EXHIBIT (4)(b)(i)
IRA ENDORSEMENT
ENDORSEMENT
In order to qualify this contract as an Individual Retirement Annuity under
Section 408 of the Internal Revenue Code of 1986, as amended, (hereafter
referred to as The Code), the following provisions and restrictions are hereby
made applicable, notwithstanding any provisions to the contrary contained in the
policy. In the case of a conflict between the policy and the endorsement, the
endorsement overrides the policy.
ARTICLE 1 - Non-Transferability and Non-Forfeitability
The owner may not change the ownership of the policy and the policy may not be
sold,
assigned or pledged as collateral for a loan or as security for the performance
of an obligation or for any other purpose to anyone. The owner's rights shall at
all times be non-forfeitable.
ARTICLE 2 - Premium Limitation
Except in the case of a rollover contribution, as that term is described in
Section 402(a)(5), 402(a)(6), 402(a)(7); 403(a)(4), 403(b)(8), or 408(d)(3) of
The Code, or a direct transfer from one Individual Retirement Annuity issued by
the Company to another Individual Retirement Annuity issued by the Company, no
premiums will be accepted unless they are in cash, and the total of such
premiums shall not exceed $2000 for any taxable year. If the premium consists
entirely of an employer contribution under a simplified employee pension, as
such is defined in Section 408(k) of The Code, the maximum amount of premium
stated in paragraph 1 of this article shall be increased by the amount of this
limitation in effect under section 415(c)(1)(A) of The Code.
The minimum premium required for each additional premium payment under this IRA
is $50. The sentence stating that "Each additional premium payment must be at
least $1,000" found in the Premium Payments section of the policy is deleted.
ARTICLE 3 - Refund of Premiums
Any refund of premiums (other than those attributable to excess contributions)
will be applied towards the payment of future premiums or the purchase of
additional benefits before the close of the calendar year following the year of
the refund.
ARTICLE 4 - Distributions Before Death Of The Owner
Federal tax law requires that minimum distributions from individual retirement
arrangements, including Individual Retirement Annuities, begin not later than
April 1 of the calendar year following the year in which the owner attains age
70 1/2. In order to comply with this requirement, the Surrender Value of this
annuity may be distributed as a lump sum or may be distributed in equal or
substantially equal amounts over (a) the life of the owner, or the lives of the
owner and a designated beneficiary, or (b) a period certain not extending beyond
the life expectancy of the owner, or the joint life expectancy of the owner and
a designated beneficiary.
If distributions are to be made to the owner in the manner described in (a) or
(b) of this Article, the amount to be distributed each year, beginning with the
first calendar year for which distributions are required and then for each
succeeding calendar year, shall not be less than the quotient obtained by the
dividing the Surrender Value as of the beginning of each year by the lesser of
(1) the applicable life expectancy or (2) if the owner's spouse is not the
designated beneficiary, the applicable divisor determined from the table set
forth in Q&A-4 of Section 1.401(a)(9)-2 of the Proposed Income Tax Regulations.
For purposes of this calculation only, "Surrender Value at the beginning of each
year" will include amounts not in this Individual Retirement Annuity at the
beginning of the year because they have been withdrawn for the purpose of making
a rollover contribution to another individual retirement plan. Distributions
after the death of the owner shall be distributed using the applicable life
expectancy as the relevant divisor without regard to Section 1.401(a)(9)-2 of
the Proposed Income Tax Regulations.
Life expectancy and joint and last survivor expectancy are computed by use of
the expected return multiples in Tables V of Section 1.72-9 of the Income Tax
Regulations. Unless otherwise elected by the owner by the time distributions are
required to begin, life expectancies shall be subsequent years. The life
expectancy of a non-spouse beneficiary may not be recalculated, instead life
expectancy will be calculated using the attained age of such beneficiary during
the calendar year in which distributions are required to begin pursuant to this
section, and payments for subsequent years shall be calculated based on such
life expectancy reduced by one for each calendar year which has elapsed since
the calendar year life expectancy was first calculated. Distributions under this
annuity shall be made in accordance with the requirements of Section 401(a)(9)
of the Code and the regulations thereunder.
ARTICLE 5 - Distributions Upon Death Of The Owner
If the owner dies after distribution of his or her interest has commenced, the
remaining portion of such interest will continue to be distributed at least as
rapidly as under the method of distribution being used prior to the owner's
death.
If the owner dies before distribution of his or her interest commences, the
owner's entire interest will be distributed in accordance with one of the
following four provisions: (a) The owner's entire interest will be paid within
five years after the owner's death. (b) If the owner's interest is payable to a
designated beneficiary and the owner has not elected (a) above, then the entire
interest will be distributed in substantially equal installments over the life
or life expectancy of the designated beneficiary commencing no later than one
year after the date of the owner's death. The designated beneficiary may elect
at any time to receive greater payments to the extent of payments guaranteed to
be made. (c) If the designated beneficiary is the owner's surviving spouse, the
spouse may elect within the five year period commencing with the owner's date of
death to receive equal or substantially equal payments over the life or life
expectancy of the surviving spouse commencing at any date prior to the date on
which the deceased owner would have attained age 70 1/2. The surviving spouse
may increase the frequency or amount of these payments at any time to the extent
of any payments guaranteed to be made. (d) If the designated beneficiary is the
owner's surviving spouse, the spouse may treat the contract as his or her own
individual retirement annuity. This election will be deemed to have been made if
such surviving spouse makes a regular IRA contribution to the contract, makes a
rollover to or from such contract, or fails to elect any of the above three
provisions.
For purposes of this Article 5, payments will be calculated by use of he
expected return multiples in Tables V and VI of Section 1.72-9 of the Income Tax
Regulations. Unless otherwise elected by the surviving spouse by the time
distributions are required to begin, life expectancies shall be recalculated
annually. Such election shall be irrevocable as to the surviving spouse and
shall apply to all subsequent years. In the case of any other designated
beneficiary, life expectancy will be calculated at the time payment first
commences and payments for any 12-consecutive month period will be based on such
life expectancy minus the number of whole years passed since distribution first
commenced.
Any amount paid to a child of the owner will be treated as if it had been paid
to the surviving spouse if the remainder of the interest becomes payable to the
surviving spouse when the child reaches the age of majority.
ARTICLE 6 - Applicant
The applicant for the policy is the owner/annuitant of the policy. This policy
is established for the exclusive benefit of the owner(s) or his or her
beneficiaries.
ARTICLE 7 - Annual Reports
The Company will furnish annual calendar year reports concerning the status of
the annuity.
ARTICLE 8 - Amendments
The Company shall have the right, solely at its discretion, to amend any and all
provisions of the policy in order to maintain qualification of the policy as an
Individual Retirement Annuity under Section 408 of The Code. Such endorsement
will be effective with respect to the annuitant and this policy upon receipt by
the owner. The owner has the right to refuse to accept any amendment; however,
the Company shall not be held liable for any such tax consequences incurred by
the owner as a result of his or her refusal to accept such amendment.
For THE LIFE INSURANCE COMPANY OF VIRGINIA
Xxxx X. Xxxxxxxx, III
President
EXHIBIT (4)(b)(ii)
PENSION ENDORSEMENT
ENDORSEMENT
In order to use this contract under the Internal Revenue Code of 1986, as
amended, (hereafter referred to as The Code), the following provisions and
restrictions are hereby made applicable, notwithstanding any provisions to the
contrary contained in the policy.
Non-Transferability
The owner may not change the ownership of the policy and the policy may not be
sold, assigned or pledged as collateral for a loan or as security for the
performance of an obligation or for any other purpose to anyone other than The
Life Insurance Company of Virginia unless the owner is the trustee of an
employee trust qualified under The Code. The purpose of this provision is to
qualify the annuity under Section 401(g) of The Code, and it shall be so
construed.
Monthly Income Benefit
We will make monthly payments to the annuitant for a guaranteed period. If the
annuitant dies before the end of the guaranteed minimum period, the remaining
payments will be discounted at the same rate used to calculate the monthly
income. The discounted amount will be paid in one sum to the annuitant's estate
unless otherwise provided.
Optional Payment Plans
We will make payments that do not depend on the sex of the annuitant. New
monthly payment rates for the Life Income plan or the Joint Life and Survivor
Income plan are contained in this endorsement.
Settlement Age: The settlement age is the payee's age nearest birthday on the
date payments begin, minus an age adjustment from the table below. The age
adjustment cannot exceed the age of the payee.
------------------------------------------------------
Year Payments Begin Age
After Prior To Adjustment
------------------------------------------------------
---- 2001 0
2000 2026 3
2025 2051 7
2050 ---- 10
------------------------------------------------------
LIFE INCOME PLAN TABLE
Monthly Payment Rates for each $1000 of proceeds
-----------------------------------------------------------------------------------------------------------------------------
Age 10 15 20 Age 10 15 20 Age 10 15 20 Age 10 15 20
Years Years Years Years Years Years Years Years Years Years Years Years
Certain Certain Certain Certain Certain Certain Certain Certain Certain Certain Certain Certain
-----------------------------------------------------------------------------------------------------------------------------
20 $2.82 $2.82 $2.82 55 $4.00 $3.96 $3.90 66 $5.08 $4.91 $4.67 77 $6.96 $6.14 $5.33
25 2.90 2.89 2.89 56 4.07 4.03 3.96 67 5.22 5.02 4.74 78 7.16 6.23 5.36
30 2.99 2.99 2.98 57 4.15 4.10 4.03 68 5.36 5.13 4.82 79 7.36 6.32 5.39
35 3.11 3.10 3.10 58 4.23 4.18 4.09 69 5.51 5.24 4.89 80 7.57 6.40 5.42
40 3.26 3.25 3.24 59 4.32 4.25 4.16 70 5.66 5.35 4.96 81 7.77 6.47 5.44
45 3.45 3.43 3.42 60 4.41 4.34 4.23 71 5.83 5.47 5.02 82 7.96 6.54 5.46
50 3.59 3.67 3.64 61 4.51 4.42 4.30 72 6.00 5.58 5.09 83 8.14 6.60 5.47
51 3.74 3.72 3.68 62 4.61 4.51 4.37 73 6.18 5.70 5.15 84 8.32 6.65 5.48
52 3.80 3.78 3.74 63 4.72 4.61 4.44 74 6.37 5.81 5.20 85&over 8.48 6.69 5.49
53 3.87 3.84 3.79 64 4.83 4.70 4.52 75 6.56 5.93 5.25
54 3.93 3.90 3.85 65 4.95 4.80 4.59 76 6.76 6.03 5.29
-----------------------------------------------------------------------------------------------------------------------------
*Age means Settlement Age
JOINT LIFE AND SURVIVOR INCOME PLAN TABLE
Monthly Payment Rates for each $1000 of proceeds
----------------------------------------------------------------------------------------------------------------
Settlement Settlement
Age Age
----------------------------------------------------------------------------------------------------------------
35 40 45 50 55 60 65 70 75 80 85&over
----------------------------------------------------------------------------------------------------------------
35 $2.92 $2.97 $3.00 $3.03 $3.06 $3.07 $3.08 $3.09 $3.10 $3.10 $3.11
40 2.97 3.03 3.08 3.13 3.17 3.20 3.22 3.23 3.24 3.25 3.25
45 3.00 3.08 3.16 3.23 3.29 3.34 3.38 3.41 3.42 3.44 3.44
50 3.03 3.13 3.23 3.33 3.43 3.51 3.57 3.62 3.65 3.67 3.68
55 3.06 3.17 3.29 3.43 3.56 3.68 3.79 3.87 3.93 3.96 3.99
60 3.07 3.20 3.34 3.51 3.68 3.86 4.03 4.16 4.27 4.34 4.38
65 3.08 3.22 3.38 3.57 3.79 4.03 4.27 4.49 4.68 4.81 4.89
70 3.09 3.23 3.41 3.62 3.87 4.16 4.49 4.83 5.14 5.38 5.54
75 3.10 3.24 3.42 3.65 3.93 4.27 4.68 5.14 5.61 6.02 6.30
80 3.10 3.25 3.44 3.67 3.96 4.34 4.81 5.38 6.02 6.63 7.10
85&over 3.11 3.25 3.44 3.68 3.99 4.38 4.89 5.54 6.30 7.10 7.76
----------------------------------------------------------------------------------------------------------------
For the Life Insurance Company of Virginia
Xxxx X. Xxxxxxxx XXX
President
EXHIBIT (4)(b)(iii)
Section 403b Endorsement
ENDORSEMENT
Cash Value Withdrawal Restrictions Effective January 1, 1989
You may not withdraw cash value resulting from:
* premiums paid after December 31, 1988, as elective deferrals through a salary
reduction agreement;
* earnings on those premiums;
* earnings on the amount of cash value as of December 31, 1988, attributable to
premiums paid as elective deferrals.
These restrictions are required by Section 403(b)(11), which was added to the
Internal Revenue Code by the Tax Reform Act of 1986. They override any policy
provisions to the contrary.
Exceptions to Restrictions on Cash Value Withdrawals
The restrictions listed above do not apply to withdrawals due to your:
* death;
* attainment of age 59 1/2;
* ending employment with the employer sponsoring the 403(b) plan;
* disability, as defined in Section 403(b)(11); or
* financial hardship, as defined in Section 403(b)(11). In the case of financial
hardship, only cash value from premiums paid through elective deferrals, and
not cash value from income on those premiums, may be withdrawn.
For The Life Insurance Company of Virginia,
Xxxx X. Xxxxxxxx, III
President
EXHIBIT (4)(b)(iv)
Guaranteed Minimum Death Benefit Rider
THE LIFE INSURANCE COMPANY OF VIRGINIA
GUARANTEED MINIMUM DEATH BENEFIT RIDER
This rider provides for an Optional Death Benefit in addition to the Optional
Death Benefit provided for in the policy. The Death Benefit will be the greater
of:
* The Death Benefit provided for Under the Death Provisions
section in the policy; or
* The Death Benefit provided for in this rider.
Optional Death Benefit at Death of Annuitant
If any Annuitant dies while this rider is in effect and before income payments
begin, the Designated Beneficiary may surrender the policy for the Death Benefit
within 90 days of the date of such death. If this Death Benefit is paid, the
policy will terminate, and we will have no further obligation under this policy.
The Death Benefit will be the greater of:
* The Guaranteed Minimum Death Benefit; or
* The Account Value of the policy on the date we receive proof
of the Annuitant's death or, if later, the date of your
request.
Guaranteed Minimum Death Benefit. On the policy date, the Guaranteed Minimum
Death Benefit is equal to the premium paid. At the end of each valuation period
after such date, the Guaranteed Minimum Death Benefit is the lesser of:
* The total of all premiums received, multiplied by two, less
the amount of any partial surrenders, plus their surrender
charges, made prior to or during that valuation period; or
* The Guaranteed Minimum Death Benefit at the end of the
preceding valuation period, increased as specified below, plus
any additional premium payments during the current valuation
period and less the amount of any partial surrenders, plus
their surrender charges, made during the current valuation
period.
The amount of increase for the valuation period will be calculated by applying a
factor to the Guaranteed Minimum Death Benefit at the end of the preceding
valuation period. Until the anniversary on which the Annuitant attains age 80,
the factor is determined for each valuation period at an annual rate of 6%,
except that with respect to amounts invested in certain investment Subdivisions
shown in the policy data pages, the increase factor will be calculated as the
lesser of;
* The Net Investment Factor of the Investment Subdivision of the
valuation period, minus one; or
* A factor for the valuation period equivalent to an annual rate
of 6%.
With respect to amounts invested in the Guarantee Account, if it applies, the
increase factor for each such amount will be calculated as the lesser of:
* A factor for the valuation period equivalent to the annual
rate that applies to such amount; or
* A factor for the valuation period equivalent to an annual rate
of 6%.
After the anniversary on which the Annuitant attains age 80, the factor will be
zero.
If the surrender occurs more than 90 days after the Annuitant's death, the
Surrender Value will be payable instead of the Death Benefit. Amounts payable
under this rider are subject to the Distribution Rules and Payment of Benefits
provisions in the policy.
The following paragraph is added to the Account Value Benefits section of the
policy:
If the Guarantee Account applies and if the Account Value in the Separate
Account is insufficient to cover the Annual Death Benefit Charge, then the
deduction will be made first from the Account Value in the Separate Account. The
excess of the charges over the Account Value in the Separate Account will then
be deducted from the Account Value in the Guarantee Account. Deductions from the
Guarantee Account will be taken from the amounts which have been in the
Guarantee Account for the longest period of time.
The following provision is added to the Account Value Benefits section of the
policy:
Annual Death Benefit Charge
There will be a charge made each year for expenses related to the Death Benefit
that is available under the terms of the rider. This charge is made at the
beginning of each policy year after the first, and at surrender, against the
Account Value allocated to the Separate Account. The amount of this charge is
shown on page 3 and is applied to the average Guaranteed Minimum Death Benefit
during the previous year. The charge at surrender will be a pro-rata portion of
the annual charge.
When this Rider is Effective
This rider is effective on the policy date and will remain in effect while this
policy is in force and before income payments begin, or until the policy
anniversary following the date of receipt of your request to terminate the
rider.
For The Life Insurance Company of Virginia,
Xxxx X. Xxxxxxxx, III
President
