves the right to eliminate the shares
of any of the eligible Portfolios and to substitute shares of, or
interests in, another Portfolio of the Mutual Fund, of another
open-end, registered investment company, or other investment vehicle,
for shares already purchased or to be purchased in the future under
the contract, if the shares of any or all eligible Portfolios are no
longer available for investment, or if, in AUL's judgment, further
investment in any or all eligible Portfolios becomes inappropriate in
view of the purposes of the Variable Account or the contract. Where
required under applicable law, AUL will not substitute any shares in
the Variable Account or any Investment Account without notice,
Participant approval, or prior approval of the Securities and Exchange
Commission or a state insurance commissioner, and without following
the filing or other procedures established by applicable state
insurance regulators. Nothing contained herein shall prevent the
Variable Account from purchasing other securities for other series or
classes of contracts, or from effecting a conversion
11
between series or classes of contracts on the basis of requests made
by a majority of participants or as permitted by federal law.
(b) AUL reserves the right to establish additional Investment Accounts,
each of which would invest in a new Portfolio of the Mutual Fund, or
in other securities, investment vehicles, or shares of another
diversified open-end management investment company or series thereof.
AUL reserves the right to eliminate or combine existing Investment
Accounts if, in its sole discretion, marketing, tax, or investment
conditions so warrant. AUL also reserves the right to provide other
Investment Options under this contract at any time. Subject to any
required regulatory approvals, AUL reserves the right to transfer
assets from any Investment Account to another separate account of AUL
or Investment Account.
(c) In the event of any such substitution or change, AUL may, by
appropriate amendment, make such changes in this contract as may be
necessary or appropriate to reflect such substitution or change. If
deemed by AUL to be in the best interests of persons or entities
having voting rights under this contract, the Variable Account may be
operated as a management investment company under The Investment
Company Act of 1940 or any other form permitted by law, it may be
deregistered in the event such registration is no longer required
under The Investment Company Act of 1940, or it may be combined with
other separate accounts of AUL or an affiliate thereof. AUL may take
such action as is necessary to comply with, or to obtain, exemptions
from the Securities and Exchange Commission with regard to the
Variable Account. Subject to compliance with applicable law, AUL also
may combine one or more Investment Accounts and may establish a
committee, board, or other group to manage one or more aspects of the
operation of the Variable Account.
3.4 Transfers:
(a) Subject to the limitations of Section 3.5, the Participant may direct
AUL at its Home Office to transfer the amounts credited to an
Investment Option to any other Investment Option during the
Accumulation Period. For any transfer from an Investment Account,
Accumulation Units shall be valued as of the close of business on the
Valuation Date that AUL receives the Participant's direction, provided
that AUL receives such direction by 4:00 p.m. E.S.T. on that Valuation
Date. If such direction is received after 4:00 p.m. E.S.T., such
transfer shall be effective as of the close of business on the next
succeeding Valuation Date.
(b) AUL shall make the transfer as requested by the Participant within 7
days from the date a proper request is received by AUL at its Home
Office, except as AUL may be permitted to defer such payment of
amounts withdrawn from the Variable Account in accordance with
appropriate provisions of the federal securities laws. AUL reserves
the right to defer a transfer of amounts from the Fixed Interest
Account for a period of 6 months after AUL receives the transfer
request at its Home Office.
(c) All transfers from the Fixed Interest Account to any Investment
Account shall be made on a first-in/first-out accounting basis.
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3.5 Limitations on Transfers:
(a) The Participant may not direct a transfer with regard to his
Participant Account's share of any Investment Option in an amount less
than $500 or the Participant Account's entire share, if less than
$500. If such a transfer reduces the Participant Account's remaining
share of an Investment Option to less than $500, the entire remaining
share shall also be transferred.
(b) Amounts transferred from the Fixed Interest Account on behalf of a
Participant during any Contract Year shall not exceed 20% of the
Participant Account's share of the Fixed Interest Account determined
as of the last Contract Anniversary preceding the request for
transfer, or the Participant Account's entire share of the Fixed
Interest Account if such share would be less than $500 after the
transfer. (c) Amounts under this contract which have been transferred
from other group annuity contracts, whether issued by AUL or
otherwise, shall be allocated pursuant to the provisions of Section
3.2.
(d) AUL reserves the right to change the limitation on the minimum
transfer, to change the limit on remaining balances, to limit the
number and frequency of transfers, to suspend the transfer privilege
provided in Sections 3.4 and 3.5, and to impose a charge on a
transfer.
P-12867.7
13
3.5 Limitations on Transfers:
(a) The Participant may not direct a transfer with regard to his
Participant Account's share of any Investment Option in an amount less
than $500 or the Participant Account's entire share, if less than
$500. If such a transfer reduces the Participant Account's remaining
share of an Investment Option to less than $500, the entire remaining
share shall also be transferred.
(b) Amounts transferred from the Fixed Interest Account on behalf of a
Participant during any Contract Year shall not exceed 20% of the
Participant Account's share of the Fixed Interest Account determined
as of the last Contract Anniversary preceding the request for
transfer, or the Participant Account's entire share of the Fixed
Interest Account if such share would be less than $500 after the
transfer.
(c) Amounts under this contract which have been transferred from other
group annuity contracts, whether issued by AUL or otherwise, shall be
allocated pursuant to the provisions of Section 3.2.
(d) AUL reserves the right to change the limitation on the minimum
transfer, to change the limit on remaining balances, to limit the
number and frequency of transfers, to suspend the transfer privilege
provided in Sections 3.4 and 3.5, and to impose a charge of not more
than $25 on a transfer. AUL reserves the right to change the maximum
limit on such transfer charge upon delivery of written notice to the
Contractholder. Any such change in the maximum limit shall apply only
to transfers by an individual who becomes a Participant on or after
the effective date of such change, and shall apply as long as that
individual remains a Participant.
P-12867.10 (PA)
14
ARTICLE 4 - BENEFITS
4.1 Election of Annuity Options: At the written request of the Participant,
AUL shall apply all or a portion of the Account Value (subject to Section 6.5)
of the Participant Account for the purpose of providing a fixed payment annuity.
Upon receipt of such request, AUL is hereby authorized by such Participant to
value and transfer the Participant Account's share of the Variable Account to
the Fixed Interest Account as of the date that AUL receives such written request
at its Home Office. Such transferred amounts shall be held in the Fixed Interest
Account until the Participant's Annuity Commencement Date. The Participant
request shall include certification as to the purpose for the annuity and the
election of one of the following annuity options. The amount of the annuity
shall be computed from the Table of Immediate Annuities then included in this
contract, except as provided under Section 4.4.
4.2 Annuity Options:
(a) Life Annuity. The monthly annuity shall be payable to the annuitant
for as long as the annuitant lives, and shall end with the last
monthly payment before the death of the annuitant.
(b) Certain and Life Annuity. The monthly annuity shall be payable to the
annuitant for as long as the annuitant lives. If the annuitant dies
before receiving payments for the certain period (5, 10, 15, or 20
years, as specified in the election), any remaining payments for the
balance of the certain period shall be paid to the annuitant's
beneficiary.
(c) Survivorship Annuity. The monthly annuity shall be payable to the
annuitant for as long as the annuitant lives. After the death of the
annuitant, a portion (all, 2/3, or 1/2, as specified in the election)
of the annuitant's monthly annuity shall be paid to the contingent
annuitant named in the election for as long as the contingent
annuitant lives. An election of this option is automatically cancelled
if either the Participant or the contingent annuitant dies before the
Annuity Commencement Date.
(d) Unit Refund Life Annuity. The monthly annuity shall be payable to the
annuitant for as long as the annuitant lives, and shall end with the
last monthly payment before the death of the annuitant. If, at the
death of the annuitant, the sum of the monthly payments previously
received is less than the amount applied to provide the annuity,
monthly payments of the same amount shall continue to the annuitant's
beneficiary until the total of the monthly payments received equals
such amount.
(e) Fixed Period. The monthly annuity shall be payable to the annuitant
for a fixed period of time (not less than 5 years nor more than 30
years, as specified in the election). If, at the death of the
annuitant, payments have been made for less than the selected fixed
period, monthly annuity payments to the annuitant's beneficiary shall
be continued during the remainder of such fixed period.
(f) Any other options made available by AUL at the time a Participant
exercises his option to elect an annuity.
If the annuity option selected is not included in the attached Table of
Immediate Annuities, the amount of monthly annuity shall be based on rates
determined in the same manner as those found in the Table.
15
If no annuity option election for a Participant has been received by AUL at its
Home Office at least 30 days prior to the Annuity Commencement Date, the Account
Value (subject to Section 6.5) of his Participant Account shall be applied under
(b) above as a 10 Year Certain and Life Annuity. AUL must receive written
notification of such Annuity Commencement Date, written designation of the
contingent annuitant or beneficiary, and any election forms needed in connection
with any annuity option provided in this Section.
Distributions shall be made in accordance with the requirement of Code Section
401(a)(9) and the Regulations issued thereunder. Under these requirements, in no
event shall any option elected provide annuity benefits to the Participant or to
the Participant and the contingent annuitant which would extend for a certain
period beyond the life expectancy of such Participant or the joint life
expectancy of such Participant and such contingent annuitant as determined on
the Annuity Commencement Date. Life expectancy for purposes of Code Section
401(a)(9) and the Regulations issued thereunder shall be computed using the
expected return multiples in Tables V and VI of Section 1.72-9 of the Income Tax
Regulations. Any periodic payments made under Section 401(a)(9) shall be made at
intervals of no longer than one year. In addition, any such periodic payments
must be either nonincreasing or they may increase only as provided in Q&A F-3 of
section 1.401(a)(9)-1 of the Proposed Income Tax Regulations.
4.3 Guaranteed Rate of Interest: The retirement annuity options provided in
this Article and illustrated in the attached Table of Immediate Annuities are
based on a guaranteed interest rate of 4.00% compounded annually.
4.4 Alternate Nonparticipating Retirement Annuity: Any annuity elected
shall be provided at whatever current single premium nonparticipating immediate
annuity rates are available under this class of group annuity contract if such
rates produce a higher income than that provided under the Table of Immediate
Annuities provided in this contract.
4.5 Minimum Payments: If the total Account Value is less than $2,000, such
value shall be paid in a lump sum to the annuitant rather than annuitized under
the annuity options provided in Section 4.2. Additionally, if the monthly
annuity is less than AUL's then current established minimum, AUL reserves the
right to make payments on a less frequent basis.
4.6 Due Proof of Date of Birth and Survival: Before commencing payments
under any annuity, AUL may require proof of the date of birth of any annuitant
and may require due proof that any annuitant is living before the payment of
each or any installment under the option.
4.7 Death Benefits:
(a) Upon receipt of written instructions from the Participant's
beneficiary (or, if applicable, the secondary beneficiary of the
Participant) and of due proof of the Participant's (and, if
applicable, the beneficiary's) death during the Accumulation Period at
its Home Office, AUL shall apply the Account Value of the Participant
Account for the purpose of providing a death benefit. The death
benefit shall be paid to the beneficiary last properly designated in
writing to AUL at its Home Office by the Participant, or, if there is
no designated beneficiary living on the date of the Participant's
death, to the Participant's estate. If any beneficiary dies while
receiving payments and no beneficiary is designated to receive any
remaining payments, such remaining payments shall be made to the
deceased beneficiary's estate.
16
(b) The Account Value to be applied pursuant to (a) above shall be
determined as of the close of business on the later of (1) the
Valuation Date that AUL receives such written instructions at its Home
Office, or (2) the Valuation Date that AUL receives such due proof of
death at its Home Office, provided that such written instructions or
due proof of death received on the later of (1) or (2) above are(is)
received by 4:00 p.m. E.S.T. If the written instructions or due proof
of death received on the later of (1) or (2) above are(is) received
after 4:00 p.m. E.S.T., such valuation shall be made as of the close
of business on the next succeeding Valuation Date.
(c) (1) The benefit shall be payable in accordance with one of the
following provisions as elected by the Participant or the
beneficiary if the Participant did not make an election:
(i) The entire Account Value to be applied shall be paid to the
beneficiary in a single sum or by another elected method on
or before December 31 of the calendar year which contains
the fifth anniversary of the date of the Participant's
death; or
(ii) The benefit shall be paid as an annuity in accordance with
the Annuity Options shown in Section 4.2 over a period not
to exceed the life or life expectancy of the beneficiary. If
the beneficiary is not the Participant's surviving spouse,
the annuity must begin on or before December 31 of the
calendar year immediately following the calendar year in
which the Participant died. If the beneficiary is the
Participant's surviving spouse, such spouse may elect to
receive equal or substantially equal payments over the life
or life expectancy of such spouse commencing at any date
prior to the later of (1) December 31 of the calendar year
immediately following the calendar year in which the
Participant died, or (2) December 31 of the calendar year in
which the Participant would have attained age 70 1/2. Such
spousal election must be made no later than the earlier of
December 31 of the calendar year containing the fifth
anniversary of the Participant's death or the date
distributions are required to begin pursuant to the
preceding sentence. The surviving spouse may accelerate
these payments at any time by increasing the frequency or
amount of such payments.
If the beneficiary is the Participant's surviving spouse,
such spouse may treat the Participant Account as his or her
own individual retirement arrangement (XXX). This election
will be deemed to have been made if such surviving spouse
makes a regular XXX Contribution under this contract, makes
a rollover to or from this contract, or fails to elect any
of the above three provisions.
(iii) Distributions under this section are considered to have
begun if distributions are made on account of the individual
reaching his or her required beginning date or if prior to
the required beginning date distributions irrevocably
commence to an individual over a period permitted and in an
annuity form acceptable under section 1.401(a)(9) of the
Regulations.
17
(2) If a Participant dies on or after his Annuity Commencement Date,
any interest remaining under the Annuity Option selected shall be
paid at least as rapidly as prior to the Participant's death.
(3) If payment is to be made in a cash lump sum, payment shall be
made within 7 days of the date of valuation, as determined above
in this Section, except as AUL may be permitted to defer such
payment of amounts derived from the Variable Account in
accordance with the provisions of federal securities laws. Also,
AUL reserves the right to defer the payment of amounts withdrawn
from the Fixed Interest Account for a period of 6 months after
AUL receives written instructions at its Home Office.
4.8 Withdrawal Benefits:
(a) Except as stated below, a Participant, upon submitting a proper
written request to AUL at its Home Office, may direct AUL to withdraw
all or a portion of the Account Value (subject to the Withdrawal
Charge) of his Participant Account.
(b) Withdrawals from a Participant Account's share of an Investment Option
may not be made in an amount less than the smaller of $500 or the
Participant Account's entire share of the Investment Option. If a
withdrawal reduces the Participant Account's share of an Investment
Option to less than $500, such remaining share shall also be
withdrawn.
(c) A withdrawal request shall be effective as of the close of business on
the Valuation Date that AUL receives a proper written withdrawal
request at its Home Office, provided that AUL receives such request by
4:00 p.m. E.S.T. on that Valuation Date. If such request is received
after 4:00 p.m. E.S.T., such request shall be effective as of the
close of business on the next succeeding Valuation Date.
(d) The Account Value to be applied pursuant to this Section shall be
determined as of the applicable Valuation Date determined in (c)
above. If the entire Account Value of a Participant Account is
withdrawn, the Participant shall be paid the Withdrawal Value. If the
Participant requests that a specified percentage or dollar amount be
paid to the Participant, AUL shall withdraw from the Participant
Account an amount equal to the dollar amount to be paid divided by the
difference between 1 and the decimal equivalent of the applicable
Withdrawal Charge. Notwithstanding the previous sentence, in any
Contract Year the Participant may withdraw up to 10% of the Account
Value of his Participant Account determined as of the last Contract
Anniversary preceding the request for the withdrawal without
application of any Withdrawal Charge, provided that 12 months have
elapsed from the date that the Participant's first Contribution is
credited to his Participant Account by AUL to the date of such
withdrawal.
(e) AUL shall pay such amount in a cash lump sum to the Participant. Such
cash lump sum will be paid within 7 days from the date that AUL
receives the withdrawal request at its Home Office, except as AUL may
be permitted to defer such payment of amounts withdrawn from the
Variable Account in accordance with appropriate provisions of the
federal securities laws. AUL reserves the right to defer the payment
of amounts with drawn from the Fixed Interest Account for a period of
up to 6 months after AUL receives the withdrawal request at its Home
Office.
18
(f) Withdrawals from a Participant Account's share of the Fixed Interest
Account shall be made on a first-in/first-out basis so that all or a
portion of the amounts credited to the Participant Account's share of
the Fixed Interest Account which have been on deposit for the longest
period of time, as well as the interest credited thereon, shall be
withdrawn first.
P-12867.11
19
ARTICLE 5 - VALUATIONS
5.1 Time of Valuation: All assets of each Portfolio shall be valued as
provided in the prospectus for the Mutual Fund as such prospectus may be amended
or supplemented from time to time.
5.2 Accumulation Units: Any amounts that are allocated to any Investment
Account on behalf of a Participant shall be credited to his Participant Account
in the form of Accumulation Units on the basis of the value of such units in
that Investment Account as of the end of the Valuation Period on which such
amounts are received by AUL at its Home Office. Such crediting shall be made
separately for amounts allocated to each Investment Account. The number of
Accumulation Units in each Investment Account credited to each Participant
Account as of any Valuation Period shall be determined by dividing the amounts
allocated to that Investment Account for that Participant Account as of such
Valuation Period by the dollar value of one Accumulation Unit in that Investment
Account as of the close of business on the applicable Valuation Period. The
number of Accumulation Units thus determined shall not be changed by any
subsequent change in the dollar value of the Accumulation Units.
5.3 Value of Accumulation Units: The value of an Accumulation Unit in each
Investment Account was established at $1.00 as of April 12, 1990. The value of
an Accumulation Unit in each Investment Account as of any Valuation Period
thereafter is equal to the dollar value of one Accumulation Unit in that
Investment Account as of the immediately preceding Valuation Period multiplied
by the Net Investment Factor, as defined in Section 5.4, for that Investment
Account for the current Valuation Period. The value of an Accumulation Unit for
each Investment Account shall be determined for each Valuation Period before
giving effect to any additions, withdrawals, or transfers. After such
determination, the additions, withdrawals, or transfers which are effective as
of that day shall then be made.
5.4 Determining the Net Investment Factor: The Net Investment Factor for
each Investment Account for any Valuation Period is determined by dividing (a)
by (b), and then subtracting (c) from that result, where:
(a) is equal to:
(l) the net asset value of a Portfolio share held in the Investment
Account determined as of the end of the current Valuation Period,
plus
(2) the per share amount of any dividend or other distribution, if
any, paid by the Portfolio during the current Valuation Period,
plus or minus
(3) any credit or charge for any taxes paid or reserved for by AUL
during the current Valuation Period which are determined by AUL
to be attributable to operation of the Investment Account;
(b) is the net asset value of a Portfolio share held in the Investment
Account determined as of the end of the immediately preceding
Valuation Period; and
(c) is a daily charge factor determined by AUL to reflect the charges
assessed against the assets of the Investment Account for mortality
and expense risks.
5.5 Determining the Value of Each Participant Account's Share of any
Investment Account: The value of each Participant Account's share of any
Investment Account as of any Valuation Date shall be determined by multiplying
the Participant Account's aggregate Accumulation Units in that Investment
Account as of such Valuation Date by the dollar value of one Accumulation Unit
in that Investment Account as of such Valuation Date. The value of the
Participant Account's share of any Investment Account as of any date other than
a Valuation Date is equal to the value of its share of that Investment Account
as of the immediately preceding Valuation Date.
P-12867.12
20
5.5 Determining the Value of Each Participant Account's Share of any
Investment Account: The value of each Participant Account's share of any
Investment Account as of any Valuation Date shall be determined by multiplying
the Participant Account's aggregate Accumulation Units in that Investment
Account as of such Valuation Date by the dollar value of one Accumulation Unit
in that Investment Account as of such Valuation Date. The value of the
Participant Account's share of any Investment Account as of any date other than
a Valuation Date is equal to the value of its share of that Investment Account
as of the immediately preceding Valuation Date. The value of each Participant
Account's share of the Fixed Interest Account as of any Valuation Date shall be
equal to the current balance of the Participant Account's share of the Fixed
Interest Account on that date.
P-12867.17(PA)
21
ARTICLE 6 - OTHER CHARGES
6.1 Mortality Risk and Expense Risk Charges: AUL shall deduct a daily
mortality risk charge and a daily expense risk charge equal to the daily
equivalent of an annual combined charge of 1.25% against the average daily net
assets of each Investment Account.
6.2 Investment Management Charge: The Mutual Fund shall pay an investment
advisory fee and certain other expenses, which may include its operational and
organizational expenses, as described in the current prospectus as it may be
amended or supplemented from time to time. These expenses may vary from year to
year. The net asset value of each Portfolio reflects such investment advisory
fee and other expenses which are deducted from the assets of such Portfolio.
6.3 Administrative Charge: AUL shall deduct an administrative charge per
Contract Quarter equal to the lesser of $7.50 or 0.5% of the Account Value on
the last day of each Contract Quarter from each Participant Account in existence
on such day for as long as the Participant Account is in effect during the
Accumulation Period. This charge is to be prorated among each subaccount of the
Participant Account which corresponds to each Investment Option utilized under
this contract by that Participant Account. If the entire balance of a
Participant Account is applied or withdrawn before the last day of the Contract
Quarter pursuant to Sections 4.1, 4.7, or 4.8, the administrative charge
attributable to the period of time which has elapsed since the first day of the
Contract Quarter in which such application or withdrawal of funds is made shall
not be deducted from the amount applied or withdrawn.
6.4 Transfer Charge: AUL reserves the right to deduct a charge for each
transfer transaction pursuant to Section 3.4. This charge would be prorated
among the Investment Options from which the amounts are transferred in the same
proportion that the amount transferred from the Investment Option bears to the
total amount transferred from all Investment Options.
6.5 Other Charges: AUL reserves the right to deduct the appropriate premium
tax charge at the time annuity payments commence pursuant to Section 4.1 or such
other time that premium taxes are incurred by AUL. AUL also reserves the right
to deduct the appropriate charges for federal, state, or local income taxes
incurred by AUL that are attributable to the Variable Account and its Investment
Accounts.
6.6 Reduction or Waiver of Certain Charges: AUL may reduce or waive the
amount of the Withdrawal Charge or the administrative charge discussed in
Section 6.3 where the expenses associated with the sale of this contract or the
administrative costs associated with this contract are reduced, or where this
contract is sold to the directors or employees of AUL or any of its affiliates,
or to directors or any employees of the Mutual Fund.
P-12867.18
22
ARTICLE 6 - OTHER CHARGES
6.1 Mortality Risk and Expense Risk Charges: AUL shall deduct a daily
mortality risk charge and a daily expense risk charge equal to the daily
equivalent of an annual combined charge of 1.25% against the average daily net
assets of each Investment Account.
6.2 Investment Management Charge: The Mutual Fund shall pay an investment
advisory fee and certain other expenses, which may include its operational and
organizational expenses, as described in the current prospectus as it may be
amended or supplemented from time to time. These expenses may vary from year to
year. The net asset value of each Portfolio reflects such investment advisory
fee and other expenses which are deducted from the assets of such Portfolio.
6.3 Administrative Charge: AUL shall deduct an administrative charge per
Contract Quarter equal to the lesser of $7.50 or 0.5% of the Account Value on
the last day of each Contract Quarter from each Participant Account in existence
on such day for so long as the Participant Account is in effect during the
Accumulation Period. This charge is to be prorated among each subaccount of the
Participant Account which corresponds to each Investment Option utilized under
this contract by that Participant Account. However, in no event shall any
portion of the annual charge for a Contract Year attributable to the Fixed
Interest Account subaccount of the Participant Account exceed the amount of the
Contributions allocated to such Fixed Interest Account subaccount for the
Participant during such Contract Year plus interest earned during such Contract
Year on amounts held in such Fixed Interest Account subaccount. If the entire
balance of a Participant Account is applied or withdrawn before the last day of
the Contract Quarter pursuant to Sections 4.1, 4.7, or 4.8, the administrative
charge attributable to the period of time which has elapsed since the first day
of the Contract Quarter in which such application or withdrawal of funds is made
shall not be deducted from the amount applied or withdrawn.
6.4 Transfer Charge: AUL reserves the right to deduct a charge for each
transfer transaction pursuant to Section 3.4. This charge would be prorated
among the Investment Options from which the amounts are transferred in the same
proportion that the amount transferred from the Investment Option bears to the
total amount transferred from all Investment Options.
6.5 Other Charges: AUL reserves the right to deduct the appropriate premium
tax charge at the time annuity payments commence pursuant to Section 4.1 or such
other time that premium taxes are incurred by AUL. AUL also reserves the right
to deduct the appropriate charges for federal, state, or local income taxes
incurred by AUL that are attributable to the Variable Account and its Investment
Accounts.
6.6 Reduction or Waiver of Certain Charges: AUL may reduce or waive the
amount of the Withdrawal Charge or the administrative charge discussed in
Section 6.3 where the expenses associated with the sale of this contract or the
administrative costs associated with this contract are reduced, or where this
contract is sold to the directors or employees of AUL or any of its affiliates,
or to directors or any employees of the Mutual Fund.
P-12867.18(WA)
23
ARTICLE 6 - OTHER CHARGES
6.1 Mortality Risk and Expense Risk Charges: AUL shall deduct a daily
mortality risk charge and a daily expense risk charge equal to the daily
equivalent of an annual combined charge of 1.25% against the average daily net
assets of each Investment Account.
6.2 Investment Management Charge: The Mutual Fund shall pay an investment
advisory fee and certain other expenses, which may include its operational and
organizational expenses, as described in the current prospectus as it may be
amended or supplemented from time to time. These expenses may vary from year to
year. The net asset value of each Portfolio reflects such investment advisory
fee and other expenses which are deducted from the assets of such Portfolio.
6.3 Administrative Charge: AUL shall deduct an administrative charge per
Contract Quarter equal to the lesser of $7.50 or 0.5% of the Account Value on
the last day of each Contract Quarter from each Participant Account in existence
on such day for as long as the Participant Account is in effect during the
Accumulation Period. This charge is to be prorated among each subaccount of the
Participant Account which corresponds to each Investment Option utilized under
this contract by that Participant Account. If the entire balance of a
Participant Account is applied or withdrawn before the last day of the Contract
Quarter pursuant to Sections 4.1, 4.7, or 4.8, the administrative charge
attributable to the period of time which has elapsed since the first day of the
Contract Quarter in which such application or withdrawal of funds is made shall
not be deducted from the amount applied or withdrawn.
6.4 Transfer Charge: AUL reserves the right to deduct a charge (not to
exceed $25) for each transfer transaction pursuant to Section 3.4. This charge
would be prorated among the Investment Options from which the amounts are
transferred in the same proportion that the amount transferred from the
Investment Option bears to the total amount transferred from all Investment
Options.
6.5 Other Charges: AUL reserves the right to deduct the appropriate premium
tax charge at the time annuity payments commence pursuant to Section 4.1 or such
other time that premium taxes are incurred by AUL. AUL also reserves the right
to deduct the appropriate charges for federal, state, or local income taxes
incurred by AUL that are attributable to the Variable Account and its Investment
Accounts.
6.6 Reduction or Waiver of Certain Charges: AUL may reduce or waive the
amount of the Withdrawal Charge or the administrative charge discussed in
Section 6.3 where the expenses associated with the sale of this contract or the
administrative costs associated with this contract are reduced, or where this
contract is sold to the directors or employees of AUL or any of its affiliates,
or to directors or any employees of the Mutual Fund.
P-12867.18(NJ)
24
ARTICLE 7 - RIGHT OF AUL TO CHANGE CERTAIN PROVISIONS
7.1 Right of AUL to Change Interest Rates: AUL has the right at any time,
upon delivery of written notice to the Contractholder, to change the Guaranteed
Rate of Interest. Any such change shall apply only to Participant Accounts
established on or after the effective date of such change, and shall apply for
the duration of such affected Participant Accounts. Any change in the Guaranteed
Rate of Interest shall not result in a rate less than that prescribed by
applicable state law.
7.2 Right of AUL to Change Annuity Table: AUL does not reserve the right to
change the Table of Immediate Annuities included in this contract.
7.3 Right of AUL to Change Charges: AUL has the right at any time, upon
delivery of written notice to the Contractholder, to change the charges set out
in Sections 1.24 and 6.3. Any such change to the Withdrawal Charge set out in
Section 1.24 shall apply only to Participant Accounts established on or after
the effective date of such change, and shall apply for the duration of such
affected Participant Accounts. The administrative charge set out in Section 6.3
shall be limited to a maximum of $100 per Contract Quarter. Any increase in the
administrative charge made by AUL for any Contract Quarter shall be limited to
an amount which is designed to reimburse AUL for the expenses associated with
the administration of the contract and the operation of the Variable Account.
Any such increase shall not be anticipated to be a source of profit for AUL.
7.4 Amendment of Contract to Conform with Law: Notwithstanding the
provisions of Section 8.1, AUL reserves the right to amend this contract at any
time, without the consent of the Contractholder, Participants, or any other
person or entity, to make any change to any provisions of the contract to comply
with, or give the Contractholder or Participants the benefit of, any provisions
of federal or state laws, regulations, or rulings. Any such amendment shall be
stated in a written instrument and delivered to the Contractholder.
P-12867.19(NJ)
25
ARTICLE 7 - RIGHT OF AUL TO CHANGE CERTAIN PROVISIONS
7.1 Right of AUL to Change Interest Rates: AUL has the right at any time,
upon delivery of written notice to the Contractholder, to change the Guaranteed
Rate of Interest. Any such change shall apply only to Participant Accounts
established on or after the effective date of such change, and shall apply for
the duration of such affected Participant Accounts. Any change in the Guaranteed
Rate of Interest shall not result in a rate less than that prescribed by
applicable state law.
7.2 Right of AUL to Change Annuity Table: After the first 5 Contract Years,
AUL has the right at any time, upon delivery of written notice to the
Contractholder, to change any annuity table included in this contract, but any
such change shall apply only to Participant Accounts established on or after the
effective date of such change.
7.3 Right of AUL to Change Charges: AUL has the right at any time, upon
delivery of written notice to the Contractholder, to change the charges set out
in Sections 1.24 and 6.3. Any such change to the Withdrawal Charge set out in
Section 1.24 shall apply only to Participant Accounts established on or after
the effective date of such change, and shall apply for the duration of such
affected Participant Accounts. The administrative charge set out in Section 6.3
shall be limited to a maximum of $15 per Contract Quarter until the year 2001.
Any increase in the administrative charge made by AUL for any Contract Quarter
beginning after December 31, 2000 shall be limited to an amount which is
designed to reimburse AUL for the expenses associated with the administration of
the contract and the operation of the Variable Account. Any such increase shall
not be anticipated to be a source of profit for AUL.
7.4 Amendment of Contract to Conform with Law: Notwithstanding the
provisions of Section 8.1, AUL reserves the right to amend this contract at any
time, without the consent of the Contractholder, Participants, or any other
person or entity, to make any change to any provisions of the contract to comply
with, or give the Contractholder or Participants the benefit of, any provisions
of federal or state laws, regulations, or rulings. Any such amendment shall be
stated in a written instrument and delivered to the Contractholder.
P-12867.19
26
ARTICLE 8 - MISCELLANEOUS
8.1 Ownership: The Contractholder is the owner of the contract and may
agree with AUL to any change or amendment of it without the consent of any other
person or entity, except that no such change or amendment shall adversely affect
the benefits to be provided by Contributions made prior to the effective date of
such change or amendment unless the consent of all Participants is obtained.
AUL shall have no obligation to make any payment or distribution except as
specified in this contract.
8.2 AUL's Annual Statement: No provision or condition of this contract shall be
deemed to control, determine, or modify any annual statement of AUL made to any
insurance department, contractholder, regulatory body, or other person, nor
shall anything in such annual statement be deemed to control, determine, or
modify the valuation provided for in this contract, nor the values determined,
nor the market, book, or other value of any asset in any Investment Account or
Portfolio, nor any of the other provisions and conditions of this contract.
8.3 Tax Status: AUL does not make any guarantee regarding the federal, state, or
local tax status of this contract, any Participant Account established
hereunder, or any transaction involving this contract.
8.4 Essential Data: The Participant shall furnish to AUL whatever
information is necessary to establish the eligibility and amount of annuity or
other benefit in each instance.
8.5 Reliance: AUL shall be fully protected in relying on any information
furnished by the Contractholder, by any person or persons certified to AUL by
the Contractholder as acting on its behalf, or by a Participant. AUL need not
inquire as to the accuracy or completeness thereof.
8.6 Misstatement of Essential Data: If it has been found that any essential
data pertaining to any person has been omitted or misstated, including, but not
limited to, a misstatement as to the age of an annuitant, an equitable
adjustment shall be made as soon as possible so as to provide the annuity to
which that person is entitled.
8.7 Annuity Certificates: AUL shall issue to each person for whom an
annuity is purchased from AUL a certificate setting forth the amount and terms
of payment of the annuity.
8.8 Election, Notice, or Direction Requirements: Wherever in this contract
reference is made to the Contractholder or Participant making a request or
giving notice or direction, such request, notice, or direction must be in
writing and must be submitted to, and received by, AUL at its Home Office before
becoming effective, unless the Participant is otherwise directed by AUL.
8.9 Quarterly Statement of Account Value: As soon as reasonably possible
after the end of each Contract Quarter, AUL shall prepare a statement of the
Account Value of each Participant Account existing under this contract.
8.10 Conformity with State Laws: Any benefit payable under this contract
shall not be less than the minimum benefit required by any statute of the state
in which the contract is delivered.
27
ARTICLE 8 - MISCELLANEOUS
8.1 Ownership: The Contractholder is the owner of the contract and may
agree with AUL to any change or amendment of it without the consent of any other
person or entity, except that no such change or amendment shall adversely affect
the benefits to be provided by Contributions made prior to the effective date of
such change or amendment unless the consent of all Participants is obtained.
AUL shall have no obligation to make any payment or distribution except as
specified in this contract.
8.2 AUL's Annual Statement: No provision or condition of this contract
shall be deemed to control, determine, or modify any annual statement of AUL
made to any insurance department, contractholder, regulatory body, or other
person, nor shall anything in such annual statement be deemed to control,
determine, or modify the valuation provided for in this contract, nor the values
determined, nor the market, book, or other value of any asset in any Investment
Account or Portfolio, nor any of the other provisions and conditions of this
contract.
8.3 Tax Status: AUL does not make any guarantee regarding the federal,
state, or local tax status of this contract, any Participant Account established
hereunder, or any transaction involving this contract.
8.4 Essential Data: The Participant shall furnish to AUL whatever
information is necessary to establish the eligibility and amount of annuity or
other benefit in each instance.
8.5 Reliance: AUL shall be fully protected in relying on any information
furnished by the Contractholder, by any person or persons certified to AUL by
the Contractholder as acting on its behalf, or by a Participant. AUL need not
inquire as to the accuracy or completeness thereof.
8.6 Misstatement of Essential Data: If it has been found that any essential
data pertaining to any person has been omitted or misstated, including, but not
limited to, a misstatement as to the age of an annuitant, an equitable
adjustment shall be made as soon as possible so as to provide the annuity to
which that person is entitled. Any discovered underpayment by AUL resulting from
such omission or misstatement of essential data shall be made up immediately.
8.7 Annuity Certificates: AUL shall issue to each person for whom an
annuity is purchased from AUL a certificate setting forth the amount and terms
of payment of the annuity.
8.8 Election, Notice, or Direction Requirements: Wherever in this contract
reference is made to the Contractholder or Participant making a request or
giving notice or direction, such request, notice, or direction must be in
writing and must be submitted to, and received by, AUL at its Home Office before
becoming effective, unless the Participant is otherwise directed by AUL.
8.9 Quarterly Statement of Account Value: As soon as reasonably possible
after the end of each Contract Quarter, AUL shall prepare a statement of the
Account Value of each Participant Account existing under this contract.
8.10 Conformity with State Laws: Any benefit payable under this contract
shall not be less than the minimum benefit required by any statute of the state
in which the contract is delivered.
28
8.11 Reference to Federal Laws: Language in this contract referring to
federal tax, securities, or other statutes or rules shall not be deemed to
incorporate within the contract such statutes or rules. This language is
informational and instructional in nature, and is not subject to approval or
disapproval by the state in which the contract is issued.
8.12 Sex and Number: Whenever the context so requires, the plural includes
the singular, the singular the plural, and the masculine the feminine.
8.13 Facility of Payment: If any Participant, contingent annuitant, or
beneficiary is legally incapable of giving a valid receipt for any payment due
him, and no guardian has been appointed, AUL may make such payment to the person
or persons who have assumed the care and principal support of such Participant,
contingent annuitant, or beneficiary. Also, AUL may make payment directly to any
person or entity when directed to do so in writing by the Participant. Any
payment made by AUL will fully discharge AUL to the extent of such payment.
8.14 Insulation from Liability: The assets of the Variable Account are not
chargeable with liabilities arising out of any other business AUL may conduct.
8.15 Voting:
(a) AUL is the legal owner of the shares of the Mutual Fund held by the
Investment Accounts of the Variable Account. AUL shall exercise voting
rights attributable to the shares of each Portfolio held in the
Investment Accounts at any regular and special meetings of the
shareholders of the Mutual Fund on matters requiring shareholder
voting under The Investment Company Act of l940 or other applicable
laws. AUL shall exercise these voting rights based on instructions
received from persons having the voting interest in corresponding
Investment Accounts of the Variable Account. However, if The
Investment Company Act of l940 or any regulations thereunder should be
amended, or if the present interpretation thereof should change, and
as a result AUL determines that it is permitted to vote the shares of
the Mutual Fund in its own right, it may elect to do so. AUL will vote
shares of any Investment Account, if any, that it owns beneficially in
its own discretion, except that if the Mutual Fund offers its shares
to any insurance company separate account that funds variable life
insurance contracts or if otherwise required by applicable law, AUL
will vote its own shares in the same proportion as the voting
instructions that are received in a timely manner for contracts and
Participant Accounts participating in the Investment Account.
(b) The persons having the voting interest under this contract are the
Participants. Unless otherwise required by applicable law, the number
of Mutual Fund shares of a particular Portfolio as to which voting
instructions may be given to AUL is determined by dividing the value
of all of the Accumulation Units of the corresponding Investment
Account attributable to this contract on a particular date by the net
asset value per share of that Portfolio as of the same date.
Fractional votes will be counted. The number of votes as to which
voting instructions may be given will be determined as of the date
coincident with the date established by the Mutual Fund for
determining shareholders eligible to vote at the meeting of the Mutual
Fund. If required by the Securities and Exchange Commission, AUL
reserves the right to determine in a different fashion the voting
rights attributable to the shares of the Mutual Fund.
29
(c) Voting rights attributable to this contract for which no timely voting
instructions are received will be voted by AUL in the same proportion
as the voting instructions which are received in a timely manner for
all contracts and Participant Accounts participating in that
Investment Account.
(d) Neither the Variable Account nor AUL is under any duty to inquire as
to the instructions received or the authority of Contractholders,
Participants, or others to instruct the voting of Mutual Fund shares.
(e) Every person or entity having such voting rights shall receive such
reports or prospectuses concerning the Variable Account or the Mutual
Fund as may be required by applicable federal law.
8.16 Acceptance of New Participants or Contributions. AUL reserves the
right to refuse to accept new Participants or new Contributions to this contract
at any time. AUL shall have the right to refuse to accept Contributions as of
the last day of the second month following the date that written notice to this
effect is delivered to any contributing Participant or to any Participant for
whom Contributions are being made.
8.17 Nonforfeitability and Nontransferability: The entire Withdrawal Value
of a Participant Account under this contract shall be nonforfeitable at all
times. No sum payable under this contract with respect to a Participant may be
sold, assigned, discounted, or pledged as collateral for a loan or as security
for the performance of an obligation or for any other purpose to any person or
entity other than AUL. In addition, to the extent permitted by law, no such sum
shall in any way be subject to legal process requiring the payment of any claim
against the payee.
8.18 Termination: This contract shall automatically terminate as of the
date that there are no Participant Accounts maintained hereunder.
8.19 Notice of Annual Meeting of Members: The regular annual meeting of the
members of AUL (i.e., contractholders) shall be held at its principal place of
business on the third Thursday in February of each year at the hour of ten
o'clock A.M. Elections for directors shall be held at such annual meeting.
P-12867.20
30
TABLE OF IMMEDIATE ANNUITIES
MONTHLY INCOME PER $1,000 OF ACCOUNT VALUE
ADJUSTED LIFE 10 YEAR CERTAIN
AGE ANNUITY AND LIFE ANNUITY
45 2.9690 2.9632
46 3.0190 3.0124
47 3.0715 3.0641
48 3.1269 3.1185
49 3.1852 3.1756
50 3.2466 3.2357
51 3.3115 3.2988
52 3.3800 3.3653
53 3.4525 3.4352
54 3.5291 3.5088
55 3.6104 3.5863
56 3.6966 3.6678
57 3.7881 3.7536
58 3.8850 3.8437
59 3.9877 3.9382
60 4.0964 4.0374
61 4.2115 4.1414
62 4.3334 4.2505
63 4.4626 4.3650
64 4.5994 4.4850
65 4.7442 4.6108
66 4.8977 4.7425
67 5.0608 4.8804
68 5.2347 5.0250
69 5.4213 5.1766
70 5.6229 5.3356
71 5.8412 5.5020
72 6.0778 5.6755
73 6.3336 5.8552
74 6.6097 6.0404
75 6.9084 6.2302
94GARF2-4
Adjusted Age = Actual Age at Settlement (in years and completed
months) less the following number of months: [.6 multiplied by (Birth Year -
1915)] rounded to the nearest integer.
P-12867.21
31
The following are the guaranteed annuity rates for the options offered by AUL.
They are based on the following assumptions:
Retirement value - $1000.00 Interest rate - 4% Load - 4% Participant - Female
Commission - 0% Contingent - Male (same age as participant) Age adjustment - 0
INSTALLMENT
AGE 5 YR C&L 15 YR C&L 20 YR C&L J&S(FULL) J&2/3S J&1/2S REFUND
45 4.0004 3.9807 3.9616 3.7883 3.8571 3.8924 3.7984
46 4.0413 4.0192 3.9979 3.8194 3.8914 3.9284 3.8336
47 4.0844 4.0597 4.0358 3.8523 3.9275 3.9662 3.8706
48 4.1299 4.1020 4.0753 3.8869 3.9656 4.0062 3.9094
49 4.1777 4.1465 4.1176 3.9235 4.0058 4.0482 3.9501
50 4.2281 4.1931 4.1595 3.9620 4.0481 4.0926 3.9929
51 4.2813 4.2420 4.2044 4.0028 4.0928 4.1394 4.0377
52 4.3375 4.2933 4.2511 4.0458 4.1401 4.1889 4.0849
53 4.3969 4.3471 4.2997 4.0913 4.1900 4.2412 4.1345
54 4.4596 4.4035 4.3503 4.1395 4.2429 4.2965 4.1867
55 4.5259 4.4627 4.4029 4.1905 4.2988 4.3551 4.2416
56 4.5962 4.5248 4.4574 4.2446 4.3581 4.4172 4.2993
57 4.6707 4.5899 4.5139 4.3020 4.4210 4.4830 4.3602
58 4.7498 4.6582 4.5722 4.3630 4.4878 4.5529 4.4244
59 4.8338 4.7299 4.6323 4.4278 4.5588 4.6273 4.4921
60 4.9231 4.8049 4.6940 4.4968 4.6345 4.7065 4.5633
61 5.0181 4.8834 4.7572 4.5704 4.7150 4.7908 4.6387
62 5.1191 4.9654 4.8215 4.6488 4.8009 4.8808 4.7183
63 5.2267 5.0508 4.8868 4.7325 4.8925 4.9767 4.8020
64 5.3413 5.1395 4.9526 4.8218 4.9903 5.0790 4.8906
65 5.4635 5.2315 5.0186 4.9172 5.0947 5.1883 4.9844
66 5.5940 5.3266 5.0843 5.0193 5.2063 5.3052 5.0830
67 5.7334 5.4244 5.1492 5.1284 5.3258 5.4303 5.1875
68 5.8829 5.5249 5.2127 5.2454 5.4539 5.5646 5.2985
69 6.0434 5.6275 5.2744 5.3708 5.5916 5.7089 5.4156
70 6.2158 5.7317 5.3336 5.5055 5.7396 5.8643 5.5396
71 6.4011 5.8369 5.3897 5.6502 5.8991 6.0319 5.6720
72 6.6002 5.9422 5.4421 5.8058 6.0709 6.2127 5.8244
73 6.8139 6.0467 5.9404 5.9731 6.2561 6.4078 5.9594
74 7.0425 6.1493 5.5342 6.1532 6.4557 6.6183 6.1174
75 7.2868 6.2489 5.5735 6.3471 6.6707 6.8453 6.2830
Table-PA
P-12867.22
CONTRACT NUMBER VXX,XXX
CONTRACTHOLDER ABC COMPANY
PARTICIPANT'S NAME XXXX XXX
SOCIAL SECURITY NUMBER ###-##-####
American United Life Insurance Company (AUL) hereby certifies that the
Contractholder and AUL have entered into an XXX Multiple-Fund Group Variable
Annuity Contract (the Contract), and that AUL has created an account in your
name to receive Contributions for your benefit pursuant to the Contract.
All rights and benefits are determined in accordance with the provisions of the
Contract. The only parties to the contract are the Contractholder and AUL. All
rights and benefits are determined in accordance with the provisions of the
Contract.
Benefits under the Contract will be paid at the Participant's direction.
Any amendments to or changes in the Contract will be binding and conclusive on
each Participant and beneficiary.
AMERICAN UNITED LIFE INSURANCE COMPANY
By: /s/ Xxxxxxx X. Xxxxx
Secretary
AUL American Series
XXX Multiple-Fund Group Variable Annuity Certificate
THE ASSETS HELD IN ANY INVESTMENT ACCOUNT FOR WHICH THE CONTRACT MAKES PROVISION
MAY INCREASE OR DECREASE IN DOLLAR VALUE ACCORDING TO THE INVESTMENT PERFORMANCE
OF THE CORRESPONDING PORTFOLIO OF THE MUTUAL FUND IN WHICH THE INVESTMENT
ACCOUNT INVESTS. THE VALUE OF SUCH ASSETS IS NOT GUARANTEED. ARTICLE 5 OF THE
CONTRACT EXPLAINS THE VALUATION OF SUCH ASSETS.
If you have questions concerning your AUL contract, or wish to register a
complaint, please call 0-000-000-0000.
P-12868TX
2
CONTRACT NUMBER VXX,XXX
CONTRACTHOLDER ABC COMPANY
PARTICIPANT'S NAME XXXX XXX
SOCIAL SECURITY NUMBER ###-##-####
American United Life Insurance Company (AUL) hereby certifies that the
Contractholder and AUL have entered into an XXX Multiple-Fund Group Variable
Annuity Contract (the Contract), and that AUL has created an account in your
name to receive Contributions for your benefit pursuant to the Contract.
All rights and benefits are determined in accordance with the provisions of the
Contract. The only parties to the contract are the Contractholder and AUL. All
rights and benefits are determined in accordance with the provisions of the
Contract.
Benefits under the Contract will be paid at the Participant's direction.
Any amendments to or changes in the Contract will be binding and conclusive on
each Participant and beneficiary.
NOTICE OF TEN DAY RIGHT TO EXAMINE CONTRACT
The Contractholder may return the contract for any reason within ten days after
receiving it. If returned, the contract shall be considered void from the
beginning, and any contributions shall be refunded.
AMERICAN UNITED LIFE INSURANCE COMPANY
By: /s/ Xxxxxxx X. Xxxxx
Secretary
AUL American Series
XXX Multiple-Fund Group Variable Annuity Certificate
THE ASSETS HELD IN ANY INVESTMENT ACCOUNT FOR WHICH THE CONTRACT MAKES PROVISION
MAY INCREASE OR DECREASE IN DOLLAR VALUE ACCORDING TO THE INVESTMENT PERFORMANCE
OF THE CORRESPONDING PORTFOLIO OF THE MUTUAL FUND IN WHICH THE INVESTMENT
ACCOUNT INVESTS. THE VALUE OF SUCH ASSETS IS NOT GUARANTEED. ARTICLE 5 OF THE
CONTRACT EXPLAINS THE VALUATION OF SUCH ASSETS.
P-12868WA
3
CONTRACT NUMBER VXX,XXX
CONTRACTHOLDER ABC COMPANY
PARTICIPANT'S NAME XXXX XXX
SOCIAL SECURITY NUMBER ###-##-####
American United Life Insurance Company (AUL) hereby certifies that the
Contractholder and AUL have entered into an XXX Multiple-Fund Group Variable
Annuity Contract (the Contract), and that AUL has created an account in your
name to receive Contributions for your benefit pursuant to the Contract.
All rights and benefits are determined in accordance with the provisions of the
Contract. The only parties to the contract are the Contractholder and AUL. All
rights and benefits are determined in accordance with the provisions of the
Contract.
Benefits under the Contract will be paid at the Participant's direction.
Any amendments to or changes in the Contract will be binding and conclusive on
each Participant and beneficiary.
NOTICE OF TEN DAY RIGHT TO EXAMINE CONTRACT
Please read this Certificate carefully. The Participant may return the
Certificate for any reason within ten days after receiving it. If returned, the
Certificate shall be considered void from the beginning, and any contributions
shall be refunded.
AMERICAN UNITED LIFE INSURANCE COMPANY
By: /s/ Xxxxxxx X. Xxxxx
Secretary
AUL American Series
XXX Multiple-Fund Group Variable Annuity Certificate
THE ASSETS HELD IN ANY INVESTMENT ACCOUNT FOR WHICH THE CONTRACT MAKES PROVISION
MAY INCREASE OR DECREASE IN DOLLAR VALUE ACCORDING TO THE INVESTMENT PERFORMANCE
OF THE CORRESPONDING PORTFOLIO OF THE MUTUAL FUND IN WHICH THE INVESTMENT
ACCOUNT INVESTS. THE VALUE OF SUCH ASSETS IS NOT GUARANTEED. ARTICLE 5 OF THE
CONTRACT EXPLAINS THE VALUATION OF SUCH ASSETS.
P-12868UT
4
CONTRACT NUMBER VXX,XXX
CONTRACTHOLDER ABC COMPANY
PARTICIPANT'S NAME XXXX XXX
SOCIAL SECURITY NUMBER ###-##-####
American United Life Insurance Company (AUL) hereby certifies that the
Contractholder and AUL have entered into an XXX Multiple-Fund Group Variable
Annuity Contract (the Contract), and that AUL has created an account in your
name to receive Contributions for your benefit pursuant to the Contract.
All rights and benefits are determined in accordance with the provisions of the
Contract. The only parties to the contract are the Contractholder and AUL. All
rights and benefits are determined in accordance with the provisions of the
Contract.
Benefits under the Contract will be paid at the Participant's direction.
Any amendments to or changes in the Contract will be binding and conclusive on
each Participant and beneficiary.
THIS CERTIFICATE IS SUBJECT TO NEW JERSEY INSURANCE LAWS AND REGULATIONS AS
ADMINISTERED BY THE NEW JERSEY DEPARTMENT OF INSURANCE.
AMERICAN UNITED LIFE INSURANCE COMPANY
By: /s/ Xxxxxxx X. Xxxxx
Secretary
AUL American Series
XXX Multiple-Fund Group Variable Annuity Certificate
THE ASSETS HELD IN ANY INVESTMENT ACCOUNT FOR WHICH THE CONTRACT MAKES PROVISION
MAY INCREASE OR DECREASE IN DOLLAR VALUE ACCORDING TO THE INVESTMENT PERFORMANCE
OF THE CORRESPONDING PORTFOLIO OF THE MUTUAL FUND IN WHICH THE INVESTMENT
ACCOUNT INVESTS. THE VALUE OF SUCH ASSETS IS NOT GUARANTEED. ARTICLE 5 OF THE
CONTRACT EXPLAINS THE VALUATION OF SUCH ASSETS.
P-12868NJ
5
CONTRACT NUMBER VXX,XXX
CONTRACTHOLDER ABC COMPANY
PARTICIPANT'S NAME XXXX XXX
SOCIAL SECURITY NUMBER ###-##-####
American United Life Insurance Company (AUL) hereby certifies that the
Contractholder and AUL have entered into an XXX Multiple-Fund Group Variable
Annuity Contract (the Contract), and that AUL has created an account in your
name to receive Contributions for your benefit pursuant to the Contract.
All rights and benefits are determined in accordance with the provisions of the
Contract. The only parties to the contract are the Contractholder and AUL. All
rights and benefits are determined in accordance with the provisions of the
Contract.
Benefits under the Contract will be paid at the Participant's direction.
Any amendments to or changes in the Contract will be binding and conclusive on
each Participant and beneficiary.
NOTICE OF TEN DAY RIGHT TO EXAMINE CONTRACT
The Contractholder may return the contract for any reason within ten days after
receiving it. If returned, the contract shall be considered void from the
beginning, and any contributions shall be refunded.
AMERICAN UNITED LIFE INSURANCE COMPANY
By: /s/ Xxxxxxx X. Xxxxx
Secretary
AUL American Series
XXX Multiple-Fund Group Variable Annuity Certificate
THE ASSETS HELD IN ANY INVESTMENT ACCOUNT FOR WHICH THE CONTRACT MAKES PROVISION
MAY INCREASE OR DECREASE IN DOLLAR VALUE ACCORDING TO THE INVESTMENT PERFORMANCE
OF THE CORRESPONDING PORTFOLIO OF THE MUTUAL FUND IN WHICH THE INVESTMENT
ACCOUNT INVESTS. THE VALUE OF SUCH ASSETS IS NOT GUARANTEED. ARTICLE 5 OF THE
CONTRACT EXPLAINS THE VALUATION OF SUCH ASSETS.
P-12868PA
6
CONTRACT NUMBER VXX,XXX
CONTRACTHOLDER ABC COMPANY
PARTICIPANT'S NAME XXXX XXX
SOCIAL SECURITY NUMBER ###-##-####
American United Life Insurance Company (AUL) hereby certifies that the
Contractholder and AUL have entered into an XXX Multiple-Fund Group Variable
Annuity Contract (the Contract), and that AUL has created an account in your
name to receive Contributions for your benefit pursuant to the Contract.
All rights and benefits are determined in accordance with the provisions of the
Contract. The only parties to the contract are the Contractholder and AUL. All
rights and benefits are determined in accordance with the provisions of the
Contract.
Benefits under the Contract will be paid at the Participant's direction.
Any amendments to or changes in the Contract will be binding and conclusive on
each Participant and beneficiary.
AMERICAN UNITED LIFE INSURANCE COMPANY
By: /s/ Xxxxxxx X. Xxxxx
Secretary
AUL American Series
XXX Multiple-Fund Group Variable Annuity Certificate
THE ASSETS HELD IN ANY INVESTMENT ACCOUNT FOR WHICH THE CONTRACT MAKES PROVISION
MAY INCREASE OR DECREASE IN DOLLAR VALUE ACCORDING TO THE INVESTMENT PERFORMANCE
OF THE CORRESPONDING PORTFOLIO OF THE MUTUAL FUND IN WHICH THE INVESTMENT
ACCOUNT INVESTS. THE VALUE OF SUCH ASSETS IS NOT GUARANTEED. ARTICLE 5 OF THE
CONTRACT EXPLAINS THE VALUATION OF SUCH ASSETS.
P-12868
7
SUMMARY OF CERTAIN CONTRACT PROVISIONS
WHICH AFFECT YOU
DEFINITIONS
"Account Value" for any Participant Account on any given date means:
(a) the balance of the Participant Account's share of the Fixed Interest
Account on that date; plus
(b) the value of the Participant Account's share of each Investment
Account on that date.
"Accumulation Period" means the period of time commencing on the date on which a
Participant's initial Contribution is credited to the Participant Account and
terminating on the date when such Participant Account is closed.
"Accumulation Unit" means a statistical device used to measure amounts of
increases to, decreases from, and accumulations in any Investment Account during
the Accumulation Period.
"Annuity Commencement Date" means the first day of any month upon which an
annuity begins under the Contract. However, for any Participant, this date shall
not be later than the required beginning date as defined in the applicable
sections of the Code and Regulations issued thereunder.
"Code" means the Internal Revenue Code of l986, as amended.
"Contributions" means amounts paid in cash to AUL from time to time by, or on
behalf of, Participants, which are credited to Participant Accounts. The legal
title to, and ownership of, such amounts is vested solely in the Participant.
"Current Rates of Interest" means each of the annual effective rates of interest
as determined and declared by AUL from time to time and as credited to each
interest pocket maintained within the Fixed Interest Account. The Current Rates
of Interest shall always be equal to or greater than the Guaranteed Rate of
Interest.
"Excess Contributions" means those Contributions made by, or on behalf of, a
Participant which exceed the limitations in effect under applicable provisions
of the Code and Regulations issued thereunder.
"Fixed Interest Account" means that fund of AUL's general asset account in which
all or a portion of a Participant's Account Value may be held for accumulation
at the Current Rates of Interest.
(a) Contributions allocated, or amounts transferred, to the Fixed Interest
Account shall be credited to the open interest pocket and shall earn
interest at the Current Rate of Interest in effect for that interest
pocket. Such Contributions or transferred amounts, during the time
that the Current Rate of Interest exceeds the Guaranteed Rate of
Interest, shall earn interest at such credited Current Rate of
Interest for at least 1 year. After such 1-year period, AUL reserves
the right to declare, at any time, a new Current Rate of Interest to
be applied to funds held within that interest pocket. Any such new
Current Rate of Interest must remain in effect for that interest
pocket for at least 1 year.
8
(b) If AUL changes the Current Rate of Interest for new Contributions or
new amounts transferred to the Fixed Interest Account, the previous
open interest pocket shall close, and any Contributions or amounts
transferred on or after the effective date of such change shall be
credited to a new open interest pocket and shall earn interest at the
new Current Rate of Interest in effect for such new open interest
pocket. Therefore, at any given time, various funds credited to a
Participant Account and allocated to the Fixed Interest Account may be
earning interest at different Current Rates of Interest for different
periods of time.
"Guaranteed Rate of Interest" means interest at an annual effective rate of
4.00%.
"Home Office" means the principal office of AUL. The mailing address is P. O.
Xxx 0000, Xxxxxxxxxxxx, Xxxxxxx 00000-0000.
"Investment Account" means each subaccount of the Variable Account, which
subaccounts currently include the Equity Investment Account, the Bond Investment
Account, the Money Market Investment Account, and the Managed Investment
Account, as the case may be, where:
(a) Amounts allocated to the Equity Investment Account shall be invested
in shares of the AUL American Equity Portfolio of the Mutual Fund.
(b) Amounts allocated to the Bond Investment Account shall be invested in
shares of the AUL American Bond Portfolio of the Mutual Fund.
(c) Amounts allocated to the Money Market Investment Account shall be
invested in shares of the AUL American Money Market Portfolio of the
Mutual Fund.
(d) Amounts allocated to the Managed Investment Account shall be invested
in shares of the AUL American Managed Portfolio of the Mutual Fund.
The AUL American Managed Portfolio of the Mutual Fund is a managed
Portfolio which invests in the same types of investments as the other
Portfolios listed in (a), (b), and (c) above.
"Investment Option" means the Fixed Interest Account or any of the Investment
Accounts of the Variable Account. AUL reserves the right to provide other
Investment Options under the Contract at any time.
"Mutual Fund" means the AUL American Series Fund, Inc., a diversified, open-end
management investment company registered under The Investment Company Act of
l940.
"Participant" means any person enrolled in the Contract who elects to make
Contributions or for whom Contributions are made, and for whom a Participant
Account is established.
"Participant Account" means an account established under the Contract for a
Participant. Contributions received by AUL shall be credited to Participant
Accounts as AUL is directed in writing.
"Portfolio" means a series of the Mutual Fund as described in the prospectus for
the Mutual Fund as such prospectus may be amended or supplemented from time to
time.
"Valuation Date" means any day when the Home Office of AUL and the New York
Stock Exchange are open and operational.
"Valuation Period" means the period beginning at the close of business on a
Valuation Date and ending at the close of business on the next succeeding
Valuation Date.
9
"Variable Account" means a separate account established by AUL called the AUL
American Unit Trust, which is registered under The Investment Company Act of
l940 as a unit investment trust.
"Withdrawal Charge" means a charge taken by AUL equal to a percentage of the
Account Value withdrawn under the Contract, where the percentage varies by the
number of full years measured from the date a Participant Account is established
to the date the Withdrawal Charge is determined. Such percentage is as follows:
During
Account Years Percentage
1-5 8
6-10 4
Thereafter 0
In no event will the cumulative total of all Withdrawal Charges, including those
previously assessed against any amount withdrawn from a Participant Account,
exceed 9% of total Contributions allocated to that Participant Account.
"Withdrawal Value" means a Participant's Account Value minus the applicable
Withdrawal Charge.
CONTRIBUTIONS, INVESTMENTS, AND TRANSFERS
Contributions:
--------------
(a) Contributions may vary in amount and frequency; however, they must be
at least equal to a minimum annual Contribution of $300 per
Participant in any full contract year.
(b) Except for amounts eligible for rollover treatment under the Code,
Contributions during a Participant's taxable year (which is presumed
to be a calendar year) must be made in cash and may not exceed the
amounts described below (as adjusted by Code Section 408(a)):
(1) the lesser of $2,000 or 100% of compensation includible in the
Participant's gross income for such taxable year; or (2) the lesser of
$2,250 or 100% of compensation includible in the Participant's gross
income for such taxable year if a Contribution is made on behalf of
the Participant's non-employed spouse (no more than $2,000 may be
allocated to either the Participant or his spouse); or (3) the lesser
of $30,000 (or, if greater, 25% of the dollar limitation in effect
under Code Section 415(b)(1)(A)) or 15% of compensation in the case of
a simplified employee pension (SEP) Contribution.
(c) Excess Contributions (plus gains or minus losses thereon) shall be
withdrawn from a Participant Account and returned to the Participant
upon receipt by AUL at its Home Office of complete written
instructions from the Participant. Such written instructions must
include the amount to be withdrawn and returned, and certification
that such Contributions constitute Excess Contributions and that such
returns are permitted by applicable provisions of the Code and
Regulations issued thereunder. It shall not be the responsibility of
AUL to determine the existence or amount of
Excess Contributions or gains or losses thereon, or that returns of
Excess Contributions are permitted by applicable provisions of the
Code and Regulations. In withdrawing and returning the identified
amount, AUL may rely solely on such written instructions and certifi-
cation. Such a withdrawal and return of Excess Contributions shall not
be subject to the withdrawal benefits provisions of the Contract.
(d) Other refunds of Contributions shall be applied before the close of
the calendar year following the year of such refund toward the payment
of future contributions or the purchase of additional benefits.
(e) When a Contribution is received at AUL's Home Office, it shall be
credited to Participant Accounts as directed in written allocation
instructions.
(f) The initial Contribution for a Participant shall be credited and
allocated to the Participant Account no later than the close of
business on the second business day of AUL after the later of (1) the
business day that AUL receives the initial Contribution at its Home
Office, or (2) the business day that AUL receives, at its Home Office,
the data required to establish the Participant Account and allocation
instructions regarding the initial Contribution. If the data required
to establish the Participant Account and allocation instructions
regarding the initial Contribution are not received by AUL at its Home
Office within 5 business days after AUL first receives the initial
Contribution, AUL shall return the initial Contribution to the
contributing party unless consent is given to AUL to retain the
initial Contribution until AUL receives the data and allocation
instructions for the Participant. Alternatively, if the data required
to establish the Participant Account and allocation instructions
regarding the initial Contribution are not received by AUL at its Home
Office when AUL first receives the initial Contribution, to the extent
permitted by applicable law, AUL may allocate the initial Contribution
to the Money Market Investment Account, and shall transfer such
amounts credited to the Money Market Investment Account according to
the applicable allocation instructions upon receipt of the data
required to establish the Participant Account and allocation
instructions.
(g) All Contributions subsequent to the initial Contribution shall be
credited and allocated as of the close of business on the Valuation
Period in which AUL receives the Contribution at its Home Office,
provided that the Contribution is received by 4:00 p.m. E.S.T. If the
Contribution is received after 4:00 p.m. E.S.T., such Contribution
shall be deemed to be received, and shall be credited and allocated as
of the close of business, on the next succeeding Valuation Period.
(h) Within any one Participant Account, the amount so credited shall be
allocated to an Investment Option in increments of 10%, 25%, or
33-1/3%, as elected by the Participant in writing. If no allocation
instruction is made with respect to any Participant Account, AUL shall
process such credits in accordance with the allocation instruction
applicable to the immediately preceding Contribution. If there should
be no allocation instruction applicable to a portion of a Contribution
other than the initial Contribution, that amount shall be credited to
the Fixed Interest Account until such time as an appropriate
allocation instruction is received, at which time such amount shall be
withdrawn from the Fixed Interest Account and allocated pursuant to
such instructions. The Participant may change an allocation
instruction with respect to future allocations to his Participant
Account by giving new written allocation instructions to AUL at its
Home Office.
Addition, Deletion, or Substitution of Investments:
---------------------------------------------------
(a) AUL reserves the right, subject to compliance with applicable law, to
make additions to, deletions from, substitution for, or combinations
of, the securities that are held by the Variable Account or any
Investment Account or that the Variable Account or any Investment
Account may purchase. AUL reserves the right to eliminate the shares
of any of the eligible Portfolios and to substitute shares of, or
interests in, another Portfolio of the Mutual Fund, of another
open-end, registered investment company, or other investment vehicle,
for shares already purchased or to be purchased in the future under
the Contract.
(b) AUL reserves the right to establish additional Investment Accounts,
each of which would invest in a new Portfolio of the Mutual Fund, or
in other securities, investment vehicles, or shares of another
diversified open-end management investment company or series thereof.
AUL reserves the right to eliminate or combine existing Investment
Accounts if, in its sole discretion, marketing, tax, or investment
conditions so warrant. AUL also reserves the right to provide other
Investment Options under the Contract at any time. Subject to any
required regulatory approvals, AUL reserves the right to transfer
assets from any Investment Account to another separate account of AUL
or Investment Account.
(c) If deemed by AUL to be in the best interests of persons or entities
having voting rights under the Contract, the Variable Account may be
operated as a management investment company under The Investment
Company Act of 1940 or any other form permitted by law, it may be
deregistered in the event such registration is no longer required
under The Investment Company Act of 1940, or it may be combined with
other separate accounts of AUL or an affiliate thereof.
Transfers:
----------
(a) Subject to the limitations of (d) through (g) below, the Participant
may direct AUL at its Home Office to transfer the amounts credited to
an Investment Option to any other Investment Option during the
Accumulation Period. For any transfer from an Investment Account,
Accumulation Units shall be valued as of the close of business on the
Valuation Date that AUL receives the Participant's direction, provided
that AUL receives such direction by 4:00 p.m. E.S.T. on that Valuation
Date. If such direction is received after 4:00 p.m. E.S.T., such
transfer shall be effective as of the close of business on the next
succeeding Valuation Date.
(b) AUL shall make the transfer as requested by the Participant within 7
days from the date a proper request is received by AUL at its Home
Office, except as AUL may be permitted to defer such payment of
amounts withdrawn from the Variable Account in accordance with
appropriate provisions of the federal securities laws. AUL reserves
the right to defer a transfer of amounts from the Fixed Interest
Account for a period of 6 months after AUL receives the transfer
request at its Home Office.
(c) All transfers from the Fixed Interest Account to any Investment
Account shall be made on a first-in/first-out accounting basis.
(d) The Participant may not direct a transfer with regard to his
Participant Account's share of any Investment Option in an amount less
than $500 or the Participant Account's entire share, if less than
$500. If such a transfer reduces the Participant Account's remaining
share of an Investment Option to less than $500, the entire remaining
share shall also be transferred.
(e) Amounts transferred from the Fixed Interest Account on behalf of a
Participant during any contract year shall not exceed 20% of the
Participant Account's share of the Fixed Interest Account determined
as of the last contract anniversary preceding the request for
transfer, or the Participant Account's entire share of the Fixed
Interest Account if such share would be less than $500 after the
transfer.
(f) AUL reserves the right to change the limitation on the minimum
transfer, to change the limit on remaining balances, to limit the
number and frequency of transfers, to suspend the transfer privilege,
and to impose a charge on a transfer.
BENEFITS
Annuity Options:
----------------
At the written request of the Participant, AUL shall apply all or a portion of
the Account Value (subject to any appropriate premium tax charge) of the
Participant Account for the purpose of providing a fixed payment annuity. Upon
receipt of such request, AUL is hereby authorized by such Participant to value
and transfer the Participant Account's share of the Variable Account to the
Fixed Interest Account as of the date that AUL receives such written request at
its Home Office. Such transferred amounts shall be held in the Fixed Interest
Account until the Participant's Annuity Commencement Date. The Participant
request shall include certification as to the purpose for the annuity and the
election of one of the following annuity options:
(a) Life Annuity. The monthly annuity shall be payable to the annuitant
for as long as the annuitant lives, and shall end with the last
monthly payment before the death of the annuitant.
(b) Certain and Life Annuity. The monthly annuity shall be payable to the
annuitant for as long as the annuitant lives. If the annuitant dies
before receiving payments for the certain period (5, 10, 15, or 20
years, as specified in the election), any remaining payments for the
balance of the certain period shall be paid to the annuitant's
beneficiary.
(c) Survivorship Annuity. The monthly annuity shall be payable to the
annuitant for as long as the annuitant lives. After the death of the
annuitant, a portion (all, 2/3, or 1/2, as specified in the election)
of the annuitant's monthly annuity shall be paid to the contingent
annuitant named in the election for as long as the contingent
annuitant lives. An election of this option is automatically cancelled
if either the Participant or the contingent annuitant dies before the
Annuity Commencement Date.
(d) Unit Refund Life Annuity. The monthly annuity shall be payable to the
annuitant for as long as the annuitant lives, and shall end with the
last monthly payment before the death of the annuitant. If, at the
death of the annuitant, the sum of the monthly payments previously
received is less than the amount applied to provide the annuity,
monthly payments of the same amount shall continue to the annuitant's
beneficiary until the total of the monthly payments received equals
such amount.
(e) Fixed Period. The monthly annuity shall be payable to the annuitant
for a fixed period of time (not less than 5 years nor more than 30
years, as specified in the election). If, at the death of the
annuitant, payments have been made for less than the selected fixed
period, monthly annuity payments to the annuitant's beneficiary shall
be continued during the remainder of such fixed period.
(f) Any other options made available by AUL at the time a Participant
exercises his option to elect an annuity.
If no annuity option election for a Participant has been received by AUL at its
Home Office at least 30 days prior to the Annuity Commencement Date, the Account
Value (subject to any appropriate premium tax charge) of his Participant Account
shall be applied under (b) above as a 10 Year Certain and Life Annuity. AUL must
receive written notification of such Annuity Commencement Date,
(f) AUL reserves the right to change the limitation on the minimum
transfer, to change the limit on remaining balances, to limit the
number and frequency of transfers, to suspend the transfer privilege,
and to impose a charge of not more than $25 on a transfer.
BENEFITS
Annuity Options:
----------------
At the written request of the Participant, AUL shall apply all or a portion of
the Account Value (subject to any appropriate premium tax charge) of the
Participant Account for the purpose of providing a fixed payment annuity. Upon
receipt of such request, AUL is hereby authorized by such Participant to value
and transfer the Participant Account's share of the Variable Account to the
Fixed Interest Account as of the date that AUL receives such written request at
its Home Office. Such transferred amounts shall be held in the Fixed Interest
Account until the Participant's Annuity Commencement Date. The Participant
request shall include certification as to the purpose for the annuity and the
election of one of the following annuity options:
(a) Life Annuity. The monthly annuity shall be payable to the annuitant
for as long as the annuitant lives, and shall end with the last
monthly payment before the death of the annuitant.
(b) Certain and Life Annuity. The monthly annuity shall be payable to the
annuitant for as long as the annuitant lives. If the annuitant dies
before receiving payments for the certain period (5, 10, 15, or 20
years, as specified in the election), any remaining payments for the
balance of the certain period shall be paid to the annuitant's
beneficiary.
(c) Survivorship Annuity. The monthly annuity shall be payable to the
annuitant for as long as the annuitant lives. After the death of the
annuitant, a portion (all, 2/3, or 1/2, as specified in the election)
of the annuitant's monthly annuity shall be paid to the contingent
annuitant named in the election for as long as the contingent
annuitant lives. An election of this option is automatically cancelled
if either the Participant or the contingent annuitant dies before the
Annuity Commencement Date.
(d) Unit Refund Life Annuity. The monthly annuity shall be payable to the
annuitant for as long as the annuitant lives, and shall end with the
last monthly payment before the death of the annuitant. If, at the
death of the annuitant, the sum of the monthly payments previously
received is less than the amount applied to provide the annuity,
monthly payments of the same amount shall continue to the annuitant's
beneficiary until the total of the monthly payments received equals
such amount.
(e) Fixed Period. The monthly annuity shall be payable to the annuitant
for a fixed period of time (not less than 5 years nor more than 30
years, as specified in the election). If, at the death of the
annuitant, payments have been made for less than the selected fixed
period, monthly annuity payments to the annuitant's beneficiary shall
be continued during the remainder of such fixed period.
(f) Any other options made available by AUL at the time a Participant
exercises his option to elect an annuity.
If no annuity option election for a Participant has been received by AUL at its
Home Office at least 30 days prior to the Annuity Commencement Date, the Account
Value (subject to any appropriate premium tax charge) of his Participant Account
shall be applied under (b) above as a 10 Year Certain and Life Annuity. AUL must
receive written notification of such Annuity Commencement Date, written
designation of the contingent annuitant or beneficiary, and any election forms
needed in connection with any annuity option provided.
In no event shall any option elected provide annuity benefits to the Participant
or to the Participant and the contingent annuitant which would extend for a
certain period beyond the life expectancy of such Participant or the joint life
expectancy of such Participant and such contingent annuitant as determined on
the Annuity Commencement Date. If an option of periodic payments is elected, any
such payments shall be made at intervals of no longer than one year.
If the total Account Value is less than $2,000, such value shall be paid in a
lump sum to the annuitant rather than annuitized under the annuity options
provided in (a) through (f) above. Additionally, if the monthly annuity is less
than AUL's then current established minimum, AUL reserves the right to make
payments on a less frequent basis.
Death Benefits:
---------------
(a) Upon receipt of written instructions from the Participant's
beneficiary (or, if applicable, the secondary beneficiary of the
Participant) and of due proof of the Participant's (and, if
applicable, the beneficiary's) death during the Accumulation Period at
its Home Office, AUL shall apply the Account Value of the Participant
Account for the purpose of providing a death benefit. The death
benefit shall be paid to the beneficiary last properly designated in
writing to AUL at its Home Office by the Participant, or, if there is
no designated beneficiary living on the date of the Participant's
death, to the Participant's estate. If any beneficiary dies while
receiving payments and no beneficiary is designated to receive any
remaining payments, such remaining payments shall be made to the
deceased beneficiary's estate.
(b) The Account Value to be applied pursuant to (a) above shall be
determined as of the close of business on the later of (1) the
Valuation Date that AUL receives such written instructions at its Home
Office, or (2) the Valuation Date that AUL receives such due proof of
death at its Home Office, provided that such written instructions or
due proof of death received on the later of (1) or (2) above are(is)
received by 4:00 p.m. E.S.T. If the written instructions or due proof
of death received on the later of (1) or (2) above are(is) received
after 4:00 p.m. E.S.T., such valuation shall be made as of the close
of business on the next succeeding Valuation Date.
(c) (1) The benefit shall be payable in accordance with one of the
following provisions as elected by the Participant or the
beneficiary if the Participant did not make an election:
(i) The entire Account Value to be applied shall be paid to the
beneficiary in a single sum or by another elected method on
or before December 31 of the calendar year which contains
the fifth anniversary of the date of the Participant's
death; or
(ii) The benefit shall be paid as an annuity in accordance with
the Annuity Options shown above over a period not to exceed
the life or life expectancy of the beneficiary. If the
beneficiary is not the Participant's surviving spouse, the
annuity must begin on or before December 31 of the calendar
year immediately following the calendar year in which the
Participant died. If the beneficiary is the Participant's
surviving spouse, such spouse may elect to receive equal or
substantially equal payments over the life or life
expectancy of such spouse commencing at any date prior to
the later of (1) December 31 of the calendar year
immediately following the calendar year in which the
Participant died, or (2) December 31 of the calendar year in
which the Participant would have attained age 70 1/2. Such
spousal election must be made no later than the earlier of
December 31 of the calendar year containing the fifth
anniversary of the Participant's death or the date
distributions are required to begin pursuant to the
preceding sentence. The surviving spouse may accelerate
these payments at any time by increasing the frequency or
amount of such payments.
(2) If a Participant dies on or after his Annuity Commencement Date,
any interest remaining under the Annuity Option selected shall be
paid at least as rapidly as prior to the Participant's death.
(3) If payment is to be made in a cash lump sum, payment shall be
made within 7 days of the date of valuation, as determined in (b)
above, except as AUL may be permitted to defer such payment of
amounts derived from the Variable Account in accordance with the
provisions of federal securities laws. Also, AUL reserves the
right to defer the payment of amounts withdrawn from the Fixed
Interest Account for a period of 6 months after AUL receives
written instructions at its Home Office.
Withdrawal Benefits:
--------------------
(a) Except as stated below, a Participant, upon submitting a proper
written request to AUL at its Home Office, may direct AUL to withdraw
all or a portion of the Account Value (subject to the Withdrawal
Charge) of his Participant Account.
(b) Withdrawals from a Participant Account's share of an Investment Option
may not be made in an amount less than the smaller of $500 or the
Participant Account's entire share of the Investment Option. If a
withdrawal reduces the Participant Account's share of an Investment
Option to less than $500, such remaining share shall also be
withdrawn.
(c) A withdrawal request shall be effective as of the close of business on
the Valuation Date that AUL receives a proper written withdrawal
request at its Home Office, provided that AUL receives such request by
4:00 p.m. E.S.T. on that Valuation Date. If such request is received
after 4:00 p.m. E.S.T., such request shall be effective as of the
close of business on the next succeeding Valuation Date.
(d) The Account Value to be applied shall be determined as of the
applicable Valuation Date determined in (c) above. If the entire
Account Value of a Participant Account is withdrawn, the Participant
shall be paid the Withdrawal Value. If the Participant requests that a
specified percentage or dollar amount be paid to the Participant, AUL
shall withdraw from the Participant Account an amount equal to the
dollar amount to be paid divided by the difference between 1 and the
decimal equivalent of the applicable Withdrawal Charge.
Notwithstanding the previous
sentence, in any contract year the Participant may withdraw up to 10%
of the Account Value of his Participant Account determined as of the
last contract anniversary preceding the request for the withdrawal
without application of any Withdrawal Charge, provided that 12 months
have elapsed from the date that the Participant's first Contribution
is credited to his Participant Account by AUL to the date of such
withdrawal.
(e) AUL shall pay such amount in a cash lump sum to the Participant. Such
cash lump sum will be paid within 7 days from the date that AUL
receives the withdrawal request at its Home Office, except as AUL may
be permitted to defer such payment of amounts withdrawn from the
Variable Account in accordance with appropriate provisions of the
federal securities laws. AUL reserves the right to defer the payment
of amounts withdrawn from the Fixed Interest Account for a period of
up to 6 months after AUL receives the withdrawal request at its Home
Office.
(f) Withdrawals from a Participant Account's share of the Fixed Interest
Account shall be made on a first-in/first-out basis so that all or a
portion of the amounts credited to the Participant Account's share of
the Fixed Interest Account (other than amounts which are prohibited
from being distributed because provision (a)(1) above is not met)
which have been on deposit for the longest period of time, as well as
the interest credited thereon, shall be withdrawn first.
VALUATIONS
All assets of each Portfolio shall be valued as provided in the prospectus for
the Mutual Fund as such prospectus may be amended or supplemented from time to
time.
Any amounts that are allocated to any Investment Account on behalf of a
Participant shall be credited to his Participant Account in the form of
Accumulation Units on the basis of the value of such units in that Investment
Account as of the end of the Valuation Period on which such amounts are received
by AUL at its Home Office. Such crediting shall be made separately for amounts
allocated to each Investment Account. The number of Accumulation Units in each
Investment Account credited to each Participant Account as of any Valuation
Period shall be determined by dividing the amounts allocated to that Investment
Account for that Participant Account as of such Valuation Period by the dollar
value of one Accumulation Unit in that Investment Account as of the close of
business on the applicable Valuation Period. The number of Accumulation Units
thus determined shall not be changed by any subsequent change in the dollar
value of the Accumulation Units.
The value of an Accumulation Unit in each Investment Account was established at
$1.00 as of April 12, 1990. The value of an Accumulation Unit in each Investment
Account as of any Valuation Period thereafter is equal to the dollar value of
one Accumulation Unit in that Investment Account as of the immediately preceding
Valuation Period multiplied by the Net Investment Factor, as defined below, for
that Investment Account for the current Valuation Period. The value of an
Accumulation Unit for each Investment Account shall be determined for each
Valuation Period before giving effect to any additions, withdrawals, or
transfers. After such determination, the additions, withdrawals, or transfers
which are effective as of that day shall then be made.
The Net Investment Factor for each Investment Account for any Valuation Period
is determined by dividing (a) by (b), and then subtracting (c) from that result,
where:
(a) is equal to:
(1) the net asset value of a Portfolio share held in the Investment
Account determined as of the end of the current Valuation Period,
plus
(2) the per share amount of any dividend or other distribution, if
any, paid by the Portfolio during the current Valuation Period,
plus or minus
(3) any credit or charge for any taxes paid or reserved for by AUL
during the current Valuation Period which are determined by AUL
to be attributable to operation of the Investment Account;
(b) is the net asset value of a Portfolio share held in the Investment
Account determined as of the end of the immediately preceding
Valuation Period; and
(c) is a daily charge factor determined by AUL to reflect the charges
assessed against the assets of the Investment Account for mortality
and expense risks.
The value of each Participant Account's share of any Investment Account as of
any Valuation Date shall be determined by multiplying the Participant Account's
aggregate Accumulation Units in that Investment Account as of such Valuation
Date by the dollar value of one Accumulation Unit in that Investment Account as
of such Valuation Date. The value of the Participant Account's share of any
Investment Account as of any date other than a Valuation Date is equal to the
value of its share of that Investment Account as of the immediately preceding
Valuation Date.
OTHER CHARGES
AUL shall deduct a daily mortality risk charge and a daily expense risk charge
equal to the daily equivalent of an annual combined charge of 1.25% against the
average daily net assets of each Investment Account.
The Mutual Fund shall pay an investment advisory fee and certain other expenses,
which may include its operational and organizational expenses, as described in
the current prospectus as it may be amended or supplemented from time to time.
These expenses may vary from year to year. The net asset value of each Portfolio
reflects such investment advisory fee and other expenses which are deducted from
the assets of such Portfolio.
AUL shall deduct an administrative charge per Contract year quarter equal to the
lesser of $7.50 or 0.5% of the Account Value on the last day of each such
quarter from each Participant Account in existence on such day for so long as
the Participant Account is in effect during the Accumulation Period. This charge
(not to exceed $100 per contract year quarter) is to be prorated among each
subaccount of the Participant Account which corresponds to each Investment
Option utilized under the Contract by that Participant Account.
AUL reserves the right to deduct a charge (not to exceed $25) for each transfer
transaction, to deduct the appropriate premium tax charge, or to deduct the
appropriate charges for federal, state, or local income taxes incurred by AUL
that are attributable to the Variable Account and its Investment Accounts.
RIGHT OF AUL TO CHANGE CERTAIN PROVISIONS
AUL reserves the right to amend the Contract at any time, without the consent of
the Contractholder, Participants, or any other person or entity, to make any
change to any provisions of the Contract (except the Table of Immediate
Annuities) to comply with, or give the Contractholder or Participants the
benefit of, any provisions of federal or state laws, regulations, or rulings.
MISCELLANEOUS
Ownership
----------
The Contractholder is the owner of the Contract and may agree with AUL to any
change or amendment of it without the consent of any other person or entity,
except that no such change or amendment shall adversely affect the benefits to
be provided by Contributions made prior to the effective date of such change or
amendment unless the consent of all Participants is obtained.
AUL shall have no obligation to make any payment or distribution except as
specified in the Contract.
(b) is the net asset value of a Portfolio share held in the Investment
Account determined as of the end of the immediately preceding
Valuation Period; and
(c) is a daily charge factor determined by AUL to reflect the charges
assessed against the assets of the Investment Account for mortality
and expense risks.
The value of each Participant Account's share of any Investment Account as of
any Valuation Date shall be determined by multiplying the Participant Account's
aggregate Accumulation Units in that Investment Account as of such Valuation
Date by the dollar value of one Accumulation Unit in that Investment Account as
of such Valuation Date. The value of the Participant Account's share of any
Investment Account as of any date other than a Valuation Date is equal to the
value of its share of that Investment Account as of the immediately preceding
Valuation Date.
OTHER CHARGES
AUL shall deduct a daily mortality risk charge and a daily expense risk charge
equal to the daily equivalent of an annual combined charge of 1.25% against the
average daily net assets of each Investment Account.
The Mutual Fund shall pay an investment advisory fee and certain other expenses,
which may include its operational and organizational expenses, as described in
the current prospectus as it may be amended or supplemented from time to time.
These expenses may vary from year to year. The net asset value of each Portfolio
reflects such investment advisory fee and other expenses which are deducted from
the assets of such Portfolio.
AUL shall deduct an administrative charge per Contract year quarter equal to the
lesser of $7.50 or 0.5% of the Account Value on the last day of each such
quarter from each Participant Account in existence on such day for so long as
the Participant Account is in effect during the Accumulation Period. This charge
is to be prorated among each subaccount of the Participant Account which
corresponds to each Investment Option utilized under the Contract by that
Participant Account.
AUL reserves the right to deduct a charge for each transfer transaction, to
deduct the appropriate premium tax charge, or to deduct the appropriate charges
for federal, state, or local income taxes incurred by AUL that are attributable
to the Variable Account and its Investment Accounts.
RIGHT OF AUL TO CHANGE CERTAIN PROVISIONS
AUL reserves the right to amend the Contract at any time, without the consent of
the Contractholder, Participants, or any other person or entity, to make any
change to any provisions of the Contract to comply with, or give the
Contractholder or Participants the benefit of, any provisions of federal or
state laws, regulations, or rulings.
MISCELLANEOUS
Ownership
---------
The Contractholder is the owner of the Contract and may agree with AUL to any
change or amendment of it without the consent of any other person or entity,
except that no such change or amendment shall adversely affect the benefits to
be provided by Contributions made prior to the effective date of such change or
amendment unless the consent of all Participants is obtained.
AUL shall have no obligation to make any payment or distribution except as
specified in the Contract.
(b) is the net asset value of a Portfolio share held in the Investment
Account determined as of the end of the immediately preceding
Valuation Period; and
(c) is a daily charge factor determined by AUL to reflect the charges
assessed against the assets of the Investment Account for mortality
and expense risks.
The value of each Participant Account's share of any Investment Account as of
any Valuation Date shall be determined by multiplying the Participant Account's
aggregate Accumulation Units in that Investment Account as of such Valuation
Date by the dollar value of one Accumulation Unit in that Investment Account as
of such Valuation Date. The value of the Participant Account's share of any
Investment Account as of any date other than a Valuation Date is equal to the
value of its share of that Investment Account as of the immediately preceding
Valuation Date.
OTHER CHARGES
AUL shall deduct a daily mortality risk charge and a daily expense risk charge
equal to the daily equivalent of an annual combined charge of 1.25% against the
average daily net assets of each Investment Account.
The Mutual Fund shall pay an investment advisory fee and certain other expenses,
which may include its operational and organizational expenses, as described in
the current prospectus as it may be amended or supplemented from time to time.
These expenses may vary from year to year. The net asset value of each Portfolio
reflects such investment advisory fee and other expenses which are deducted from
the assets of such Portfolio.
AUL shall deduct an administrative charge per Contract year quarter equal to the
lesser of $7.50 or 0.5% of the Account Value on the last day of each such
quarter from each Participant Account in existence on such day for so long as
the Participant Account is in effect during the Accumulation Period. This charge
is to be prorated among each subaccount of the Participant Account which
corresponds to each Investment Option utilized under the Contract by that
Participant Account. However, in no event shall any portion of the annual charge
for a Contract Year attributable to the Fixed Interest Account subaccount of the
Participant Account exceed the amount of the Contributions allocated to such
Fixed Interest Account subaccount for the Participant during such Contract Year
plus interest earned during such Contract Year on amounts held in such Fixed
Interest Account subaccount.
AUL reserves the right to deduct a charge for each transfer transaction, to
deduct the appropriate premium tax charge, or to deduct the appropriate charges
for federal, state, or local income taxes incurred by AUL that are attributable
to the Variable Account and its Investment Accounts.
RIGHT OF AUL TO CHANGE CERTAIN PROVISIONS
AUL reserves the right to amend the Contract at any time, without the consent of
the Contractholder,
Participants, or any other person or entity, to make any change to any
provisions of the Contract to comply with, or give the Contractholder or
Participants the benefit of, any provisions of federal or state laws,
regulations, or rulings.
MISCELLANEOUS
Ownership
---------
The Contractholder is the owner of the Contract and may agree with AUL to any
change or amendment of it without the consent of any other person or entity,
except that no such change or amendment shall adversely affect the benefits to
be provided by Contributions made prior to the effective date of such change or
amendment unless the consent of all Participants is obtained.
AUL shall have no obligation to make any payment or distribution except as
specified in the Contract.
Tax Status: AUL does not make any guarantee regarding the federal, state, or
local tax status of the Contract, any Participant Account established
thereunder, or any transaction involving the Contract.
Essential Data: The Participant shall furnish to AUL whatever information is
necessary to establish the eligibility and amount of annuity or other benefit in
each instance.
Reliance: AUL shall be fully protected in relying on any information furnished
by the Contractholder, by any person or persons certified to AUL by the
Contractholder as acting on its behalf, or by a Participant. AUL need not
inquire as to the accuracy or completeness thereof.
Misstatement of Essential Data: If it has been found that any essential data
pertaining to any person has been omitted or misstated, including, but not
limited to, a misstatement as to the age of an annuitant, an equitable
adjustment shall be made as soon as possible so as to provide the annuity to
which that person is entitled.
Annuity Certificates: AUL shall issue to each person for whom an annuity is
purchased from AUL a certificate setting forth the amount and terms of payment
of the annuity.
Election, Notice, or Direction Requirements: Wherever in the Contract reference
is made to the Contractholder or Participant making a request or giving notice
or direction, such request, notice, or direction must be in writing and must be
submitted to, and received by, AUL at its Home Office before becoming effective,
unless the Participant is otherwise directed by AUL.
Quarterly Statement of Account Value: As soon as reasonably possible after the
end of each contract year quarter, AUL shall prepare a statement of the Account
Value of each Participant Account existing under the Contract.
Sex and Number: Whenever the context of this Certificate so requires, the plural
includes the singular, the singular the plural, and the masculine the feminine.
Facility of Payment: If any Participant, contingent annuitant, or beneficiary is
legally incapable of giving a valid receipt for any payment due him, and no
guardian has been appointed, AUL may make such payment to the person or persons
who have assumed the care and principal support of such Participant, contingent
annuitant, or beneficiary. Also, AUL may make payment directly to any person or
entity when directed to do so in writing by the Participant. Any payment made by
AUL will fully discharge AUL to the extent of such payment.
Insulation from Liability: The assets of the Variable Account are not chargeable
with liabilities arising out of any other business AUL may conduct.
Voting:
-------
(a) AUL is the legal owner of the shares of the Mutual Fund held by the
Investment Accounts of the Variable Account. AUL shall exercise voting rights
attributable to the shares of each Portfolio held in the Investment Accounts at
any regular and special meetings of the shareholders of the Mutual Fund on
matters requiring shareholder voting under The Investment Company Act of l940 or
other applicable laws. AUL shall exercise these voting rights based on
instructions received from persons having the voting interest in corresponding
Investment Accounts of the Variable Account. However, if The Investment Company
Act of l940 or any regulations thereunder should be amended, or if the present
interpretation thereof should change, and as a result AUL determines
that it is permitted to vote the shares of the Mutual Fund in its own right, it
Tax Status: AUL does not make any guarantee regarding the federal, state, or
local tax status of the Contract, any Participant Account established
thereunder, or any transaction involving the Contract.
Essential Data: The Participant shall furnish to AUL whatever information is
necessary to establish the eligibility and amount of annuity or other benefit in
each instance.
Reliance: AUL shall be fully protected in relying on any information furnished
by the Contractholder, by any person or persons certified to AUL by the
Contractholder as acting on its behalf, or by a Participant. AUL need not
inquire as to the accuracy or completeness thereof.
Misstatement of Essential Data: If it has been found that any essential data
pertaining to any person has been omitted or misstated, including, but not
limited to, a misstatement as to the age of an annuitant, there shall be an
equitable adjustment so as to provide the annuity to which that person is
entitled. If this misstatement is revealed after periodic annuity payments have
begun, any underpayment will immediately be disbursed by AUL to the annuitant.
Any overpayments will be deducted from subsequent payments, until AUL recovers
the overpayment.
Annuity Certificates: AUL shall issue to each person for whom an annuity is
purchased from AUL a certificate setting forth the amount and terms of payment
of the annuity.
Election, Notice, or Direction Requirements: Wherever in the Contract reference
is made to the Contractholder or Participant making a request or giving notice
or direction, such request, notice, or direction must be in writing and must be
submitted to, and received by, AUL at its Home Office before becoming effective,
unless the Participant is otherwise directed by AUL.
Quarterly Statement of Account Value: As soon as reasonably possible after the
end of each contract year quarter, AUL shall prepare a statement of the Account
Value of each Participant Account existing under the Contract.
Sex and Number: Whenever the context of this Certificate so requires, the plural
includes the singular, the singular the plural, and the masculine the feminine.
Facility of Payment: If any Participant, contingent annuitant, or beneficiary is
legally incapable of giving a valid receipt for any payment due him, and no
guardian has been appointed, AUL may make such payment to the person or persons
who have assumed the care and principal support of such Participant, contingent
annuitant, or beneficiary. Also, AUL may make payment directly to any person or
entity when directed to do so in writing by the Participant. Any payment made by
AUL will fully discharge AUL to the extent of such payment.
Insulation from Liability: The assets of the Variable Account are not chargeable
with liabilities arising out of any other business AUL may conduct.
Voting:
-------
(a) AUL is the legal owner of the shares of the Mutual Fund held by the
Investment Accounts of the Variable Account. AUL shall exercise voting
rights attributable to the shares of each Portfolio held in the Investment
Accounts at any regular and special meetings of the shareholders of the
Mutual Fund on matters requiring shareholder voting under The Investment
Company Act of l940
or other applicable laws. AUL shall exercise these voting rights based on
instructions received from persons having the voting interest in
corresponding Investment Accounts of the Variable Account. However, if The
Investment Company Act of l940 or any regulations thereunder should be
amended, or if the present interpretation thereof should change, and as a
result AUL determines that it is permitted to vote the shares of the Mutual
Fund in its own right, it may elect to do so. AUL will vote shares of any
Investment Account, if any, that it owns beneficially in its own
discretion, except that if the Mutual Fund offers its shares to any
insurance company separate account that funds variable life insurance
contracts or if otherwise required by applicable law, AUL will vote its own
shares in the same proportion as the voting instructions that are received
in a timely manner for contracts and Participant Accounts participating in
the Investment Account.
(b) The persons having the voting interest under the Contract are the
Participants.
(c) Voting rights attributable to the Contract for which no timely voting
instructions are received will be voted by AUL in the same proportion as
the voting instructions which are received in a timely manner for all
contracts and Participant Accounts participating in that Investment
Account.
(d) Neither the Variable Account nor AUL is under any duty to inquire as to the
instructions received or the authority of Contractholders, Participants, or
others to instruct the voting of Mutual Fund shares.
(e) Every person or entity having such voting rights shall receive such reports
or prospectuses concerning the Variable Account or the Mutual Fund as may
be required by applicable federal law.
Nonforfeitability and Nontransferability: The entire Withdrawal Value of a
Participant Account under the Contract shall be nonforfeitable at all times. No
sum payable under the Contract with respect to a Participant may be sold,
assigned, discounted, or pledged as collateral for a loan or as security for the
performance of an obligation or for any other purpose to any person or entity
other than AUL. In addition, to the extent permitted by law, no such sum shall
in any way be subject to legal process requiring the payment of any claim
against the payee.
Acceptance of Contributions: AUL shall have the right to refuse to accept
Contributions as of the last day of the second month following the date that
written notice to this effect is delivered to any contributing Participant or to
any Participant for whom Contributions are being made.
P-12868.12
TABLE OF IMMEDIATE ANNUITIES
MONTHLY INCOME PER $1,000 OF ACCOUNT VALUE
EXACT LIFE 10 YEAR CERTAIN
AGE ANNUITY AND LIFE ANNUITY
45 4.0025 3.9934
46 4.0438 4.0335
47 4.0872 4.0756
48 4.1330 4.1199
49 4.1813 4.1665
50 4.2322 4.2156
51 4.2859 4.2672
52 4.3426 4.3216
53 4.4026 4.3789
54 4.4661 4.4394
55 4.5333 4.5032
56 4.6045 4.5705
57 4.6801 4.6416
58 4.7604 4.7167
59 4.8458 4.7961
60 4.9368 4.8801
61 5.0338 4.9689
62 5.1373 5.0629
63 5.2477 5.1624
64 5.3655 5.2677
65 5.4913 5.3789
66 5.6260 5.4965
67 5.7703 5.6207
68 5.9255 5.7518
69 6.0929 5.8901
70 6.2737 6.0357
71 6.4695 6.1887
72 6.6816 6.3489
73 6.9116 6.5160
74 7.1603 6.6894
75 7.4293 6.8682
83IAMF4-4
10YRPROJ
P-12868.13
ADDENDUM
TO THE
CERTIFICATE
ISSUED TO THE PARTICIPANT IN THE
AUL AMERICAN SERIES
MULTIPLE-FUND GROUP VARIABLE ANNUITY CONTRACT (THE CONTRACT)
ISSUED BY
AMERICAN UNITED LIFE INSURANCE COMPANY (AUL)
The Effective Date of this Addendum is the effective date of the corresponding
Amendment to the Contract.
Pursuant to this Addendum, the Participant's Certificate under the Contract is
hereby amended as follows:
By deleting the first paragraph of "Other Charges" and by substituting the
following first paragraph in lieu thereof:
OTHER CHARGES
AUL shall deduct a daily mortality risk charge and a daily expense risk charge
equal to the daily equivalent of an annual combined charge of 1.25% against the
average daily net assets of each Investment Account. Additionally, AUL shall
multiply the portions (as delineated in the table below) of the total month-end
Account Value in the Variable Account of all Participants in the contract by the
monthly equivalent of the corresponding Annual Variable Investment Plus Factors
appearing in the table below. These products shall be added together, and the
sum shall be divided by the total month-end Account Value in the Variable
Account of all Participants in the contract. This percentage shall be multiplied
by the month-end Account Value of each Participant in each Investment Account.
The resulting amount for each Investment Account shall be added to the
Participant's Account Value for that Investment Account.
Contract's Month-End Account Value in Annual Variable Investment Plus Factor
Variable Account
First $500,000 0.00%
Next $500,000 0.25%
Next $2 million 0.35%
Next $2 million 0.40%
Next $1 million 0.50%
Over $6 million 0.75%
AUL
By /s/ Xxxxxxx X. Xxxxx
Secretary
AUL XXXXXXXX.XXX.XXX
ADDENDUM
TO THE
CERTIFICATE
ISSUED TO THE PARTICIPANT IN THE
AUL AMERICAN SERIES
XXX MULTIPLE-FUND
GROUP VARIABLE ANNUITY CONTRACT (THE CONTRACT)
ISSUED BY
AMERICAN UNITED LIFE INSURANCE COMPANY (AUL)
The Effective Date of this Addendum is the effective date of the corresponding
Amendment to the Contract.
Pursuant to this Addendum, the Participant's Certificate under the Contract is
hereby amended as follows:
By adding the following to the face page of the Certificate:
The Contract is a SIMPLE XXX.
By deleting the definition of "Contributions" in the Participant's Certificate
under the Contract and by substituting the following definition in lieu thereof:
DEFINITIONS
"Contributions" means, subject to the restrictions of the following paragraph,
amounts paid in cash to AUL from time to time by, or on behalf of, a
Participant, including amounts transferred to the Contract from another SIMPLE
XXX of the Participant, which are credited to his Participant Account maintained
under the Contract. The legal title to, and ownership of, such amounts is vested
solely in the Participant. The Contract is established for the exclusive benefit
of the Participant or his beneficiaries.
The SIMPLE XXX will accept only cash Contributions made on behalf of the
Participant pursuant to the terms of a SIMPLE XXX Plan described in section
408(p) of the Internal Revenue Code. A rollover Contribution or a transfer of
assets from another SIMPLE XXX of the Participant will also be accepted. No
other Contributions will be accepted.
By deleting item (b) as it appears under the heading indicated below in the
Participant's Certificate under the Contract and by substituting the following
item (b) in lieu thereof, and by adding the following items (i) and (g) under
the headings indicated below:
CONTRIBUTIONS, INVESTMENTS AND TRANSFERS
Contributions:
--------------
(b) Except for amounts rolled over or transferred from another SIMPLE XXX of
the Participant, Contributions during a Participant's taxable year (which
is presumed to be a calendar year) may not exceed the amounts allowed by
Code Section 408(p) (as adjusted).
(i) If Contributions made on behalf of the Participant pursuant to a
SIMPLE XXX Plan maintained by the Participant's employer are received
directly by AUL from the employer, AUL will provide the employer with
the summary description required by section 408(1)(2) of the Internal
Revenue Code.
BENEFITS
Withdrawal Benefits:
(g) Prior to the expiration of the 2-year period beginning on the date the
Participant first participated in any SIMPLE XXX Plan maintained by the
Participant's employer, any rollover or transfer by the Participant of
funds from the SIMPLE XXX must be made to another SIMPLE XXX of the
Participant. Any distribution of funds to the Participant during this
2-year period may be subject to a 25-percent additional tax if the
Participant does not roll over the amount distributed into a SIMPLE XXX.
After the expiration of this 2-year period, the Participant may roll over
or transfer funds to any XXX of the Participant that is qualified under
section 408(a) or (b) of the Internal Revenue Code.
AUL
By: /s/ Xxxxxxx X. Xxxxx
Secretary
P-12868.ADD.SIMP
ADDENDUM
TO THE
CERTIFICATE
ISSUED TO THE PARTICIPANT IN THE
AUL AMERICAN SERIES
XXX MULTIPLE-FUND GROUP VARIABLE ANNUITY
CONTRACT NUMBER GA XX,XXX (THE CONTRACT)
ISSUED BY
AMERICAN UNITED LIFE INSURANCE COMPANY (AUL)
TO
ABC COMPANY (THE CONTRACTHOLDER)
The Effective Date of this Amendment is the date that it is signed by AUL.
Pursuant to this Addendum, the corresponding provisions of the Participant's
Certificate under the Contract are hereby deleted and the following provisions
are substituted in lieu thereof:
"Investment Account" means each subaccount of the Variable Account made
available to the Contractholder by AUL and identified in Schedule A of the
Contract. Schedule A of the Contract may be amended by AUL from time to time as
described in "Addition, Deletion, or Substitution of Investments." Amounts
allocated to any Investment Account identified in Schedule A of the Contract
shall be invested in the shares of the corresponding Mutual Fund Portfolio
listed in the current prospectus for the Variable Account.
"Mutual Fund" means the AUL American Series Fund, Inc., a diversified, open-end
management investment company registered under The Investment Company Act of
l940, and any other such open-end management investment company made available
by AUL.
"Portfolio" means a series of a particular Mutual Fund as described in that
prospectus for that Mutual Fund, as such prospectus may be amended or
supplemented from time to time.
Addition, Deletion, or Substitution of Investments:
(a) AUL reserves the right, subject to compliance with applicable law, to make
additions to, deletions from, substitution for, or combinations of, the
securities that are held by the Variable Account or any Investment Account
or that the Variable Account or any Investment Account may purchase. AUL
reserves the right to eliminate the shares of any of the eligible
Portfolios and to substitute shares of, or interests in, another Portfolio
of the AUL American Series Fund, Inc., of another open-end, registered
investment company, or other investment vehicle, for shares already
purchased or to be purchased in the future under the Contract, if the
shares of any or all eligible Portfolios are no longer available for
investment, or if, in AUL's judgment, further investment in any or all
eligible Portfolios becomes inappropriate in view of the purposes of the
Variable Account or the contract. Where required under applicable law, AUL
will not substitute any shares in the Variable Account or any Investment
Account without notice, Participant approval, or prior approval of the
Securities and Exchange Commission or a state insurance commissioner, and
without following the filing or other procedures established by applicable
state insurance regulators. Nothing contained herein shall prevent the
Variable Account from purchasing other securities for other series or
classes of contracts, or from effecting a conversion between series or
classes of contracts on the basis of requests made by a majority of
participants or as permitted by federal law.
P-12868.ADD.1
(b) AUL reserves the right to establish additional Investment Accounts, each of
which would invest in the corresponding Mutual Fund Portfolio listed in the
current prospectus for the Variable Account, or in other securities or
investment vehicles. AUL reserves the right to eliminate or combine
existing Investment Accounts if, in its sole discretion, marketing, tax, or
investment conditions so warrant. AUL also reserves the right to provide
other Investment Options under the Contract at any time. Subject to any
required regulatory approvals, AUL reserves the right to transfer assets
from any Investment Account to another separate account of AUL or
Investment Account.
(c) In the event of any such substitution or change, AUL may, by appropriate
amendment, make such changes in the Contract as may be necessary or
appropriate to reflect such substitution or change. If deemed by AUL to be
in the best interests of persons or entities having voting rights under the
Contract, the Variable Account may be operated as a management investment
company under The Investment Company Act of 1940 or any other form
permitted by law, it may be deregistered in the event such registration is
no longer required under The Investment Company Act of 1940, or it may be
combined with other separate accounts of AUL or an affiliate thereof. AUL
may take such action as is necessary to comply with, or to obtain,
exemptions from the Securities and Exchange Commission with regard to the
Variable Account. Subject to compliance with applicable law, AUL also may
combine one or more Investment Accounts and may establish a committee,
board, or other group to manage one or more aspects of the operation of the
Variable Account.
Withdrawal Benefits:
--------------------
(d) The Account Value to be applied shall be determined as of the applicable
Valuation Date determined in (c) above. If the entire Account Value of a
Participant Account is withdrawn, the Participant shall be paid the
Withdrawal Value. If the Participant requests that a specified percentage
or dollar amount be paid to the Participant, AUL shall withdraw from the
Participant Account an amount equal to the dollar amount to be paid divided
by the difference between 1 and the decimal equivalent of the applicable
Withdrawal Charge. Notwithstanding the previous sentence, in the first
Contract year in which a Participant Account is established, and in the
next succeeding Contract year, the Participant may withdraw from that
Participant Account up to 10% of the sum of the Account Value of that
Participant Account, determined as of the last Contract anniversary
preceding the request for the withdrawal, plus Contributions made during
the applicable Contract year, without application of any Withdrawal Charge.
In any subsequent Contract year, the Participant may withdraw from that
Participant Account up to 10% of the Account Value of that Participant
Account, determined as of the last Contract anniversary preceding the
request for the withdrawal, without application of any Withdrawal Charge.
VALUATIONS
All assets of each Portfolio shall be valued as provided in the prospectus for
the applicable Mutual Fund as such prospectus may be amended or supplemented
from time to time.
Any amounts that are allocated to any Investment Account on behalf of a
Participant shall be credited to his Participant Account in the form of
Accumulation Units on the basis of the value of such units in that Investment
Account as of the end of the Valuation Period on which such amounts are received
by AUL at its Home Office. Such crediting shall be made separately for amounts
allocated to each Investment Account. The number of Accumulation Units in each
Investment Account credited to each Participant Account as of any Valuation
Period shall be determined by dividing the amounts allocated to that
Investment Account for that Participant Account as of such Valuation Period by
the dollar value of one Accumulation Unit in that Investment Account as of the
close of business on the applicable Valuation Period. The number of Accumulation
Units thus determined shall not be changed by any subsequent change in the
dollar value of the Accumulation Units.
The value of an Accumulation Unit in the AUL American Equity, Bond, Money
Market, and Managed Investment Accounts was established at $1.00 as of April 12,
1990. The value of an Accumulation Unit in any other Investment Account
available under the Contract shall be established at $1.00 as of the date of the
first deposit to such Investment Account. The value of an Accumulation Unit in
each Investment Account as of any Valuation Period thereafter is equal to the
dollar value of one Accumulation Unit in that Investment Account as of the
immediately preceding Valuation Period multiplied by the Net Investment Factor,
as defined below, for that Investment Account for the current Valuation Period.
The value of an Accumulation Unit for each Investment Account shall be
determined for each Valuation Period before giving effect to any additions,
withdrawals, or transfers. After such determination, the additions, withdrawals,
or transfers which are effective as of that day shall then be made.
The Net Investment Factor for each Investment Account for any Valuation Period
is determined by dividing (a) by (b), and then subtracting (c) from that result,
where:
(a) is equal to:
(1) the net asset value of a Portfolio share held in the Investment
Account determined as of the end of the current Valuation Period, plus
(2) the per share amount of any dividend or other distribution, if any,
paid by the Portfolio during the current Valuation Period, plus or
minus
(3) any credit or charge for any taxes paid or reserved for by AUL during
the current Valuation Period which are determined by AUL to be
attributable to operation of the Investment Account;
(b) is the net asset value of a Portfolio share held in the Investment Account
determined as of the end of the immediately preceding Valuation Period; and
(c) is a daily charge factor determined by AUL to reflect the charges assessed
against the assets of the Investment Account for mortality and expense
risks, as authorized under "Other Charges" below.
The value of each Participant Account's share of any Investment Account as of
any Valuation Date shall be determined by multiplying the Participant Account's
aggregate Accumulation Units in that Investment Account as of such Valuation
Date by the dollar value of one Accumulation Unit in that Investment Account as
of such Valuation Date. The value of the Participant Account's share of any
Investment Account as of any date other than a Valuation Date is equal to the
value of its share of that Investment Account as of the immediately preceding
Valuation Date.
OTHER CHARGES
AUL shall deduct a daily mortality risk charge and a daily expense risk charge
equal to the daily equivalent of an annual combined charge of 1.25% against the
average daily net assets of each Investment Account. These charges shall be
reflected in the Net Investment Factor as defined above.
P-12868.ADD.2
A Mutual Fund shall pay any investment advisory fee and certain other expenses,
which may include its operational and organizational expenses, as described in
the current prospectus for that Mutual Fund as it may be amended or supplemented
from time to time. These expenses may vary from year to year. The net asset
value of each Portfolio reflects such investment advisory fee and other expenses
which are deducted from the assets of such Portfolio.
AUL shall deduct an administrative charge per Contract year quarter equal to the
lesser of $7.50 or 0.5% of the Account Value on the last day of each such
quarter from each Participant Account in existence on such day for so long as
the Participant Account is in effect during the Accumulation Period. This charge
is to be prorated among each subaccount of the Participant Account which
corresponds to each Investment Option utilized under the Contract by that
Participant Account.
AUL reserves the right to deduct a charge for each transfer transaction, to
deduct the appropriate premium tax charge, or to deduct the appropriate charges
for federal, state, or local income taxes incurred by AUL that are attributable
to the Variable Account and its Investment Accounts.
Voting:
-------
(a) AUL is the legal owner of the shares of a Mutual Fund held by the
Investment Accounts of the Variable Account. AUL shall exercise voting
rights attributable to the shares of each Portfolio held in the Investment
Accounts at any regular and special meetings of the shareholders of a
Mutual Fund on matters requiring shareholder voting under The Investment
Company Act of l940 or other applicable laws. AUL shall exercise these
voting rights based on instructions received from persons having the voting
interest in corresponding Investment Accounts of the Variable Account.
However, if The Investment Company Act of l940 or any regulations
thereunder should be amended, or if the present interpretation thereof
should change, and as a result AUL determines that it is permitted to vote
the shares of a Mutual Fund in its own right, it may elect to do so. AUL
will vote shares of any Investment Account, if any, that it owns
beneficially in its own discretion, except that if a Mutual Fund offers its
shares to any insurance company separate account that funds variable life
insurance contracts or if otherwise required by applicable law, AUL will
vote its own shares in the same proportion as the voting instructions that
are received in a timely manner for contracts and Participant Accounts
participating in the Investment Account.
(b) The persons having the voting interest under the Contract are the
Participants. Unless otherwise required by applicable law, the number of
Mutual Fund shares of a particular Portfolio as to which voting
instructions may be given to AUL is determined by dividing the value of all
of the Accumulation Units of the corresponding Investment Account
attributable to this contract on a particular date by the net asset value
per share of that Portfolio as of the same date. Fractional votes will be
counted. The number of votes as to which voting instructions may be given
will be determined as of the date coincident with the date established by
the applicable Mutual Fund for determining shareholders eligible to vote at
the meeting of that Mutual Fund. If required by the Securities and Exchange
Commission, AUL reserves the right to determine in a different fashion the
voting rights attributable to the shares of a Mutual Fund.
(c) Voting rights attributable to the Contract for which no timely voting
instructions are received will be voted by AUL in the same proportion as
the voting instructions which are received in a timely manner for all
contracts and Participant Accounts participating in that Investment
Account.
(d) Neither the Variable Account nor AUL is under any duty to inquire as to the
instructions received or the authority of Contractholders, Participants, or
others to instruct the voting of Mutual Fund shares.
(e) Every person or entity having such voting rights shall receive such reports
or prospectuses concerning the Variable Account or a Mutual Fund as may be
required by applicable federal law.
AMERICAN UNITED LIFE INSURANCE COMPANY
By: /s/ Xxxxxxx X. Xxxxx
Secretary
AMENDMENT
TO THE
AUL AMERICAN SERIES CONTRACT
XXX MULTIPLE-FUND GROUP VARIABLE ANNUITY
CONTRACT NUMBER GA 73,244 (THE CONTRACT)
ISSUED BY
AMERICAN UNITED LIFE INSURANCE COMPANY (AUL)
TO
BANK ONE AS CUSTODIAN ON BEHALF OF ANY PERSON ELIGIBLE TO
PARTICIPATE IN AN XXX 408 INDIVIDUAL RETIREMENT ANNUITY WHO
BECOMES A PARTICIPANT UNDER THIS CONTRACT AND SUCH SUCCESSOR
CUSTODIAN AS MAY BE APPOINTED FROM TIME TO TIME (THE
CONTRACTHOLDER)
EFFECTIVE DATE: MAY 1, 1993
AUL and the Contractholder hereby agree, by signing below, that the Contract is
hereby amended by deleting the corresponding Sections and Subsections of the
Contract, if any, and by inserting the following Sections and Subsections in
lieu thereof:
1.12 "Fixed Interest Account" means that fund of AUL's general asset
account in which all or a portion of a Participant's Account Value may be held
for accumulation at the Current Rates of Interest.
(a) Contributions allocated, or amounts transferred (excluding transfers
discussed in (c) below), to the Fixed Interest Account shall be
credited to the open interest pocket and shall earn interest at the
Current Rate of Interest in effect for that interest pocket. Such
Contributions or transferred amounts, during the time that the Current
Rate of Interest exceeds the Guaranteed Rate of Interest, shall earn
interest at such credited Current Rate of Interest for at least 1
year. After such 1-year period, AUL reserves the right to declare, at
any time, a new Current Rate of Interest to be applied to funds held
within that interest pocket. Any such new Current Rate of Interest
must remain in effect for that interest pocket for at least 1 year.
(b) If AUL changes the Current Rate of Interest for such new Contributions
or new amounts transferred to the Fixed Interest Account, the previous
open interest pocket shall close, and any such Contributions or
amounts transferred on or after the effective date of such change
shall be credited to a new open interest pocket and shall earn
interest at the new Current Rate of Interest in effect for such new
open interest pocket. Therefore, at any given time, various funds
credited to a Participant Account and allocated to the Fixed Interest
Account may be earning interest at different Current Rates of Interest
for different periods of time.
(c) Any contribution to another AUL P-12867 contract which is allocated to
the Fixed Interest Account and which is transferred to this contract
(plus gains and minus losses thereon) and allocated to the Fixed
Interest Account, beginning with the date of such transfer, shall be
credited with the
P-12867.OI.AMD
Current Rate of Interest under this contract which was in effect on
the date the transferred contribution was originally deposited into
the Fixed Interest Account under the previous AUL contract.
1.15 "Investment Account" means each subaccount of the Variable Account
made available to the Contractholder by AUL and identified in Schedule A of the
contract. Schedule A of the contract may be amended by AUL from time to time as
described in Section 3.3. Amounts allocated to any Investment Account identified
in Schedule A of the contract shall be invested in the shares of the
corresponding Mutual Fund Portfolio listed in the current prospectus for the
Variable Account.
P-12867.OI.AMD
1.17 "Mutual Fund" means the AUL American Series Fund, Inc., a diversified,
open-end management investment company registered under The Investment Company
Act of l940, and any other such open-end management investment company made
available by AUL.
1.20 "Portfolio" means a series of a particular Mutual Fund as described in
that prospectus for that Mutual Fund, as such prospectus may be amended or
supplemented from time to time.
1.24 "Withdrawal Charge" means a charge taken by AUL equal to a percentage
of the Account Value of a Participant Account withdrawn pursuant to Section 4.8,
where the percentage varies by the number of full years measured from the date
that Participant Account is established, or from the date a Participant Account
is established under a previous AUL P-12867 contract from which amounts have
been transferred to this Participant Account, to the date the Withdrawal Charge
is determined. Such percentage is as follows:
During
Account Years Percentage
1 6
2 5
3 4
4 3
5 2
6 1
Thereafter 0
In no event will the cumulative total of all Withdrawal Charges, including those
previously assessed against any amount withdrawn from a Participant Account,
exceed 9% of total Contributions allocated to that Participant Account.
3.1 Amount of Contributions:
(a) Contributions may vary in amount and frequency; however, a minimum
Contribution of at least $100,000 must be made for a Participant in
order to establish a Participant Account. Any additional Contributions
made within the 12-month period beginning on the date the initial
Contribution is credited to that Participant Account (hereinafter
called a Certificate Year) shall also be credited to that Participant
Account. Any initial Contribution made within a different Certificate
Year shall also be subject
P-12867.OI.AMD.1
to the $100,000 minimum, and any Contributions made within that
Certificate Year shall be allocated to a separate Participant Account
and shall be evidenced by a separate certificate issued to the
Participant. AUL may change the minimum Contribution acceptable under
this contract, but any such change shall apply only to individuals who
become Participants on or after the date of the change. This contract
will not terminate solely because a Contribution is not made for any
Contract Year.
3.3 Addition, Deletion, or Substitution of Investments:
(a) AUL reserves the right, subject to compliance with applicable law, to
make additions to, deletions from, substitution for, or combinations
of, the securities that are held by the Variable Account or any
Investment Account or that the Variable Account or any Investment
Account may purchase. AUL reserves the right to eliminate the shares
of any of the eligible Portfolios and to substitute shares of, or
interests in, another Portfolio of the AUL American Series Fund,
Inc., of another open-end, registered investment company, or other
investment vehicle, for shares already purchased or to be purchased in
the future under the contract, if the shares of any or all eligible
Portfolios are no longer available for investment, or if, in AUL's
judgment, further investment in any or all eligible Portfolios becomes
inappropriate in view of the purposes of the Variable Account or the
contract. Where required under applicable law, AUL will no substitute
any shares in the Variable Account or any Investment Account without
notice, Participant approval, or prior approval of the Securities and
Exchange Commission or a state insurance commissioner, and without
following the filing or other procedures established by applicable
state insurance regulators. Nothing contained herein shall prevent the
Variable Account from purchasing other securities for other series or
classes of contracts, or from effecting a conversion between series or
classes of contracts on the basis of requests made by a majority of
participants or as permitted by federal law.
(b) AUL reserves the right to establish additional Investment Accounts,
each of which would invest in the corresponding Mutual Fund Portfolio
listed in the current prospectus for the Variable Account, or in other
securities or investment vehicles. AUL reserves the right to eliminate
or combine existing Investment Accounts if, in its sole discretion,
marketing, tax, or investment conditions so warrant. AUL also reserves
the right to provide other Investment Options under this contract at
any time. Subject to any required regulatory approvals, AUL reserves
the right to transfer assets from any
Investment Account to another separate account of AUL or Investment
Account.
(c) In the event of any such substitution or change, AUL may, by
appropriate amendment, make such changes in this contract as may be
necessary or appropriate to reflect such substitution or change. If
deemed by AUL to be in the best interests of persons or entities
having voting rights under this contract, the Variable Account may be
operated as a management investment company under The Investment
Company Act of 1940 or any other form permitted by law, it may be
deregistered in the event such registration is no longer required
under The Investment Company Act of 1940, or it may be combined with
other separate accounts of AUL or an affiliate thereof. AUL may take
such action as is necessary to comply with, or to obtain, exemptions
from the Securities and Exchange Commission with regard to the
Variable Account. Subject to compliance with applicable law, AUL also
may combine one or more Investment Accounts and may establish a
committee, board, or other group to manage one or more aspects of the
operation of the Variable Account.
4.8 Withdrawal Benefits:
(d) The Account Value to be applied pursuant to this Section shall be
determined as of the applicable Valuation Date determined in (c)
above. If the entire Account Value of a Participant Account is
withdrawn, the Participant shall be paid the Withdrawal Value. If the
Participant requests that a specified percentage or dollar amount be
paid to the Participant, AUL shall withdraw from the Participant
Account an amount equal to the dollar amount to be paid divided by the
difference between 1 and the decimal equivalent of the applicable
Withdrawal Charge. Notwithstanding the previous sentence, in the first
Contract Year in which a Participant Account is established, and in
the next succeeding Contract Year, the Participant may withdraw from
that Participant Account up to 10% of the sum of the Account Value of
that Participant Account, determined as of the last Contract
Anniversary preceding the request for the withdrawal, plus
Contributions made during the applicable Contract Year, without
application of any Withdrawal Charge. In any subsequent Contract Year,
the Participant may withdraw from that Participant Account up to 10%
of the Account Value of that Participant Account, determined as of the
last Contract Anniversary preceding the request for the withdrawal,
without application of any Withdrawal Charge. Where amounts have been
transferred to this contract from another AUL P-12867 contract,
Contract Years of participation for purposes of this 10% free-out
provision shall be determined by using the date of the Participant's
first contribution to the Participant Account in the previous contract
which was transferred.
5.1 Time of Valuation: All assets of each Portfolio shall be valued as
provided in the prospectus for the applicable Mutual Fund as such prospectus may
be amended or supplemented from time to time.
5.3 Value of Accumulation Units: The value of an Accumulation Unit in the
AUL American Equity, Bond, Money Market, and Managed Investment Accounts was
established at $1.00 as of April 12, 1990. The value of an Accumulation Unit in
any other Investment Account avail able under this contract shall be established
at $1.00 as of the date of the first deposit to such Investment Account. The
value of an Accumulation Unit in each Investment Account as of any Valuation
Period thereafter is equal to the dollar value of one Accumulation Unit in that
Investment Account as of the immediately preceding Valuation Period multiplied
by the Net Investment Factor, as defined in Section 5.4, for that Investment
Account for the current Valuation Period. The value of an Accumulation Unit for
each Investment Account shall be deter mined for each Valuation Period before
giving effect to any additions, withdrawals, or transfers. After such
determination, the additions, withdrawals, or transfers which are effective as
of that day shall then be made.
5.4 Determining the Net Investment Factor: The Net Investment Factor for
each Investment Account for any Valuation Period is determined by dividing (a)
by (b), and then subtracting (c) from that result, where:
(a) is equal to:
(1) the net asset value of a Portfolio share held in the Investment
Account determined as of the end of the current Valuation Period,
plus
(2) the per share amount of any dividend or other distribution, if
any, paid by the Portfolio during the current Valuation Period,
plus or minus
(3) any credit or charge for any taxes paid or reserved for by AUL
during the current Valuation Period which are determined by AUL
to be attributable to operation of the Investment Account;
(b) is the net asset value of a Portfolio share held in the Investment
Account deter mined as of the end of the immediately preceding
Valuation Period; and
(c) is a daily charge factor determined by AUL to reflect the charges
assessed against the assets of the Investment Account for mortality
and expense risks, as authorized by Section 6.1.
P-12867.OI.AMD.2
6.1 Mortality Risk and Expense Risk Charges: AUL shall deduct a daily
mortality risk charge and a daily expense risk charge equal to the daily
equivalent of an annual combined charge of 1.25% against the average daily net
assets of each Investment Account. These charges shall be reflected in the Net
Investment Factor as provided in Section 5.4(c).
6.2 Investment Management Charge: A Mutual Fund shall pay any investment
advisory fee and certain other expenses, which may include its operational and
organizational expenses, as described in the current prospectus for that Mutual
Fund as it may be amended or supplemented from time to time. These expenses may
vary from year to year. The net asset value of each Portfolio reflects such
investment advisory fee and other expenses which are deducted from the assets of
such Portfolio.
By deleting the first sentence of Section 6.3 and by substituting the following
first sentence in lieu thereof:
6.3 Administrative Charge: AUL shall deduct an administrative charge per
Contract Quarter equal to the lesser of $0.00 or 0.5% of the Account Value on
the last day of each Contract Quarter from each Participant Account in existence
on such day for as long as the Participant Account is in effect during the
Accumulation Period.
6.6 Reduction or Waiver of Certain Charges: AUL may reduce or waive the
amount of the Withdrawal Charge or the administrative charge discussed in
Section 6.3 where the expenses associated with the sale of this contract or the
administrative costs associated with this contract are reduced, or where this
contract is sold to the directors or employees of AUL or any of its affiliates,
or to directors or any employees of the AUL American Series Fund, Inc. or any
other Mutual Fund made available by AUL.
8.15 Voting:
(a) AUL is the legal owner of the shares of a Mutual Fund held by the
Investment Accounts of the Variable Account. AUL shall exercise voting
rights attributable to the shares of each Portfolio held in the
Investment Accounts at any regular and special meetings of the
shareholders of a Mutual Fund on matters requiring shareholder voting
under The Investment Company Act of l940 or other applicable laws. AUL
shall exercise these voting rights based on instructions received
from persons having the voting interest in corresponding Investment
Accounts of the Variable Account. However, if The Investment Company
Act of l940 or any regulations thereunder should be amended, or if
the present interpretation thereof should change, and as a result AUL
deter mines that it is permitted to vote the shares of a Mutual Fund
in its own right, it may elect to do so. AUL will vote shares of any
Investment Account, if any, that it owns beneficially in its own
discretion, except that if a Mutual Fund offers its shares to any
insurance company separate account that funds variable life insurance
contracts or if otherwise required by applicable law, AUL will vote
its own shares in the same proportion as the voting instructions that
are received in a timely manner for contracts and Participant Accounts
participating in the Investment Account.
(b) The persons having the voting interest under this contract are the
Participants. Unless otherwise required by applicable law, the number
of Mutual Fund shares of a particular Portfolio as to which voting
instructions may be given to AUL is determined by dividing the value
of all of the Accumulation Units of the corresponding Investment
Account attributable to this contract on a particular date by the net
asset value per share of that Portfolio as of the same date.
Fractional votes will be counted. The number of votes as to which
voting instructions may be given will be determined as of the date
coincident with the date established by the applicable Mutual Fund
for determining shareholders eligible to vote at the meeting of that
Mutual Fund. If required by the Securities and Exchange Commission,
AUL reserves the right to determine in a different fashion the voting
rights attributable to the shares of a Mutual Fund.
(c) Voting rights attributable to this contract for which no timely voting
instructions are received will be voted by AUL in the same proportion
as the voting instructions which are received in a timely manner for
all contracts and Participant Accounts participating in that
Investment Account.
(d) Neither the Variable Account nor AUL is under any duty to inquire as
to the instructions received or the authority of Contractholders,
Participants, or others to instruct the voting of Mutual Fund shares.
(e) Every person or entity having such voting rights shall receive such
reports or prospectuses concerning the Variable Account or a Mutual
Fund as may be required by applicable federal law.
CONTRACTHOLDER AUL
By _____________________________ By: __________________________________
Title __________________________ Title ________________________________
Date____________________________ Date _________________________________
P-12867.OI.AMD.3
SCHEDULE A
The following Investment Accounts are made available to the Contractholder by
AUL. Amounts allocated to any Investment Account identified below shall be
invested in the shares of the corresponding Mutual Fund Portfolio listed below.
Investment Account Portfolio
------------------ ---------
AUL American Equity AUL American Equity
AUL American Bond AUL American Bond
AUL American Money Market AUL American Money Market
AUL American Managed AUL American Managed
Fidelity VIP High Income Fidelity VIP High Income
Fidelity VIP Growth Fidelity VIP Growth
Fidelity VIP Overseas Fidelity VIP Overseas
Fidelity VIP II Asset Manager Fidelity VIP II Asset Manager
Fidelity VIP II Index 500 Fidelity VIP II Index 500
P-12867.OI.AMD.4
AMENDMENT
TO THE
AUL AMERICAN SERIES
XXX MULTIPLE-FUND GROUP VARIABLE ANNUITY
CONTRACT NUMBER GA XX,XXX (THE CONTRACT)
ISSUED BY
AMERICAN UNITED LIFE INSURANCE COMPANY (AUL)
TO
ABC COMPANY (THE CONTRACTHOLDER)
The Effective Date of this Amendment is ____________________.
AUL and the Contractholder hereby agree, by signing below, that the Contract is
hereby amended as follows:
By adding the following to the face page of the Contract:
This contract is a SIMPLE XXX.
By deleting Section 1.9 and by substituting the following in lieu thereof:
1.9 "Contributions" means, subject to the restrictions of the following
paragraph, amounts paid in cash to AUL from time to time by, or on behalf of, a
Participant, including amounts transferred to this contract from another SIMPLE
XXX of the Participant, which are credited to his Participant Account maintained
hereunder. The legal title to, and ownership of, such amounts is vested solely
in the Participant. The contract is established for the exclusive benefit of the
Participant or his beneficiaries.
This SIMPLE XXX will accept only cash Contributions made on behalf of the
Participant pursuant to the terms of a SIMPLE XXX Plan described in section
408(p) of the Internal Revenue Code. A rollover Contribution or a transfer of
assets from another SIMPLE XXX of the Participant will also be accepted. No
other Contributions will be accepted.
By deleting Subsection 3.1(b) and by substituting the following Subsection
3.1(b) in lieu thereof, and by adding the following Subsection 3.1(e):
3.1 (b) Except for amounts rolled over or transferred from another
SIMPLE XXX of the Participant, Contributions during a
Participant's taxable year (which is presumed to be a calendar
year) may not exceed the amounts allowed by Code Section 408(p)
(as adjusted).
(e) If Contributions made on behalf of the Participant pursuant to a
SIMPLE XXX Plan maintained by the Participant's employer are
received directly by AUL from the employer, AUL will provide the
employer with the summary description required by section
408(1)(2) of the Internal Revenue Code.
By adding the following Subsection 4.8(g):
4.8 (g) Prior to the expiration of the 2-year period beginning on the
date the Participant first participated in any SIMPLE XXX Plan
maintained by the Participant's employer, any rollover or
transfer by the Participant of funds from this SIMPLE XXX must be
made to another SIMPLE XXX of the Participant. Any distribution
of funds to the Participant during this 2-year period may be
subject to a 25-percent additional tax if the Participant does
not roll over the amount distributed into a SIMPLE XXX. After the
expiration of this 2-year period, the Participant may roll over
or transfer funds to any XXX of the Participant that is qualified
under section 408(a) or (b) of the Internal Revenue Code.
CONTRACTHOLDER AUL
By ______________________________ By ______________________________
Title ___________________________ Title ____________________________
Date ____________________________ Date _____________________________
(Existing Business)
AMENDMENT
TO THE
AUL AMERICAN SERIES
XXX MULTIPLE-FUND GROUP VARIABLE ANNUITY
CONTRACT NUMBER GA XX,XXX (THE CONTRACT)
ISSUED BY
AMERICAN UNITED LIFE INSURANCE COMPANY (AUL)
TO
ABC COMPANY (THE CONTRACTHOLDER)
The Effective Date of this Amendment is _______________________.
AUL and the Contractholder hereby agree, by signing below, that the Contract is
hereby amended as follows:
By adding the following to the face page of the Contract:
This contract is a SIMPLE XXX.
By deleting Section 1.9 and by substituting the following in lieu thereof:
1.9 "Contributions" means, subject to the restrictions of the following
paragraph, amounts paid in cash to AUL from time to time by, or on behalf of, a
Participant, including amounts transferred to this contract from another SIMPLE
XXX of the Participant, which are credited to his Participant Account maintained
hereunder. The legal title to, and ownership of, such amounts is vested solely
in the Participant. The contract is established for the exclusive benefit of the
Participant or his beneficiaries.
This SIMPLE XXX will accept only cash Contributions made on behalf of the
Participant pursuant to the terms of a SIMPLE XXX Plan described in section
408(p) of the Internal Revenue Code. A rollover Contribution or a transfer of
assets from another SIMPLE XXX of the Participant will also be accepted. No
other Contributions will be accepted.
By deleting Subsection 3.1(b) and by substituting the following in lieu thereof,
and by adding the following Subsection 3.1(e):
3.1 (b) Except for amounts rolled over or transferred from another SIMPLE XXX
of the Participant, Contributions during a Participant's taxable year
(which is presumed to be a calendar year) may not exceed the amounts
allowed by Code Section 408(p) (as adjusted).
(e) If Contributions made on behalf of the Participant pursuant to a SIMPLE XXX
Plan maintained by the Participant's employer are received directly by AUL
from the employer, AUL will provide the employer with the summary
description required by section 408(1)(2) of the Internal Revenue Code.
By adding the following Subsection 4.8(g):
4.8 (g) Prior to the expiration of the 2-year period beginning on the date the
Participant first participated in any SIMPLE XXX Plan maintained by the
Participant's employer, any rollover or transfer by the Participant of
funds from this SIMPLE XXX must be made to another SIMPLE XXX of the
Participant. Any distribution of funds to the Participant during this
2-year period may be subject to a 25-percent additional tax if the
Participant does not roll over the amount distributed into a SIMPLE XXX.
After the expiration of this 2-year period, the Participant may roll over
or transfer funds to any XXX of the Participant that is qualified under
section 408(a) or (b) of the Internal Revenue Code.
CONTRACTHOLDER AUL
By______________________________ By: /s/ Xxxxx X. Xxxxxx
Chairman of the Board,
Title __________________________ President, & Chief Executive Officer
Date ___________________________ Attest /s/ Xxxxxxx X. Xxxxx
Secretary
(New Business)
AMENDMENT
TO THE
XXX MULTIPLE-FUND GROUP VARIABLE ANNUITY
CONTRACT NUMBER GXX,XXX (THE CONTRACT)
ISSUED BY
AMERICAN UNITED LIFE INSURANCE COMPANY (AUL)
TO
ABC COMPANY (THE CONTRACTHOLDER)
The Effective Date of this Amendment is the date that it is signed by AUL.
AUL and the Contractholder hereby agree, by signing below, that the Contract is
hereby amended by deleting the corresponding Sections and Subsections of the
Contract, if any, and by inserting the following Sections and Subsections in
lieu thereof:
1.15 "Investment Account" means each subaccount of the Variable Account
made available to the Contractholder by AUL and identified in Schedule A of the
contract. Schedule A of the contract may be amended by AUL from time to time as
described in Section 3.3. Amounts allocated to any Investment Account identified
in Schedule A of the contract shall be invested in the shares of the
corresponding Mutual Fund Portfolio listed in the current prospectus for the
Variable Account.
1.17 "Mutual Fund" means the AUL American Series Fund, Inc., a diversified,
open-end management investment company registered under The Investment Company
Act of l940, and any other such open-end management investment company made
available by AUL.
1.20 "Portfolio" means a series of a particular Mutual Fund as described in
that prospectus for that Mutual Fund, as such prospectus may be amended or
supplemented from time to time.
3.3 Addition, Deletion, or Substitution of Investments:
(a) AUL reserves the right, subject to compliance with applicable law, to
make additions to, deletions from, substitution for, or combinations
of, the securities that are held by the Variable Account or any
Investment Account or that the Variable Account or any Investment
Account may purchase. AUL reserves the right to eliminate the shares
of any of the eligible Portfolios and to substitute shares of, or
interests in, another Portfolio of the AUL American Series Fund, Inc.,
of another open-end, registered investment company, or other
investment vehicle, for shares already purchased or to be purchased in
the future under the contract, if the shares of any or all eligible
Portfolios are no longer available for investment, or if, in AUL's
judgment, further investment in any or all eligible Portfolios becomes
inappropriate in view of the purposes of the Variable Account or the
contract. Where required under applicable law, AUL will not substitute
any shares in the Variable Account or any Investment Account without
notice, Participant approval, or prior approval of the Securities and
Exchange Commission or a state insurance commissioner, and without
following the filing or other procedures established by applicable
state insurance regulators. Nothing contained herein shall prevent the
Variable Account from purchasing other securities for other series or
classes of contracts, or from effecting a conversion between series or
classes of contracts on the basis of requests made by a majority of
participants or as permitted by federal law. (b) AUL reserves the
right to establish additional Investment Accounts, each of which would
invest in the corresponding Mutual Fund Portfolio listed in the
current prospectus for the
P-12867.AMD1
1
Variable Account, or in other securities or investment vehicles. AUL
reserves the right to eliminate or combine existing Investment
Accounts if, in its sole discretion, marketing, tax, or investment
conditions so warrant. AUL also reserves the right to provide other
Investment Options under this contract at any time. Subject to any
required regulatory approvals, AUL reserves the right to transfer
assets from any Investment Account to another separate account of AUL
or Investment Account.
(c) In the event of any such substitution or change, AUL may, by
appropriate amendment, make such changes in this contract as may be
necessary or appropriate to reflect such substitution or change. If
deemed by AUL to be in the best interests of persons or entities
having voting rights under this contract, the Variable Account may be
operated as a management investment company under The Investment
Company Act of 1940 or any other form permitted by law, it may be
deregistered in the event such registration is no longer required
under The Investment Company Act of 1940, or it may be combined with
other separate accounts of AUL or an affiliate thereof. AUL may take
such action as is necessary to comply with, or to obtain, exemptions
from the Securities and Exchange Commission with regard to the
Variable Account. Subject to compliance with applicable law, AUL also
may combine one or more Investment Accounts and may establish a
committee, board, or other group to manage one or more aspects of the
operation of the Variable Account.
4.8 Withdrawal Benefits:
(d) The Account Value to be applied pursuant to this Section shall be
determined as of the applicable Valuation Date determined in (c)
above. If the entire Account Value of a Participant Account is
withdrawn, the Participant shall be paid the Withdrawal Value. If the
Participant requests that a specified percentage or dollar amount be
paid to the Participant, AUL shall withdraw from the Participant
Account an amount equal to the dollar amount to be paid divided by the
difference between 1 and the decimal equivalent of the applicable
Withdrawal Charge. Notwithstanding the previous sentence, in the first
Contract Year in which a Participant Account is established, and in
the next succeeding Contract Year, the Participant may withdraw from
that Participant Account up to 10% of the sum of the Account Value of
that Participant Account, determined as of the last Contract
Anniversary preceding the request for the withdrawal, plus
Contributions made during the applicable Contract Year, without
application of any Withdrawal Charge. In any subsequent Contract Year,
the Participant may withdraw from that Participant Account up to 10%
of the Account Value of that Participant Account, determined as of the
last Contract Anniversary preceding the request for the withdrawal,
without application of any Withdrawal Charge.
5.1 Time of Valuation: All assets of each Portfolio shall be valued as
provided in the prospectus for the applicable Mutual Fund as such prospectus may
be amended or supplemented from time to time.
5.3 Value of Accumulation Units: The value of an Accumulation Unit in the
AUL American Equity, Bond, Money Market, and Managed Investment Accounts was
established at $1.00 as of April 12, 1990. The value of an Accumulation Unit in
any other Investment Account available under this contract shall be established
at $1.00 as of the date of the first deposit to such Investment Account. The
value of an Accumulation Unit in each Investment Account as of any Valuation
Period thereafter is equal to the dollar value of one Accumulation Unit in that
Investment Account as of the immediately preceding Valuation Period multiplied
by the Net Investment Factor, as defined
P-12867.AMD2
2
in Section 5.4, for that Investment Account for the current Valuation Period.
The value of an Accumulation Unit for each Investment Account shall be
determined for each Valuation Period before giving effect to any additions,
withdrawals, or transfers. After such determination, the additions, withdrawals,
or transfers which are effective as of that day shall then be made.
5.4 Determining the Net Investment Factor: The Net Investment Factor for
each Investment Account for any Valuation Period is determined by dividing (a)
by (b), and then subtracting (c) from that result, where:
(a) is equal to:
(1) the net asset value of a Portfolio share held in the Investment
Account determined as of the end of the current Valuation Period,
plus
(2) the per share amount of any dividend or other distribution, if
any, paid by the Portfolio during the current Valuation Period,
plus or minus
(3) any credit or charge for any taxes paid or reserved for by AUL
during the current Valuation Period which are determined by AUL
to be attributable to operation of the Investment Account;
(b) is the net asset value of a Portfolio share held in the Investment
Account determined as of the end of the immediately preceding
Valuation Period; and
(c) is a daily charge factor determined by AUL to reflect the charges
assessed against the assets of the Investment Account for mortality
and expense risks, as authorized by Section 6.1.
6.1 Mortality Risk and Expense Risk Charges: AUL shall deduct a daily
mortality risk charge and a daily expense risk charge equal to the daily
equivalent of an annual combined charge of 1.25% against the average daily net
assets of each Investment Account. These charges shall be reflected in the Net
Investment Factor as provided in Section 5.4(c).
6.2 Investment Management Charge: A Mutual Fund shall pay any investment
advisory fee and certain other expenses, which may include its operational and
organizational expenses, as described in the current prospectus for that Mutual
Fund as it may be amended or supplemented from time to time. These expenses may
vary from year to year. The net asset value of each Portfolio reflects such
investment advisory fee and other expenses which are deducted from the assets of
such Portfolio.
6.6 Reduction or Waiver of Certain Charges: AUL may reduce or waive the
amount of the Withdrawal Charge or the administrative charge discussed in
Section 6.3 where the expenses associated with the sale of this contract or the
administrative costs associated with this contract are reduced, or where this
contract is sold to the directors or employees of AUL or any of its affiliates,
or to directors or any employees of the AUL American Series Fund, Inc. or any
other Mutual Fund made available by AUL.
P-12867.AMD3
3
8.15 Voting:
(a) AUL is the legal owner of the shares of a Mutual Fund held by the
Investment Accounts of the Variable Account. AUL shall exercise voting
rights attributable to the shares of each Portfolio held in the
Investment Accounts at any regular and special meetings of the
shareholders of a Mutual Fund on matters requiring shareholder voting
under The Investment Company Act of l940 or other applicable laws. AUL
shall exercise these voting rights based on instructions received from
persons having the voting interest in corresponding Investment
Accounts of the Variable Account. However, if The Investment Company
Act of l940 or any regulations thereunder should be amended, or if the
present interpretation thereof should change, and as a result AUL
determines that it is permitted to vote the shares of a Mutual Fund in
its own right, it may elect to do so. AUL will vote shares of any
Investment Account, if any, that it owns beneficially in its own
discretion, except that if a Mutual Fund offers its shares to any
insurance company separate account that funds variable life insurance
contracts or if otherwise required by applicable law, AUL will vote
its own shares in the same proportion as the voting instructions that
are received in a timely manner for contracts and Participant Accounts
participating in the Investment Account.
(b) The persons having the voting interest under this contract are the
Participants. Unless otherwise required by applicable law, the number
of Mutual Fund shares of a particular Portfolio as to which voting
instructions may be given to AUL is determined by dividing the value
of all of the Accumulation Units of the corresponding Investment
Account attributable to this contract on a particular date by the net
asset value per share of that Portfolio as of the same date.
Fractional votes will be counted. The number of votes as to which
voting instructions may be given will be determined as of the date
coincident with the date established by the applicable Mutual Fund for
determining shareholders eligible to vote at the meeting of that
Mutual Fund. If required by the Securities and Exchange Commission,
AUL reserves the right to determine in a different fashion the voting
rights attributable to the shares of a Mutual Fund.
(c) Voting rights attributable to this contract for which no timely voting
instructions are received will be voted by AUL in the same proportion
as the voting instructions which are received in a timely manner for
all contracts and Participant Accounts participating in that
Investment Account.
(d) Neither the Variable Account nor AUL is under any duty to inquire as
to the instructions received or the authority of Contractholders,
Participants, or others to instruct the voting of Mutual Fund shares.
(e) Every person or entity having such voting rights shall receive such
reports or prospectuses concerning the Variable Account or a Mutual
Fund as may be required by applicable federal law.
CONTRACTHOLDER AUL
By _____________________________ By _________________________________
Title __________________________ Title ______________________________
Date____________________________ Date _______________________________
4
SCHEDULE A
The following Investment Accounts are made available to the Contractholder by
AUL. Amounts allocated to any Investment Account identified below shall be
invested in the shares of the corresponding Mutual Fund Portfolio listed below.
The TCI Growth Investment Account is available as of April 1, 1994.
Investment Account Portfolio
------------------ ---------
AUL American Equity AUL American Equity
AUL American Bond AUL American Bond
AUL American Money Market AUL American Money Market
AUL American Managed AUL American Managed
Fidelity VIP High Income Fidelity VIP High Income
Fidelity VIP Growth Fidelity VIP Growth
Fidelity VIP Overseas Fidelity VIP Overseas
Fidelity VIP II Asset Manager Fidelity VIP II Asset Manager
Fidelity VIP II Index 500 Fidelity VIP II Index 000
XXX Xxxxxx XXX Xxxxxx
X-00000.XXX0
AMENDMENT
TO THE
AUL AMERICAN SERIES
XXX MULTIPLE-FUND GROUP VARIABLE ANNUITY
CONTRACT NUMBER GA XX,XXX (THE CONTRACT)
ISSUED BY
AMERICAN UNITED LIFE INSURANCE COMPANY (AUL)
TO
ABC COMPANY
(THE CONTRACTHOLDER)
The Effective Date of this Amendment is the date that it is signed by AUL.
AUL and the Contractholder hereby agree, by signing below, that the Contract is
hereby amended by deleting Schedule A and by substituting the following Schedule
A in lieu thereof:
SCHEDULE A
The following Investment Accounts are made available to the Contractholder by
AUL. Amounts allocated to any Investment Account identified below shall be
invested in the shares of the corresponding Mutual Fund or Mutual Fund Portfolio
listed below.
Investment Account Mutual Fund or Mutual Fund Portfolio
------------------ ------------------------------------
AUL American Bond AUL American Bond
AUL American Equity AUL American Equity
AUL American Managed AUL American Managed
AUL American Money Market AUL American Money Market
AUL American Tactical Asset Allocation Portfolio AUL American Tactical Asset Allocation Portfolio
Xxxxx American Growth Xxxxx American Growth
American Century VP Capital Appreciation American Century VP Capital Appreciation
Xxxxxxx Social Mid-Cap Growth Xxxxxxx Social Mid-Cap Growth
Fidelity VIP Equity-Income Fidelity VIP Equity-Income
Fidelity VIP Growth Fidelity VIP Growth
Fidelity VIP High Income Fidelity VIP High Income
Fidelity VIP Overseas Fidelity VIP Overseas
Fidelity VIP II Asset Manager Fidelity VIP II Asset Manager
Fidelity VIP II Contrafund Fidelity VIP II Contrafund
Fidelity VIP II Index 500 Fidelity VIP II Index 500
Janus Aspen Series Flexible Income Portfolio Janus Aspen Series Flexible Income Portfolio
Janus Aspen Series Worldwide Growth Portfolio Janus Aspen Series Worldwide Growth Portfolio
PBHG Insurance Series Growth II PBHG Insurance Series Growth II
PBHG Insurance Series Technology PBHG Insurance Series Technology
and Communication and Communication
SAFECO Resource Series Trust Equity Portfolio SAFECO Resource Series Trust Equity Portfolio
SAFECO Resource Series Trust Growth Portfolio SAFECO Resource Series Trust Growth Portfolio
X. Xxxx Price Equity-Income Portfolio X. Xxxx Price Equity-Income Portfolio
CONTRACTHOLDER AUL
By___________________________________________ By ___________________________________________
Title _______________________________________ Title ________________________________________
Date ________________________________________ Date _________________________________________
P-12867.A
